When you search for something online, do you “search it” or “Google it?” Do you get a “photocopy” of a document or “Xerox?” Thanks to their superior brand positioning strategies, their names are synonymous with the functions they perform.
Businesses, big or small, striving for success must have an effective brand positioning strategy in place. Apart from fostering customer loyalty and improving image, brands that are consistent in presenting themselves do better in terms of revenues as well. According to a report, businesses with consistent branding saw a 10-20% revenue growth.
We will focus on the meaning and the importance of brand positioning in this article. Plus, we will explore how you can create a brand positioning strategy and explore its various types.
What is brand positioning?
According to Philip Kotler, professor, marketing guru, and author, brand positioning is “the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.”
In simple words, when the consumers perceive your brand as credible and valuable, you know effective brand positioning has happened.
The fact is that just being different from your peers is not enough to emerge victorious in the market. It takes more than just being dissimilar. A business set to conquer the market should do something extraordinarily remarkable to position its brand in the market. It could be your product or service, your mission or values, anything that makes you unique in the market. When you try to set yourself apart from the crowd, you are only competing, but when you tell people about what makes you remarkable: you position your brand.
A simple definition of brand positioning
The act of presenting and positioning your brand in the minds of the customers and potential buyers are referred to as brand positioning. The process involves more than creating a fancy one-liner or great-looking logo. Brand positioning allows you to set your brand from the rest by highlighting your uniqueness.
According to various studies, a brand presented consistently is likely to enjoy 3.5 times more visibility than brands inconsistent with their brand presentation. Let’s look at some numbers.
- 82% of consumers feel confident about a brand after reading tailor-made content.
- 94% of customers are likely to associate and maintain a loyal relationship with a brand that exhibits complete transparency.
- 73% associate with a brand because of helpful customer service.
- Brands that present themselves consistently across all platforms can expect a revenue jump up to 23%
- 44% of US consumers show their loyalty to their favorite brands by buying gifts during the holiday season.
Interesting read: 15 unique and cost-effective branding ideas for your business.
Why is brand positioning important?
Twenty-five years ago, a company launched a search engine to help people find valuable information on the internet. Today, the company has become synonymous with the function it performs—Google.
Effective brand positioning can do wonders for a company. From increasing brand awareness to justifying the price, effective brand positioning helps a company differentiate itself from the crowd and position itself in the minds of the consumers. Brand positioning can help a company in the following ways:
- Makes the brand look credible
- Fosters brand awareness
- Enhances customer loyalty
- Enables you to take control of your brand image and reputation
- Helps you communicate the brand value
- Justify pricing
While the goal of brand positioning is to position your brand in the mind of consumers, the strategies to get there may vary. Not all brand positioning strategies are the same. Your brand positioning will depend on the industry and your offering. Every brand must have an effective messaging construct or brand positioning framework to differentiate itself from its competitors.
Brand positioning framework
A brand positioning framework can be a powerful tool that can elevate your brand to unimaginable heights. Not only does this powerful mechanism enable you to distinguish your brand from the competition, but it also helps improve your sales and marketing efforts.
An effective brand positioning platform should contain the following framework of messages:
The elevator pitch aka the positioning statement
The brand positioning framework of messages should ideally begin with the brand positioning statement. The statement should be concise, which tells people exactly what you do.
Key messages
Key messages are underlining words or terms that define the elevator pitch.
Let us look at the Amazon brand positioning statement: For online consumers who want to buy various products with high-speed delivery, Amazon provides the best deals on a wide array of products to its customers. Amazon is known for delivering the best products in a quick time. Amazon’s commitment towards giving the buyers a unique online experience sets the brand apart from the competition.
The terms underlined are key messages and define the positioning statement.
Proof points
These are supporting statements that validate the key message.
For online consumers who want to buy various products with high-speed delivery, Amazon provides the best deals on a wide array of products to its customers. Amazon is known for delivering the best products in a quick time. Amazon’s commitment towards giving the buyers a unique online experience sets the brand apart from the competition.
Value proposition
The key terms should be backed by a value proposition, which would let the customers know what is in it for them.
The value proposition for the Amazon key message would be the following:
For online consumers who want to buy various products with high-speed delivery, Amazon provides the best deals on a wide array of products to its customers. Amazon is known for delivering the best products in a quick time. Amazon’s commitment towards giving the buyers a unique online experience sets the brand apart from the competition.
We live in a world where customers are hit by a tsunami of choices every day, which is why it is necessary to stand out from the competition. Creating a customized brand positioning framework of messages that could work for you is critical for your survival as a brand.
Here is an interesting video on branding and what it really means.
How to create a brand positioning strategy?
The first step towards creating an effective brand positioning strategy is to discover what makes you different from your competition. The insights you gather from exploring your brand will enable you to formulate unique and effective brand positioning strategies. The following steps will help you construct strategies unique to your brand. Let’s dive in.
