What is Brand Positioning? Identifying, Establishing, Guidelines, Rules for Success, Repositioning

Brand positioning is a marketing strategy used by organisations to create a distinctive place of the product in the market and the minds of the customers. The concept of brand positioning was initially introduced by Al Ries and Jack Trout in the late1960s through their book ‘Positioning — a Battle for Your Mind’. They believed that brand positioning is the most important activity of brand management and a brand that is well positioned can address the important consumer benefits distinctively and convincingly.

Brand positioning is a method that is used by organisations to visually display the attributes that would be beneficial for the customers and it helps with forming their views and opinions.

Brand positioning is an important marketing strategy that requires creating a proper brand image by identifying and defining the differences and similarities for determining the right brand identity. It helps with explaining the uniqueness, similarities and other brand details with competitive brands. Positioning of the brand forms the main framework for developing and increasing the customer’s knowledge and perceptions. Brand positioning is specific, clear and distinctive and helps with setting the product apart from the competitors and provides reasons for buying and using the product.

Let us discuss brand positioning with the help of an example.

Apple’s brand positioning helps it stand out. Apple is a textbook example of a powerful brand. They are the first example given by Simon Sinek in his Golden Circle framework, asking first why, then how and what. Apple creates gorgeous, inventive computers that are unlike anything you’ve ever seen before, and then promotes them to resonate with its customers.

Apple’s brand emphasises the same attributes in their customers as they do in their products: being an Apple person means being original, imaginative, and creative. Apple excludes pricing from their branding and instead focuses on the value of their products and the connection they build with its customers.

For the success of brand positioning, it is necessary to do in-depth research for the market which is the first step in positioning the brand in the market. The research helps with understanding the markets and also provides the following information required for the market strategy of brand positioning:

• Total understanding of the needs and desires of the consumer
• Total knowledge of the competitive set
• Understanding of consumer benefits Identifying the direct competition and their standing in the market
• Defining the brand’s differentiation and developing unique selling propositions

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Need for Brand Positioning

Brand positioning is important for a firm for displaying the company benefits and the products that are associated with the business in the minds of the potential customers. The firms gain several advantages when they have a robust brand position in the market.

According to Ries and Trout, brand positioning starts with a product a piece of merchandise, a service, a company, an institution, or even a person. But positioning is not what you do to a product. Positioning is what you do to the mind of the prospect. That is, you position the product in the mind of the prospect.

The need and advantages of brand positioning are:

Effective in market differentiation

Brand positioning helps with setting the firm apart from the competitors by building a solid market position by displaying unique attributes in regards to the product. It can also be referred to as refurbishing or re-branding of the product for it to be defined uniquely and make it different from other products.

Helps to focus on a specific target market

Brand positioning is required by the firm to focus on the target market and provide information regarding the benefit through positioning. Customers perceive the products accordingly, which increases the brand value.

Measures the real strength of the brand

It measures the real strength of the brand for understanding where the business is going in the long run and as it stands in the competitive markets. Positioning of the brand helps with the understanding of the present business position and the insights help with moving the products and brand forward to reach the top position.

Information of new services and pricing

Positioning the firm and product in the market and gaining a competitive edge requires offerings of new services and appropriate pricing. Brand positioning compares the brand to the competition with their offering and it effectively provides information on the pricing strategies.

Recognition of the brand

For entering the category of brands the business entity must make them accessible to people in a manner that they recognise the brand name by the products or services offered by them. It helps with streamlining the process in a definite manner and makes the brand gain popularity.

Provides information on customer judgement

Brand positioning is effective in helping the business entity to understand how the customers judge its product in comparison to the other competitive brands. The business organisation will be faced with strong competition and it needs the right means to market the products by effectively identifying and working on brand positioning. The branding strategies help with keeping the brand in a position where it would not be affected by the fierce competition.

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Identifying and Establishing Brand Positioning

Markets today provide a large variety of products to customers and while selecting the product, customers identify the product brand and make a comparison of the product with other brands in the market. Brand identity and positioning involve selecting a particular brand, influencing the buying decision-making of the potential customers and capturing competitors’ market share.

The brand identity involves certain parameter that is fixed in nature in regards to brand vision and brand objectives. The entire process starts through strategic brand management involving a clear understanding of what the brand needs to represent and positioning the brand among the other competitive brands. The focus of brand management is to position the brand in the consumer’s mind which is beneficial for the business organisation.

