Brand Strategy Series P3: Positioning

Brand positioning is the strategy used to set your business apart from the rest. It’s all about looking into the details of your brand and sorting out what your company does better than anyone else. By the end of this blog post, you will be able to understand what a positioning statement is, what a value proposition is and how they relate to determining what puts your business above your competition.

So, why is this important? You know how passionate you are about your brand - why write this down and solidify it? Like we have said before, it’s all about consistency. “Brands that are consistently presented see an average revenue increase of 10-20%” - Hubspot. Plus, the more consistent you are with branding, the faster your customers start recognizing and thinking about your brand first. It will also help you understand your customers better, understand their needs, problems and wants. Bottom line, it increases customer loyalty and who doesn’t want loyal customers?

Value Proposition vs Positioning Statement

These two terms sound like they mean the same thing. However they are very different. 

A Value Proposition (VP) is the snapshot of your brand, the big picture, the overall essence of your brand. Your VP is the direct output of your brand’s business strategy, and reflects your brand’s promise. Your VP sets a clear understanding of what you do, who you do it for, and how you do it differently. For example, HubSpot: “Tech you need to help your business grow effectively.” HubSpot’s VP has highlighted the who (B2B), the what (they help businesses grow) and the how (their tech). It explains their brand and the value it provides. 

Your Positioning Statement (PS) is 1 - 3 sentences explaining how your brand fills a particular consumer need in a way that your competitors don't. 

For example, Nike’s brand PS is “For athletes in need of high-quality, fashionable athletic wear, Nike provides customers with top-performing sports apparel and shoes made of the highest quality materials. Its products are the most advanced in the athletic apparel industry because of Nike's commitment to innovation and investment in the latest technologies.”

Clear, not too long, accurate and to the point.

How to create a value proposition 

As mentioned, the VP is a snapshot of your brand. The proposition is created with: The one problem, the one buyer, the unique way you solve the buyer problem, benefits of your business/product (over competitors), why are the benefits valuable and then connect this value to your buyer's problem.

To start this journey, create an ideal customer profile, what is your customer solving by purchasing your product? What are your customers looking to gain when they purchase your product? What pain points are they experiencing? 

Next, what features does your product offer that will make your customer happy? How will your product make your customer happy? What services/products will create the most gain and alleviate the most pains for your customers?

Now put it all together in a sentence! Example: Subaru — “The most adventurous, most reliable, safest, best Subaru Outback ever.”

How to create a Positioning Statement

When developing a new company, it’s important to ask yourself: Where do we exist in the market compared to our competitors? The first step in creating a positioning statement is to identify your competition, and identify their strengths and weaknesses. To really benefit from this exercise, pick at least 3 competitors. Keep in mind, your competition might not just be in the same town as you or do the exact same things as you. For example, if you sell furniture - your competition is the other furniture stores in town plus, Wayfair, Ikea, Walmart and Structube. All of the listed companies sell furniture, your potential customers have the option to buy from them as well. 

Now it’s your turn. What are your strengths, and what are your weaknesses? What opportunities can you take advantage of and what threats exist? Keep in mind that threats exist in every industry, but don’t panic. Being aware of them is the first step into fixing them. Example, a strength could be keeping overhead costs low by implementing basic pay with performance-based bonuses. A weakness could be lack of experience or overcomplicated service policies.

You’ve written out your strengths, weaknesses and opportunities that can be taken advantage of. Next step is writing down what makes you different from your perspective. What do you offer that the competition either doesn’t offer or doesn’t do as well as your brand. Do you offer killer customer service? Do you provide results faster than the competition? 

Now, what makes you different according to your customers? Why do they choose you? What problem(s) are you solving for them? How do your customers see you? Why do they choose to work with you? You can find this out in a number of ways, one way by sending out a survey after they make a purchase. You can look at spending habits, do you have repeat customers, when they do purchase what and how much are they buying? Another great way to learn about your potential customers is through social listening, look at social media to find what customers are saying about other brands. Social listening can help you get access to information about your target audience’s opinions, views, and pain points.

Last step, what are your brand’s values? If your brand was a human, what would their values be? Does leadership come to mind? What about Diversity? Pick 3 values and reflect on why they apply to your brand.

Now, let’s put it all together! In 3 - 5 sentences touch on who you serve, what you offer them, how you offer it, why you do what you do and how this compares to what's already out there.

For example: Amazon — “For consumers who want to purchase a wide range of products online with quick delivery, Amazon provides a one-stop online shopping site. Amazon sets itself apart from other online retailers with its customer obsession, passion for innovation, and commitment to operational excellence.”

Take a breath, we know it’s a lot of information in one blog post.

Not to worry, Sunday Roast is here to help build the foundation of your dream brand. Contact Sunday Roast to get your Value Proposition statement, Positioning statement and all other elements of a great brand started!