Brand positioning: what it is and how to define it for your company

Brand positioning is a term that may sound technical, but it's actually one of the most powerful marketing tools available to your business. It's not just about having a catchy logo or a memorable slogan; it's about build a clear and specific image in the consumer's mind, differentiating your brand than others on the market.

Imagine for a moment that you're in a supermarket, choosing between different brands of cereal. Each box has its own look, communication style and message. Some may seem healthier, others tastier, and some even exciting for children.

What is happening here is a simple but striking phenomenon: brands are competing for space in your mind. They want to be your first choice, the one you automatically pick up off the shelf. This mental space is exactly where brand positioning operates.

Understanding what brand positioning is and its benefits is crucial for any business that wants to get its brand noticed and remembered by customers for the right reasons.

A good position:

• defines how your company is perceived in the sector;
• influences purchasing decisions;
• creates customer loyalty.

What is brand positioning?

A brand positioning strategy is a set of characteristics studied and selected to give a unique and significant image in the customer's mind in relation to competitors.

These characteristics may include:

• how that brand communicates with the consumer;
• how it presents itself (its packaging, its website, its colours);
• the price it offers;
• the characteristics of the product or service;
• your value proposition;
• the benefits of your offer;
• its distribution
• the target audience;
• the history of your company/brand.

In other words, it's about how your brand is perceived and where it fits into the consumer's scale of values and decision-making criteria. Positioning the brand means ensuring that it has a competitive advantage clear and that occupies a preferential place in the hearts and minds of customers.

Brand positioning is part of the branding. In other words, it is a set of strategic characteristics that a business develops to give the brand its own identity: name, slogan, logo, colours, typography, sound, competitive differentiations, values, history, etc.

To illustrate, think of mineral water brands. Although the water itself doesn't vary much from one brand to another, consumer perceptions differ widely. Brands such as Evian and Perrier, for example, establish themselves as premium and associate their images with luxury and excellence, while other brands focus on aspects such as affordability or environmental sustainability. This distinction is what drives consumer preferences and choices.

What is the purpose of brand positioning?

Brand positioning is essential because it defines how your company will be seen and remembered in the market. When a brand positions itself effectively, it can influence purchasing decisions and improve customer loyalty. Proper positioning helps to communicate the brand's unique values and benefits, making it more attractive.

What are the benefits of brand positioning?

• Differentiation in a competitive marketIn a saturated industry, brand positioning helps businesses stand out. If consumers see something unique and valuable in your brand, they are more inclined to choose it.
• Customer loyaltygood positioning creates a brand identity that resonates with the audience, which in turn leads to repeat purchases and brand loyalty.
• Internal alignmentWhen a brand has a clear positioning, this also benefits the company's employees. They better understand its mission and values and can align their actions and communications to reflect this understanding.
• Premium priceA strong positioning can allow your brand to charge higher prices because consumers perceive additional value.

What are the types of positioning?

There are different types of brand positioning, and each one is different. defined according to the company's strategy to stand out in the market and in the consumer's mind. Here are some of the main types of positioning:

1. Brand positioning by price

This type of positioning is based on the cost of the good or service offered. The company establishes itself as the most affordable choice (low value) or as a premium brand (high value).

• Low value: The company attracts consumers who are looking for savings. Example: discount shops or generic product brands.
• High value (premium)The brand differentiates itself by offering exclusive, high-quality products or services with greater perceived value. Example: luxury brands such as Rolex or Gucci.

2. Brand positioning for competitive advantage

In this positioning, the company emphasises the differentials that make it superior to its competitors. It could be the quality of the product or service, innovation, customer service or any other factor that puts it in a stronger position in the market.

• Innovationbrands that constantly launch new merchandise or revolutionary technologies. Example: Apple, which positions itself as a leader in technological innovation.
• Superior quality: companies that emphasise the durability, efficiency or excellence of their items. Example: Mercedes-Benz in the automotive sector.

3. Brand positioning by target audience

In this case, the brand adapts to the needs and desires of a specific group of consumers. Segmentation can be based on demographics, lifestyle, purchasing behaviour, etc.

