How to develop a winning Brand Positioning Statement

Posted on Posted in How to Guide for Marketers
Share this with your network of MarketersShare on LinkedInShare on FacebookShare on Google+Tweet about this on TwitterEmail this to someonePrint this page

Brands need to stand out to win

The role of the Brand Positioning Statement is to take everything you know about your brand and begin making focused decisions on limiting the choices as to who you will serve, what you will say that is unique, own-able and motivating to get consumers to think, feel and act differently so that you can create a bond that is stronger than what the product alone can do. A good positioning statement should balance the rational and emotional benefits for the consumer, helping to shape your external brand reputation, while reflecting your internal brand soul in a way that will steer and inspire everyone connected to the brand.

The 4 elements of a Brand Positioning statement

The 4 elements of a winning Brand Positioning statement include who you will serve, where you play, where you will win then why the consumer should they believe us. Simply put, that’s the target, category, main benefit and support points.

Positioning 2016.009
Powered by Zedity

Before you just write out a random brand positioning statement, we recommend that you dig deeper on doing the homework that helps uncover options and then focuses you on the best possible space to own. Positioning has a sense of ambiguity and uncertainty, which means randomness is only an intuitive guess on your part. Having a process that grounds your thinking will ensure you are owning the best space. I always think the positioning statement takes everything you know about the brand and narrows the focus to only those things that matter. The homework helps to lay out everything you know, and then your decision making helps to focus on the elements that matter.

  1. Who is in the consumer target? What slice of the population will be the most motivated to buy what you do? The first thing to decide is the consumer target, which should be your first point of focus, so that you can find the slice of the population that will be the most motivated by what you do. The mistake for many Marketers is they think about who you want, and they forget to ask who wants you. Who is the most motivated to buy what you do?
  2. Where do you play? What is the frame of reference that helps to define the space in the marketplace that you compete in? We then frame the positioning by determining the category you play in, defining the competitors you will position yourself against. No one really operates in a blue ocean space, as positioning is always relative to some other choice the consumer can make.
  3. Where do you win? We then need to determine the main promise you will make to the consumer target, in the sense of a benefit for the consumer, both the rational and emotional. Think about what does the customer get, and how does it make them feel?
  4. Why should they believe us? Finally, we will look to understand what support points are needed to back up the main promise you are making. These support points have to support the main benefit, not just random claims or features that you want to jam into your brand message.

The homework is hard, but the output provides clarity when you begin writing a brand positioning statement that will help focus you on what is unique, own-able, and motivating to consumers

Who is your ideal consumer target?

Everything starts and ends with the consumer in mind. We believe that spreading your limited resources across an entire population is cost-prohibitive and will provide you with a low return on investment and low return on effort, that will eventually drain your brand. While targeting everyone “just in case” might feel safe at first, it is actually less safe because you never get to see the full impact of the resources you apply. Too many Marketers seems to think that the way to make your brand bigger is to be able to appeal to a bigger, broader target. We take a different approach believing that instead of going after who you want the most, we recommend that you should go after those consumers who are the most motivated by what you do. To get Brand Leaders to focus their target, we show three types of targets: selling target, marketing target and program target.

  • Selling Target: Of course you should sell to anyone who wants to buy. I just wouldn’t spend my money against this large of a target. You can always reactively sell to anyone who engage and show interest in your brand, regardless if they fit your ideal target. However, as every brand is constrained by limited resources, we just don’t recommend that you spend your limited marketing resources against this large of a target, especially when you have seen no signs that they will respond enough to provide an efficient pay back.
  • Marketing Target: The best marketers know exactly who is their ideal consumer. In the new world of Marketing, we can know more and more about these people. We recommend that you focus your limited resources on those consumers that are the most motivated by what your brand offers, those most likely respond to your brand story or your product offering, which then provides you with the fastest and highest return on investment and return on effort.
  • Program Target: Specific campaign target that you hope to move to think, feel or do with your specific marketing program.
Positioning 2016.018
Powered by Zedity

