The Role of Brand Positioning in Competitive Markets

The Role of Brand Positioning in Competitive Markets

When potential customers think about a product, why do you think a specific brand name comes to their minds before all others? Why do customers prefer one brand to another when the final product is the same? One could argue saying the packaging was attractive, but if we’re to be completely honest, the packaging is a secondary factor.
It all comes down to brand positioning.

Well Then, What Is Brand Positioning?

Brand positioning can be defined as the position of an organization in the minds of customers and how the company differentiates itself from other competitor organizations. It is the process of positioning a brand in the minds of its customers. Brand positioning is more than just a tagline or fancy logos. It is the strategy that sets businesses apart from the crowd.

Well Then, What Is Brand Positioning?Brand positioning is also often referred to as brand strategy, positioning strategy, or brand positioning statement. Brand positioning occurs irrespective of whether a company is actively involved in developing a position or not. However, intelligent businesses take a proactive approach and positively influence brand positioning in the minds of their target audience.

Brand Positioning Statement

A declaration that communicates a brand’s value to its customers, concerning its main competitors, is known as a brand positioning statement. A brand positioning statement comprises the following four essential elements.

A brand positioning statement comprises the following four essential elements.

  • Target Audience

Brands must know the target group of customers that are attempting to appeal to and attract.

  • Market Definition

Businesses must clearly define the category in which the brand is completing.

  • Brand Promise

Brands must know the benefit that they offer to the target audience.

  • Trust Factor

Businesses must include reasons for the target audience to believe in the brand.
These elements help brands in crafting their best-in-class positioning statement.

Importance of Brand Positioning

Brand positioning does not only provide customer recognition but also enables brands to portray the uniqueness of their products. Brand positioning also facilitates easy purchase decisions as it clearly defined the brand’s products and how they benefit the customer. An established brand does not indulge in pricing wars with competitors. Such brands can establish a higher value for the products by providing value confirmation to the customers.

Brand Positioning Strategy

Creating a brand positioning strategy requires thorough research of a brand and necessitates the discovery of what a brand does better than the others in the same market. The following steps help in the creation of a unique brand positioning strategy.

  • Determine Current Position

The current brand positioning provides significant insights to analyze competition and set goals.

  • Determine Competition

To get a higher Bp’s, brands need to know their competitors. Brands must conduct market research, use customer feedback, and use social media to understand how to improve to gain a competitive edge.

  • Conduct Research on Competitors

Upon determining their competitors, brands need to conduct in-depth research about them. The analysis should include which products or services competitors offer, the strengths and weaknesses, the marketing strategies, and their current positioning in the market.

  • Identify the USP (Unique Selling Proposition)

Once the competitor research is complete, the brand should get an idea of what their unique selling proposition is or can be. It is the perfect starting point to position a brand in the market.

  • Create a Positioning Statement

Now that the research path is concluded, brands must create a one- or two-sentence declaration that communicates the brand’s USP to the target audience.

  • Check Positioning Statement Efficiency

This is an improvement check post that brands need to frequent to maintain the brand positioning top spot in the customers’ minds.

What Are the Criteria for Evaluating a Brand Positioning Strategy?

A well-crafted Bp’s statement helps brands bring focus and clarity to their marketing campaigns, strategies, and promotional tactics. Here is a list of criteria to evaluate the brand positioning strategy.

  • Does the strategy differentiate the brand?
  • Does the strategy match customer perceptions?
  • Will the strategy enable long-term success?
  • Is the strategy memorable and motivating?
  • Is the strategy consistent in all business areas?
  • Is the strategy easily comprehendible?
  • Will the strategy enable the making of effective marketing decisions?
  • Does the strategy enable growth?
  • Is the strategy focused on the brand’s core customers?
  • Does the strategy make the brand promise believable?
  • Does the strategy identify a brand’s USP to its customers?

Brand Positioning Examples

To understand how brands make use of brand positioning, here are some real-world examples that have paid off.
Brand Positioning Examples - Verizon wireless Brand Positioning

  • Verizon Wireless

The network service provider established itself as “America’s Largest, Most Reliable 4G LTE Network.” This brand statement was publicized via billboards, TV advertisements, and other modes. This claim was backed up by the service provided by Verizon and led to increased trust between the brand and its customers.

Logo as seen on the Verizon Wireless

Brand Positioning Examples - lyft

  • Lyft 

Despite Uber coming into the rideshare picture before Lyft, its offerings of overly-executive rides and extra-luxurious branding left some customers disconnected. Lyft, on the other hand, entered the market, providing a friendly and fun service, which resonated better with customers than the message from Uber.

Logo as seen on the Lyft

Brand Positioning Examples - Bumble

  • Bumble

Whitney Wolfe founded Bumble in 2014 after her experience in working for Tinder. Unlike the gender-neutral app, Tinder, Bumble aimed at empowering women to take control of their connections. Bumble also expanded beyond the dating category and gave users the option to look for friendships and professional relationships (Bumble’s USP).

Logo as seen on the Bumble


The difference between a brand being a household name and just any other brand in the market stems from brand positioning. Businesses must ensure they update their positioning statements to stay up to date with their target audiences and improve customer experience to increase the brand positioning ladder in their minds.