• Luxury segmentservices or goods aimed at high-income consumers who value exclusivity and status. Example: brands such as Louis Vuitton or Prada.
• Youth segmentcompanies that develop offers and marketing campaigns aimed at young and trendy audiences, such as Nike or Red Bull.

4. Brand positioning through the value proposition

In this type of positioning, the brand emphasises the value it offers the consumer, which can go beyond price, such as practicality, speed or convenience.

• Conveniencecompanies that position themselves by the ease of access and practicality they offer. Example: Uber, which presents itself as a convenient transport solution.
• SustainabilityPatagonia: brands focused on ecological practices and social responsibility, attracting conscious consumers. Example: Patagonia, with a strong emphasis on sustainability.

5. Brand positioning through emotion or lifestyle

The company aligns itself in such a way as to create an emotional connection with its consumers, selling not just a commodity, but a lifestyle or a set of values.

• Lifestylebrands that are part of their consumers' identity and reflect their values and aspirations. Example: Harley-Davidson, which sells a lifestyle of freedom and adventure.
• Emotional experiencebrands that create a unique sensory or emotional experience. Example: Disney, which positions itself as a magical place that brings joy and unforgettable memories.

6. Positioning through specialisation

In this case, the company positions itself as a specialist in a specific niche, being recognised for its expertise in a particular field or type of product.

• Market expertbrands that stand out in a specific niche with highly specialised goods or services. Example: GoPro, known for its action cameras for adventurers.

How do you position a brand?

Define the brand's vision, mission and values

Vision

A brand's vision answers the question: what positive impact do I want to have on the world in the long term?

Nowadays, brands can no longer have selfish visions that are solely for profit. To connect deeply with your target audience, they need to exist, work and live for them and for their good.

Businesses like Microsoft, for example, have a vision of "empowering every person and every organisation on the planet to achieve more". This vision helps you stay focused on what's important over time and not get lost. It may not seem like it, but knowing where you want to go allows you to focus on actions that go in that direction.

Mission

The mission answers the question how do i get to the goal of my vision?

This is a short statement that articulates the company's fundamental purpose. The mission defines why the company exists and who it serves.

If your vision is: that every human being realises the value they have

your mission could be: offer cosmetics that promote skin care, allowing you to feel good and confident about yourself.

Values

The values are guiding principles that define how the company operates and interacts with its stakeholders (customers, partners, suppliers, etc.) They serve as a guide to the behaviour expected of employees and the corporate culture. Patagonia, for example, values sustainability and social responsibility in its strategy. This is evident in its business practices and brand positioning: right down to its founder, donated 100% from the company to a fund in favour of the fight against the climate crisis.

Tone and style of communication

Choosing a consistent tone and style of communication is important for reflect your brand's personality and create an emotional connection with your audience. The tone refers to the "voice" of the brand and can vary from formal to casual, from serious to relaxed.

Some styles and shades

• Formal vs. informalDepending on the target audience, some brands, such as Rolex, adopt a more formal tone to convey elegance and sophistication. In contrast, brands like Innocent Drinks use a relaxed and friendly tone to connect in a more human and approachable way.
• Seriousness vs humourA brand aimed at young recipients, such as Netflix, can adopt a humorous and irreverent tone. IBM, on the other hand, focussed on business solutions, maintains a more serious and technical style.

Write your story

To complete your brand positioning, use storytelling, the ability to tell a company's story through emotions, creating a deep bond with your customers.

In a digitalised world where almost everything is done remotely, people want to connect more with themselves and spend their money with businesses that align with their values and make them feel represented. What better than to share your own story so that the buyer feels part of what is being built, understands why this business exists today and what it promotes.

Define your Marketing Mix: product, price, distribution and communication

The marketing mix is made up of four key elements - Product, Price, Distribution (Place) and Promotion (Communication) - which must be carefully aligned with the company's vision, values and mission.

Product

The offer must reflect the company's values and mission. For example, if your company values sustainability, like The Body Shop, your cosmetics should be ecological and ethically produced.