A few years ago, I was working with bank who told me that their target market for a first time mortgage (home loan) was 18-65, new customers, current customers and employees. Sarcastically, I said, “You have forgotten tourists and prisoners”. As I pressed to help them narrow their consumer target, they pushed back saying that they didn’t want to alienate anyone “just in case” someone outside the usual target wanted a home loan. While the odd 64-year-old might be tired of renting for the past 40 years and wanting to finally buy their first home, they would not be offended if there was a 32 year old in the advertising. The reality is that first time home owners are usually in their late 20’s or early 30’s, and they usually spend 6-12 months looking for a house. No one buys a house on impulse. And no one ever wanted a mortgage, without buying a house. The target should be: “28-33, already considering buying a house within the next year and nervous about their debt load.” Imagine the difference that focused target market will make in the brand message and in the media choices you might make now. For instance, instead of just randomly advertising to everyone on mass media, you can focus your resources where the consumer would be most open to your message. You could advertise on real estate websites, take out billboard ads outside of the new housing developments and buy radio ads on Saturday when people are looking at new homes. The focused target market helps focus your resources on those consumers most likely to respond to your brand messages.

Realizing not everyone can like you is the first step to focusing all your attention on those that can love you. It becomes all about choices and you will be much more effective at convincing a segment of the population to choose your brand because of the assets and promise that you have that match up perfectly to what they want. The best brands don’t go after consumers, they create a desire and connection, to get consumers to go after the brand. The best way to get consumers motivated is to tap into their need states, to understand their frustration points they may have and to connect by showing that you understand them. Motivating someone to buy your brand should start with the consumer not your product. You have to understand consumers, to match your brand up to their needs, wants and desires. Done right, if you can make consumers want to buy, then you will never have to sell.

Who is your consumer’s enemies that you will fight?

While regular products solve regular problems, the most beloved brands beat down the enemies that torment consumers every day. What are your consumer’s frustration point that they feel no one is even noticing or addressing? For instance, the Disney brand fights off the consumer enemy of “growing up”, while Volvo fights off the consumer enemy of “other drivers” or Starbucks fights off the consumer enemy of a “hectic life”. Shifting from solving a rational consumer problem to beating down a consumer enemy is the starting point to reaching into the emotional state of your consumer.

Positioning 2016.029
Powered by Zedity

Put yourself in the shoes of your Starbucks consumer, who is a 38-year-old mom with two kids. She wakes up at 6:15 am, not only to get ready for work, but to get everyone in the house ready for their day. She drops off one kid at daycare, the other at public school and then rushes into the office for 8:30 am. She drives a van, not because she wants to but because it is a great transportation choice for carrying all the equipment needed for after-school activities, including soccer, dance, tutoring and ice hockey. It never stops. No one is really old enough to thank her, the only appreciations are random moments of celebration or a hug at the end of a long day. Just after getting both to bed, she slinks into her bed exhausted. What is her enemy? Her enemy is the hectic life that she leads. If only she had a 15-minute moment to escape from it all. She doesn’t want to run from it, because she does love her life. She just needs a nice little break. A place where there is no play land, but rather nice leather seats. There are no loud screams, just nice acoustic music. There are no happy meals, just nice pastries have a European touch. Not only does she feel appreciated, but the cool 21-year-old college student not only knows her name but knows her favorite drink. Starbucks does an amazing job in understanding and fighting off the consumer’s enemy, giving her a nice 15-minute moment of escape in the middle of her day. Yes, the Starbucks product is coffee, but the Starbucks brand is about moments. Starbucks provides a personal moment of escape from a hectic life, between work and home. If you want to show that you better understand your consumer’s pain points, think of how you would project the enemy to the consumer that you are fighting on their behalf.

We think of Consumer Insights as secrets that we have discovered and then use to our brand’s advantage.

To paint the picture of our consumer target, you should use Consumer Insights to help to crystallize secrets, thoughts and stories that bring the consumer to life. The dictionary definition of the word Insight is “seeing below the surface”. Too many people think data, trends and facts are insights. I always do this little test asking if this is an insight: “Consumers in Brazil brush their teeth 4x a day compared with only 1.8 times per day for Americans”. All we know is one piece of data and if we don’t find out more, we might make a mistake. It might be that Brazilians stand closer to each other, or they eat spicier foods or they have a lack fluoride in their water system, or Brazilians believe they are the most beautiful people on the planet.

