Brand Positioning Strategy
Brand Positioning Strategy :
How To Gain Mindshare!
By Mash Bonigala
The marketplace is noisy. Brands are being created at breakneck speed. Much more than people can keep up with and each brand is creating more and more content in an effort to catch the dwindling attention of the target audience.
In such an environment, how do you make your brand stand out and capture the attention of your target market? How to create the right kind of impact that leads to sales and revenues and growth of market share?
Traditional marketing methods are becoming ineffective as people are starting to tune out advertising messages. Outbound methods of marketing are quickly starting to create the opposite effect of what the brands intend as people are starting to hate interruption and being sold to. The dawn of inbound marketing is here. Enhancing your brand image through content strategy is more important than ever!
This is where the concept of brand positioning comes into play.
What is brand positioning?
Brand positioning is the process of creating a unique position or place in your target customer’s minds that raises your brand over the competition and creates a distinct anchor that the customer will come to associate your brand with. This positioning will help move your brand to the top rung of the latter of your competitors in your customer’s mind.
To give an analogy to better illustrate this concept, image that your various competitors are the rungs of a ladder in your customer’s mind. Your brand’s position on the ladder is the position in your customer’s mind. When the customer requires a product or service that your brand offers, they reach out to the ladder to make their buying decision.
Who do they choose and why?
Being able to answer this question is critical to the success of your brand and your business. But answering this question is not that easy or simple.
All brands have a position whether they have actively tried to gain that position or not. If your brand is not actively working towards creating a position then your competitors will determine where you are positioned.
Blind spots in your brand strategy or messaging could lead to a positioning that puts your brand on a downward spiral with loss of sales and revenue. Of if you are a new brand, it would lead to a massive struggle to get any market share at all.
Brand Positioning Strategy
To address the problem of having a strong position in the minds of your customers, your brand needs a brand positioning strategy. A strategy by definition is a plan of action designed to achieve a long-term or overall aim.
The keyword here is long-term.
And that is where most brand owners bog down. Once you believe that a strategy is for quick and immediate results or gains, you will lose the benefits of a strategy.
To create a brand positioning strategy, you will have to go through the following activity steps:
- An in-depth market analysis
- A through competitive analysis
- Defining your brand’s value proposition
- Create a positioning strategy
A brand positioning strategy should be organic and should evolve over time as you start implementing the strategy and track the results.
In-depth Market Analysis
To create a brand positioning strategy you have to start with an in-depth competitive analysis. Not just a peripheral market demographics but rather an in-depth look into all aspects of the market landscape.
Start with the market characteristics
Is the market growing, stable or contracting? Are the customers actively searching for the product/service that your brand offers? Do the customers have a problem or issue that needs solving but have not realised that your product or service is the answer?
Next comes the Market Lifecycle Stage
Where is the market in terms of its lifecycle stage? Here are typically four market lifecycle stages: introduction, growth, maturity and decline. In which stage is your market in? And how do you position yourself in each stage?
- Introductory stage: If your market is in the introductory stage then you can try and become a pioneer by educating your target audience through a robust content strategy and position yourself as an authority. Your focus should be on educating the market about how the solution (product/service) that your company offers is the right solution and better than current solutions. But remember, you should focus on the solution in general and not try and market your brand too aggressively.
- Growth stage: in the growth stage, it is a rapidly growing market segment and there is a great influx of new competitors. Your target audience is already aware of the market and the products or services that solve their problem. So you can position ourself as a best of the breed. This is where you try and convince your prospects that your brand should be selected.
- Maturity stage: This is a saturated market and there are tons of competitors vying for the same piece of the flat market. Consumers most probably already have what your company sells. In this stage position your brand based on economies of scale and pricing. Your messaging should talk about how efficient and cost effective your offering is.
- Decline stage: The market may be dwindling as consumers are either not buying anymore or are moving to newer alternate solutions. If you are trying to enter a market in the decline stage, I would ask you to think twice. The positioning may involve offering discounts and price slashing to try and generate sales. Or to go innovation and move your business to greener pastures.
Finally we define Market Segments/Personas
Once you have done the market life cycle stage analysis, you get to one of the most critical aspects of any brand positioning strategy – creating market segments and/or buyer personas. I can not emphasise enough the importance of this step.
Market segmentation is critical because it enables you to understand the various opportunities and threats of that market. You may think that your product or service is a great fit for the market. But in reality, if you do not segment your market then you end up having a scatterer shot approach to your brand messaging and marketing. You would be putting stuff out there and seeing what will stick. While this may be a good strategy for some, often times, it will end up wasting valuable time and resources for startups and small businesses.
