21MM101 – BRAND MANAGEMENT

LECTURE MATERIAL – LP11

UNIT 4 –MANAGING BRANDS
Creating Brand Positioning Statement: Guidelines & Components

Picture this: You're preparing to launch your new product. You've spent countless hours, days,
weeks, months, even years determining what sets the product apart from the competition and
developing your brand identity.

But how can you ensure your marketing efforts are aligned with the brand?

The answer? Positioning.

Your positioning impacts all aspects of your branding and how your market sees you. It
influences everything your business presents and shares about your product and brand with
your target audience. Your internal teams benefit greatly from effective positioning, too — it
helps sales reps, marketers, and service and support teams create more delightful and on-brand
experiences for customers.

1
 When consumers visit your company website, view an ad, or check out your Twitter page, each
piece of content should communicate the business' core values and brand and a positioning
statement helps you do exactly that.

What is a positioning statement?

A positioning statement is a brief description of a product or service and an explanation of how

it fulfils a particular need of the target market. The goal of a positioning statement is to align
marketing efforts with a company's brand and value proposition.

Positioning statements are internal tools that help marketers appeal to their buyer personas in
a relevant way. They're a must-have for any positioning strategy because they create a clear
vision for your brand.

Having a clear and concise positioning statement is important because it gives potential
consumers the ability to understand your business at first glance. Buyers want to know how
your product and purpose differentiate you from the rest of the market, without buying the
product first.

What is the purpose of a positioning statement?

The purpose of a positioning statement is to convey a brand's value proposition to its ideal
customers. It also frames the brand's identity, purpose, and distinguishing features within the
context of the buyer’s experience.

To craft your positioning statement, you'll need to get crystal clear on a few key facets of your
business:

• Who you serve

• What value you offer

• How you position your offer

• Why you're in business

• What makes you different from the competition

Get Your Free Templates

2
Positioning Statement vs. Mission Statement

A mission statement is the purpose your business serves in the market — it's an inherent part
of the organization that guides every business function. When considering the “what, why, and
how” of your business, a mission statement answers the question “why” while the positioning
statement answers the “what.”

(If you’re curious about what the “how” looks like, here it is.)
Unlike a mission statement, a positioning statement is not public-facing. At its core, your
business’s positioning statement summarizes the value that your brand, products, and services
bring to the target market.

Value Proposition vs. Positioning Statement

The value proposition and positioning statement are both key elements in a business' marketing
strategy, however, there are differences between these two. A value proposition describes what
sets your product or service apart from competitors. It gives an overview of the benefits a
product or service provides.

A positioning statement is broader and it’s created after you've developed your business' value
proposition. It also identifies the primary customer benefits — why someone needs your
product or service.

Now that you understand the differences among some common business and marketing
elements, here are the core elements of strategic marketing positioning that you'll need to know.

The Core Elements of Strategic Market Positioning

As mentioned earlier in the article, if you want to craft your positioning statement, you must
first have a good understanding of your positioning as a whole. This includes defining the
following core elements:

• Target market

• Market category

• Customer pains

3
• Brand promise

• Brand identity and values

Target Audience
Your target audience is the "who" aspect of your positioning. Simply defined, it's the group of
consumers you're targeting with your product or services.

They say that "the riches are in the niches," which comes down to the idea that, even if anyone
can use your product or service, you should still be targeting specific buyers to maintain the
integrity and differentiation within your brand.

One of the best ways to define a solid target audience is by creating a buyer persona — also
known as your ideal customer.

Product Positioning

Product positioning should lead with the product's benefits rather than its features. A smart way
to do this is to imagine your customer’s life before and after using your solution. Then, tell the
story of what happens to them when they make that decision — that’s the benefit you’ll include
in your product positioning.

Market Category

A market includes buyers and sellers. A category defines a specific segment of that market.
Market categories can be as broad as “grocery store” and as niche as “vegetarian health food
store.” Market categories usually start out broad and get more niche as the businesses
occupying that market expand their product and service offerings to the consumers in the
market.

