Brand positioning is the strategic process of assigning a brand with unique position in the minds of the target audience, or in other words, what idea the brand stands for. It determines how a brand is distinct from its competitors and defines the space it occupies in the marketplace. Effective positioning is based on the brand's core values, mission, and differentiation points.
Brand Positioning: Why It Is Important
A well-crafted brand positioning is essential for ensuring that a brand stands out. It helps the target audience quickly identify and understand what makes the brand unique and why they should choose it over competitors. A strong brand positioning fosters customer loyalty by creating an emotional connection with the audience, ensuring that the brand stays relevant over time. It also gives a direction to the whole business and innovation strategy of a brand or company.
How Your Brand Positioning Can Contribute to a Clearer Brand Strategy, Better Brand Recognition and Higher Customer Loyalty
Brand positioning plays a critical role in clarifying the brand's strategy by clearly defining its value proposition and target audience. A clear and consistent positioning enhances brand recognition, as the target audience can quickly associate the brand with specific values or solutions. Over time, this leads to higher customer loyalty, as consumers connect with the brand on both an emotional and functional level.
Brand Positioning: What Is Its Function?
The primary function of brand positioning is to create a distinct and unmistakable position for the brand in the minds of consumers, and to give a direction to the development and growth strategy. It provides a clear narrative that differentiates the brand from competitors, guiding how the brand communicates its value, mission, and offerings. This, in turn, influences marketing efforts, product development, and customer engagement.
Brand Positioning: A Real-World Scenario
Patagonia, for instance, has successfully positioned itself on its Why—"We’re in business to save our home planet." This positioning reflects Patagonia’s commitment to environmental sustainability and connects deeply with its target audience, who share the same values. On the other hand, FedEx positions itself on the How—"The world on time," emphasizing its operational excellence in delivering reliable and efficient services. Both brands have created a unique space in their markets by focusing on different aspects of positioning.
How to Define Your Brand Positioning
To define your brand positioning, start by clarifying your brand's purpose (Why) and its unique way of operating (How). Decide whether your brand will be positioned based on its mission (the Why) or its unique processes and capabilities (the How). Craft a positioning statement that clearly reflects your brand’s differentiation and connects naturally with your target audience.
Brand Positioning: Best Practice
A best practice is to position your brand based on a clear and compelling core idea rather than limiting it to a specific product or service. For example, Nike positions itself around the idea of athletic empowerment, with the tagline "Just Do It," which goes beyond their product offerings and creates a strong emotional connection with athletes and fitness enthusiasts worldwide.
Brand Positioning: What to Avoid
Avoid positioning your brand solely based on a product or service, as this can limit its potential for growth and adaptation. A product-centric positioning risks becoming outdated as market trends and technologies evolve, as seen in the case of Kodak. Instead, focus on positioning around a broader idea or mission that can grow with your brand and withstand market changes.
When to Define the Brand Positioning in the Branding Process
To ensure perfect alignment, the Brand Positioning must be defined before the Brand Values, and after the Brand Strategy Platform.
