What is Brand Positioning and Why is it Important?
So, picture this: you are burning the midnight oil, trying to finish a report for your presentation in the next couple of days. You think of taking a break and having a bite to eat, but you’re too lazy to make something that takes too much time or effort. What do you resort to?
Maggi quickly hits the spot!
Then picture this: you just had a big dinner with your family, and there’s so much leftover food. So, you get a couple of Tupperware to refrigerate the leftovers for tomorrow.
Notice how we referred to brand names in the two scenarios above, but you instantly got the point? It’s almost as if the brands represent an entire product type.
It is so natural to call instant noodles Maggi. In fact, even if you bought instant noodles from other brands, you’d most probably still call it Maggi. In Malaysian households, the phrase “food container” is almost non-existent. We only say Tupperware. Anything other than that is just weird.
This is what we call brand positioning.
So, What is Brand Positioning?
The Cambridge dictionary defines brand positioning as “a company’s decision about how a product is marketed in relation to its other products and to competitors’ products.” Now, what does that mean?
As a company selling a product or a service, solutions of any kind, you want your consumers to remember your brand and pick you over and over again. Brand positioning means positioning your brand in your consumers’ brains.
How companies manage to do that is what’s going to set each of them apart. Every brand out there indeed has something unique to offer its consumers, its unique selling point (USP). Brand positioning heavily capitalises on a brand’s USP and drives to push the agenda to an audience so that the audience turns into consumers.
There are so many ways to position a brand, whether it is through a tagline, advertising strategy or brand rituals. We will dive more deeply into this as you read on, but before that, check out our article on Malaysian brand rituals that are so ingrained in our daily lives.
Why is Brand Positioning Important?
One may not realise this, but there’s a reason why we typically choose certain brands over others. The age-old war of Coca-Cola vs Pepsi, iOS vs Android, Canon vs Nikon, and the list goes on.
Humans are creatures of habit, and we succumb to familiarity most of the time. If we find a product that works or something that we like, we typically would not be switching brands. We would always try to get the same thing every time we shop.
Brand positioning helps with the following:
- Setting a brand apart
One product but multiple brands. Think of yourself as a consumer for a second; you would rarely ever pick a brand that you have never heard of, right? So, as a brand, if you’re constantly farming for your customer’s attention, there’s a high chance that they will remember you.
Brand positioning cuts through the noise and communicates with your target audience directly. This happens with or without your consumers realising that they are being influenced by your brand.
Must read: How to Improve Your Brand Awareness Strategy in Malaysia: A Complete Guide
- Creating market differentiation
Honestly speaking, the world does not need another widget. Brand positioning, however, will help you tell your story and what sets you apart. This is how you get your consumers acquainted with your brand. You could get as personal or as generic with your consumers as you want to be through your brand positioning strategies.
At Brand360, we are dedicated to growing your brand to increase revenue and improve customer engagement. We can help you stand out.
- Justifying pricing strategies
consumers’ perceptions of your brand can make or break your business. If your consumers perceive your brand well, they will justify your pricing themselves. This gives you the leeway to price your products and services slightly above your competitors and still get the sales going.
Take Apple products, for example. It is a fact that there are so many other tech brands that offer similar products with the same, if not better, features. Nonetheless, Apple is the biggest tech brand out there.
When people get Apple, they know that they aren’t only buying the products; they are buying their way into a certain societal standard. Apple has successfully placed itself as the “cool kid in the block” of the tech industry. That’s good brand positioning for you.
- Increasing conversion rates
It should already be evident that brand positioning helps you get consumers and keep consumers. With every brand positioning strategy that you come up with, you are potentially onboarding new consumers on top of staying on your current consumers’ radars.
When your consumers can understand and connect with your brand, they will likely stick with you in the long run. New consumers, on the other hand, are likely to convert too! Communicating your story and essence can be the difference between making a sale or not.
To increase conversion rates, we provide many services at Brand360, from developing a brand strategy to launching your brand and then marketing it. You name it, we have it!
How to Position Your Brand?
Now that you know what brand positioning is and why it is essential, you may wonder how to do it.
Positioning your brand will require you to identify your brand’s USP, strengths, weaknesses and opportunities. Here are some questions you could ask to get started:
- What’s your current brand positioning?
It is imperative to figure out the current standing. From here, we can work our way up. Determining the current brand positioning will help pinpoint all the areas you lack and all the areas you have an upper hand in.
- Who are my competitors?
Building a brand and positioning it well is to help you stand out amongst the crowd. But what if you don’t even know who you are up against? Then you would just be wasting resources either by doing something that has already been done before or, by doing things that are not influential enough to your consumers.
So figure out your competitors and see how you can convey your message to your audience more effectively. Brand360 provides positioning workshops and brand coaching specifically for these reasons.
- What works and what doesn’t?
As you figure out your competition, research how they do what they do. Dive deeper into the past and see what strategies have worked and how you can craft similar strategies for your brand. Don’t stop there; look at why certain things did not work and what it is that you have to stay away from.
Sometimes, taking something that doesn’t work and making it work is the key to going viral and gaining attention. So, the world is your oyster.
- How can I create value?
Consumers these days are not easily bought. They seek value in everything they do. Frankly, this is the result of having so many options. How can your brand be more valuable to them than your competitors?
You can do this through competitive pricing strategies, creating easy-to-use products/services, or giving your consumers special perks.
- How do I know if it is working?
Let’s say you have gone through all the stages and have strategies set in place, ready to deploy them. How would you know if what you’re doing is working?
Make sure you are close to your target audience. That means asking for feedback from consumers, reaching out to your employees for consumer behaviour and letting the numbers speak for themselves.
Examples of Brand Positioning
Brand positioning is all about being smart with your branding strategy. You could make funny ads, or smart catchphrases or create unique rituals.
Here are some brand positioning strategies that are pretty smart:
- “Mekdi”
In Malaysia, we all refer to McDonald’s by its short form – McD. The pronunciation sounds a little like “Mekdi”. McDonald’s embraced that by putting up “Mekdi” signs in a few outlets throughout Malaysia. One of the prominent ones is Mekdi Bukit Bintang.
- Milo Truck
Our beloved Milo truck. This is a staple in a Malaysian student’s life. Milo would send over their trucks to schools from time to time and give out their drinks for little to no price charged. Ask any Malaysian student, and they’ll tell you they’ve had Milo from the “Milo Truck”.
- Pepsi logo in hiding
A recent ad campaign that went viral was the Pepsi logo in hiding. Pepsi hired an origamist to fold the packaging of popular fast food restaurants with the Pepsi logo hidden in disguise. This is such a smart way to convert consumers and gain brand awareness.
Wrapping Up
Brand positioning is about creating an identity that resonates with consumers, stands out in a crowded market, and builds loyalty over time. Through effective brand positioning, companies can carve out their unique space in consumers’ minds, influencing their purchasing decisions and fostering long-term relationships.
By understanding the importance of brand positioning and implementing strategic approaches, businesses can set themselves apart from competitors, justify their pricing strategies, and increase conversion rates.
At Brand360, we’re dedicated to helping businesses unlock their full potential through strategic brand positioning. From identifying your brand’s USP to crafting compelling marketing strategies, we’re here to support you every step of the way.
Don’t let your brand get lost in the noise – let’s work together to elevate your brand and drive meaningful connections with your audience.
Ready to take your brand to the next level? Contact Brand360 today to schedule a consultation and discover how our expert team can help you position your brand for success.
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