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Brand Strategy

Branding 101: How to Write a Positioning Statement

Chanpory RithChanpory Rith | April 1st, 2009 - 08:00 AM
(42) Found this useful. Do you? Yes

Your product is one among millions.
With so many products, why should a customer choose yours?
Positioning answers this question.

A product’s “position” is the place it occupies in the customer’s mind.
All products have a position—
even if it’s the position of “unfamiliar” or “irrelevant to me” or “not very good”.
Successful products are both relevant and highly ranked.
They stand out. They have a unique position.
The purpose of “positioning” is to create and articulate what makes your product unique.

A key step in positioning is writing a positioning statement.
Let’s start with a template based on the classic positioning structure
used by Procter and Gamble:

positioning_procter_gamble

Or if you want to be really succinct, use this one by Marty Neumeier:

positioning_marty_neumeier

Good positioning statements reflect good positioning.
So what is good positioning? Here are five traits:

1. Unique

Your positioning must be unique.
It must not already be owned by another company.

If you want to be the best but someone else is already the best,
you must find or make another space to own.

Imagine you’ve created a new soft drink.
You want to position it as the number one soft drink in the world.
Unfortunately, Coca Cola already owns that position in the customer’s mind.
Knocking Coca-Cola from that position is impossible.
Pepsi can’t even do it.
So what do you do? Find an open space:
What do customers drink if they don’t want cola? Hmmm.
Instead of being the leader of all soft drinks,
you position your new drink as the best alternative to all colas.
That’s the story of 7up, the “uncola”.

Another example:
It’s 1984 and you’ve invented a new computer.
You don’t even try to knock IBM from its position as a leader in computers
for business people.
Instead, you reposition the IBM PC as the square, boring, and hard-to-use computer
for people who like accounting.
In contrast, you position your invention as an easy-to-use computer
for people who want to have fun.
Say hello to Macintosh.

Today, IBM doesn’t make PCs anymore. Dell is now the leader.
But the Mac is still the easy-to-use, fun, and cool alternative to PCs.

2. Narrow

If your positioning is too broad, the customer won’t remember it.
If you’re everything to everyone, then you’re nothing to anyone.

Consider Levi’s:
Levi’s was once the leader in denim.
The brand started with just a few successful high-quality styles.
501s. 505s. 517s.
Now Levi’s has a confusing array of products.
From cheap denim sold at JC Penney’s to expensive high-end designer jeans sold in Japan.
It also sells shirts, skirts, hats, and scarves.
They make everything for everyone, but has lost all their meaning.

Is Levi’s still the clear leader in denim? Nope.

3. Affordable

Your budget will determine how narrow your positioning will be.
Can you afford to be the best in the world?
Then, how about just being the best in San Francisco?
That’s how Craigslist started to become the best online classifieds in the world.

4. Durable

Good positioning is durable in the customer’s mind.
But it must also be durable in the product owner’s mind,

Once your brand owns a position in the customer’s mind, you’re stuck with it.

Did you know Xerox made a personal computer before Apple?
Did you know Starbucks sells sandwiches?
Did you know Kleenex makes paper towels?

No? That’s because each brand already owns a specific position in your mind.

Xerox = Copiers
Starbucks = Coffee
Kleenex = Facial tissue

It’s very difficult to change a position you own.
Xerox will never be known for computers, even if it makes them.
Starbucks will never be known for sandwiches, even if it makes them.
Kleenex will never be known for paper towels, even if it makes them.

So, make sure you can live with your positioning for a long time.

5. Believable

To be believable, your product must deliver on its positioning promise.

What if the first Macintosh was actually very boring and difficult to use?
Then positioning it as a computer for the fun person wouldn’t be believable,
leaving an opportunity for others to own the open position.

Once you own the position, customers will be more forgiving,
but you must still deliver.

Today, the Mac has increased greatly in complexity.
It is harder to use that the original version.
Still, it is considered and believed to be “easy-to-use” and “cool”,
Why? Because the alternatives are still harder to use and boring.

In addition to the above traits, design legend Ralph Caplan
recommends you answer the following three questions:

1. Who are you?
Are you a manufacturer? A service provider? A retailer?

2. What do you do?
Do you make computers? Do you fix computers? Do you sell computers?

3. Why does it matter?
Are you the best? Are you the fastest? Are you the cheapest?

Other resources

- Positioning: The Battle for Your Mind
- The Brand Gap
- What’s the Big Idea?
- The Power of Product Integrity

COMMENTS

  • 4/1/09 - How to write a positioning statement Says:

    [...] Check out the full post: How to Write a Positioning Statement. [...]

  • 4/2/09 - Writing effective descriptions for users and search | The Cubicle Punk Says:

    [...] that descriptions are a branding 101 exercise. I was inspired by Chanpory Rith writing on the Small Business Marketing Guide when he stated: “Your product is one among millions. With so many products, why should a [...]

  • 4/4/09 - Patrick van der Valk Says:

    Why do so many people make a statement such as “If your positioning is too broad, the customer won’t remember it”, then make a comparison: “Levi’s was once the leader in denim”, and then ‘prove’ the statement with a fact “Is Levi’s still the clear leader in denim? Nope” that could be completely unrelated with the first statement. (In this case, most people still remember Levi’s. Their loss in not because of narrowness, it was because there was more competition in a lucrative market and they strategy was not supporting the idea to be the leader.

    I am not saying that you should not be narrow. I (most of the time) agree with that. However don’t prove it with something that is not proof.

    This is not only on this article, it applies to many business books I have read. Don’t believe things just because people have ‘proof’. Read a lot, experience a lot and make your own judgments.

    If you want proof, your best bet is to buy Harvard Business Review, although even their studies are also not always scientifically sound.

    Just my $0.02

    Patrick

  • 4/6/09 - Chanpory Says:

    Patrick,

    You’re right that there were a variety of factors that led to the decline of Levi’s. This includes increased competition from Gap and the growth of “designer” denim such as Diesel, Energie, and G-Star. Low-cost denim from Wal-Mart and JC Penney’s also was a factor.

    Still, the core problem, in my opinion, is that Levi’s tried to broaden their positioning in an effort to compete with other brands. Instead, they needed to reinforce their core positioning as the original, very high-quality denim maker.

    Levi’s was always the answer to the following question in the customer’s mind:

    “Where do I go for a solid pair of jeans that will last forever?”

    When Levi’s broadened their positioning in effort to be competitive, they attempted to own the answer to these additional questions:

    “Where do I go for basic clothing?”
    “Where do I go for a basic pair of jeans?”
    “Where do I go for designer denim?”
    “Where do I go for really cheap jeans?”

    But other companies already owned the answers to those questions: Gap, Diesel, Wal-mart. In addition, Levi’s even lowered the quality on their classic 501s in an effort to compete in price. In doing so, they almost purposely weakened their original positioning as a high-quality denim maker. It’s no wonder that Levi’s has little relevancy and meaning for customers today.

  • 4/8/09 - Postcard Printing Says:

    Awesome post on branding campaigns and reminders on proper brand development and management. Ill try to adopt the fundamentals. Thanks a lot guys!

  • 4/24/09 - 25.04.2009 « reading about starting Says:

    [...] Small Business Marketing Guide: Branding 101: How to Write a Positioning Statement [...]

  • 5/11/09 - Positioning Your Product or Service « Building Stronger Partners Blog Says:

    [...] The Small Business Marketing Guide has some good information on writing positioning statements. [...]

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