Positioning of the brand in the minds of the customers involves creating brand superiority by convincing the customers regarding the advantages of the brand in comparison to the competitors and taking the opinion of their opinion in regards to the product.

As previously said, in order to build a category, we must first identify and comprehend the target client group (niche market). The basic norm is to begin slowly. The smaller the sector, the easier it is for the entire firm to focus on and address the requirements, wants, and wishes of the customers.

Phil Knight and Bill Bowerman, the founders of Nike, were also athletes. Shoes are an essential component in athletics. Bowerman had spent a lot of time with a lot of aspiring athletes, so he had a solid understanding of their demands and pain spots when it came to shoes.

In the 1950s and 1960s, Bowerman was also a well-known track and field coach. He had repeatedly encouraged his charges to adopt a winning mindset. The distinguishing criterion for victory is ‘speed,’ and the shoes played a significant influence. Unfortunately, he was dissatisfied with the shoes on the market. He frequently criticised the fact that none of the American shoemakers were interested in understanding the needs of track athletes.

The best shoes on the market at the time were made in Germany, but they featured terrible sole material. Bowerman took it upon himself to alter the current shoes to make them lighter in order to boost speed. Lightness meant fewer loads when running, and the athlete could focus all of his or her extra energy on improving speed.

At the same time, long-distance running was growing in popularity, and shoes that could withstand the race were difficult to come by. As a result, Nike’s first target category was “The Runners.” The positioning plan was “the lightest shoe on the market that would last in longer-distance running at a cheaper price than the German brands on the market.”

Brand positioning specifies how various products of the brand can face the competition and penetrate the market to create their market share while dealing with the competing brands. Positioning normally involves a specification of the key brand values by emphasising the unique characteristics of the brand, that make the brand appealing to the consumers in terms of attributes and benefits that characterise the brand.

The next step is to define what a brand represents, by creating a powerful brand statement that expresses the brand message which is an important aspect of the brand and its unique brand values. It is necessary to tailor the brand positioning strategy to the product’s competitive advantage in comparison to the products offered by the competition.

The important steps required for identifying and establishing the brand positioning in the marketplace are:

• Determining the current position of the brand and where it needs to move forward
  
  
• Understanding the markets and identifying the present and intimidating competitors
  
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• Researching and analysing the marketing strategies of the competitors and their marketing tactics
  
  
• Making a comparison of the marketing strategies of the company with competitors to check on how you stand out from them
  
  
• Creating and developing a focused and value-based marketing idea for the brand‰
  
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• Thinking of a strong brand positioning statement that establishes the strength of the brand
  
  
• Testing of the efficacy of the positioning statement with the perceptions of the customers and their recall

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Positioning Guidelines

Positioning is the foundation of any brand strategy and the brands need to have meaningful, captivating, dependable and unique positioning for the customers interacting with the brand. The brand positioning sets the business apart from the others and it promotes the image of the business and the brand statement that resonates with the target audience.

Brand positioning guidelines need to be based on:

• Highlighting what the brand offers
• Defining how the business benefits the consumers
• Differentiating the business from the competition

Brand positioning determines how the consumers perceive the brand and the positioning strategies are focussed on building strong mental associations by influencing the existing consumer perceptions among consumers.

Hence, brand positioning depends upon three important elements:

Relevance

Provides information on how the brand relates to the target market. For example, the urge to always develop and conquer is the deepest core of Nike’s tradition, which is why the brand promise, “To deliver inspiration and innovation to every athlete on the globe,” is as true today as it has ever been for the brand.

Authenticity

Being reliable with a genuine attempt to connect with the audience. For example, Nike’s legacy is deeply rooted in the desire to always develop and conquer. That is the essence of Nike’s brand, and it has been their stance since their start.

Brand promise

If the brand delivers on its promises to the customers in terms of benefits and purpose, For example, the ambition to achieve something bigger is a typical character trait that determines Nike’s success. Nike’s tradition is deeply rooted in the desire to always develop and conquer, and that is what the company offers.

According to The Cult Branding Company, A positioning statement is a one- or two-sentence declaration that communicates your brand’s unique value to your customers in relation to your main competitors.

The customers need to connect with the brands and they want to look forward to a reason to believe and be convinced with the brand offering. It is essential to create a good message for the audience by understanding how the product can satisfy their needs. Hence, it is necessary to create a definite, clear, justifiable and differentiated brand positioning statement that supports the key messages for the target audience.

