Examples of strategies

Made by:

Market Leader A company with the largest market share. Market leaders

need to invest heavily in building sales through increasing market demand for their products, and also need to promote and advertise heavily to stop competitors stealing their share. The high volume sales of the market leader enable them to be profitable despite the need to invest heavily in their brand. 

Market Cap $173.05 B

Sales: $48.02 B

The Company owns or licenses and markets more than 500 nonalcoholic beverage brands

Forbes Lists#3 World's Most Valuable Brands

Market Challenger A company which is trying to secure share from a strong

market leader. They need to invest very heavily to gain share and have a very focused growth strategy. Inevitably, profitability of a challenger company is lower than the market leader due to competitive investment required. This position is usually limited to large global players who have the capital required to build market share over a long period.

Pepsi trying to take share from Coca Cola

Pepsi is the second largest brand in the world of soft drinks

Market followerA market follower position can be profitable as it may be

possible to take a share of the large market created by the market leader, for example by copying the brand leader at a lower price, or making something better or cheaper.

VSVS

Market NicherThis is when a company targets a small segment of a large

market. Launching a product into a niche market is far cheaper than launching a mass-market product. Potential customers are easier to identify and to target.

An egg company may develop eggs which are enriched with Omega 3 – this is a niche segment which will not be sufficiently profitable for a large company to invest in, but can represent a significant volume and high value for a small company.