Whether your market category is developed or you're part of an emerging or niche market,
you'll need to define who the buyers are in the space, where they're searching for goods and
services, and who currently has their attention. You'll want to define what your competition
offers and how you can position your brand apart from those competitors.

Customer Pains

4
 Customer pains are the problems or issues your target audience is experiencing that could be
solved with products or services available in your market category. Your product or service
should aim to address customer pains and provide a solution.

Brand Promise

Your brand promise is ultimately what the target audience or buyer persona stands to gain from
using your product or service. It's what success looks like to them if their pain or problem is
resolved.

Brand Identity

Brand identity is the personality of your business and includes both visible factors (such as
logo design) and invisible ones (such as values or voice). Brand identity is one aspect of
strategic market positioning that will set you apart from competitors and help you gain
recognition from your target audience.

Values

Values guide how your business makes decisions within the context of your brand. They create
the culture of your organization and leave a favourable impression on your target audience.
They are the intangible methods with which you execute your mission and vision.

Once you have a solid understanding of these core elements, you can begin crafting the
positioning statement.

Pro Tip: Before you get started writing your positioning statement, make sure you've
developed your business' value proposition. You'll want to identify your target audience and
their pain points before describing how your product or service can be the best solution for
those challenges.

1. Create a vision board.

2. Keep it brief.

3. Make the statement unique and memorable.

4. Remain true to your business’ core values.

5
5. Include what the brand delivers to consumers.

6. Differentiate your business from the competition.

7. Keep it simple.

8. Consult a colleague.

When writing and evaluating your positioning statement, keep the following tips in mind:

1. Create a vision board.

Positioning statements are written documents. Since they don’t include images, video, or other
visuals, it can be challenging to communicate what your business is, who it serves, and why
that matters in just a few sentences.

To bypass the initial blank page syndrome, create a vision board instead. This works because,
in a recent study, researchers at Columbia University found that emotional response is linked
to the visual characteristics of an image. To leverage this response, look for images that
represent your customer in the environment where they need your product or service the most.
Notice the emotions in the images, who is around your ideal customer in the image, and what
they’re doing in the image to solve the problem.

6
Image Source

Creating a vision board that represents your target audience when they need your product the
most can help make your positioning statement come to life.

2. Make it brief.

Your brand’s positioning statement should be concise and to the point. Aim for no more than
three to five sentences, if possible.

The wordier that your statement gets, the less factual it becomes. It then risks becoming more
aspirational than what your business is, with more elements that are more inflated than
grounded in truth.

3. Make it unique and memorable.

This statement should be unique to your company and the problems you aim to solve. When
crafting your positioning statement, be sure to emphasize the distinctive qualities of your brand.

Buyers should be able to see the special value that your business can provide or solve for. Many
markets are already saturated with products or services that are similar to your offering, your
statement should be able to capture their attention against the noise.

4. Remain true to your business’ core values.

The positioning statement isn’t the time to get fancy and pitch a new angle for the business.
Your brand’s positioning statement should accurately reflect the core values of your business.

Clear core values in your positioning statement also sends messages to your internal team. It
helps new employees with better alignment. In addition to letting consumers know your
stances, it helps existing team members stay on the right track and continue to deliver on your
brand’s promises.

5. Include what the brand delivers to consumers.

Your brand offering is a vital part of your positioning statement. It’s the main reason that
customers are seeking you out, so when crafting your own, you need to cover these two bases:

7
• Who does your company serve?

• How does your company serve this group?

Succinctly state who your customer is and how you will help them in your positioning
statement.

6. Differentiate your business from the competition.

An effective positioning statement should articulate what differentiates a brand from its
competition. Highlight your company’s unique qualities and how those qualities help serve
your customers, you can even consider a niche marketing strategy.
Does your brand have cause-related campaigns? Differentiate your brand by highlighting your
goals to give back.

Does your brand serve a previously underrepresented target audience? Let them know clearly
and proudly that you fill that gap.

