The overarching reason why brands such as Nike, Apple, and FedEx attained iconic status is that they intuitively understood how to differentiate their brand in a noisy, cluttered marketplace—they dared to be different.
The Challenge of Differentiation in a Crowded Market
Over the past several years, our brand consultants have seen numerous examples of market overcrowding and line blurring. As a result, it’s almost impossible to differentiate one brand from another. This obscuring makes it hard for continued growth and even harder to get the valuation most brands pursue.
Assessing Your Brand’s Point of Differentiation
Does your brand have a point of differentiation that gives it an edge over your competitors? Buyers consider four questions during the purchase process:
- What does the brand stand for?
- What are its promises to the customer?
- Is it delivering on these promises?
- And most importantly, how is it different from everyone else?
The Perils of Lack of Differentiation
If there's nothing that differentiates what you and your competitors offer, buyers have no choice except to focus on price. From there, things can only get worse as prices plummet and profit margins vanish. Brand positioning is what differentiates you and saves you from blending in with everyone else. The way your business differs from others tells potential buyers how and why you’re the right choice for them.
Crafting a Brand Positioning Strategy
What is Brand Positioning?
Brand positioning is how your brand is perceived relative to competitive alternatives. It is the process of differentiating your brand from your competitors in ways that are meaningful to consumers. The goal of brand positioning is to create a unique impression in a potential buyer’s mind so that the buyer associates something specific and desirable with your brand that is different from your competitors.
The Importance of Strong Brand Positioning
A strong brand position is the foundation of every successful organization. However, many brands don’t put enough emphasis on their positioning and often lack alignment with other business functions. This dilemma leads to inconsistencies in messaging and a lack of clarity that confuses consumers about why they are a better option than their competitors.
Examples of Effective Brand Positioning
Allbirds has made a name for itself in the footwear market by emphasizing sustainability and comfort. Their use of natural materials like merino wool and eucalyptus sets them apart from competitors who rely on synthetic materials. Allbirds' commitment to environmental responsibility and transparency in sourcing and manufacturing appeals to eco-conscious consumers, making their brand both unique and desirable.
Oatly has disrupted the dairy industry with its innovative oat milk products. By positioning itself as a sustainable and health-conscious alternative to traditional dairy, Oatly has captured the attention of environmentally aware consumers. Their quirky, engaging marketing campaigns and clear stance on environmental issues differentiate them from other plant-based milk brands, fostering a loyal customer base and driving significant market growth.
The Role of Differentiation in Brand Strategy
A great branding strategy revolves around clearly articulating your differentiation against competitors. You must persistently push these differentiators to customers and prospects. Many marketers believe their job is to identify strategic advantage, but this falls short. Real differentiation is gained through unique attributes that form an "accrued advantage" where customers perceive a meaningful brand difference and are less likely to purchase based on a low-cost offer of the day.
The Benefits of Clear Brand Positioning
Without clear brand positioning, marketers may struggle to develop a clear idea of how your brand "fits" into consumers' lives. Positioning accordingly can help you improve brand awareness, relevance, appeal, and more. Understanding your competition, your customers, and what makes you different enables you to claim your unique space in the market.
Positioning your brand effectively is not just about standing out; it’s about being seen as the right choice. By understanding and articulating your unique differentiators, you can ensure that customers see your brand as special, valuable, and irreplaceable. So, how can you stand out? By crafting a compelling brand story and positioning that resonates with your audience and sets you apart in a crowded marketplace.
Strategic positioning unlocks your brand's full potential. Reach out to learn how we can help you differentiate, connect, and thrive in a crowded marketplace. Let's make your brand unforgettable!