Here is a list of various market segment examples:
- Demographics: This is the most common segmentation and is based on customer traits (such as age, gender, marital status, occupation, religion, education, income and so on).
- Geographic: Based on where the target customers live your positioning strategy may vary.
- Lifestyle: Based on the hobbies and interests of your target customers, this segmentation will help with crafting targeted messaging and marketing campaigns.
- Behavioral: Buying and spending patterns can help you position your brand ideally.
- Benefit: This segment seeks to understand which benefits of your product or service would the target market mostly seek out.
Thorough Competitive Analysis
One of my pet peeves is entrepreneurs and startup founders thinking they know their competitors with out actually undertaking a thorough competitive analysis. It is easy to think that you know the competition – but knowing your competitors doesn’t just mean knowing who they are and a vague idea of their offerings. Knowing your competitors is about knowing how they are positioning themselves, their messaging strategy and a lot more.
With out knowing what mindshare your competitors own in the market, you may end up going for the same mindshare which is really difficult if your competition has done a good job of their positioning. The result is that your brand ends up wasting time, resources and money chasing after a position that you can not take in the consumers mind.
To give you a really simple example, and to show you that even mega-corporation sometimes make this mistake, look back at how Coca Cola tried to take marketshare away from Red Bull by introducing its own energy drink – while trying to occupy the positioning that Red Bull had. But Red Bull owned a significant mindshare that could not be take over due to their unique brand messaging and marketing which aligned with their target audience perfectly. In fact Coca Cola tried three time already with it’s line of energy drinks – Sprite Recharge, Lift Plus and Burn which have all failed in the past.
Look at the competitive landscape and work out the strengths of each competitors. Be sure to look at your direct competitors, indirect ones and potential future competitors. Again this is where a lot of businesses make a mistake – not being able to identify potential future threats.
- Direct Competitors – These are the obvious ones that come to mind when you think of your market segment and offer similar products or services
- In-direct Competitors – Although these companies may offer services or products that are not similar to yours, they could perhaps solve the same problem and thereby draw away customers.
- Future Competitors – These are usually large corporations who may come into your market segment and take away marketshare. An excellent example is Amazon.
Evaluate Competition and Complete SWOT Analysis
Once you have listed all your direct, in-direct and future competitors, evaluate them based on their strengths and weaknesses. Look at metrics such as quality, price, efficiency, brand strategy, messaging, marketing campaigns and mindshare.
This would be a difficult step – especially trying to understand the positing strategies but your efforts would teach a lot about your own brand and where you may need to position your brand.
Define Brand Value Proposition
Most businesses do not really understand or are not even aware of this concept. Understanding it and applying it to your business will help your business ascend to the next level like how one of our clients used the message of positiveness to stand apart from the crow. You can read more about the concept of brand value proposition in this article I wrote a while back.
Select Value Proposition
Once you have identified and evaluated your competition and tried to figure what their positioning strategy may be, it is time to look inwards and decide what value your brand would bring or is already bringing to the market.
There are three types of value propositions that you can embrace:
- Product Innovation Focus – your brand is all about innovation and hence you are claiming your position as a pioneer
- Efficiency and Pricing Focus – your brand is all about having an operational efficiency and hence being able to offer competitive pricing
- Superb Customer Service Focus – your brand is all about the customer and service and so even if you can not differentiate your product or service, you can gain mindshare.
Review Competitor’s Value Propositions (If Possible)
If possible try and review your competitors value propositions. This may be a little tricky since typically the messaging will be noisy and the proposition may not be clearly visible straight away. But if you scan thorough their websites and social media channels, you may be able to work out which of the above three your competitors are focusing on.
Create Brand Positioning Strategy
If you have done all the above steps diligently, you should now be in a great position to create a winning brand positioning strategy for your brand.
Here are a few ways you can position your brand:
- Pricing – This could be either high end like luxury brands (Louis Vuitton, Gucci etc) or it could be on the cheaper end (Zara, Mango etc)
- Quality – This is not such a great positioning angle since customer expect high quality no matter what.
- Customer Service – This one is a biggie and can really make a difference in gaining mindshare and market share (ex: Zappos)
- Performance – You are promising to outperform the competition (ex: BMW, Porche etc)
- Convenience – People really brands who offer convenience (ex: Starbucks, McDonalds etc)
- Lifestyle – This positioning will gain you a cult following and great mindshare (ex: Nike, Apple, Burberry etc)
What will you use? Perhaps it is something not listed here. Whatever it is, make sure that you think through all angles and then decide on the positioning that will get the maximum mindshare and then embrace that fully.