What is Brand Position and Why is it Important.

  • March 28, 2015
  • blog

What is Brand Positioning?

Brand positioning is what your customer thinks of when they think of your brand.

More importantly, it’s how your brand is perceived in the context of what the alternatives are or might be. Why is this important? Because it can be the differentiating factor between choosing one product (yours) vs. another.

Volvo is a famous example of using positioning well. Volvo’s brand positioning is “safety”. They have managed to own that word in the car category. Ask anyone what the safest car out there is and (in their minds) Volvo will be at or near the top of the list. Volvo “owns” that positioning in our minds and anyone looking for a safe car, will give Volvo a good look.

Brand positioning, by it’s nature is a narrowing of scope. You can’t position your brand broadly. It would be really hard for Volvo to be both the safest AND also the best performer. BMW owns that distinction. It positions itself using the tagline “The ultimate driving machine”. They sell to a very specific group of people that value performance and will pay for it.

 

 

POSITIONING CAN ILLUSTRATE VALUE

Now, you don’t have to be a brand with a massive advertising budget to position yourself well.

In the juicing category. BOOST Juice, the cold-pressed juice brand that hit the scene a few years ago, used positioning to set it apart from other juice brands and command nearly double the price of other juices. How did they do that? By positioning it as a juice cleanse instead of just juice. They also used really simple and minimalist branding to stand out as something different when compared to all the other “crunchy” designs that were out in the market place at the time.

It turns out, there is a group of juice drinkers that will pay more for the experience of completing a multi-day juice cleanse, then they would for just another bottle of juice – even if they drank the the same amount of juice over the same period of time.

This same segment (or tribe) also happens to like simple, minimalist design. So when they see BOOST’s packaging in the store, they might say to themselves something like: “What’s this? This looks different.

That’s exactly what I thought the first time I saw it in the store. The next thing I noticed was the price. “Twenty bucks for a bottle of juice!” That was too much for me, so I did not buy their product that day – I’m not part of that tribe of people that values juice cleanses.

I like minimalist design and so I noticed the packaging and was drawn towards it, but the price was too much for me and I’ve never done a juice cleanse, so that part of it didn’t sway me. However, it did sway my girlfriend. She likes fresh juice, appreciates modern design and has done juice cleanses in the past, so she’s willing to pay a premium for it.

When you think about the hassle of buying the fruits and veggies, doing all the prep work, and then the clean up of a 5 day juice cleanse, paying RM20 a day seems more worth it.

Using the frame of reference (positioning) of a cleanse, illustrates that value more clearly.

 

 

POSITIONING FOR PROFESSIONAL SERVICES

You can also use brand positioning in other types of businesses. Run a service based B2B company? Narrow your service offering and you’ll likely be able to charge more for the service. Specialist always get paid more than generalists.

Think about it. If you had a heart condition, would you pay more to see the top specialist in the country? You probably would.

Here are a couple examples of service based companies that specialize:

 

A company that specializes in Keynote presentations for executives

 

A company that solely creates info graphics for Fortune 100 companies

 

An individual that coordinates events with sponsorships for concerts

 

Notice how specific those are?

If you were in need of that specific service, wouldn’t you want a specialist? You’d likely pay more for it too.