There are so many different ways to stand out against the crowd, you just have to survey your
competitors and see how you do it better.

7. Keep it simple.

In almost any circumstance, your team should be able to align key business decisions with your
brand’s positioning statement due to its simple and easy-to-understand nature.

The more complicated your statement becomes, the less convincing or engaging it will be.
Make sure your business’ value and offering is plain as day and buyers will understand and
seek to learn more about it in their buyer’s journey.

8. Consult a colleague.

Once you’ve written your positioning statement, your eyes might deceive you. After spending
several hours perfecting every word, you’ll think what you’ve written is wonderful, when in
reality it’s full of jargon, acronyms, and features that aren’t clear to someone outside of your
company.

8
Just because positioning statements aren’t public-facing doesn’t mean they shouldn’t be easy
to understand. Investors, new hires, and external agencies who work closely with your
businesses will need to use this document, too.

Pro Tip: To jargon-proof your positioning statement, have a colleague who is unrated to your
business review the statement for you and give feedback. They’ll make meaningful
observations that you may have overlooked.

Positioning Statement Template

For [your target market] who [target market need], [your brand name] provides [main benefit
that differentiates your offering from competitors] because [reason why target market should
believe your differentiation statement.]

The template above can be used to help you form a positioning statement for
your startup or small business. Add the details of your target market, company, and the main
points that make your product or service stand out from competitors. You can also download
10 more position statement templates for free below.

Download Now: 10 Free Positioning Statement Prompts

9
 Each business is unique, and it's alright if your statement doesn't fit the template exactly, but
be sure to include the main points below:

• A description of the target market.

• A description of the target market needs.

• How your business will meet their needs.

• What differentiates your product or service from the competition?

• Why consumers in your target market should believe your brand's claims.

You might need a little more inspiration before taking pen to paper and creating your own
positioning statement. Here are some examples to get your creative juices flowing.

Positioning Statement Examples

Since positioning statements are meant to be kept from the public eye, you’ll rarely find one
floating around the internet. Using the template we shared earlier, we’ve crafted a few example
statements for recognizable brands using the information we know about them as consumers
(or employees!) Below are examples of positioning statements of well-known brands to give
you a feel for how to create one for your business.

1. HubSpot

HubSpot Positioning Statement:

10
Since 2006, HubSpot has been on a mission to make the world more inbound. Today, over
100,000 total customers in more than 100 countries use HubSpot's award-winning software,
services, and support to transform the way they attract, engage, and delight customers.
Composed of HubSpot's CRM, Marketing Hub, Sales Hub, and Service Hub, HubSpot gives
companies the tools they need to Grow Better.

Why It Works:

With a clearly defined mission and track record that could capture the attention of prospects,
HubSpot’s positioning statement leads with its trustworthiness and variety of products to better
service businesses looking to grow and scale for the future.

2. Coca-Cola

Image Source

Coca-Cola Positioning Statement:

For individuals looking for high-quality beverages, Coca-Cola offers a wide range of the most
refreshing options — each creates a positive experience for customers when they enjoy a Coca-
Cola brand drink. Unlike other beverage options, Coca-Cola products inspire happiness and
make a positive difference in customers' lives, and the brand is intensely focused on the needs
of consumers and customers.

Why It Works:

11
While their product offering is literally beverages, Coca-Cola leads its positioning statement
with how much of a positive experience they want to provide its customers. By appealing to
prospect’s emotions, with a vast variety of products to choose from, buyers can know they’re
buying from a company that wants to better their lives — even with something as small as a
cold drink.

3. White Dog Distilling

Image Source

White Dog Distilling Positioning Statement:

White Dog Distilling was founded in 2016 by the husband/wife team of Carlo and Alecia
Catucci based on passion, spirit, and the journey from grain to glass. Bolstered by Carlo's
background in physics and Alecia's culinary and product development experience, they set
forth with one goal in mind: to produce high-quality distilled spirits that could appeal to both
novice spirit drinkers and long-time aficionados alike.

