Brand positioning goes beyond just the features or benefits of a product or service. It encompasses the emotional and psychological connection a brand establishes with its target audience.
In this article, we will explore the ins and outs of brand positioning. Starting with the basics, we’ll define brand positioning, move into the artistry of crafting a compelling brand positioning statement for your business and wrap it all up with real-life brand positioning examples.
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What Is Brand Positioning?
Brand positioning refers to defining and communicating the unique value proposition of a brand in relation to its competitors, as well as establishing a specific position or perception within its industry.
Its main purpose is to differentiate a brand from others, establish its relevance and credibility on the market and influence customer perceptions and preferences.
Brand Positioning vs. Value Proposition
Brand positioning and value proposition are two marketing concepts that work closely together to shape a brand’s identity and competitive advantage.
While brand positioning is about creating a distinct position in the market, the value proposition is about communicating the specific value and benefits that your brand offers to customers.
Simply put, brand positioning should lay the foundation for your brand’s identity, while the value proposition articulates the unique value and reasons for customers to choose your brand over your competitors.
To eliminate any confusion, let’s see what these concepts would look like in a fictional example.
Let’s say we have a company that manufactures and sells smartphones with a brand name – “Xerio”.
Brand Positioning
Xerio is a premium brand that positions itself as a pioneer in technology solutions in the smartphone market.
Its brand positioning focuses on being the brand of choice for tech-savvy consumers who value high-tech innovations, slick style and superior user experience.
Xerio differentiates itself from competitors by emphasizing its commitment to pushing the boundaries of technology and delivering high-quality products to their customers.
Value Proposition
The Xerio value proposition highlights its distinctive smartphone features, such as:
- Advanced camera systems
- Photonic crystal displays
- Nanotech batteries
- Liquid buttons
Xerio’s value proposition aims to provide not only functional benefits but also emotional ones, such as the pride of owning a premium device and being at the forefront of technological breakthroughs.
To sum things up, the brand positioning of Xerio establishes it as a leader in the smartphone market in tech innovation and design.
Meanwhile, their value proposition aligns with their positioning by putting the focus on delivering a superior user experience through advanced features and intuitive functionality.
What Is A Brand Positioning Statement?
A brand positioning statement is a declaration of how a brand wants to be perceived by its target audience. It captures the essence of the brand’s unique value proposition and differentiation in the market.
You use a brand positioning statement to provide a concise and cohesive summary of your products or services, highlighting how they address the unique needs of your target audience.
It should act as an internal compass, guiding your brand’s communication and marketing endeavors to align with your brand identity, purpose and values that distinguish you from your competitors.
For instance, our fictional smartphone brand Xerio would have a brand positioning statement that looks like this:
“Xerio is a visionary brand that redefines the smartphone experience through cutting-edge technology and sophisticated design. Our commitment to pushing the boundaries of innovation drives us to deliver top-notch products to our customers.
We are the brand of choice for those seeking to stay ahead in the fast-paced world of technology, offering unparalleled quality, reliability and a touch of prestige.”
How To Create A Brand Positioning Statement For Your Business
Your brand positioning statement would largely depend on your unique selling proposition and the industry you want to establish your business in.
However, you can follow these six general rules for creating a brand positioning statement to represent your business in the best light and show your audience what you “bring to the table”.
1. Set Your Vision
Your brand vision serves as a guiding principle, aligning your brand’s strategies and actions while motivating and inspiring both internal and external stakeholders.
Here is what to do when you are in the process of establishing the vision for your brand:
- Summarize what you want to achieve and the impact you want to make in the market
- Consider the long-term goals and aspirations of your brand
- Ensure that your vision speaks to the needs and desires of your target audience
2. Keep It Simple
Keeping your brand positioning statement simple is crucial for clarity, memorability and effective communication.
Here’s how to ensure you create a straightforward brand positioning statement:
- Focus on the core message: Identify the key message or value proposition you want to present to your audience and condense this message to its core components.
- Use plain language: Choose simple, straightforward language. Try to avoid technical terms, industry jargon or complex vocabulary that may confuse or alienate your audience. Use words and phrases that resonate with your audience and clearly convey the intended meaning.
- Test for understanding: Share your brand positioning statement with your target audience and ask for feedback. If they report difficulty in grasping the key message or find the statement confusing, finetune it for clarity and simplicity.
- Align your statement internally: Ensure that your entire team, from employees to stakeholders, understands and embraces your brand positioning statement.