Study your present brand positioning
Understanding your present brand positioning will enable you to formulate new brand positioning strategies. Not only will it help you understand your uniqueness, but it will also enable you to identify new competitors. You can start by studying your customer and their buying behavior, followed by exploring your company’s mission, vision, and values. “Moreover, you can also check the first call resolution metrics, to see how your customers interacted with your support team.”
Conduct competitor research
Once you discover who your competitors are, it is time to study them. You have to analyze them thoroughly to create a unique brand positioning strategy. Your research should include the following:
- What do they offer in terms of products and services?
- What marketing strategy are they using?
- Focus on their strengths and weaknesses.
- How have they positioned themselves in the mind of the consumers?
- How does the market view them?
Image Source: Hackernoon
Identify what makes you different
Identifying what makes you different (aka your unique value proposition) is the key to forming an effective brand positioning strategy. After analyzing your competitors, you may notice that some of their weaknesses are some of your strengths. Devising your brand positioning strategy around your newly discovered strengths will help catapult you ahead of your competitors in the market.
Build brand positioning framework
Next on the “to do” list of creating an effective brand positioning strategy is to devise a brand positioning framework. I have already discussed the steps to creating a unique framework of messages that can work for you. A brand positioning framework makes your life that much easier when you are looking to place your brand in the minds of your customers.
Create your brand positioning statement
After identifying your strengths, it is time to convey that to your customers through your brand positioning statement. Writing a couple of lines explaining how you are different from competitors and your unique value proposition is what a brand positioning statement is all about.
Connect to your customers at an emotional level
Humans are emotional beings, which is why your brand must connect with customers and potential buyers at an emotional level. While you may be eager to go for the hard sell, establishing an emotional connection with customers and prospects first makes the process extremely easy.
Interesting read: Branding ideas that blow the competition out of the water.
Customer-facing employees should personify your brand
The most valuable ambassadors of your brand are the customer-facing employees of the company. You may have created great products or services, but what use are they if the people representing your brand fail to convey the brand personality? From customers to stakeholders to prospects, everyone should experience your brand when they come in contact with customer-facing employees.
Brand positioning types
Deciding which type of brand positioning would be relevant for your brand can sometimes get cumbersome. However, understanding the three “Cs” of brand positioning can help you pick a suitable type. Let us touch upon the three Cs before exploring the various types of brand positioning.
Consumer: The first C is the consumer. As a brand, your prime focus should be on fulfilling the needs and desires of your consumers. The better a brand understands the needs and desires of the consumers, the greater is its opportunity to move past its competitors: the second “C.”
Competitors: A competitor is someone who is challenging you in the market and distinguishing his brand from yours. The better you formulate your strategies, the greater your chances of retaining the best position in the market.
Company: The objective of a company should be to maintain authenticity. An authentic brand that is honest to its customers has a greater chance of making a positive impression in their minds.
The idea behind brand positioning is to let the customers and prospects know the advantages of your products.
You can choose from the following brand positioning types that best suits your business:
Cost-based positioning strategy
One of the best ways to position your brand in the market is to present your product as the most affordable option. A large number of customers like to purchase products that will not put a dent on their wallets. When you present your brand as the cheapest alternative, you can easily convert a large number of prospects.
Quality-based positioning strategy
This category of brand positioning is exactly the opposite of a cost-based strategy. A quality-based positioning strategy focuses on quality: which is often a costly alternative.
Small-batch manufacturing, high-quality sustainable materials, and extraordinary craftsmanship are signs of a premium product that are often expensive. Generally, a quality-based positioning strategy is not for budget-conscious customers.
Utility-based positioning strategy
A utility-based positioning strategy highlights why your products or services are more beneficial than your competitors’ in terms of convenience. You can highlight the utility of your products based on ease of use, location, accessibility, and design. Highlighting the utility of your products can help you justify their higher price.
Customer service positioning strategy
How many times have you selected a restaurant, a service provider, or even a shop because of their customer service? Many times! The truth is great customer service can do wonders for a business, especially if you are in an industry that is not known for providing proper customer support. Not only does customer service help you justify a higher price point, but it also helps you establish an emotional connection with the customers.
Social media positioning strategy
This category of a positioning strategy is becoming increasingly popular because of the following reasons:
- You can use this category, along with any other type of positioning strategy you have opted for.
- You get a wider reach.
- You can convey messages at personal and group levels.
The best part of using this category of brand positioning is that you don’t have to use every social media platform. You can choose a couple your target market uses the most. Ask yourself the following questions before picking the platforms:
- Which platform do your customers use to find information?
- Where do they spend their money?
- Where do they spend their free time?
- What kind of content attracts them?
Other brand positioning strategies
While these positioning strategies can be helpful, these are not the only ones. If your brand solves a problem and creates original products, you can position your brand as the leader in the market.
Apart from this, you can directly show how you are superior to other brands in terms of quality. The best part about brand positioning is that there is no one-size-fits-all approach. You can devise your own strategy when it comes to positioning your brand in the consumer’s mind.
Famous brand positioning examples
The best companies separate themselves from the good by creating effective brand positioning strategies that put them right ahead in the market. Here are three famous brand positioning examples.
