During the early stages of my career, I was working for a durables brand which was the market leader at that point in time. It had the most technologically advanced and best quality products that lasted and hence offered good value to customers. The trade margins were average but since the brand pull was so strong, customers came asking for this companies’ products and the trade had to stock and sell these products. There were a few other players also in the space who addressed the balance segments. Suddenly we had a new player who came in and started offering products at much lower prices. Not only were the prices lower, but the product also offered much better features at those prices. They also got the rights to use the name of a popular Japanese brand and with full page advertisements created a ripple in the market.
The said competitor identified a Creneau or gap where they tried to position their products and offerings to appeal to the customers. Let’s look at some interesting cases where such gaps have been used to build a product position that helped that organization to build up scale and volumes.
- The Size Creneau
Perhaps the best example that comes to mind in automobiles is the Beetle. When the trend was to go for big and flashy cars Beetle stood out simply because of its smaller size. Instead of worrying about not meeting the popular trend Beetle went about creating a position for itself based on its size.
The other two examples which come to mind readily are both based on our inherent human interest in music. The Walkman when it was first created by Sony created the first real opportunity when you could carry your music along with you.
The iPod when it came along not only digitized music and hence the scale of songs that we could carry along with us but also radically changed the music industry and it way it was operational till then including music rights etc.
2. Free Creneau
There is an earlier article that I had written about how we are induced to try something when the same is offered for free or accompanied by gifts etc. Link to the article is attached below for ready reference.
The best and most radical example which comes to mind is the way mobile data usage leap forked in India when Jio entered the market as a new player almost a decade back offering unlimited data usage. Not only did every other competitor have to match the offer it also got all of us addicted to data usage and hence the usage of data has leapfrogged to unimaginable levels.
3. High Price Creneau
The first example that comes to mind is in the field of fashion where premium brands use exclusivity as a reason to charge a very high price. The designs that they come out with are truly exclusive and the higher price strategy ensures that they continue to stay exclusive.
The second example which comes to mind are fine dining restaurants which follows the same pattern as fashion but with additional pointers like ambience and exclusivity also built in.
There are multiple types of such Creneau which once identified, and your product positioned in the right manner leads to some products and services becoming highly successful.
Finding the Creneau is the key to unlocking the right customer need … Whether it be in the mass market, luxury sector, or a specialized niche, the Creneau offers a strategic vantage point compared to other players. Yet, the journey to finding the Creneau requires a deep understanding of consumer preferences, market trends, and competitive landscapes. It demands innovation, adaptability, and a willingness to push boundaries.
To continue getting more insights on finding the right Creneau and based on the same evolving the right positioning for your products or services do subscribe to my LinkedIn page, Rejo’s Business Bytes, or my website, rejofrancis.com.
