- Importance of brand positioning statement
- Core components of a brand positioning statement
- Practical steps to craft a brand positioning statement
Q: What is a brand positioning statement? How can I best create a brand positioning statement that benefits my business?
A: A brand positioning statement is a succinct description that reflects a brand’s unique value proposition, target audience, and market positioning. The best way to create a brand positioning statement that helps your business is through a deep understanding of your target audience and your business.
Thanks to the proliferation of online businesses and the ease with which individuals can start businesses, there has never been more competition for the modern entrepreneur.
A simple trip to the supermarket or any general goods store will reinforce this idea, with scores of products that are different only in brand name, with nothing else to help them stand apart.
Unsurprisingly, it’s difficult to imagine the brands that stand out only in the name being successful in a long enough time frame. Alternatively, according to Crowdspring, brands that maintain a consistent identity enjoy average revenue growth between 10-20%.
So, how can your business stand out from its competition and avoid being considered just another product with a different brand name?
The answer is with a succinct brand positioning statement.
Think of your brand positioning statement as a summary of your offerings and the specific needs they fill for your target audience. This internal tool is best used to ensure that all your company’s endeavors, whether those are brand communications, marketing efforts, or product development plans, align with your brand’s curated identity.
To succeed in the attention economy, businesses need competitive differentiation, a clear brand strategy, and a keen understanding of market positioning and how to best serve their target audience.
In this article, we’ll explain the importance of a brand positioning statement, describe its core components, and then look at practical steps used to craft a succinct brand positioning statement.
So, if you’re struggling with target audience identification, competitive market analysis, or even better creating your brand identity, you’re in the right place. Keep reading for more!
- Importance of brand positioning statement
- Core components of a brand positioning statement
- Practical steps to craft a brand positioning statement
Understanding a brand positioning statement
Before we explain what a brand positioning statement is, let’s take a moment for a refresher on brand positioning itself.
Brand positioning is the strategic process of establishing a distinct place for a brand in the minds of its target audience within the competitive market landscape. This involves crafting a unique perception and association of the brand that differentiates it from competitors and resonates with the specific needs and preferences of its customers.
Effective brand positioning defines the way a brand wants to be perceived and sets the stage for all its marketing efforts, influencing consumer perception and decisions.
With strong brand positioning, you’re creating a loyal group of consumers who will stick by you regardless of economic conditions. The best way to ensure your business is built for longevity is vying for robust brand positioning.
Read more: How to Make Money During a Recession
As you might imagine, a brand positioning statement is a concise articulation of this sentiment. A brand positioning statement is typically used by a company to distinguish its brand from the market and better connect with its target audience.
A brand positioning statement is a foundational element of a brand’s strategy, encapsulating its unique value proposition, target audience, and competitive differentiation.
In the modern market, this is often boiled down to a slogan or tagline that encapsulates the brand’s essence in a few words for external communication, but a positioning statement itself, although it may include the slogan or tagline, serves as an internal guide that aligns the team on how the brand should be perceived in the market.
Essentially, your business’s statement should be designed to help everyone within your organization understand the brand’s unique value proposition, target audience, and competitive positioning, guiding their efforts in maintaining a coherent brand identity and direction.
Remember, although well-crafted brand positioning statements have been useful for decades, the high saturation and intense competition make a strong brand positioning statement more of a necessity than an extracurricular for online business.
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Now that you have a basic understanding of what a brand positioning statement is and how it pertains to greater brand strategy and brand identity, let’s look at a few real-world examples of businesses with successful statements.
- Volvo: “For Life”
- FedEx: “The World on Time”
- Subway: “Eat Fresh”
Volvo
Volvo’s “For Life” statement centers around safety and reliability, positioning itself as a brand that prioritizes the well-being and security of its customers and their families.
Volvo’s brand positioning statement manages to underscore Volvo’s dedication to not only creating vehicles but also safeguarding lives and well-being, making safety a cornerstone of its brand identity.
This emphasis on durability and family-centric values allows Volvo to cultivate a lasting emotional connection with its audience.
FedEx
“The World on Time” is a succinct phrase that conveys FedEx’s commitment to reliable and timely delivery services. This positions the brand as a global leader in logistics and emphasizes its focus on efficiency and speed.
The phrase itself reinforces FedEx’s reputation as an industry leader while instilling confidence in customers and businesses alike by promising seamless and timely deliveries worldwide.
Subway
Subway’s positioning, “Eat Fresh,” encapsulates its dedication to providing customers with healthier and freshly prepared meal options, setting it apart in the fast-food landscape.
This tagline emphasizes Subway’s focus on quality ingredients and customizable, healthier alternatives, appealing to consumers seeking nutritious and customizable dining choices.
By promoting freshness and customization, Subway cultivates a brand image synonymous with healthier fast-food options, catering to the evolving preferences of health-conscious consumers.