3. Make Your Statement Unique & Memorable
A unique and memorable brand positioning statement sets your brand apart from competitors and leaves a lasting impression on your target audience. It also enhances brand recall, encourages word-of-mouth marketing and provides great storytelling potential.
Here is how to make a one-of-a-kind brand positioning statement:
- Identify the distinctive qualities, benefits or experiences that make your brand special.
- Use language and messaging that evokes emotions and connects with consumers on a deeper level.
- Ensure that your brand positioning is consistently communicated across all touchpoints, including your website, marketing materials, social media channels and more.
- Conduct thorough market research to understand your competitors’ positioning and to ensure your brand stands out and offers a distinct value proposition.
4. Remain True To Your Business’ Core Values
Remaining true to your business’ core values helps you build your authenticity and integrity and installs trust in your audience.
It is important to create a brand positioning statement that shows you “practice what you preach” and align it with your company’s fundamental principles and ethics.
5. Include What Your Brand Delivers To Consumers
You should aim to include what your brand delivers to consumers in your positioning statement and also communicate the value and benefits your audience can expect from choosing your brand.
Curious about what other branding terms are out there? Explore our ultimate branding terms glossary.
Why Is Brand Positioning Important For Your Business?
As a strategic tool that influences how your brand is perceived and helps drive success in the marketplace, your brand positioning plays an important role in your business’ overall success.
More specifically, it will help you with the following aspects of your business:
- Market differentiation: Brand positioning helps your business stand out by articulating how you are different from competitors.
- Breaking through the clutter: In a noisy marketing landscape, clear brand positioning enables effective communication with your target audience.
- Competing on value: Brand positioning clarifies your brand’s specific value proposition, highlighting how it satisfies customer needs better than competitors.
- Justifying pricing strategies: It ensures that your price point is strategic and justified, providing a clear rationale for customers to understand and accept your price ranges.
- Amplifying storytelling and messaging: Brand positioning informs your storytelling, copywriting, and messaging efforts.
- Enhancing creative design: It helps make creative decisions, such as color choices or imagery, by considering how they align with your brand’s positioning and differentiate it from competitors.
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Types Of Brand Positioning Strategy
We can typically differentiate between the following three brand position strategies:
1. Comparative
The comparative brand positioning strategy focuses on the competitive edge of your product by juxtaposing its features alongside other competing brands. This strategy aims to showcase the superiority or advantage of your brand over its competitors.
For instance, our fictional brand Xerio’s comparative strategy would highlight the superior features of their smartphones, such as advanced camera systems, photonic crystal displays, nanotech batteries and liquid buttons as key differentiators.
In a nutshell, a comparative positioning strategy emphasizes the unique value proposition of your brand compared to its competitors, whether it’s through pricing, quality, features or rewards programs.
2. Differentiation
A differentiation strategy is a marketing approach that focuses on creating a unique and distinct identity for your brand or business in order to stand out in the market.
This strategy focuses on offering something that your competitors do not or cannot offer to give your customers a compelling reason to choose your particular product.
Our Xerio brand would differentiate itself in the smartphone market through proprietary technology and attaining exclusive partnerships. It would emphasize its commitment to pushing the boundaries of technology and delivering high-quality products.
3. Segmentation
The segmentation brand positioning strategy divides the market into different groups based on their characteristics or needs. It then customizes marketing efforts to effectively target and engage each segment.
This approach helps you acknowledge that diverse consumer groups may have specific preferences, behaviors or requirements, even for the same product or brand.
For example, Xerio’s segmentation strategy could target heavy social media users by promoting features that enhance social media experiences, or business professionals by highlighting productivity tools and seamless connectivity options.
How To Establish Your Brand Positioning Strategy
Here is what you can do to establish a brand strategy that corresponds with your business’ message and values.
1. Assess Your Existing Brand Positioning
Begin by evaluating your current brand positioning in the market. Understand how your brand is currently perceived by your target audience and assess its effectiveness in meeting their needs. This step helps you identify areas for improvement or potential gaps in your positioning.
To see where you position at the moment, you can use brand reputation tools like Mention or Brand24 to get some valuable insights on how your brand looks in the eyes of your audience.
Discover how to perform a full brand audit here.
2. Research Your Competitors
Conduct thorough research on your competitors to gain information on their positioning strategies. Understand how they differentiate themselves in the market, identify their strengths and weaknesses, and analyze their target audience.
There are plenty of tools such as FactSet or Determ that can streamline your competitive research to better understand how your rivals approach their brand positioning strategies and what their unique selling propositions are.