Price

The price must be aligned with the brand's positioning in the market. A brand like Rolex, which positions itself as a luxury brand, can charge high prices for its watches. In contrast, a budget brand like Primark adopts a low price strategy to attract a wider audience.

Distribution (Square)

How the good or service is distributed also influences the perception of the brand. Apple, for example, uses its own shops and website to create a controlled and exclusive shopping experience, as well as having some certified resellers. On the other hand, brands like Coca-Cola use a massive distribution network to be present almost everywhere.

Promotion (Communication)

The promotion covers all activities that communicate the benefits of the offer to the consumer. This not only includes the brand's visual identity, but also where, how and when the brand communicates about itself and its offerings. Communication can cover anything from the packaging of an item to a post on social media. As well as advertising, PR, digital marketing campaigns and more, of course.

The way you communicate also needs to be consistent; a children's toy brand, for example, should use more playful and simple communication.

Some examples

• Starbucks: positions itself as a "third place" between home and work, creating inviting environments where customers can relax and socialise. The relaxing tone and cosy decor of the shops complement this positioning.
• ZaraZara offers fast fashion at affordable prices, constantly keeping up to date with the latest trends. Its marketing mix reflects its focus on fashion items, competitive costs, well-located shops and agile, up-to-date communication campaigns.

How do you assess your competitors' brand positioning?

Competitor Analysis

Analysing the competition is an important step in the brand positioning strategy. This process makes it possible to understand how competitors are positioning themselves in the market and thus to identify opportunities to differentiate their own brand. Furthermore, this study can indicate what is best not to do.

To begin with, identify your main competitors. These are companies that compete for the same target audience or similar offers. An effective way to do this is through detailed market research, which can include analysing sales data, customer feedback and online reviews.

Once the competitors have been identified, the next step is to analyse your positioning strategies. Examine the main elements of your brands, including value propositions, marketing messages, distribution channels and product mix. Pay particular attention to common patterns and the areas where these brands try to differentiate themselves.

Competitor analysis tools

There are several useful tools that can help you analyse the competition. One common approach is SWOT analysis, which examines the Strengths, Weaknesses, Opportunities and Threats of the opposing brand.

• Forces: Identify your competitors' strengths. This could be an innovative product, a strong brand identity or an excellent distribution network.
• WeaknessesWhat are their weaknesses? Perhaps they have poor customer service or low-quality products.
• OpportunitiesWhat opportunities are available in the market that your competitors aren't capitalising on? This could include untapped market segments or a change in consumer preferences.
• ThreatsWhat are the threats that could negatively impact your competitors? This could include new regulations, cost increases or the entry of new competitors into the market.

Another useful tool is benchmarkingThis technique involves continually comparing your products, services and practices with the best in the industry. Companies such as Procter & Gamble and General Electric are known for using this technique to maintain and improve their market positions. Benchmarking can be applied in various areas, such as product quality, production efficiency and marketing effectiveness.

Example of a SWOT analysis

Let's look at this in practice with a few simple examples. Suppose you're in the sports footwear market and you identify Nike as your main competitor. By carrying out a SWOT analysis of Nike, you can find out:

• ForcesGlobally recognised brand, wide range of items, strong brand ambassadors (famous athletes).
• WeaknessesHigh prices, dependence on a specific market (sports shoes).
• OpportunitiesExpansion in emerging markets, development of sustainable technologies.
• ThreatsIncreased competition from budget brands, possible economic crises affecting consumption.

With this analysis completed, you can explore areas of differentiation. Perhaps your brand can position itself as a more affordable option without compromising on quality, or you can focus on sustainable footwear that appeals to an eco-friendly audience.

Differentiation Strategies

Now it's time to implement specific strategies. Some common approaches include the positioning we saw above:

• Differentiation by offerDevelop unique features that make your offer stand out from the competition. For example, you could use ecological materials, offer exclusive designs or additional functionalities.
• Price differentiationThe best way to do this is to adjust your pricing strategy to position yourself differently in the market. This could mean being the best value option or the most affordable alternative.
• Differentiation by customer service: Offering exceptional customer service can be a powerful tool for differentiation. Brands like Zappos are famous for this.
• Brand differentiationDove: create a strong brand identity that resonates emotionally with your target audience. For example, the Dove soap brand differentiates itself by promoting the acceptance of real beauty and self-acceptance.