For creating an effective brand positioning strategy, it is necessary to follow the guidelines of:

• Define the target market Study and analyse the present perceptions of the brand Determine the core values of the target consumers
• Do thorough research on the competitors
• Find ways of differentiating the company brand
• Define a clear and cohesive brand positioning statement
• Develop content that is authentic with the brand and resonates with the consumers

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Brand Positioning in Consumer’s Mind

The primary objective of any marketing company is to be noticed and remembered for the right reasons, and to be able to create a place in the minds of the customer. Every customer has their own needs and desires and perceptions regarding the products in the market. The goal of brand positioning is to resonate in the mind of the consumer, generating interest in the brand.

Positioning the brand exclusively and authentically helps to differentiate the branded products from the competition. To position the brand in the consumer’s mind, it is necessary to be selective and choose the segment to be targeted. There needs to be different strategies for every segment since the same strategies will not be useful in attracting the selected audience or be able to create the perception of the brand in the consumer’s mind.

For example, Coca-Cola markets its products as thirst-quenching and refreshing. Coca-Cola drinks and other items are also connected with having a good time with family and friends while going about one’s everyday activities. Furthermore, the corporation advertises its items consistently and of high quality.

Coca-Cola is one of the first brands that comes to mind when people think of high-quality beverages. The firm offers a wide variety of drinks, each of which provides a pleasant experience for customers. In contrast to other beverage companies, Coca-Cola positions itself as a product that brings enjoyment and positivity into the lives of its customers. Finally, the company’s main priority is to meet the demands and preferences of its global clients.

It is important to know how the consumers perceive the overall image of the brand and the value propositions and for that it is necessary to:

Select the target audience and create a brand positioning statement that reflects the offering of the business entity and the benefits they provide for fulfilling the needs of the consumer. The statement of brand positioning affects how the brand is perceived by the consumers that helps them in making important decisions.

The brand position is determined by the prices, functional features of the product and image in the minds of the consumers. It is necessary to analyse methods for making the brand different from the competition that should be important to create an impact on the consumer’s choice. It is necessary to make the target audience aware of the differences that should clearly show the distinctive position of the company and be able to influence the people strongly and rationally.

The next step is to choose an appropriate method of positioning that focuses on the target audience, attributes and quality of products that are priced which shows a definite comparison against the competitors.

The last step is to test the target audience’s response to the different brand positioning options and the best option can be selected which helps with minimising any form of risk or error in the selection. It helps with selecting the best approach for working on the brand for attracting the potential customers.

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Rules for Successful Brand Positioning

Business enterprises make use of brand positioning to present them in the best way possible and the brand strategy helps with carving a niche in the consumer’s mind regarding the brand in the market. A strong statement used for brand positioning helps with differentiating the company from the competitors. The key objectives used for brand positioning are:

• Relevance: The brand positioning is for the target customers who should find the brand appealing.
  
  
• Differentiation: This is the key driver of positioning success that sets the brand apart from the others in terms of its unique attributes in comparison to the competitive offerings.
  
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• Credible and attainable: This is the promise made to the customers that bring in an element of credibility for the offerings made to the customers. The offerings are in form of functional benefits that provide the customers with the products, solutions and services for catering to their needs.

Brands need to have an identity in the form of brand positioning that defines them in the minds of the customers. It is very important when creating a brand positioning strategy to keep in mind and deliver on all three positioning objectives as a commitment made by the company to its customers.

A brand must develop a place in the mind of the client in order to be successful. Mercedes, for example, has the position of a costly automobile, whereas Coca-Cola has the position of a cola soft drink. All attempts to target other positions with the same brand name end in customer confusion and losses for the firm. There may be exceptions, but the vast majority of businesses cannot afford to have more than one or two successful jobs. Brand positioning gives a clear vision with a definite message that leads to achieving the goals set by the business entity.

To create a successful brand positioning strategy, it is necessary to follow certain rules as follows:

• Conduct market research and competitor analysis: An effective brand positioning strategy involves market research, surveys and customer interviews to assess the market position of the company. It is important to analyse the market and identify the competitors and their offerings on similar products or services and know about the strengths and weaknesses.
  