Why It Works:

White Dog leads its positioning statement with the high quality it delivers to customers.
Offering locally sourced and sustainable ingredients attracts customers looking for good value
versus price, with delicious taste, and making it accessible to those who aren’t well versed in
spirits.

12
4. Alaska Airlines

Image Source

Alaska Airlines Positioning Statement:

We are creating an airline people love. Each day, we are guided by our core values of “own
safety”, “do the right thing”, “be kind-hearted”, “deliver performance”, and “be remarkable at
work and in our communities.” Alaska Airlines also fosters a diverse and inclusive culture and
is an Equal Opportunity Employer.

Why It Works:

Alaska Airlines leads its positioning statement with love and heart. Prospects can be introduced
to the brand feeling as though they’re more than your typical transactions, but instead as unique
individuals who are worth delivering great service and inclusive experiences to.

5. Organic Bath Co.

Image Source

13
Organic Bath Co. Positioning Statement:

We are creating an airline people love. Each day, we are guided by our core values of “own
safety”, “do the right thing”, “be kind-hearted”, “deliver performance”, and “be remarkable at
work and in our communities.”

Why It Works:

Organic Bath Co. has a brilliant positioning statement that successfully conveys its focus on
quality ingredients, health, and the value of rest. Prospects could be looking for a soap brand
that not only is made from organic and safe ingredients, but encourages its customers to indulge
themselves in the relaxing experience of using its product line.

6. Amazon

Image Source

Amazon Positioning Statement:

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.

Why It Works:

14
Amazon cuts straight to the chase in its positioning statement, and that’s a big testament to its
success. It clearly outlines that its store is the customer's one-stop shop to find everything they
need, to better help the customer achieve their goal.

7. IMPACT

Image Source

IMPACT's Positioning Statement:

At IMPACT, we have revolutionized the way inbound marketing is done and taught to
businesses by reimagining the agency-client relationship through the ground-breaking
principles of They Ask, You Answer.

Instead of creating a cycle of dependency, wherein our clients are reliant upon us to move the
needle and get results, we empower all of the companies we work with to take ownership of
their digital sales and marketing. Instead of fishing for you, we'll "teach you how to fish" and
feast on remarkable results for a lifetime.

With a wide range of consulting services — content marketing, video sales and
marketing, HubSpot, website strategy and design, and more —find out how we can help you
achieve incredible results by becoming the most trusted voice in your space.

Why It Works:

15
IMPACT’s positioning statement explains how it goes against the grain to better serve its
customers in the market, by eliminating the cycle of dependency. This approach is unique and
will attract many prospects to want to learn more about its solutions.

8. Beautycounter

Image Source

Beautycounter Positioning Statement:

One by one, we are leading a movement to a future where all beauty is clean beauty. We are
powered by people, and our collective mission is to get safer products into the hands of
everyone. Formulate, advocate, and educate—that’s our motto for creating products that truly
perform while holding ourselves to unparalleled standards of safety. Why? It’s really this
simple: beauty should be good for you.

Why It Works:

As opposed to other beauty brands that strive to fix or perfect customer’s complexions without
much focus on ingredients, Beautycounter takes the unique stance that beauty should be good
for you beyond looks. The focus on cleaner, safer ingredients will really attract customers
looking to maintain their complexions, instead of temporarily fix them.

16
9. Nike

Image Source

Nike Positioning Statement:

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.

Why It Works:

Nike’s positioning statement clearly outlines its range of products to better serve athletes, and
doesn’t use exclusionary language to define what an athlete is. By doing so, people that enjoy
hobbies and professionals alike can derive value from its product line.

10. Thrive Market

Image Source
17
Thrive Market Positioning Statement:

Thrive Market is an online, membership-based market making the highest quality, healthy and
sustainable products available for every budget, lifestyle, and geography.

Why It Works:

Short and to the point, Thrive Market let's prospects know exactly what it has to offer in a
single sentence. Prospects won’t have to guess what type of product they can find from it, and
they also know that their line must be extremely versatile, too.