Although the slogans are simply an extension of each respective company’s brand positioning statement, each example showcases the way that an overarching theme for your company’s efforts allows you to create slogans and taglines that effectively emphasize what your business is setting out to accomplish and how you wish to be perceived.
New business owners should still focus on creating a firm brand positioning statement, but established entrepreneurs stand to gain significantly from a robust brand positioning statement, especially in our hyper-competitive market.
Established entrepreneurs are seasoned players in their respective industries, often facing increased competition and evolving consumer preferences. A strong brand positioning statement serves as a compass, guiding the brand’s narrative, differentiation strategies, and customer engagement efforts.
For established entrepreneurs, a well-defined brand position helps maintain relevance, solidify brand loyalty, and attract new audiences by reaffirming the company’s unique value proposition.
This enables these entrepreneurs to adapt to market changes while preserving the essence that made their brand successful in the first place, fostering resilience and longevity in an ever-changing business landscape.
In addition, a compelling brand positioning statement allows entrepreneurs to effectively communicate their brand’s strengths and offerings, standing out among competitors and reaffirming their brand’s value in the minds of consumers, ultimately driving sustained growth and market leadership.
Now that you understand what a brand positioning statement is, let’s explore a helpful guide that explains the core components of your brand’s statement. Keep reading for more!
Core components of a brand positioning statement
An understanding of what a brand positioning statement is and why it will help you as an entrepreneur is a great place to begin but to effectively build brand positioning statements, you need to understand the core components first.
According to Forbes, your brand serves as your primary identifier for your company and product. Once you understand the various parts of a brand positioning statement, you can craft a statement that helps you cut through the noise of online business.
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Below, we’ve put together a brief list that showcases each component of a brand positioning statement.
Target Audience
A brand positioning statement begins with a clear identification of the target audience and an understanding their demographics, behaviors, and needs.
This component delineates who the brand seeks to serve, ensuring that all brand initiatives and communication efforts are tailored specifically to resonate with this audience segment. By precisely defining the target audience, the brand can create messaging and products that directly address their desires and pain points, fostering a deeper connection and engagement.
Realistically, your target audience is the single most important aspect of your brand positioning statement. Suppose you don’t have a clear and hyper-specific target audience.
In that case, you may be throwing good money over bad, trying to convince consumers who will never be interested in your business.
The sheer amount of competition in the market has created an environment where target audiences need to go beyond simple demographics. You need to identify behaviors, where they spend time online, other companies they frequent, and essentially, gather as much information about the consumers you hope to sell to as possible.
Brand Promise
Consider the brand promise as the heart of your brand positioning statement. A brand promise is a compelling declaration of the primary benefit or value the brand commits to delivering to its customers.
This promise encapsulates the essence of the brand, articulating what sets it apart and why consumers should choose it over competitors. It’s the guiding force of all brand actions and interactions, building trust and loyalty by consistently delivering on this central pledge.
In other words, your brand promise and your company ethos go hand in hand.
Brand Differentiation
A robust brand positioning statement emphasizes what makes the brand unique in a crowded market. It succinctly communicates the distinctive qualities, features, or values that distinguish the brand from competitors.
This differentiation could stem from innovative product offerings, exceptional customer service, a unique brand story, or a distinct market positioning strategy.
It’s about carving out a distinct space in consumers’ minds, ensuring they recognize the brand’s unique value amidst various alternatives.
You should aim for your brand positioning statement to make your business the most popular business in your industry.
Supporting Reasons
Supporting reasons or evidence back up the brand’s promise and differentiation, providing substance and credibility.
These may include specific data, testimonials, awards, or other unique features that validate the brand’s claims and reinforce its positioning. These reasons serve as the foundation for consumers to believe in the brand’s promises, strengthening their confidence and trust in choosing the brand over other competitors.
These components collectively shape a comprehensive brand positioning statement, guiding the brand’s direction, communication strategies, and customer interactions to create a lasting and impactful impression in the market.
Unfortunately, a simple understanding of the components of a brand positioning statement isn’t enough. Let’s explore how to create a brand positioning statement unique to your business next.
Practical steps to craft a brand positioning statement
Retaining information is great and will help provide you with a deeper understanding of the market. Ultimately, the more you know the better, and research about other brands and how they’ve succeeded will help you exponentially.
The more marketing information you understand, the better prepared you’ll be to stand out in a highly saturated market.
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Now that you’ve secured a keen understanding of what a brand positioning statement is, let’s look at how you’d craft one for your brand.
- Understanding the target audience
Unsurprisingly, your first step is understanding your target audience.
Begin by conducting comprehensive market research to understand your audience deeply and identify demographic details like age, gender, location, income, etc.
Additionally, dives into psychographic traits like preferences, values, lifestyle choices, and pain points. Use surveys, interviews, and data analysis to gather insights.
- Defining the unique value proposition
Based on audience analysis, pinpoint what makes your brand stand out.
Define your UVP, a clear, concise statement that communicates the unique benefits or solutions your brand offers.
