ADINA BRUNETTI: How To Choose Your Brand Strategy
Positioning is the development of a proposal and brand image, which are aimed at forming or consolidating the competitive position of the brand in a particular market. Brand position must be clearly articulated and unwavering. The main goal of positioning is to differentiate against the background of competitors and strengthen its own position.
Brand positioning concept
Every company, even if it's a small firm, needs a clear positioning strategy. This is useful both for the employees of the company (they better understand what the brand's task is and how would be best to connect with cthe ustomers), and for the consumers themselves (they know what the brand is better than others, and what benefits they will gain).
The more narrower the brand's niche in the market ia, the easier it is to plan a strategy. For example, equipment for production of juices is very highly specialized, but it has a specific target audience. Most likely, the clients of such a company value quality, but do not want to overpay for equipment. Therefore, equipment suppliers choose price positioning. Unlike equipment, almost everyone drink bottled water. In this case, it is difficult to position the brand by consumer and the water is positioned by use or benefit: spring water for those who play sports or for those who want to become healthier. Positioning helps to emphasize brand identity.
The first step in brand positioning is choosing the right strategy. The competitiveness of the brand and the presence of loyal consumers depend on that. We have identified the main strategies for brand positioning in the market. These strategies are suitable for both new companies and brands looking to enter a new market or take a larger share.
This positioning strategy is based on opposing the brand to a competitor from which it is planned to win back market share. A brand can be perceived as being the opposite of a competitor or superior in quality. This brand positioning strategy is used against market leaders by those companies that occupy 2-3 places. Competitive positioning takes into account the weaknesses of the leading company and builds on the unmet desires of consumers.
This strategy is also suitable for small companies that produce goods with specific properties. In the advertising of such a brand, the product is associated with a certain class of buyers, using the phrases like "created for ...", "for those who ..."
Famous personalities are often invited, whose image begins to be associated with the product.
Positioning for benefit
This type of brand positioning can be based on both emotional (the desire to stand out, become better, self-assertion) and rational (to be healthier, protect yourself, save money) benefits. Positioning should give an unambiguous answer to the buyer's question "What will I get by choosing this brand?"
This strategy has low efficiency in highly competitive markets, where the proposed benefits quickly become irrelevant. all companies start to copy each other.
There are several approaches to this positioning.
1. The same for less cost
The price positioning of the brand as cheap is suitable for companies whose products cannot boast a high degree of customer involvement and which are selected rationally .
The strategy is successful if there are leaders in the market who sell goods at unreasonably high prices.
In this case, the strategy is used primarily for the economy segment of consumers, using similar slogans:
"Cheaper is only free";
"If the difference is not visible, why pay more."
2. More for more cost
Consumers believe that quality products should be expensive. At the same time, they buy not only the product itself, but also the the prestige, the opportunity to belong to the category of people "who can afford it."
3. Less for less cost
Suitable for people who do not want to overpay for something they can live without. For example, Southwest Airlines offers cheap air travel, but they do not provide meals for passengers and have uncomfortable cabins.
A brand is tied to a specific consumption situation. Thus, the consumer will buy exactly that product in the necessary situation. The more unique the situation, the narrower the market, which allows you to quickly take a leading position. At the same time, it is necessary to constantly monitor the hobbies and behavior of consumers, because their habits can change, and the positioning strategy will quickly become outdated.
This strategy exploits the distinctive brand characteristics and is the most common. Positioning is not focused on differences from competitors, but on the unique properties of the product that make it special.
Prestige / luxury positioning
Unlike happiness, prestige can be easily bought - there are always people willing to pay for a special attitude towards themselves, the opportunity to be a VIP. This positioning is suitable for companies that produce truly luxury or premium goods. This is not limited to jewelry and expensive cars, and can extend to food and everyday goods.
Prestige can be determined not only by a specific company, but also by a whole category . Positioning can be also connected to a specific target audience (high-priced organic products for true vegetarians).
Before choosing a positioning strategy, you need to answer a few questions.
1. What's your brand? What do you do and what is your mission?
2. Who is your brand for?
3. What need do your brand's products or services satisfy?
4. Who are your main competitors?
5. What is your difference from them and what are your advantages over them?
6. How will your brand benefit the consumer?