The dictionary definition of the word Insight is “seeing below the surface”. To get deeper, when you come across a data point, you have to keep looking, listening, and asking yourself “so what does that mean for the consumer” until you have an “AHA moment”. You have to understand beneath the surface to turn the data point into knowledge and even wisdom about the consumer.

You can start with observations, trends, market facts and research data, but only when you start asking the right questions do you get closer to where you can summarize the insight. Look and listen for the consumer’s beliefs, attitudes and behaviors that help explain how they think, feel or act in relationship to your brand or category. Because the facts are merely on the surface, you have to dig, or you will miss out on the depth of the explanation of the underlying feelings within the consumers that caused the data. Think beyond the specific category insights and think about life insights or even societal trends that could impact changing behavior.

Get in the consumer’s shoes, then observe, listen and understand how they think, act, feel and behave. You have to know their fears, motivations, frustrations and desires. Learn their secrets, that only they know, even if they can’t explain. Learn to use their voice. Build that little secret into your message, using their language, so they’ll know you are talking to them. We call this little secret the consumer insight. Good insights get in the SHOES of your consumer and use their VOICE. We force every insight to be written starting with the word “I” to get the Marketer into the shoes of the consumer and force them to put the insight in quotes to use their voice.

Positioning 2016.033
Powered by Zedity

When portrayed with the brand’s message, whether on packaging, an advertisement or at the purchase moment, the consumer insight is the first thing that consumers connect with. When consumers see the insight portrayed, we make them think: “That’s exactly how I feel. I thought I was the only one who felt like that.” This is what engages consumers and triggers their motivation and desire to purchase. The consumers think we must be talking to them, even if it looks like we are talking to millions. If we want consumers to believe the brand is for them, then the insight is the first signal that says “we get you, you should listen to us”. It is not easy to explain a secret to a person who doesn’t even know how to explain their own secret. Try it with a friend and you will fail miserably. Imagine how hard it is to find that secret and portray it back to an entire group of consumers. Safe to say, consumer insights are hard to find.

Knowing the secrets of your consumers is a very powerful asset. An insight should ONLY connect with the audience you are talking to. I hate when people say, “We don’t want to alienate others”. The best brand communication should be like whispering an inside-joke that only you and your friend get. Yes, when we target, we actually do want to alienate others. That’s the only way we will truly connect. Your ability to harness those secrets into creating insights that are arresting or intriguing, fuels the creative spirit as you tell your brand’s story, launch new innovation and move the consumer through to the purchase moment. After all, there is one source of revenue, not the product you sell, but the consumers who buy. In a tough competitive market, your ability to harness the secrets of your consumers that only you know, is a huge potential competitive advantage.

As part of the positioning exercise, we recommend that you put together a complete Consumer Profile that outlines the focused definition of the target, add flavor with needs, enemies and insights and then talk about where they are now and where you’d like to move the consumer in the future.

Positioning 2016.036
Powered by Zedity

The space to play. The space to win.

Where to Play: Starting with the consumer, the first step is to uncover the various consumer needs and wants, then begin matching them up with what your brand does best. By being consumer focused, you can stay on top of consumer trends and listen for the changes to any underlying needs and wants. You can also do this with regular marketing research that would include Usage and Attitude type studies, tracking data, focus groups or observing other categories to see what the consumer wants. This match up of the consumer wants and your brand benefits sets up the ideal space for your brand to play in.

Positioning 2016.010
Powered by Zedity

Where to Win: We rarely play in a blue ocean without any competitors. If you think that you can do such a good job in delivering what the consumer wants, you might be naive to ignore that a competitor may be doing it better than you are. Bringing the competitor into the mix, we can see a shrinking playing field as your competitor can match up better with certain key consumer wants, than you can. Focus on the space where you can WIN. That winning zone is the perfect match of what the consumer wants and what you do better than any competitor.

Positioning 2016.011
Powered by Zedity

If we look below, the winning zone has to be better, different, cheaper or else not around for very long. You want to avoid competing in the Losing Zone, going head to head with a competitor that can deliver the consumer wants better than you can. The area with the yellow arrow is a the Risky Zone, which is a relative tie. The way to win this zone is by being first, being more innovative and creative or finding the right emotional connection that makes the rational tie less relevant to the consumer decisions. At all costs, avoid the Dumb Zone, where you wage a competitive battle in a space that the consumer does not care about. When you find yourself competing in this space, you will find yourself eventually talking to yourself.

