What is Brand Positioning — And Why Every Company Needs It!
A brand positioning strategy will increase brand value by creating a positive impression of the company’s products in consumer’s minds.
Brand positioning refers to creating a good impression of your company in the minds of consumers. Done right, people should automatically associate your brand with the benefits you offer. A brand strategy agency will help their clients develop an effective brand marketing strategy to enable this positioning. In turn, this strategy will help keep your company relevant to customers and competitively distinct from competitors.
Why develop a brand marketing strategy?
Brand marketing strategy development will not just focus on creating a positive impression to attract new business; it should also maintain those distinctive qualities in the minds of current customers.
According to The Branding Journal, studies have found a direct link between willingness to buy and customer loyalty to effective brand positioning. With more customers and a higher lifetime value for each one, brand equity grows into one of the most valuable assets that the company has.
An example brand marketing strategy
An Australian wine brand called Yellow Tail offers a great example of developing a brand position statement and then supporting it with an effective strategy. When they decided to enter the American market, the company wanted to mediately distinguish themselves from their competitors.
Their marketing strategy development began with creating the position statement of establishing their brand as approachable, fun, and easy to choose.
Yellow Tail supported their position in five ways:
- Product: People find Yellow Tail wine sweet and mellow, so even people who aren’t wine experts usually like it.
- Labels and logos: The simple colors, images, and text on the label make the packaging appear approachable and fun.
- Name: Yellow Tail represents a kangaroo tail. Consumers almost always associate kangaroos with Australia, the origin of the wine.
- Messaging: Yellow Tail focused on in-store ambassadors who greeted customers and offered them details, samples, and of course, bottles to buy and take home.
- Price: They kept prices under $10, making it easy for new customers to make an impulse purchase and loyal customers to think of Yellow Tail as an all-occasion wine.
How a brand design agency approaches brand marketing strategy development
So, how would an experienced brand design agency begin to develop a brand position for a new client? Brand marketing strategy development should include these steps:
Analyze the market, the company, and competitors
This part of the plan consists of learning what a market wants, how the company can deliver, and which companies compete for the market’s attention. Yellow Tail wanted to appeal to people who did not describe themselves as wine connoisseurs and even who might have gravitated to beer or pre-mixed drinks before because they found them more approachable and affordable.
Craft a position statement
Brands need to develop a branding position statement that will appeal to their market and differentiate them from competitors. In contrast to fine or expensive wine, Yellow Tail wanted to present a more fun and approachable image.
Implement the strategy
Implementing the brand marketing strategy may include product design, messaging, advertising channels, package design, and even pricing. Yellow Tail executed this through their colorful logo, cute, evocative name, and modest price. They also hoped to compete with other beverages, so they used on-site ambassadors to introduce their product to people who were already passing the beverage aisle.
Key goals of brand positioning
The key goals of a branding strategy also provide a good way to test the strategy to ensure its effectiveness:
- Consumers need to find it relevant or else they won’t engage enough to develop a positive impression.
- Branding also needs to differentiate the company from its competitors to offer any real advantage.
- Finally, the company must have the ability to deliver on their promise; otherwise, they’ll lose credibility and any chance of developing brand loyalty.
If the branding strategy can meet these three objectives, it will help create that good impression that will attract and retain customers.