Australian small and medium enterprises often face an uphill battle against larger, more established competitors. But challenging industry giants isn’t about matching their scale; it’s about strategically positioning yourself to appeal to a specific, underserved segment. As we look towards 2026, this becomes even more critical with continued market consolidation.
Traditional positioning – focusing on broad benefits like ‘quality’ or ‘value’ – simply won’t cut through the noise. Giants already own those spaces. Instead, successful SMEs will need to employ more nuanced tactics. Here are a few key approaches we’re seeing gain traction.
- Niche Specialisation: Become the absolute best at serving a very specific customer need. Think beyond demographics and focus on psychographics – values, lifestyle, attitudes. A local bakery focusing solely on gluten-free, vegan options is a great example. They aren’t competing with every bakery; they’re dominating a niche.
- Experience Positioning: Giants often struggle to deliver personalised experiences. SMEs can leverage this by building a brand around exceptional customer service, community engagement, or a unique buying process. This creates emotional connections that price or product features alone can’t match.
- Values-Based Positioning: Increasingly, Australian consumers are choosing brands that align with their personal values. If your business prioritises sustainability, ethical sourcing, or local manufacturing, make that central to your positioning. Authenticity is key here – it needs to be genuinely embedded in your business.
- Disruptive Business Model Positioning: Sometimes, challenging a giant means changing the rules of the game. This could involve subscription services, direct-to-consumer sales, or innovative delivery models. Think about how smaller players have disrupted the finance sector with buy-now-pay-later options.
The key to all these tactics is a deep understanding of your target customer. Thorough market research, including customer interviews and competitor analysis, is essential. Don’t try to be everything to everyone. Focus on owning a small, but profitable, piece of the market. By 2027, we anticipate that SMEs who successfully implement these positioning strategies will be best placed to thrive, even alongside larger competitors.
To start, we recommend conducting a positioning workshop to clearly define your ideal customer and identify opportunities to differentiate your brand. This will form the foundation for a targeted marketing strategy that delivers real results.
