What is Brand Positioning and Why is it Needed?

If I ask you about a detergent brand; which name will strike you first? Did you think of ‘Surf Excel’?

If I ask you the name of a noodle brand; is Maggi the first brand that comes to mind?

This is how brand positioning works.

Brand positioning is a marketing strategy through which the brand presents itself to the customers. The aim is to establish and occupy a distinct position in the market segment. The aim is to establish a strong brand identity and convey its value proposition so that customers will remember the brand.  

Table of Contents

• What is brand positioning?
• Why is brand positioning important?
• Examples of Brand Positioning
• How can you strongly position your brand?

What is brand positioning?

It’s not just about the tagline, logo or colour theme of the brand; it is about establishing your brand’s identity in a way that people recall your brand when a product or a service comes to their mind. For instance, Jio has established its identity in a way that has become synonymous with mobile connection in India. 

The aim is to position the brand in a way that it is perceived as valuable and credible for its customers. Even during rebranding, brand position is quite significant. Effective brand positioning differentiates your brand from its competitors. It communicates your brand value very clearly. Your target audience will exactly know what you are offering them and how it will add value to their lives. 

Why is Brand Positioning Important?

Brand positioning is important for the following reasons:

1. Differentiation: With strong brand positioning, companies can create a distinct identity within their target market. Even in a market where similar products offered by companies are huge. 
2. Customer loyalty: Once the company has established its brand position in the market, customers are aware of what the brand offers. If there is an alignment with the brand’s value, customers will stick with the brand for the long term. They will stay loyal to the brand.
3. Higher perceived value: As a brand grows and sets a benchmark for other brands, its value increases amongst its target customers. It is highly valued which allows the brand to sell its products and services at higher prices than its competitors. 
4. Competitive advantage: With high value, distinctive identity and loyal customer base; the company gains an advantage over its competitors. The company has more share in the market due to these factors. 
5. Long-term Sustainability: As the company expands its market share, its chances to survive the market competition grow. The company survives and thrives in the market space over the course of years. 

Examples of Brand Positioning

Let us understand how brand positioning works with the help of some examples. 

1. Dollar Shave Club

Dollar Shave Club makes and delivers everything you need to look and feel absolutely bloody brilliant.

Dollar Shave Club indicates that you can afford shaving products at a low cost. The name itself is so catchy that it screams ‘affordability’. Look at the price of these products. They can be bought by almost everyone. 

The brand has been able to establish its identity as an affordable shaving products company. Now, those who want to buy an affordable shaving cream or razor will buy products from Dollar Shave Club.

2. Apple

The brand has no positioning statement since it allows its customers to formulate the brand image on its own. Apple products are considered a status symbol among people. There are queues outside Apple stores when the product is launched in the market. 

With its premium quality products, the brand has established itself in the market of tech products. Apple products are known for their security features due to which it has established their authority in the market. 

3. Surf Excel

Surf is India’s number 1 personal care brand as of 2023. While it battled to surpass its competitor ‘Nirma’, Surf released an ad featuring a character named ‘Lalita ji’. Her iconic dialogue ‘sasti cheez kharidne me aur acchi cheez kharidne me farak hota hai’ left an impact on Indian consumers. Even though Nirma was trying to compete with its low-cost product, the ad campaign strengthened the market position of Surf Excel.

The brand once again secured its market position with its tagline ‘Daag Acche Hain’. The aim of the ad campaign was to ensure consumers that removing stains is very easy with Surf Excel. In another campaign, the brand promises ‘Surf Excel hai na’ to reassure its consumers that their clothes will be properly cleaned. 

How can you strongly position your brand?

Over time, it has been observed that to improve your brand positioning, brands have to rediscover themselves. Coca-Cola is a living example of this brand positioning strategy. Over the years, the company has redefined itself in terms of logo, bottle design and brand theme. This has helped in keeping the brand image afresh amongst its consumers. Let us see how Coca-Cola has redefined itself:

• 1887-1890s: On January 31, 1893, the logo received its trademark registration from the U.S. Patent Office. The phrase “Trade mark” was incorporated into the “C’s” tail in the Coca-Cola logo.
• 1890-1891: For a brief period, the Coke logo underwent a significant transformation, adding elaborate swirls.
• 1941-1960s: The phrase ‘Trademark Registered’ was relocated from the ‘C’s tail to a position below the logo.
• 19 November 1947: The contemporary Spencerian script of the logo, as familiar today, was officially registered in Australia.
• 1947-1960s: From 1947, the Red Disc, or “button” sign, became a prominent feature in Coca-Cola’s outdoor advertising. In 1948, it also started being used as indoor advertising and decor.
• 1958-1960s: The logo was placed within an Arciform, or arch-like, shape, also known as the “Fishtail” sign, introduced in 1958. This design quickly found its way into various promotional materials and vending machines.
• 1969: The Arden Square logo, featuring the Coca-Cola script underscored by a white ‘wave’, or ‘Dynamic Ribbon Device’, was introduced. This element remains a part of the logo.
• 1982: The 1980s saw memorable taglines like “Coke is It!” and the launch of Diet Coke, the first brand extension of Coca-Cola. The iconic script logo was replaced with a slab serif font for Diet Coke, initially featuring bold red letters on a white backdrop.
• 2003: The “Coca-Cola… Real” campaign brought an updated Dynamic Ribbon Device, now accented with yellow and bubbles.
• 2007: The design was revamped to a simpler style, featuring a single white ribbon.
• 2011: “125th Anniversary” The 125th-anniversary logo of Coca-Cola displayed bubbles emerging from the contour bottle, symbolizing a fusion of history, current times, and the future.
• 2013―2014: The ‘Share a Coke’ campaign replaced the Coca-Cola logo with personal names. Originally planned with names in the traditional “Coca-Cola” Spencerian script, a new typeface, inspired by the “Coke” logo, was developed due to trademark constraints.
• 2016: The “Taste the Feeling” campaign merged classic and contemporary elements, reflecting Coca-Cola’s One Brand strategy.