Understanding Brand Positioning: What Is It?

What is brand positioning I hear you ask. Well, in short it is a deep understanding of your target audience, leading to loyalty and securing a position for your and your brand in todays competitive market. As you hear this is very important hence the idea of writing about it. In this article I will talk about and explain the following about brand positioning and its power: 

1. The Importance of Brand Positioning
2. Understanding Brand Positioning Strategies
3. Key Elements of Successful 
4. Tips for Effective Brand Positioning
5. Examples of Strong Brands 

6. Common Mistakes to Avoid 

7. Examples of failures

The Importance of Brand Positioning

Low Angle View of Building. Gucci is the name above the door. A company with great brand positioning.

Above all, brand positioning is crucial for any business, as it sets you apart from your competitors and shows your unique value proposition to your target audience. Actually says what you are all about and where you stand.

So, understandably by establishing a clear and differentiated brand position, you can attract and retain customers. Basically, people who align with your company values and offerings. Giving you a better chance to increase your existing customer’s loyalty. Showing the world a stronger recognition, and ultimately, higher revenue and profits.

However, brand positioning requires a deep understanding of your target audience. And that is the tricky part as it takes time and research.  To acquire a great brand positioning you also need to analysis of your competition and see where the market trends are at.

Therefore, it requires ongoing monitoring and adjustment as your business evolves and customer needs change. Of course, by investing time and resources into brand positioning, businesses can establish a strong and good competitive advantage, and build a loyal customer base that will drive long-term success. Well, that’s the theory, anyway. 

Understanding Brand Positioning Strategies

Easily said but not easily done, brand positioning strategies are essential for building a strong presence in the market. For instance, like we stated before proper positioning can help companies differentiate from other companies in the same market and attract target customers. Bringing more loyalty to stay with you instead of going elsewhere. 


There are various brand strategies to use, including differentiation, cost, and niche focus.


First one, differentiation focuses on creating a unique product or service that meets the needs of customers better than competitors.


Second one, cost positioning leverages low prices to appeal to cost-conscious consumers.


Last one, niche focus targets a specific market segment with a tailored product or service.


The main thing here is to try understanding consumer needs, competition, and market trends. All three are  critical for developing a successful brand positioning strategy.


However, comapnies must also be consistent in their messaging and stay true to their identity to maintain their position in the market. Therefore, by realizing a well thought through brand positioning strategy, then companies can improve their overall market position and increase customer engagement. Which is usually what everybody wants. 

Key Elements of Successful Brand Positioning

Of course, we have to talk about the key elements for successful brand positioning. This is where companies need to be different from another one. It can be the key to building a strong and lasting brand. Below, we’ll explore the five key elements of successful brand positioning.

  • 1. Unique value proposition (UVP)
    2. Target audience
    3. Competition analysis
    4. Brand personality
    5. Consistency

So, by creating a strong UVP and understanding your target audience, you can set yourself apart from your competition. Identify what makes you unique. Conducting a thorough analysis of your competitors can also help you identify opportunities for differentiation.

Developing a clear company story and maintaining consistency across all channels. Therefore,  ensure that your brand message is consistently communicated across all channels. This includes your website, social media, advertising, and customer service. 

By focusing on these five key elements, you can create a strategic brand positioning that resonates with your target audience and sets you apart from the competition.

Examples of Strong Brand Positioning

Advertisements on Times Square

Let’s look at some famous top brand names examples. Of course, when it comes to building a strong brand, some companies just do it better than others. Here are three examples of companies that have achieved a strong brand positioning:


1. Apple – Known for sleek design and innovative technology. More so, Apple has built a brand that embodies style, sophistication, and cutting-edge innovation.


2. Nike – Not surprisingly, one of the most recognizable brands in the world. The company has built a strong brand by associating itself with top athletes and emphasizing a commitment to athletic excellence. The logo with slogan, just do it is incredibly powerful.


3. Coca-Cola – With a brand that’s been around for over a century, Coca-Cola has built a legacy of great taste, happiness, and refreshing enjoyment that has become synonymous with its iconic red and white logo. The entire world recognizes the logo and brand regardless of season as they are super consistent. 


If you want to compare different companies then take a look at this brand mapping article

Common Mistakes to Avoid

As we now understand, brand positioning is a crucial element in any successful marketing strategy. However, many brands make common mistakes that can undermine their positioning efforts. One of the most common mistakes is failing to define the unique value proposition of the brand. This in itself could lead to a lack of differentiation in the market. Basically, you’ll be just like anybody else out there. 


Another mistake is trying to appeal to too broad of an audience, which can dilute the brand’s message and confuse potential customers. You ou can’t sell everything so concentrate on what you are good at.


Additionally, brands often make the mistake of focusing too much on features and not enough on benefits. More so, failing to clearly communicate how their offering solves their customers’ problems.


It’s also important to avoid changing the brand’s messaging too frequently, as this can diminish customer trust and make it difficult for customers to establish a solid connection with you.


Finally, failing to stay true to the brand’s identity and values can weaken its positioning and cause customers to lose faith in the brand. So, by avoiding these common mistakes, brands can establish a strong and consistent positioning. And success can be had. 

Some Companies That Failed Brand Positioning

Unfortunately, some companies did not understand the importance of brand positioning. Here are three examples where companies failed.


Kodak. – Once a leading name in cameras and film, failed to adapt to the digital era, losing its market share to smartphone manufacturers. 


Blockbuster – A few years ago prominent video rental chain, failed to recognize the shift to digital streaming and eventually went bankrupt. 


JCPenney – Experienced a similar fate with a failed rebranding strategy, losing its core customers and ultimately filing for bankruptcy.


All three companies failed to stay ahead of the competition. Failing  to adapt to changing market trends. In today’s constantly evolving market, companies must be agile and stay current to maintain their brand identity and customer loyalty. I personally still miss JCPenney which had just about everything I needed, but not anymore. 

Wrapping up

Above all its important to remember that brand positioning refers to the process of creating an image for your brand in the minds of your customers. Read another interesting guide from HubSpot which explains every further. 


Like we saw there are many factors to consider when developing a brand positioning strategy. However, it’s never too late to evaluate your brand positioning and make necessary adjustments to improve your brand image and market presence.

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