3. Make A Comparison
Compare your brand with your competitors to identify gaps and opportunities. Analyze the gathered data to identify the key points of differentiation and understand where your brand stands out or lacks a unique proposition.
4. Define What Makes Your Brand Unique
Determine the unique value proposition of your brand. Identify the key attributes, features, benefits or values that set your brand apart from competitors. Focus on your brand’s strengths, expertise, and distinctive qualities that resonate with your target audience.
What specific value or benefit do you offer that others can’t? It could be a unique product feature, exceptional customer service or a distinctive brand personality.
5. Implement Your New Brand Positioning Strategy
Once you have identified your unique positioning, develop a comprehensive strategy to communicate it effectively to your target audience.
This involves aligning your messaging, visual identity, marketing channels and customer experiences with your new brand positioning. Consistently reinforce and differentiate your brand in all touchpoints to create a strong and memorable brand presence.
Consider your brand positioning as a puzzle that is never fully assembled. Each piece represents a different aspect of your brand, and it’s up to you to continually search for and fit those pieces together to create a clear and compelling picture.
Continuously monitor the market, track your customer feedback and adapt your strategy accordingly to stay relevant and competitive.
For full insight into how to measure your brand awareness, follow this link.
Real-Life Brand Positioning Examples
Let’s see how some of the world’s most renowned companies decided to present themselves to the world.
1. Tesla
Tesla centers their brand positioning on strength, innovation and sustainability. With a focus on electric vehicles, Tesla positions itself as the leader in luxury electric cars, setting the pace in the industry.
Under Elon Musk’s leadership, this company has repositioned itself as the forefront of clean energy technology, aligning their brand with the mission to accelerate the world’s transition to sustainable energy. This sets Tesla apart from other luxury car brands and creates a sense of purpose and impact.
One of their brand positioning statements is:
“Our vehicles are some of the safest in the world. After safety, our goal is to make every Tesla the most fun you could possibly have in a vehicle. We build features that make being in your vehicle more enjoyable—from gaming to movies, easter eggs and more. With over-the-air software updates, we regularly introduce features at the push of a button.”
Tesla
2. Chipotle
Chipotle‘s brand positioning is centered around quality and integrity in the Mexican fast-food industry.
Their tagline “Food with integrity” plays a crucial role in associating the brand with quality and resonating with health-conscious customers. It goes beyond being a mere branding message, as it reflects the brand’s internal beliefs and values.
Chipotle stands out by sourcing fresh, local ingredients and preparing meals by hand, showcasing their commitment to delivering high-quality food. This approach has garnered a dedicated customer base and brand advocates.
Their brand positioning statement sums their brand values and approach perfectly:
“Chipotle was born of the radical belief that there is a connection between how food is raised and prepared, and how it tastes. Real is better. Better for You, Better for People, Better for Our Planet. It may be the hard way to do things, but it’s the right way. “
Chipotle
3. Nike
Nike‘s brand positioning is rooted in its competitive track and field origins and commitment to innovation. While initially focused on selling running shoes, Nike’s reputation for quality and association with winning has allowed it to expand into broader athletic wear and fashion.
The iconic “Just Do It” campaign in 1987 marked a turning point for Nike, propelling them beyond the footwear business and cultivating a devoted following of individuals who share a competitive mindset.
This is reflected in their positioning statement:
“We champion continual progress for athletes and sport by taking action to help athletes reach their protentional. Every job at NIKE Inc. Is grounded in a team-first mindset, cultivating a culture of innovation and shared purpose to leave an enduring impact.”
Nike
Establish Your Brand Positioning With Digital Silk
At Digital Silk, we will take your brand positioning to the next level. We use data-backed research and expert insights to craft a unique brand strategy that encompasses messaging, positioning and visual identity.
Our team of experienced branding professionals will help you:
- Define Your Market Position: Through in-depth analysis, we determine your brand’s current market position and identify opportunities for differentiation and growth.
- Highlight Your Strengths: We uncover your brand’s unique strengths and leverage them to create a compelling brand identity that resonates with your target audience.
- Meet Customer Expectations: By understanding your customers’ needs and preferences, we align your brand offerings to meet their expectations, ensuring a strong connection and customer loyalty.
- Develop Strategic Recommendations: Our team provides clear recommendations and actionable strategies to enhance your brand positioning.
With Digital Silk as your partner, we will guide you through the process of establishing a powerful and distinctive brand positioning that drives growth and creates a lasting impact on your target audience.
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