How to position in oversaturated markets?

ROI insights

It’s a common challenge for Australian SMEs: launching into – or trying to grow within – a market already brimming with competitors. Feeling lost in the noise is frustrating, but absolutely not a reason to give up. Effective market positioning isn’t about being ‘better’ than everyone else; it’s about being different in a way that resonates with a specific group of customers. We see businesses succeed all the time by carving out a unique space, even in seemingly impossible markets.

So, how do you do it? Here are a few key approaches we recommend.

  • Niche Down: This is often the most powerful tactic. Instead of trying to appeal to everyone, focus on a very specific segment. Think about demographics, psychographics (values, lifestyle), or even a particular use case. For example, instead of ‘coffee shop’, consider ‘organic, fair-trade coffee for busy mums’.
  • Focus on a Unique Benefit: What can you offer that others don’t? This isn’t necessarily about product features, but the overall experience or outcome. Is it exceptional customer service? Unmatched convenience? A commitment to sustainability? This benefit needs to be genuinely valuable to your target customer.
  • Competitive Frame of Reference: Don’t position yourself *against* competitors directly. Instead, define a category where you are the leader. For example, you might not be the ‘cheapest’ accounting software, but you could be the ‘most intuitive’ or ‘best for freelancers’.
  • Build a Strong Brand Personality: In crowded markets, personality matters. Are you playful and innovative? Reliable and trustworthy? Sophisticated and premium? Your brand personality should shine through in all your marketing communications and create an emotional connection with your audience.

Remember, positioning isn’t a one-time exercise. It requires ongoing analysis of your competitors, your customers, and the market trends. We anticipate that in 2026 and beyond, understanding customer data will become even more crucial for refining your positioning and staying ahead. Regularly review your messaging and ensure it continues to resonate with your target audience.

The key takeaway is this: don’t try to be everything to everyone. Identify your ideal customer, understand their needs, and position yourself as the obvious choice for *them*. If you’re unsure where to start, a comprehensive market positioning workshop can provide valuable clarity and direction.

The bottom line

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