What is brand positioning, and how is it crucial to your business?

What brand positioning really means

Brand positioning is the process of carefully crafting the position you want your brand to occupy in the minds of your customers. It’s about identifying what makes your brand unique and why customers should choose you over competitors. And there’s no limit to the things that can make your brand unique, big or small—it might be the quality of your product or service, the distinctive way you talk, the way you make your customers feel, the level of your customer service etc. 

At the end of the day, effective brand positioning consistently communicates the distinct value (whether tangible or intangible) your brand offers, and aligns it with the needs and desires of your target audience.

Perception vs. reality in branding

It's important to note that brand positioning is about perception, which can sometimes differ from reality. How customers perceive your brand might not always align with how you intend it to be perceived. Therefore, a key part of brand positioning is ensuring that your intended message is effectively communicated and resonates with your audience.

Why is brand positioning important?

Simply put, it’s all about differentiation: In a crowded world, standing out is vital. Brand positioning helps you differentiate your brand from competitors by highlighting unique attributes and benefits.

Creating a unique identity

Differentiation is critical in today's competitive landscape. Without a distinct identity, your brand risks becoming lost among countless competitors, and never deeply connecting with the right audience. Effective brand positioning emphasises what makes your brand uniquely worthy of your customers’ time and attention, whether that’s through innovative products, exceptional customer service, or a compelling brand story.

Crafting your own unique brand identity

How people see your brand is all about your brand positioning. But to make a good impression, you need a solid brand identity. This is the heart and soul of your brand—its personality, values, and what customers experience. When people interact with your brand, they form an opinion based on these things. A strong brand identity helps make sure that opinion is positive and matches what your brand is all about.

How a strong brand positioning can give you a competitive edge

Shape customer perception

• Effective brand positioning shapes how customers view your brand, creating a clear and positive image in their minds.
  
• It helps establish your brand as the preferred choice, making it easier for customers to choose you over competitors.
  
• By influencing customer perceptions, strong positioning drives purchasing decisions and boosts your market share.

Influence customer preferences

• Strong brand positioning aligns your brand with the needs of your target audience, making it their go-to choice.
  
• It fosters brand loyalty by encouraging repeat business and turning first-time buyers into long-term customers.
  
• Enhancing your brand’s messaging, visuals, and overall customer experience increases its appeal and preference in the market.

Enhancing brand equity

Positive brand perception enhances brand equity, which is the value derived from consumer recognition, trust, and loyalty. High brand equity translates to customer preference, willingness to pay a premium, and advocacy, all of which contribute to long-term business success.

Maintaining brand integrity

Consistency in brand messaging is crucial for building a cohesive and recognizable brand image. When your messaging is consistent across all touchpoints, it reinforces your brand’s identity and makes it easier for customers to recognize and remember your brand.

Avoiding confusion

Inconsistent messaging can confuse customers and dilute your brand’s impact. Ensuring that all communications reflect the same values, tone, and visual identity helps maintain clarity and strengthens brand recognition.

Building emotional connections

Effective brand positioning creates emotional connections with customers. When customers feel a strong emotional bond with your brand, they are more likely to remain loyal and advocate for your brand. These emotional connections are built through consistent, authentic, and meaningful interactions.

Encouraging repeat business

Customer loyalty is the cornerstone of long-term business success. A well-positioned brand provides a compelling reason for customers to keep coming back, driving repeat business and increasing customer lifetime value.

Key elements of brand positioning

1. Identify & segment your target audience

• Understand who your ideal customers are.
• Identify their needs, preferences, and pain points.

Audience analysis

Understanding your target audience is the first step in effective brand positioning. This involves identifying the demographics, psychographics, and behavioural characteristics of your ideal customers. Tools like surveys, focus groups, and social media analytics can provide valuable insights into your audience’s preferences, needs, and challenges.

Customer segmentation

Segmenting your audience based on different criteria allows you to tailor your messaging and offerings to specific groups. This targeted approach ensures that your brand resonates more deeply with each segment, increasing the effectiveness of your marketing efforts.

2. Conduct a market analysis

• Analyse your competitors to identify gaps and opportunities.
• Understand the competitive landscape and find a unique space for your brand.

Competitive landscape

Conducting a thorough analysis of the competitive landscape helps you understand where your brand stands in relation to others. This analysis includes studying your competitors’ strengths, weaknesses, opportunities, and threats (SWOT analysis). Understanding the competitive dynamics allows you to identify gaps and opportunities for differentiation.

Identifying market gaps

Look for unmet customer needs and areas where competitors fall short. These gaps present opportunities for your brand to offer unique value and position itself as a better alternative. By addressing these unmet needs, you can attract customers who are dissatisfied with existing options.

3. Figure out what your USPs are

• Define what sets your brand apart from competitors.
• Highlight the unique benefits and features that only your brand offers.

Crafting your USP

Your USP is the unique benefit that sets your brand apart from competitors. It should be clear, compelling, and resonate with your target audience. A strong USP communicates the distinct value that only your brand can offer, making it a key component of your brand positioning strategy.

Examples of effective USPs

For instance, Dollar Shave Club’s USP, “A great shave for a few bucks a month,” clearly communicates their value proposition of affordable, high-quality razors delivered to your door. This USP differentiates them from traditional razor brands and appeals to cost-conscious consumers.

