Positioning a service

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The Big Lemon initially positioned its community bus service at the budget end of the market, and was very successful at growing market share amongst price-conscious students. However, this was later noticed by the major competitor, who responded by cutting their fares on routes competing with The Big Lemon.  The Big Lemon had to change, and change quickly.  A price-war was out of the question, as the competitors had deeper pockets and would be able to run loss-making services for longer.  After a lot of experimenting and a very difficult year, The Big Lemon stabilised its services with a slightly different model, and revised its positioning.  Now the company runs services on contract to the University of Brighton and to Brighton & Hove City Council, and has positioned itself closer to the middle of the spectrum because that is where the demand is from the funding partners.

Source: Community-Led Transport Initiatives action pack