July 16, 2024
•
5 min read
Do you ask your friend for Chapstick if your lips are chapped? Or do you call it lip balm? If your nose is running, does the name Kleenex or facial tissue come to mind? These are examples of brands and products that have come to define entire categories… such as Band-Aid, Frisbee, and Thermos. So, how does one create a brand that becomes well-known in a category?
The answer is brand positioning.
How your brand positions itself in the marketplace and to its customers is key to building your brand legacy. Moreover, once a customer’s mind is made up, it’s practically impossible to change it. Why leave the reputation and identity of your brand up to fate? Purposeful brand positioning enables you to make smart future-forward decisions, provide solutions that answer your customer's concerns, and build a trustworthy reputation.
The market is filled with failed positioning strategies, and we’re determined to help you avoid them. Read on to learn from the wins and mistakes of other brands, as well as our tips for building a brand legacy through brand positioning.
We’re business branding experts with over 24 years of combined experience in the industry. View our portfolio here.
The 3 C’s of brand positioning are Consumer, Competitors, and Company. These will help you establish your unique market niche.
What does your consumer need to solve their current problem? You need to envision your target audience and their common pain points. (Pain points are problems that the customer needs solved).
Things to consider when determining your consumers’ pain points:
A young man in his 20s earning 35k a year will have different pain points than an older woman in her 50s taking 75k home annually.
It’s important to note that this list isn’t fully inclusive. There are many factors, such as ethnicity, lived experiences, culture, and even birth order that affect pain points. (Like the eldest daughter vs the youngest son)
You can’t win a race if you don’t know how fast your competitors are or where they are on the track. Identify your main competitors and use market research to identify their strengths and weaknesses. Think: what other options do your consumers have?
Now that you’ve analyzed other companies, it’s time to do your own. Identify your brand’s strengths and weaknesses, and use this to identify areas where you can differentiate from your competitors. Is it personality? Price point? Quality of the product? Establish your brand identity and create a message that differs from your competitors.
Also Read: A Roadmap To Creating An Inclusive Brand
To successfully utilize brand positioning on your journey to a great legacy, you should know how your brand is perceived. In the below tips for building a brand legacy, let’s ask ourselves some honest questions.
How popular is the product (or service) in its category? What does the current customer base associate with our brand? Does it align with our brand positioning statement?
Let’s look at the market positioning for an up-and-coming canned cocktail brand, Olé Cocktail Co.
When you think of alcoholic canned cocktails, these might be some of the names that come to mind.
Hard Iced Teas and Lemonades:
Hard Seltzers:
Coolers and Cocktails:
There are too many brands to list! So, when establishing a new brand in this category, it will not be as well-known as these household names, at least in the very beginning.
If your market position is lower than you would like, take action. Ask: can you make your product category more niche? How can you increase your brand’s presence?
Think of it like this: it’s better to be a well-known brand in a niche category than a small and unknown brand in a large category.
In the crowded category of alcoholic coolers, how can Olé stand out? They decided on tequila-based canned cocktails. Rather than compete with the many vodka-based sodas, gin-based drinks, and iced tea by-products on the market, they chose a more niche sub-category.
With fewer tequila-based canned drinks brands as competitors, Olé immediately has the opportunity to create a better brand position.
When we return to the 3C’s of brand positioning, we ask ourselves, “Who have we identified as our market competitors?” We wouldn’t recommend battling with a similar brand (although, we admittedly love the legendary marketing battles between Pepsi and Coca-Cola), but rather finding ways to differentiate your brand.
How do you make things better for your customers than your competition? And, how are you different from other brands?
Now that Olé’s market niche is tequila-based canned cocktails, who are their big competitors? We can think of one, Jose Cuervo Cocktails. The big-box tequila brand also has canned cocktails and a large legacy in the tequila industry. So, how can Olé compete?
The key is differentiation.
Just look at their website! Their homepage has a section dedicated to what makes them different. With a focus on real ingredients, tag names like ‘vegan’ and ‘gluten-friendly’ on their products, and the distinction that they are locally made… they attract different customers than Cuervo. This positioning is gold!
It comes across to Canadian customers as:
Do you want to shop or support local? Olé is ethically sourced and made locally in British Columbia, compared to the American-imported Jose Cuervo cocktails.
Do you want a tequila-based cocktail without artificial sweeteners and colourants? Then you want to choose us.
Read: The Importance of Brand Authenticity
Think of your brand positioning strategy like a compass… it points you in the direction your brand needs to go. We recommend creating a concise statement that encapsulates what sets your brand apart, your brand values and mission, and your target audience.
Take a look at some example templates of brand positioning statements.
For (TARGET AUDIENCE), (BRAND NAME) is the (PRODUCT/SERVICE CATEGORY), that (WHAT PROBLEM IS BEING SOLVED) so they can (LISTS THE BENEFITS YOUR CUSTOMER RECEIVES).
E.g. For pizza lovers, Papa John’s Pizza serves pizza that contains fresh, high-quality ingredients, offering better-tasting pizza than other pizza brands.
Another example might be:
For those who hate clogged shower drains, the Shower Cat is an easy-to-use hair catcher that stops hairs before they reach the drain.
Your branding statement should clearly define the brand’s ultimate purpose.
A great example of brand differentiation is Fatburger and McDonald’s. Both chains are long-lasting, with Fatburger opening in Los Angeles, California, in 1952 and McDonald’s opening in Des Plaines, Illinois, in 1955. And both brands are fast-food hamburger restaurants… so how do they differ?
Fatburger focuses on made-to-order burgers made with fresh ingredients. Food takes longer and has a higher price point. Their brand promise includes the following statement, “Every meal is cooked to order, just the way you want it – using only the freshest ingredients and traditional cooking methods (you won’t find any heat lamps or microwaves here).”
McDonald’s focuses on comfort and convenience, including a lower price point. With 24-hour locations and faster turn-around times, they attract a different customer base than Fatburger.
Fatburger would not have been as successful if it had decided to market itself exactly like the bigger name-brand McDonald’s. To keep your brand alive, you need to differentiate!
If you’re struggling with brand positioning strategy, you’re in the right place. We help purpose-driven businesses and non-profits create meaningful brands through forward-thinking website design. With over 24 years of combined experience in visual branding, website design and content writing, Spark and Pony is here to help.
Get in touch with us to book a Brand Discovery Consultation.
Read: 5 Things To Look For in a Marketing Agency
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