Brand Positioning: A Comprehensive Guide

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Today’s consumers are more informed and discerning than ever before. They are also more fragmented and niche in their interests. In such an environment, brand positioning becomes critical for brands to stand out from the competition and drive differentiation in the market. With so many marketers using different terms like positioning, proposition, or value proposition in their strategies, it is not surprising that there is so much confusion around which term means what. 

In this blog, we will be talking about brand positioning as a type of strategy that aims to align a brand with its target audience and create a clear image in their minds. This is done by defining the values and attributes of a brand in such a way that they are clearly differentiated from competitors.

brand positioning guidelines

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What is Brand Positioning?

Brand positioning is the process of defining and communicating the essence of your brand. It is a strategic marketing approach designed to help you create a connection with your customers by defining your brand’s unique value proposition.

When a brand is positioned effectively, consumers perceive it as worth investing in, beneficial, and trustworthy. According to the 2019 Edelman Trust Barometer Special Report, 81% of consumers across the globe indicated they need to be able to rely on the company they buy from.  By creating a unique combination of those three characteristics, your stand out, and your customers associate you with a distinct set of values. It is a strategic marketing approach that is designed to help you create a connection with your customers by defining your brand’s unique value proposition.

Brand positioning is more than a tagline or a visual identity. It is a framework for all marketing activities that use the brand’s strengths, target audience, and competitive landscape to generate results for the business. With all that in place, it must answer three questions: What does your brand do? Who does it do it for? What makes it different?

what is brand positioning

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Why is Brand Positioning Important?

A strong brand position is critical for any. Brands are not just logos or product packages,  they are your promise to your customers. They are what you say about yourself as a company and how you are different from your competitors. Aside from that, they are also what your customers perceive about you.

Brand positioning based on a very clear understanding of your audience and what they want will ensure that your brand promise is delivered. This will lead to greater levels of customer satisfaction, increased sales, and an overall stronger company.

In the early 1900s, the Coca-Cola Company introduced the world to the first cola beverage. By positioning itself as the original, the company successfully established itself as the original. Today, Coca-Cola has millions of consumers around the world and is a popular household item. It is thought of as the gold standard for soft drinks.

The process of defining a brand’s position helps a company distinguish itself from the competition. This distinction improves brand recognition, communicates value, and justifies price—all of which impact its financial performance.

brand positioning importance

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5 Types of Brand positioning strategy

Brand positioning is dependent on your business, industry, and target audience, and it cannot be solved with a one-size-fits-all approach. In order to emphasize your brand’s strengths, think about different aspects of your product or service. These are five popular approaches to improving your brand’s position:

Service Quality

It is a smart way to position your brand by highlighting the quality of your company’s customer service. When your brand is pricier than your competitors, clients must recognize that the high level of care they receive in return is justified.


Whether your pricing is affordable or high-end, the way customers view your pricing model will affect how they view your brand. A great service that is less expensive than competitors will make you the go-to choice for budget-conscious audiences. Furthermore, some customers prefer brands that are priced higher, as they associate this with quality, luxury, and exclusivity.


Consumers are more likely to select your brand if you position it as more convenient than the competition. Your product may offer a variety of advantages, including availability, design, and ease of use. These advantages may contribute to its convenience and make it an attractive choice for those seeking simple solutions, even if the price is higher.

Brand Niche

When customers see your business as a niche brand, it’s because your product or service isn’t widely available. Instead of emphasizing how your company is different from its competitors, highlight how your unique offering cannot be found elsewhere.

Solving Problems

Do many people have a problem that your product solves? Position your brand as a powerful solution if people think of it whenever that problem arises. You can address customer pain points and prove that you provide an immediate and actionable solution through marketing.

brand positioning stragegy types

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3 Steps to Build a Successful Brand Positioning Strategy

Define Your Brand

The very first step in creating a strong brand positioning strategy is to define your brand. What is your brand’s core value or promise to the customer? What are the strengths, weaknesses, and purpose of your brand? A strong brand is defined by a clear and consistent message. The brand promise is what your customers expect from you and your brand.

Analyze Your Competition

It is critical to understand the competitive landscape. You not only need to know your competition but also understand how your target audience perceives them. Furthermore, you need to know the strengths and weaknesses of your competition. What are their advantages and disadvantages? What makes them different from you? All of these factors will help you determine your brand positioning.

Define Your Target Audience

Once you have an understanding of your competition, you must next define your target audience. Who is your ideal customer? What are their demographics? What are their lifestyle choices? And what are their pain points? Understanding your target audience will help you tailor your brand positioning strategy.

steps of brand positoning

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A strong brand positioning helps you attract and retain customers and grow your business. However, creating a successful brand position is not easy, especially in an environment that is so fragmented and niche. It requires you to create a visual image in the minds of your customers that is not only consistent but also differentiated from competitors. This is where brand positioning comes into play. By following these steps, you can create a brand positioning strategy that will help you stand out from competitors and drive growth in your business.

Need help for your current brand positioning and the digital marketing strategies for your business? We are here to help, Pixie Digital is a Digital Marketing Agency and Consultant based in Bali. We can help you develop and fine-tune your digital strategy so you can expand your company. Whether you’re a new company or an established business, we can provide digital marketing services.