This should address specific customer needs or pain points and should emphasize what sets your brand apart from competitors.
- Ensuring consistency in brand messaging
Maintaining consistency is crucial.
Align all messaging, visuals, and communications with your previously defined UVP, or unique value proposition. Create brand guidelines that outline the tone, voice, and visual elements that reflect your brand identity.
Ensure that every communication channel, including website, social media, and customer support, echoes the same brand message.
- Testing and refining
Test your brand positioning statement.
Seek feedback from focus groups, existing customers, or industry experts. Analyze their responses and refine your statement accordingly.
This iterative process ensures that your positioning resonates authentically with your audience and efficiently communicates your brand’s unique identity.
- Implementation and monitoring
Once finalized, implement the brand positioning statement across all brand touchpoints.
Monitor its effectiveness by tracking key metrics like customer engagement, sales, and brand sentiment.
Regularly revisit and refine this statement to adapt to changing market dynamics or evolving customer preferences.
With this step-by-step guide, you should have a general understanding of what you need to do to create strong brand positioning and how you can accomplish these tasks.
That said, you must recognize common pitfalls before you leap into action. Having an idea of mistakes you need to avoid is a great way to save capital and work efficiently.
We’ve put together another brief list of common pitfalls to beware of when crafting your brand positioning statement below.
- Lack of clarity of specificity
Entrepreneurs may fall into the trap of creating vague or overly broad statements that fail to articulate a distinct position in the market. Avoiding specifics blurs the brand’s unique value proposition and dilutes its impact on your audience.
- Overpromising or unrealistic claims
Making exaggerated claims about the brand’s capabilities or promising unrealistic benefits can lead to skepticism and erode trust. It’s essential to ensure that the brand promise aligns with what the business can genuinely deliver.
- Ignoring audience relevance
You can never ignore your audience. Failing to consider the target audience’s preferences, needs, and perceptions can result in a positioning statement that doesn’t resonate.
- Imitating competitors
Copying or emulating the positioning strategies of competitors can lead to a lack of differentiation. Instead of standing out, your brand may get lost in the crowd.
Authenticity is key to crafting a statement that truly reflects the brand’s unique identity. This is also why it’s so important to understand brand positioning as deeply as possible, so you can use strategies from other successful companies without outright stealing their efforts.
- Lack of consistency across touchpoints
Inconsistency in delivering the brand message across various platforms can confuse consumers. It’s crucial to ensure that the statement is integrated into all marketing materials, communication channels, and customer interactions for a cohesive brand experience.
- Ignoring evolution and adaptation
The annals of history are filled with successful founders who couldn’t manage to read the writing on the wall. Brands need to evolve with changing market dynamics and consumer preferences.
Failing to review and adapt the brand positioning statement over time may result in it becoming outdated or disconnected from the current audience’s needs.
With both of these checklists in mind, you have a tailored toolkit of resources and tools at your disposal to use in creating a well-crafted brand positioning statement.
By emphasizing the tools and information outlined above, entrepreneurs are equipped with the necessary guidance to sculpt a powerful and resonant brand narrative within their competitive landscape.
Amplifying brand position through Virtual Office solutions
Once you understand what a brand positioning statement is and its various components, how to craft a statement, and pitfalls to avoid, it’s time to consider other ways to benefit your efforts.
Because your brand positioning statement is a way to keep all communications, content, and brand initiatives consistent, taking the time to secure a Virtual Office from Alliance is a great way to bolster your professionalism and legitimize your business.
Alliance Virtual Offices offers a comprehensive suite of solutions that seamlessly integrate with an entrepreneur’s brand strategy. Central to this synergy is the provision of prestigious business addresses in prime locations.
These addresses serve as a cornerstone for establishing a professional presence, providing entrepreneurs with a distinguished physical location that aligns with their brand’s aspirations and stature.
Additionally, the professional administrative support offered by Alliance complements an entrepreneur’s operations, ensuring seamless day-to-day operations and projecting a polished image to clients, partners, and potential investors.
By leveraging these solutions, entrepreneurs not only gain access to esteemed business addresses but also enhance their brand positioning by associating themselves with a network that exudes professionalism and credibility.
This elevation in perception bolsters their brand identity, instilling confidence and trust among their audience, thereby reinforcing their market positioning.
In the modern market, positioning is everything.
Without a clear and concise position, consumers will naturally gravitate toward other businesses that manage to align with their specific needs. This is why it’s so important to craft a detailed and highly engaging brand positioning statement.
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- Revolutionizing Small Business Experiences in the Digital Age
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Alliance Virtual Offices offers Virtual Office solutions and a whole suite of virtual services for established entrepreneurs, new business owners, and everyone in between.
Learning to craft a brand positioning statement may seem like a Herculean task, but once you understand why you need to be so specific and how to avoid common pitfalls, you’re ready to get started.
Contact us to see how Alliance can help you bolster your brand positioning statement through the use of our various services and solutions.