In this article, I discuss the different approaches that some of the most beloved brands in the world use to position themselves in their market and how you can use these strategies for your brand. When it comes to positioning your brand, there are many different approaches. Still, before you choose one, make sure you've researched your target audience and competitors.
So, without further ado, let's take a look at some of the most effective brand positioning strategies.
#1 "The Contrarian"
"The contrarian" is a classic approach. And essentially, what you do is you define what you do differently compared to a major competitor or a significant group of competitors. In other words, point the finger at that competitor or group and say what they're doing wrong and why people should buy from you instead. The key is to create a message around a pain point and associate it with a competitor's offer.
Take Dollar Shave Club. They launched in 2011 with a marketing video that went viral. Five years later, Michael Dubin, the founder, sold the company to Unilever for $1 billion. They began as a start-up in the men's razor blade sector, where Gillette dominated and had around 80% market share. Despite this, DSC managed to compete against the giant. They developed a contrarian strategy by understanding the pain points in this market and discovered that many didn't like to pay for overpriced razors with unnecessary features.
DSC found a gap and offered something different. Their blades were much more affordable, had a convenient subscription model, and were delivered right to their customers' door.
#2 Hyper Specialization
Many brands try to be all things to everyone and fix every problem. Consequently, their messaging becomes diluted and makes it difficult to understand what they're great at. And automatically, many consumers will look at brands like these and think they'll be purchasing half-baked products or services.
On the other hand, if you approach a market with a message saying that you solve a specific problem more effectively, you could attract consumers willing to pay a premium price. An example of hyper-specialization is CastingWords, which only produces audio files transcriptions with incredible speed—sometimes in less time than the recording itself took to make.
#3 Leader-Based
The third approach is for brands who have a tremendous amount of confidence in what they do. This strategy consists of putting your flag on the ground and saying that you're the best in your industry. The caveat is that it might open the door for many competitors to point the finger at you and highlight any of your weaknesses.
The leader-based is often accompanied by top-tier pricing strategies as well. Mercedes-Benz is one of the brands that has applied this strategy. Its tagline is "Best or nothing." Although it has fierce competition from other luxury brands such as BMW and Audi, it's still considered (by many) king of the hill.
If you're a newly established brand, it might be hard to adopt this approach. You can think of it as a long-term strategy and something you can aspire to put your brand in someday.
#4 Price-Based
This positioning method was probably applied before businesses were even considered as brands. The price-based strategy is a two-way street. You can go in the low or high-price direction or anywhere in between.
There are advantages and disadvantages to both. At the lower end of the spectrum, more people can afford it. Still, it becomes a game of margins, and you're vulnerable to someone coming in and undercutting your pricing. As a consequence, quality will suffer to keep your prices down. It might lead to a race to the bottom. On the other hand, if you position your price high, the narrower your audience becomes. But because of the price point, you can associate your brand with high quality, prestige, and social status.
#5 Benefit-Driven
A benefit-driven strategy is an old-school approach. It's what brands used back in the 50s and 60s. However, it's still an effective strategy today, especially on a product level.
Brands like Dyson consistently send out messages about their bagless vacuum that doesn't lose suction. They've successfully managed to build their brand from a benefit-driven approach.
#6. Convenience-Based
This positioning approach has become more relevant over the last 10-20 years. Thanks to technological developments, we take fewer steps to do something. An example of convenience-focused companies are on-demand services by tech companies like UberEats and DoorDash.
To adopt this strategy, you have to identify how many steps your competitors take to get your audience a result. Suppose you're able to take away one or more of those steps for these customers; in that case, they're going to turn their attention towards you because that's what modern-day consumers want.
Applying this strategy and effectively revolving your message around convenience will help you claim a position in the minds of your audience as a brand that makes life easier.
Conclusion
The majority of these strategies have been around for decades, and have stood the test of time. Whether you're a new or established brand, make sure you understand your audience's pain points and your competitive landscape, and from that, craft a powerful message and brand identity.