  Thereafter, determine the points of parity and points of differentiation. The point of differentiation is what sets the company apart from its competitors through its unique features and attributes. The point of parity is the bare minimum requirements that are needed for offering and competing in the market.
  
  
• Create a brand positioning map: A brand positioning map helps with identifying the position of the brand in the marketplace. This can be done through a proper method of research and knowledge of the market and industry.
  
  
  
• Selecting brand position for the company: The brand position map helps with identifying the best and appropriate position for the brand. The position that offers a maximum success rate and minimum competition from other brands is the ideal position for the brand.
  
  
• Communicate the brand’s positioning of the company: The next step is creating a brand strategy by developing a brand messaging strategy by creating a positioning statement and marketing message with a visual identity. The well-designed communication strategy helps with providing a clear vision of the brand to potential customers.

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Brand Repositioning

A brand repositioning strategy is a calculated adjustment that is made to update the status of the brand, personality, associations and the key message while retaining an uninterrupted and recognisable identity. It includes changing the marketing mix, in the form of product, place, price, and promotion, to keep up with the needs and desires of the customers.

Spotify, as a streaming platform, was already well-positioned to cater to music enthusiasts looking for at-home entertainment during lockdowns. However, when advertising income fell in 2020, the Swedish firm, which has a significant free user base, was forced to change quickly.

Spotify opted to follow in the footsteps of Netflix and create original content, reinventing itself as an influencer with exclusive celebrity podcast arrangements. This plan paid off, as Spotify’s ad income increased 9 per cent year on year to $185 million in the third quarter. Spotify purchased podcast advertising and publishing start-up Megaphone in November, allowing marketers to target listeners via Spotify’s original podcasts.

When the growth of a company stalls, the customers do not connect with the company and competitors are moving ahead. In those circumstances, brand repositioning offers a new growth path to move forward. Hence, organisations reposition themselves to keep up with the changing trends and evolving needs of the customers.

There are combinations of several factors that show signs of the downslide of a company in the form of:

• A downward trend in sales and lessening of the core audience
  
  
• Target different audience
  
  
• Changing trends and industry shakeups in form of newer technologies, competitors, business models and more
  
  
• Change in marketing strategy or a disconnect between marketing messaging and the perceptions of customers
  
  
• Uncoordinated product lines with outdated brand messages and the sales are trending downwards
  
  
• Out of date value proposition for the current culture or market and the competitors are offering better value
  
  
• Lack of brand appeal
  
  
• Need to move away from negative associations

Brand repositioning should be done in a manner that occupies a distinctive place and value in the target customer’s mind with a differential advantage. The repositioning strategy offers more up-to-date market conditions with a better understanding of the competitive market and provides a better and more enhanced competitive advantage.

The advantages of repositioning a brand are:

• Refocused target audience
• Enhanced competitive advantage
• Building fresh perception

Organisations can adopt four-way strategies for repositioning a brand which can be done through:

• Image repositioning: In this method, repositioning the organisations work towards changing the image of the brand or the product while keeping both the target market and the product unchanged.
  
  
• Product repositioning: Using this strategy, the product is changed while the target market remains the same.
  
  
• Intangible repositioning: Using this strategy, the company can target a different market with the same product for presenting the product to a wider range of customers.
  
  
• Tangible repositioning: This is a very risky method used as an organisational positioning strategy where both product and target market are changed. It allows the company to present the product to newer markets where this new product can be received better.

Case Study: Netflix “connecting People With Stories”

Although Netflix appears to be a relatively new phenomenon, it was initially introduced in 1997. It is a perfect example of a corporation that successfully navigated the digital revolution. Netflix evolved from a movie rental service that mailed DVDs in envelopes to being the dominant player in the Video on Demand (VOD) industry. Netflix is now not just the largest video streaming provider, but also one of the most important content creators. It bills itself as the world’s most popular streaming entertainment provider.

Despite changes in commercial strategy, Netflix’s primary premise has been consistent for years: “movie enjoyment made simple.” Everything Netflix does must contribute to both increased user engagement (which implies a focus on great content but also the use of sophisticated algorithms to help people find titles that they are likely to enjoy) and convenience of use (Netflix’s UX and multi-device availability being constantly improved).

Recently, the organisation redefined its mission as “connecting people with stories” and began highlighting the importance of stories in people’s lives (Stories move us as they make us experience more emotions, perceive fresh viewpoints, and become more connected to one another.