4. Communicate what your brand promise is

• Communicate the core value that your brand consistently delivers.
• Ensure that this promise resonates with your target audience.

Delivering on your promise

Your brand promise is the consistent value that your customers can expect from your brand. It should be clear, compelling, and reflect the core values and mission of your brand. A strong brand promise builds trust and loyalty with your customers by consistently delivering on its commitments.

Examples of brand promises

For example, FedEx’s brand promise, “When it absolutely, positively has to be there overnight,” emphasises their commitment to reliability and speed. This promise reassures customers that they can depend on FedEx for urgent deliveries, building trust and loyalty.

5. Define your brand attributes

• Identify the characteristics that define your brand’s personality.
• These could include qualities like innovation, reliability, or luxury.

Defining brand attributes

Brand attributes are the characteristics that define your brand’s personality. These attributes should align with your brand’s values and resonate with your target audience. Examples of brand attributes include innovative, trustworthy, friendly, and luxurious.

Aligning attributes with values

Ensure that your brand attributes are consistent with your core values and mission. For instance, if your brand values innovation, your attributes should reflect qualities like creativity, forward-thinking, and cutting-edge technology.

6. Craft your positioning statement

• Create a concise statement that encapsulates your brand’s unique position.
• This statement should clearly convey what your brand stands for and why it’s the best choice.

So, how do you craft your positioning statement?

A positioning statement succinctly captures your brand’s unique position in the market. It should clearly convey what your brand stands for and why it’s the best choice for your target audience. A strong positioning statement guides your marketing efforts and ensures consistent messaging.

Elements of a positioning statement

A well-crafted positioning statement includes the following elements:

• Target Audience: Who you are addressing
• Frame of Reference: The category in which your brand competes
• Point of Difference: The unique benefit or value your brand offers
• Reason to Believe: The proof that supports your claim

Developing a brand positioning strategy

1. Research and analysis:

Conduct market research to understand your audience and competitors.

Use surveys, focus groups, and data analysis to gather insights.

Gathering insights

Conducting thorough research is the foundation of a successful brand positioning strategy. Use various research methods such as surveys, focus groups, and data analysis to gather insights into your audience’s preferences, needs, and challenges. Additionally, analyse your competitors to understand their positioning and identify opportunities for differentiation.

Analysing data

Analyse the data collected from your research to identify patterns and trends. This analysis helps you understand what your audience values most and how you can position your brand to meet those needs effectively.

2. Define your positioning:

Based on your research, identify the key attributes that differentiate your brand.

Craft a positioning statement that succinctly conveys your unique value proposition.

Identifying key attributes

Based on your research, identify the key attributes that differentiate your brand from competitors. These attributes should align with your brand’s values and resonate with your target audience. By highlighting these unique attributes, you can position your brand as the preferred choice.

Crafting the statement

Craft a positioning statement that succinctly conveys your unique value proposition. This statement should be clear, compelling, and reflect your brand’s core values. A strong positioning statement serves as a guiding principle for all your marketing efforts.

3. Align your messaging:

• Ensure that all marketing and communication efforts reflect your brand positioning.
• Consistent messaging across all channels reinforces your brand’s position in the market.

Consistency is key

Ensure that all marketing and communication efforts reflect your brand positioning. Consistent messaging across all channels reinforces your brand’s position in the market and enhances brand recognition. This consistency builds trust with your audience and strengthens your brand’s identity.

Creating guidelines

Develop brand guidelines to ensure that all communications reflect your brand’s values, tone, and visual identity. These guidelines serve as a reference for your team and external partners, ensuring consistency in all marketing efforts.

4. Implement and monitor:

• Roll out your positioning strategy across all touchpoints, including your website, social media, advertising, and customer interactions.
• Continuously monitor the effectiveness of your positioning strategy and make adjustments as needed.

Implementation

Implement your positioning strategy across all touchpoints, including your website, social media, advertising, and customer interactions. Ensure that your brand’s messaging, tone, and visual identity are consistent across all channels. This creates a cohesive brand experience that resonates with your audience.

Monitoring and adjustment

Continuously monitor the effectiveness of your positioning strategy and make adjustments as needed. Use performance metrics such as brand awareness, customer engagement, and loyalty to gauge success. Be prepared to adapt your strategy based on market trends and feedback.

Examples of strong brand positioning

Apple

Apple is positioned as a premium, innovative technology brand that offers cutting-edge products with a sleek design. Their positioning emphasises simplicity, elegance, and superior user experience. This strong positioning has helped Apple build a loyal customer base and maintain a competitive edge in the technology market.

Nike

Nike is positioned as a brand that empowers athletes and promotes a lifestyle of fitness and determination. Their “Just Do It” campaign encapsulates their brand’s spirit of motivation and perseverance. Nike’s positioning resonates with athletes and fitness enthusiasts, making them a preferred choice in the sportswear industry.

Starbucks

Starbucks is positioned as a premium coffee brand that offers a unique, high-quality coffee experience in a comfortable and inviting environment. Their positioning emphasises not just the quality of their coffee but also the overall customer experience. This strong positioning has helped Starbucks build a loyal customer base and expand globally.