The value position is the driving force in the company that at the same time expresses the unique value that the company brings to the market. In this way the value position is the foundation for the company's raison d'être. This makes it the natural centre of rotation for all branding strategies and activities.

The philosophy
Today, 99 out of 100 products are functionally almost identical. In the value economy of the future no one will take an interest in all these 'me-too' products and companies. The winners of the future are companies that have the luck and aptitude to win ownership over a customer group through a value position that is unambiguously tied in with the company brand.

At Kunde & Co we say that, 'the value of the brand is greater than the value of the product'. It is essential that management understands what this entails. It requires change and new ways of running the company.

The logical consequence of this development is that in the future it will be the brand - and not the product - which guides the company. In the new value economy we talk about 'value positions' and not positions which traditionally are tied in with the product.

To ensure success in the future, management must identify and define the company's unique value position. Then it must let the value position be the guiding star in strategies for the company and its development. Finally, it must be able to explain and communicate its content internally and externally.

The model
In the traditional product economy the company defines itself through its products. The company's focus is therefore on how to strengthen its market position within its traditional market area through product development.

In the new value economy the company's position is not tied to the product, but to the value associated with the company's brand. Brands with a high and unique value can move across traditional market borders and into new product categories. Fashion brands are a good example of this phenomenon.

How to use the model?
By defining the value position and building high value into the brand, the company will be able to strengthen its market position by moving into new segments within the traditional market area and/or by moving into entirely new product categories.

Use the model as a starting point for a strategic discussion of which new markets the company can move into with its present value position. The model can also be used to draw up strategic scenarios for how the company's competitive situation will develop in the future. In the new value economy competition may come from entirely new angles.

Think for instance of the market for mobile phones. Five years ago there was a limited number of suppliers. Today there is a plethora of brands fighting for the customers - and even more will join. Think ahead, and make a list of who will last and who will fall. Then use this thought experiment on your own industry. The scenario may turn out to be a scary one.

The model illustrates why it is so important for the company to define its value position and start working on getting the company focused on building high value into the value position.

Read more:
Corporate Religion, Corporate Concept, Company´s personality, Brand Systems, Brand Value Chain, The books.