According to HubSpot, having a brand positioning strategy is essential if you want your business to succeed. Companies that consistently implement this strategy have been reported to earn, on average, 10–20% more revenue than those that don’t.
But that’s not all—brand positioning also offers other benefits, such as strengthening brand image, increasing customer loyalty, and providing an identity that sets your brand apart from competitors.
To get a complete understanding of the strategy, read on for all the details!
What Is Brand Positioning?
A tagline and logo alone aren’t enough for customers to truly understand your product. You need something more memorable to make your product top of mind compared to competitors. The way to achieve this is through brand positioning.
Brand positioning is a reference to the unique value offered to customers. This strategy is effective for building a brand identity while communicating a product’s unique selling proposition, allowing customers to associate a brand with its value proposition.
For example, when you think of instant noodles, the first product that probably comes to mind is Indomie, right? That’s the power of this strategy. for building a brand.
What Is a Brand Positioning Statement?
To help define your brand’s position, you need to create a brand positioning statement. This statement is a concise summary that can be used to articulate and promote the value a brand delivers to its customers.
To make it easier, there’s a template like the one above that you can use. This can be very helpful for a company in determining its next steps. As for the content of the statement, it should strike a balance between aspiration and reality!
Why Is Brand Positioning Important?
Having a clear brand positioning helps you communicate the value your brand wants to deliver to customers. It starts internally with a brand positioning statement and is then implemented externally through various marketing strategies. Here are the reasons why this strategy is so important.
1. Identifying the Brand
For a company, a brand is an identity. That’s why it’s important to identify its unique qualities to attract customers’ attention.
Positioning is a strategy that defines what your product is and what sets it apart from competitors, making it the best choice.
2. Establishing a Pricing Strategy
A strong brand positioning makes your product stand out more compared to competitors. This advantage can help you set a fair and appropriate price. Depending on your market positioning, your product could be:
- a leader—the market leader that dominates the product category.
- a challenger—the contender that aggressively aims to capture a portion of the leader’s market share by seizing various opportunities.
- a follower—the one who prefers to follow the market leader while positioning its brand to stand out in its own way.
- a niche player—a smaller brand that knows it can’t compete head-on, so it focuses on a specific market segment.
3. Boosts Sales
The main goal of a brand positioning strategy is to boost sales. However, reaching this stage requires a fairly long journey.
This starts with building a strong brand identity, offering products that are relevant and meet consumer needs, and creating effective communication tailored to your target audience.
Approaches to Formulating a Brand Positioning Strategy
When deciding how to position your brand in the market, there are several options you can choose from, allowing you to tailor the right strategy to win in your market.
Here are some approaches you can use as a reference:
1. Convenience-Based Positioning Strategy
This strategy highlights why your product is more convenient to use than competitors’ products. For example, it could be easier to use, more readily available, accessible from anywhere, and so on.
This advantage can be used to set a higher price, but make sure your product truly delivers that extra convenience!
2. Price-Based Positioning Strategy
This strategy doesn’t always position a product as the cheapest on the market, although that can be one approach. In general, it focuses on aligning price with value to attract a large customer base.
The core principle is that no customer likes to waste money on purpose.
3. Quality-Based Positioning Strategy
This strategy is typically used by companies that want to emphasize product quality. Most often, it applies to premium products with exceptional quality, processes, or quantity.
4. Differentiation Strategy
This strategy aims to highlight your product’s uniqueness or innovation compared to existing options. It’s especially suitable if your target market consists of people who are savvy and value innovation.
5. Social Media Positioning Strategy
This strategy is one of the newest in the 21st century and is quite unique because marketers focus more on the channels rather than the marketing tactics. You need to be very selective in choosing the channels or platforms to ensure your message reaches the right audience effectively.
Some considerations for executing this strategy include finding out where your target market spends their time, money, and seeks information or advice.
Tips for Successfully Implementing a Brand Positioning Strategy
Regardless of the approach you choose, there are several tips to help you successfully implement a brand positioning strategy. Here are some of them:
- Be unique without overdoing it. Avoid overclaiming anything you can’t deliver.
- Being the first may add extra value, but what’s even more important is being relevant. This means you need to identify what matters most to your customers.
- At some point, you may need to adjust your strategy, but make sure to remain consistent so you have a clear direction for product development.
- Make sure everything you promise is trustworthy, or customers will be disappointed.
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