Positioning examples from major brands

Coca-Cola vs. Pepsi

The history of rivalry between Coca-Cola and Pepsi is one of the most studied examples of brand positioning. Both brands have varied their strategies over the years, but remain leaders in the fizzy drinks market.

Coca-Cola positions itself as the "drink of happiness". The distinctive visual identity, the vibrant red and the famous logo in cursive calligraphy all contribute to the formation of the unified image of the brand over time. Coca-Cola invests in advertising campaigns that evoke feelings of joy, togetherness and shared experiences. A notable example is the "Taste the Feeling" campaign, which emphasises happy moments in various cultures and contexts.

PepsiOn the other hand, it adopts a position focussed on youth and pop culture. Campaigns such as "The Choice of a New Generation" and more recently "For the Love of it" highlight the brand as modern and innovative. Pepsi often associates its image with major sporting events and partnerships with music stars to attract a younger audience. These differentiation efforts are reflected in packaging that uses modern colours and attractive designs.

Both brands are successful in their niches thanks to the clarity and consistency of their positioning. While Coca-Cola connects emotionally with a wider public through its appeal to happiness, Pepsi focuses on the energy and dynamism of youth.

Apple vs. Samsung

The competition between Apple and Samsung is another illustrative example of brand positioning.

Apple positions itself as a brand of premium technologyfocused on innovation, design and user experience. A minimalist aestheticThe Apple brand, both in products and marketing campaigns, and the slogan "Think Different" reinforce this image. Apple devices are often associated with quality, exclusivity and status. The brand's advertising campaigns rarely focus directly on the technical specifications of the products, emphasising more the experience and lifestyle that its products provide.

SamsungIn contrast, it emphasises product diversity and value for money. money. The brand offers a wide range of devices, from state-of-the-art smartphones to more affordable optionsand capturing different market segments. Samsung's campaigns often emphasise the technological innovation and practical features of the products, such as water resistance and battery life, as well as their compatibility with other devices.

Both companies have clear and well-defined positioning strategies that allow them to co-exist successfully in the highly competitive technology market. Apple creates an image of exclusivity and innovation, while Samsung emphasises the accessibility and versatility of its product range.

Methods and strategies observed

Observing how big brands define their positioning offers great indicators of what works most and what works least. Here are some common observations among the examples mentioned above:

1. Consistency in the brand messageBoth Coca-Cola and Apple stand out for their clear and consistent brand messages over the years. Consistency is crucial to building a strong and reliable brand image.
2. Emotion and customer experienceCreating an emotional connection with the consumer can be extremely effective. Coca-Cola and Apple use narratives that evoke strong emotions, associating their products with positive feelings.
3. Adaptability and innovationSuccessful brands adapt to market changes and constantly innovate. Pepsi and Samsung are good examples of brands that have evolved and reinvented themselves to remain relevant.
4. Market segmentationUnderstanding and segmenting the market makes it possible to better meet the specific needs of different consumer groups. Samsung is diversifying its product range to capture a wider market, while Apple remains focussed on the premium segment.

Define and implement brand positioning is an important step in your strategy to ensure that your business stands out in a competitive market. and that your target audience understands the unique value you offer. Good positioning helps shape consumer perceptionand influence purchasing decisions and build a solid base of loyal customers.

By aligning factors such as price, competitive advantage, target audience and value proposition, your company can create a clear and consistent identity that resonates with consumers. It's not just about how you want to be seen, but how you effectively connect with your audience and differentiate yourself from rivals.

Remember, brand positioning is not static. As the market, trends and consumer needs evolve, your brand must also adjust its positioning to remain relevant and competitive. With a well-defined positioning, your brand will have a strong and memorable presence in consumers' minds, which is crucial for long-term success.

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In addition to brand positioning strategies, find out what is Growth Marketing and how it helps you develop your business.