Commoditised products – things like fuel, basic groceries, or even some business services – present a real challenge for Australian SMEs. When what you sell is largely indistinguishable from the competition, competing on price alone is a race to the bottom. Fortunately, effective positioning strategies can help you stand out, even in crowded markets. We’ve seen these work consistently for our clients.
The core idea is to create a perceived difference in the mind of the customer. This isn’t about *actually* being different – although that’s great if it’s possible – it’s about how customers *perceive* you. Here are a few approaches we recommend:
- Focus on Niche Expertise: Become the ‘go-to’ for a very specific segment. Instead of ‘accountants’, become ‘accountants for tradies in Western Sydney’. This allows you to tailor your messaging and service, building authority and trust within that niche.
- Build a Brand Story: People connect with stories, not features. What’s your company’s origin? What values drive you? A compelling narrative can create an emotional connection that price can’t overcome. Think about local businesses that emphasise their community involvement.
- Exceptional Customer Experience: This is a powerful differentiator. Consistently exceeding expectations in service, responsiveness, and ease of doing business can build loyalty and positive word-of-mouth. Consider how businesses like Costco have built success on membership and in-store experience.
- Convenience and Accessibility: In today’s busy world, making things easier for customers is hugely valuable. This could mean extended hours, mobile services, streamlined online ordering, or faster delivery.
It’s important to remember that positioning isn’t a one-time exercise. It requires ongoing communication and reinforcement. Your website, advertising, social media, and even your customer service interactions should all consistently reflect your chosen position. We often advise clients to revisit their positioning annually to ensure it remains relevant and effective, particularly as market dynamics shift.
Ultimately, successful positioning for commoditised products isn’t about being ‘better’ – it’s about being *different* in a way that resonates with your target audience. The next step is to clearly define your ideal customer and then analyse what truly matters to them beyond just price. From there, you can start building a positioning strategy that delivers real results.
