It has been observed that middle market companies are crumbling, and start-up companies are crusading for a position as market dynamics are disrupted. At one end, the middle market segments that are scaling up continue to expand their footprint and influence; yet at the other end, the middle market is fragmenting further, and startup brands are battling for a larger portion of the market share as these fluctuations occur. While this is advantageous for the position of the startup, it leaves the position of the middle market company at risk as the fighting for a market per centum continues. In effect, the stability of the middle market position no longer exists. This market reality leaves most brands not knowing what paths to take; however there are five effective and viable options that are proven to work. Of these options, two options take the path of growing smaller while heightening profits, and three options focus on scaling larger.
Global Strategy for Scaling Up
Executing a global strategy places emphasis on attaining presence and eminence on the world stage. It can include a phased approach that looks to dominate areas of the globe in regions, or it can focus on rapidly growing across the entire world. Some companies set their sights on being a world eminent brand right from the start. This approach works well to disrupt the environment in markets where the traditional focus has been mostly local or national. Brands can succeed at thriving on a global scale when they center their activities on a world perspective, and associate themselves with events and campaigns that heighten their global influence.
National Strategy for Scaling Up
While the appeal of dominating on a global scale may be enticing, the market data shows that some middle market and start-up brands are growing at twice the rate of their globally focused counterparts when they give attention to national and local market segments. The brands that are successful with a national and local focus account for the majority of consumers’ purchases in their regions and tend to rise to be particularly more relevant in areas such as Asia and emerging South America. The successful brands in these markets utilize their closeness to the consumers to engage and develop a strong sentiment of brand insistence or loyalty. Effective middle market and start-up brands in this space use the national and local growth strategy because they understand the underpinned accents of consumer accessibility and habit. Doing this allows them to expand quickly by identifying and responding to consumer demands such as new flavors, product variations or marketing campaigns with a local or regional slant.
Rival Strategy for Scaling Up
Middle market and startup brands that find themselves stuck in the mediocre ranked position of four through six can use the rival strategy within reason to propel themselves to the top of the market. These brands are here to revolutionize and disrupt the market to the benefit of the consumer. For example, T-Mobile’s “Uncarrier” campaign challenged its industry by beleaguering the preexisting business model of mandating consumers to have a contract. By doing this, they gained 22 Million new subscribers and propelled themselves from a mediocre middle market telecom brand to a market leading position. Brands such as this make the brand more human by building in more personality and clarity of purpose.
Niche Strategy for Scaling Down while Increasing Profit
As the world is seeking for brands to move back to an authentic and particularly artisan vantage point, the opportunity exists for middle market brands to scale down and increase profits. Startups can also use this approach to pivot from their strategy of large scale and mass acceptance. Brands should look to this approach to demonstrate their ability to pay attention to detail and masterfully execute their product offering. They should also look to deliberately self-limit their scope to do one or two things exceptionally well. Doing this will reposition the brand to have a perspective and expertise that will manifest in a reputation for superior craftsmanship or rare and unparalleled execution.
Cult Strategy for Scaling Down while Increasing Profit
Many startup brands choose to operate under the radar, which could be a useful strategy for middle-market brands in order to scale down and focus on their core consumer base. Doing this develops a “found” rather than a “marketed” brand, and they are set apart from the mainstream. As a result, these brands produce a passionate group of consumer fans and an exclusive culture that remains largely unknown to the masses. These activities are what develops the cult brand mentality, one that centers on exclusivity and brand integrity.
Middle market and startup brands can choose any one of these five strategies in order to grow and scale their business. However, choosing only one strategy may not necessarily be the most effective approach. Brands can also choose to incorporate multiple strategies to use to their advantage. Doing this moves the brand beyond simple brand management into the management of brand systems. Brand management systems can utilize the intimacy of downscaled, higher profit strategies along with the broader approaches for scaling up. Whether you select a single strategy or system, the implementation must remain centered on the overall brand message, management, and identity.