11. Apple

Image Source

Apple Positioning Statement:

For individuals who want the best personal computer or mobile device, Apple leads the
technology industry with the most innovative products. Apple emphasizes technological
research and advancement and takes an innovative approach to business best practices — it
considers the impact our products and processes have on its customers and the planet.

Why It Works:

Apple’s positioning statement appeals to people of all different backgrounds to expect quality
products made with intent to innovate in a way that helps people and the environment. It even
gains prospects' trust by emphasizing its industry authority, making it even more successful.

18
12. McDonald's

Image Source

McDonald's Positioning Statement:

For individuals looking for a quick-service restaurant with an exceptional customer experience,
McDonald's is a leader in the fast-food industry, with its friendly service and consistency across
thousands of convenient locations. McDonald's' dedication to improving operations and
customer satisfaction sets it apart from other fast-food restaurants.

Why It Works:

McDonald’s doesn’t narrow its target audience, but instead panders to individuals of all sorts
looking for a fast and satisfying service. It also leads with its position as an industry leader to
gain trust from prospects.

Craft a Positioning Statement for Your Business

For individuals looking for a quick-service restaurant with an exceptional customer experience,
McDonald's is a leader in the fast-food industry, with its friendly service and consistency across
thousands of convenient locations. McDonald's' dedication to improving operations and
customer satisfaction sets it apart from other fast-food restaurants.

19
What is a Positioning Statement?

A positioning statement refers to statement that tells a brands target consumer why the product
is unique from other similar products in the market and the customers’ needs that it fulfils. The
statement typically provides the central focus and direction of a company, and the unique
reputation they intend to create for the brand. Generally, a brand positioning statement is a
crucial element to any marketing plan in order to set a product apart or differentiate it from the
competition. It is like a slogan and will often be captured in advertisements primary to appeal
to target consumers and compel them to take action and consequently increase sales.

How does a Positioning Statement Work?

A positioning statement might appear simple but it is a well thought through process and a
product of positioning in a marketing plan. Positioning is when the marketing department
deliberates on the image they want to create and the direction they need to take in order to
occupy a certain market. A positioning statement is the slogan that guides that direction.
However, Positioning should not be confused with branding. Whereas, positioning identifies
the target market and differentiates the product from competition, Branding on the other hand
is about personality and the entire market perception about the product. Simply put, Branding
helps drive the point in a positioning statement and product differentiation.

What is the History of the Positioning Statement?

There is not a clear authority that states the origin and adoption of positioning statements as a
marketing strategy. However, some renowned marketing scholars suggest that the concepts
traces back to the period following World War I. It is believed that positioning statements
influenced marketing greatly in the 1920s but was not codified as a distinctive strategy until
the 1950s and 60s. American advertising agencies, for instance J. Walter Thompson (JWT),
focused on building personality, image and identity of brands from as early as 1915 which are
concepts comparable to brand positioning. For instance, when JWT was contracted to handle
the marketing for LUX soap, they repositioned the product to be associated with fine fabric
and consequently expensive clothing. Initially the traditional view was that the soap is meant
for only woolen garment. Renowned marketing guru David Ogilvy is credited for developing
the concept of positioning in marketing in the mid-50s. Ogilvys creative marketing teams were
well versed with the concept and assisted several brands in occupying certain niche markets

20
with their products. For instance, in 1957 they positioned Dove as beauty soap for women with
dry skin. Later, in 1961 they successfully positioned SAAB as the best winter car. Interestingly,
the positioning still works decades later and is more of a slogan for those companies to date.
Also, other marketing scholars like Al Ries and John Francis Jack Trout are credited for
devising positioning statements as a marketing concept. However, the assertion is challenged
by others scholars such as Stephen A. Fox who disagrees and states that the duo only built on
what already existed and made it a trademark.

Purpose of a Positioning Statement

Crafting a positioning statement serves numerous purposes in a marketing department some

include:

1. Commits the marketing team to research and understand their target customer attributes
and needs relative to the product.

