There’s a tool I use quite a lot to remind myself of how market positions work, and how a market position should be a conscious choice. That tool is Bowman’s strategy clock.

In order to take a relatively dry topic like explaining the various market positions on the Bowman and make it interesting, I decided to combine it with one of my other favorite things – beer.

So, here’s how to drink your way to a market position.

Let’s start in the lower-left corner, with Olde English 800 3.2, which has the dubious honor of being rated by RateBeer.com as the worst beer on Earth. With that rating and the 3.2′s really low alcohol content, I’m going to assign it a low perceived value. It also tends to be really cheap. The low price, low value market position is generally segment-specific. The target segment here is people who just want lots of beer, cheap, to get wasted. There is no expectation of added value (flavor, for example) in this segment.

As we move up the perceived value axis, we come to Budweiser, one of the bestselling beers in the world. Because of the extremely high volumes of production and delivery efficiencies, Anheuser-Busch is able to offer Budweiser at a discount price compared to others in the segment. And since pretty much every beer drinker has at least experienced Budweiser, the perceived value is middle of the road.

Going further up the value axis to Heineken, we reach the hybrid stage. Heineken, also a volume producer, can produce beer at a relatively inexpensive price. Here in the US, Heineken and Budweiser are generally similar in price. However, Heineken, as an import, and because of it’s “premium” marketing, generally has a higher perceived value than Budweiser and other mass-produced US domestic beers.

Moving to the right to Sam Adams, price starts to increase, while perceived value remains high. Any number of beers might have fit in this space, but I chose Sam because it’s relatively well-known. Sam Adams generally is offered at a premium price compared to other beers, and generally has a higher perceived value because of its stronger and better flavor, as well the Boston Brewing Company’s offer of a number of varieties under the brand. It has differentiated itself from other beers well enough to warrant the price premium.

Going all the way to the upper-right corner, I’ve placed the relative unknown Innis & Gunn, a microbrewed super-premium beer that commands a pretty extraordinary price as beers go. It’s also very difficult to find. Innis & Gunn has created enough differentiation to a particular segment, the beer snob, to warrant a premium price. There are also a number of beers that would fit in here, including many of the American microbrews.

The Fail Zone is an interesting place. Continuing to come around, there’s average perceived value at a high price. While this can be a successful short term position to gain margin, eventually you’ll have to drop the price or risk losing market share. The high price & low value position really can only be achieved in a monopoly situation. The low value & standard price has the same risk and reward equation as the average value and high price. It’s possible to do this in the short term, but with a high risk of losing market share.

Hope you enjoyed drinking with me!