Positioning 2016.012
Powered by Zedity

There are market research testing methodologies you can use to find what is most motivating to consumers and what is most own-able for your brand. There are huge consumer changes happening in the market place–with the advent of new generations and new technologies. Marketing has to change with consumers. Consumers see more brand messages than their brains can handle. Consumers are tired of being burned by faulty brand promises. Consumers now take control over the buying process. Consumers connect with brands that they believe in. Consumers reward amazing experiences over products alone.

Positioning 2016.084
Powered by Zedity

What’s the Benefit?

The next decision is the main benefit you want to focus on. Doing a Consumer Benefits Ladder helps to organize your thinking as a great tool for bringing the benefits to life.

Positioning 2016.041
Powered by Zedity

The best way to work the Consumer Benefits Ladder is to hold a brainstorming session with everyone who works on the brand so you can:

  • Leverage all the available research to brief the team, helping define the consumer target and get all the consumer insights and need states out.
  • List out all the features that your brand offers, and the brand assets it brings to the table. Make sure that these features are competitive advantages.
  • Find the rational benefit by putting yourself in the shoes of the consumer and seeing the brand features from their eyes: start asking yourself over and over “so if I’m the consumer, what do I get from that?”. Ask up to 5 times and push the answers into a richer zone.
  • Then find the emotional benefit by asking “so how does that make me feel?” As you did above, keep asking, and you’ll begin to see a deeper emotional space you can play in and own.

Put all the information of the group brainstorm into a Consumer Benefits Ladder Worksheet.

Positioning 2016.042
Powered by Zedity

Line up strategy behind your brand’s core strength

There are four options for what Core Strength your brand can win on: product, promise, experience or price. Many brand leaders have their marketing strategy wrong, when it comes to aligning everything behind the right strength. Which core strength can really impact your brand positioning. Product and experience brands have to be better, promise brands have to be different, price brands have to be cheaper.

Here’s a simple little game that we play with executive teams. We provide them with 4 chips against the 4 choices of product, promise, experience or price. They have to put one at the highest competitive importance, two at the mid level and then force one to be at the low level. Try it and you will be surprised that your team struggles to agree. You may also find that you are at one strength now and figure it is time to shift your brand marketing to become focused on something else.

Positioning 2016.038
Powered by Zedity
  • Product: your main strategy should focus on being better. You have to invest in Innovation to stay ahead of competitors, remaining the superior choice in the category.
  • Promise: your strategy should focus on being different. To tell that story, you need to invest in emotional brand communication. You want to connect consumers on a deep emotional level with the concept.
  • Experience: your strategy and organization should focus on linking culture very closely to your brand. After all, your people are your product. As you go to market, invest in influencer and social media that can help support and spread the word of your experience.
  • Price: focus on efficiency and drive low-cost into the products you sell and high turns and high volume. You have to be better at the fundamentals around production and sourcing.
Positioning 2016.040
Powered by Zedity

Emotional Benefits

From my experience, Marketers are better at the rational benefits than they are at the emotional benefits. I swear every brand out there thinks their brand should be the trusted, reliable and yet like-able brand. As a brand, you want to own the emotional space in the consumer’s heart as much as you own the rational space in the consumer’s mind. It seems that not only do consumers have a hard time expressing their emotions about a brand, but so do Brand Managers. Companies like Hotspex have mapped out all the emotional zones for consumers. I’m not a researcher, but if you’re interested in this methodology contact Hotspex at http://www.hotspex.biz We have taken this research method and created an Emotional Cheat Sheet for Brand Leaders. This lists out the 8 major emotional consumer zones, optimism, freedom, being noticed, being liked, comfort, be myself, be in control and knowledge.

Positioning 2016.043
Powered by Zedity

 

To own a space in the consumer’s heart, you want to own and dominate one of zones, always thinking relation to what your competitor may own. Do not choose a list of emotions from all over the map, or you will just confuse your consumer as much as trying to own a long list of rational benefits. Once you narrow the major emotional zone you can own, you can use the supporting words of the Emotional Cheat Sheet to add flavor.