Spotify vs. Apple Music
Spotify and Apple Music have been ideal case studies for business students, entrepreneurs, and marketing gurus. Both these platforms are known for providing similar services, but they have completely different brand positioning strategies. While Apple uses a quality-based positioning strategy, Spotify’s approach is cost-based. However, Spotify’s free plan makes the platform more convenient for users.
Google Meet vs. Zoom
Google and Zoom have almost identical features; however, the differences are in the additional features they provide. While Google has more features, Zoom is ideal for meetings.
As far as their brand positioning is concerned, Google focuses on calling itself a tool, whereas Zoom’s approach is convenience-based.
Starbucks vs. Dunkin
Starbucks’ follows a quality-based positioning strategy, whereas Dunkin’ has a leader-based approach. While both the establishments have competed for decades, they are both known for serving good quality coffee. Starbucks is known for its variety and Dunkin’ for its good old cup of Joe.
Brand positioning statement: meaning
A brand positioning statement explains briefly what your company does and what separates it from the competition. The purpose of devising a brand positioning statement is to create a special place in the consumer’s mind about your brand. The value proposition you share with your consumers through the positioning statement is what makes the difference when a prospect makes his final buying decision.
A thorough understanding of the following will enable you to craft an effective brand positioning statement:
- Who are your customers?
- What is your value proposition?
- The reason for your brand’s existence
- What problems are you solving?
How to write a brand positioning statement?
The following is a simple template to get you started:
To (Target market/ Audience) __________, (Brand Name) __________ is the
(Category) __________ that (the differentiating point) __________.
Let’s take a look at each one closely.
Target audience
The first part of your brand positioning statement should address the target audience. While you may be tempted to target everyone because your product or service may be popular with different customer segments, it is crucial that you focus on the core group.
Brand name
The brand name plays a crucial role in brand positioning, which is why you must frame the positioning statement before creating the name of your new product. In case you have a name you don’t want to change, you can use the brand positioning statement to design various other things related to the product. You can use the positioning statement as a reference to create the packaging design or various branded merchandise.
Category
Selecting the category of your brand is not an easy affair. A lot of thinking has to go into selecting the appropriate brand category. For example, if you narrow down your category to coffee because your brand sells coffee powder and beans, problems would surface when you try to include tea in your brand. Selecting a broader category is a wise decision since it would eliminate the risk of limiting the brand. A coffee brand that wants to include tea in its umbrella can select the beverage category.
The differentiating point
The differentiating point is your uniqueness. It is how you want your brand to be known. The differentiating point sets your brand apart from your competitors. While mentioning the differentiating point is key when framing the brand positioning statement, you should avoid promising anything that you will not deliver.
Additional points:
- Keeping your positioning statement uncomplicated is crucial. The simpler the statement the better will be the brand reach.
- You should always deliver what you promise: it helps build brand authenticity.
- Your positioning statement must reflect your core values.
Brand positioning statement examples
Brand positioning statements are for a company’s internal purposes: the reason why it is so difficult to find one on the internet. We have created the following brand positioning statements using the template above and information available about different brands. You can refer to the brand statement examples below to devise one for your brand.
Nike brand positioning statement
For players in need of comfortable and high-quality athletic wear, Nike gives customers innovative, fashionable, and revved-up athletic shoes and apparel. We at Nike invest in the latest technologies to bring athletes the most advanced sportswear.
Coca-Cola brand positioning statement
For individuals in need of top-quality liquid refreshments, Coca-Cola provides a wide range of options. Coca-Cola differs from other brands because it focuses on bringing a positive change in the customers’ lives.
Apple brand positioning statement
For individuals looking for high-quality, top-performing computers, laptops, and mobile devices, Apple provides its customers with only the best the industry has to give. Apple only uses the latest technology in their products: making them the industry leader. Apart from focusing on innovative and disruptive technology, Apple invests in studying how its products impact the planet.
Starbucks brand positioning statement
For those looking to enjoy high-quality coffee in cozy spaces, Starbucks provides customers with the finest coffee at locations that foster the feeling of warmth and comfort. The company is known for its superior customer service and unparalleled coffee flavors.
Amazon brand positioning statement
For online consumers who want to buy various products with high-speed delivery, Amazon provides the best deals on a wide array of products to its customers. Amazon is known for delivering the best products in a quick time. Amazon’s commitment towards giving the buyers a unique online experience sets the brand apart from the competition.
McDonald’s brand positioning statement
For customers looking for a quick-service restaurant with top-quality food, McDonald’s serves exceptional meals at convenient locations all over the country. McDonald’s is the undisputed leader in the fast-food chain industry and is known for top-class customer service and consistent food quality across locations.
How you position your brand really matters
Creating a unique brand positioning strategy is the key to getting the attention of the audience and growing your business. The detailed description of various brand positioning strategies presented in the article can help you take your brand to the next level.
Business Development Manager with a demonstrated history of working in the Media and Digital marketing sector, Passionate about innovation and bringing the future into new business solutions.