2. A positioning statement enables a company’s marketing team to identify their product

differently from the competing product and subsequently weigh on competitive
pressure.

3. A positioning statement informs the marketing team the appropriate communication

channel that will effectively reach the target consumers.

4. Most importantly, a positioning statement helps the marketing team to convey the value
added aspect of a product to the target market and what differentiates it from other
similar products.

5. Helps the marketing team deliberate and set the product pricing on certain grounds. For
instance, if the target consumer is a low income earner, then the pricing will be set a
little below the market average since low income earners are more concerned about
pricing rather than quality most probably.

Developing the Positioning Statement

Drafting a positioning statement is part of a broader marketing plan that typically follows three
steps namely segmentation, targeting and positioning. The procedure is sometimes referred to
as the S-T-P method:

21
 • Market Segmentation - involves the marketing team grouping consumers into
categories or segments.

• Target Market - involves choosing one of the categories or segments to be the focus
that will drive sales for a particular product.
• Positioning - This is where the creative marketing team identifies that aspect that
differentiates the product from other similar competing products in the market. Product
positioning identifies certain features relative to the competition such as;

• Functional positions looks at what problems does the product solve, the benefit it
provides and the general perception by stakeholders.

• A symbolic position tries to identify a product image enhancement, creating a unique

identity and a social meaningfulness.

• An experiential position, on the other hand, identifies both sensory and cognitive
stimulation provided by the product.

Components to a Positioning Statement

There are four basic elements or components to a positioning statement:

• Target Audience who uses the product more often? They should be mentioned in the
statement.

• Frame of Reference - the market category in which the product is categorized should
be mentioned so that consumers are aware on how to refer to the product

• Benefit -what is that most appealing benefit that a brand completely provides that drives
consumers to take action.

• Reason to - believe how the brand has been living up to what it promises, is there a
convincing proof that drives customer loyalty.

It is good to encourage constructive criticism by the marketing team and subsequently

incorporate the same to into drafting a positioning statement. Considering the above
components, a template for a position statement could look like below;

For (target audience), (brand/product name) is the (frame of reference) that delivers (benefit)
because only (brand name) is reason to believe).

22
The wordings to a positioning statement don't have to exactly match the above template but
should at least contain all the components identified in brackets. Also, the statement should be
clear according to how the company wishes the product to be perceived in the market. Below
is an example of Amazon positioning statement that was used exclusively in 2011:

For World Wide Web users who enjoy books, Amazon.com is a retail bookseller that provides
instant access to over 1.1 million books. Unlike traditional book retailers, Amazon.com
provides a combination of extraordinary convenience, low prices, and comprehensive
selection.

Guidelines for Crafting Effective Positioning Statements

While drafting a positioning statement below are some guidelines to consider:

• It should be simple to read and memorize by the target consumers.

• It should create a clear picture that distinguishes the product from competitors.

• The statement should be brutally honest and the product should deliver what the
statement claims.

• The brand should be the only one claiming the stated position and owning it.

• It should be flexible to market changes and give room for growth to allow the position
to be changed.

• The statements should be able to assist the marketing department evaluate whether
decisions made are in line with the brands positioning.

Important Questions to ask when examining your positioning statement

Once a positioning statement has been drafted its better to leave it for a while, probably for a
fortnight, and then the marketing team can later to evaluate it on certain criteria. Below are
some suggestions:

• Is the message clear? It is a digital age and a message can be twisted if its vague and
end up being misunderstood.

• Does the product design differentiate it from the competition? Design can be an added
advantage to product positioning.

23
• Is the product unique to the target consumer and how is it of importance to them?

• Do the target consumers trust the positioning statement? Social media could be a good
platform to get the feedback.

• Is the communication channel selected the most relevant to reach the target consumer?
Consider all appropriate communication channels that will make the product get
noticed.

• Is the positioning statement believable and does it inspire all company stakeholders to
take action?

• Does the selection of wordings in the positioning statements bring forth the product
competitive advantage?

***********************

24