Benefits sell and features tell. Stop telling consumers what you do and start telling them what they get and how it will make them feel.

Positioning 2016.045
Powered by Zedity

Reasons to Believe (RTB’s)

If we borrow from a classic logic technique below, they teach you to one conclusion and two premise. I took one logic class at University and sat there for 13 straight weeks of premise-premise conclusion. Easy class, but the lesson has stuck with me:

  • All fish live in water (premise)
  • Tuna are fish (premise)
  • Therefore, tuna live in the water (conclusion)

In a positioning statement, the brand benefit would be the conclusion. And the Reason to Believe (RTB) would be the supporting premise. I say this for a few reasons. First, the RTB should never be the conclusion. The consumer doesn’t care about what you do, until they get something from it. The benefit has to come from the consumers’ shoes. Second, if pure logic teaches two premises are enough to draw any conclusion, then you really only need two RTBs. Brands with a laundry list of RTBs are not doing their job in making a decision on what the best support points are. You either force the ad agency to decide what are the most important or the consumer to decide. By deferring, you’re weakening your argument.

Claims can be an effective tool in helping to support your Reason to believe. We look at four types of claims: process, product, third person and behavioral.

Process

  • Detail how your product works differently
  • Showcase your point of difference in the production process.
  • What do you do differently within the production process
  • What added service/details do you provide in the value chain

Product

  • Usage of an ingredient that makes you bette
  • Process or ingredient that makes you safer

Third person

  • Experts in the field who can speak on the brand’s behalf.
  • Past users/clients with proof support of their stories.

Behavioral

  • Clinical tests
  • In market usage study
  • Before and after studies

Keep your positioning simple, focused and unique. Make it own-able and motivating for consumers.

 

At Beloved Brands, we lead workshops to help teams build their Creative Brief, helping the team find the target, main benefits, reason to believe.  Click on the Powerpoint file below to view:

We run workshops that help Brand teams make better decisions on the way to smarter action plans

We are big believers in the workshop process. We think it’s the best way to get the decision makers in the room, push for alignment, make decisions and drive the team towards action. The most noticeable point of difference we offer is that we will challenge you with new ideas to get your brand and your team in a better position for future growth. As the facilitator, I bring my executive experience into the room, ready to challenge the thinking and pushing for better answers. It’s like having another VP Marketing in the room.

While anyone can recommend a strategy, we recommend a realistic strategy that drives towards action. Quite frankly, I’m not big on consultants that just bring in big presentations that just sit on the shelf and never make it to the market. They cost a lot, take a long time, and in general they are written by consultants that have never run a business. Even Ad Agencies can recommend strategy, but they usually bring an agency bias and just give strategies that set up work they want to make–whether it drives growth for your business or not. I’ve run many businesses and I understand the pressure you’re facing on driving growth.

My personal promise to you is that I will get your brand in a better position for future growth

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management.

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution.

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands.

BBI Creds Training 2016 red.019

Share this with your network of MarketersShare on LinkedInShare on FacebookShare on Google+Tweet about this on TwitterEmail this to someonePrint this page

150 thoughts on “How to develop a winning Brand Positioning Statement

  1. Hi Graham! I am a fan of brands like you!
    I wanted to print this post but it does not print the A4 pages. Could I find another way so I can keep your article in my files?
    Thank you
    G.

  2. Hi Graham, I love your write ups on all the different aspects of Branding. Concise, to the point and explained in simple terms. I’m currently helping an upscale real estate developer client position their brand new luxury residences. Crafting a Brand Strategy for a new brand is a double edged sword. There are no preconceived negative notions, so one could build a brand based on the tangible attributes (location, premium quality product, luxurious setting, etc)… But of course it’s ultimately the customers who will decide whether the brand resonates w/ them. Your posts were helpful indeed.

  3. Great Information. Something that looks difficult to do and execute, simply explained and direct to the point. Thanks Graham!

  4. Great post – what you say or imply is not what Rosser Reeves – the man who first developed the USP concept – said in his book ‘Reality in Advertising’. He said that a USP is about about the product, it is tangible and that to be unique it can’t be shared by any other product. I think that the concept of the USP is so limited that it ought to be archived.

  5. Pingback: At&t Bundling |

Comments: have your say