Branding Part I: A Positioning Statement Is Mission Critical to Your Business

By Cynthia Batterman 

This article originally appeared in the August 2011 hardcopy-only edition of the AAHP Network News. 

One of the most important strategic projects that any company can pursue is the development of its “brand positioning statement.” If done well, defining the position of a brand can drive and guide the four Ps of marketing: 1) product development, 2) price, 3) place (aka distribution), and 4) promotion (advertising and media plan, target audience, etc.). In disciplined Fortune 500 companies, upper management uses the brand positioning as a roadmap for many strategies. 

Many people think of branding or positioning as merely the brand or corporate logo, but a brand positioning statement is much more than that. It is the foundation that helps to provide the target market with easily memorable and motivating information about the product. Ideally, a company’s position statement will come to mind whenever a consumer thinks of the product. 

A Brand Positioning Statement Defines: 

• Who you are. 

• What business you are in. 

• What people/consumers you serve. 

• What need is filled by your product. 

• What is the frame of reference/competition. 

• What is unique about your product/company. 

• What emotions you want to evoke in your consumers. 

The position essentially summarizes the brand’s promise to the consumer or customer. For a car, it could be about safety or reliability. For a clothing brand, it could be about affordable style. For sneakers, it could be about achieving your personal best. Whatever it is, it must be relevant, unique, and compelling to the target consumer. 

Here are some well-known branding/positioning examples:  

• Volvo automobiles are positioned as safe. 

• Nike’s athletic wear is positioned for consumers who take sports or exercise seriously through its “Just Do It” slogan. 

• Mars’ Snickers candy bar is positioned to satisfy hunger. 

• BMW automobiles are positioned as “the ultimate driving machine[s].” 

The full positioning statements for these brands are longer than these examples. Volvo’s might be “for upscale families, Volvo is the automobile that offers maximum safety because of its Swedish designed state-of-the-art features.” 

Position statements can affect decisions across the four Ps of marketing. For example: 

• Product Development: Snickers is available in different sizes with different amounts of calories, but Mars doesn’t label smaller sizes as a lite low-calorie version. This would not align with the promise of  satisfying hunger. 

• Place (aka Distribution): As a high-end, luxury brand, Tiffany & Co would not expand its distribution to sell its jewelry through big box or mass market retailers. Conversely, a fun, trendy jewelry brand targeting teens may do very well at mass market retailers. 

• Price: Tiffany & Co would also not promote its products through couponing. This would not align with its image as an exclusive luxury product. 

These are obvious examples. Less obvious marketing decisions could greatly benefit from a well-thought-out positioning statement. Keeping all functional areas, departments, and activities aligned with the brand positioning also greatly prevents wasting time, effort, and resources on off-strategy activities. 

There are four key components to a brand positioning statement: 

1. Target Audience: The demographic and psychographic description of the consumer to whom your brand will appeal. 
2. Frame of Reference/Competition: The category in which the brand competes and ultimately steals share (i.e., the relevant options to your brand). 
3. Benefit/Point of Difference: The most compelling and motivating differences that your brand delivers as compared to competition. 
4. Support/Reason to Believe: The product attributes, functional benefits, and emotional benefits that support the brand’s unique point-of-difference. 

In summary, the brand positioning statement is a few brief statements that convey what you do for whom, to uniquely solve an urgent need, and is essential to guiding a strong brand. Brand positioning can take a few days or several months to develop. It’s not easy but it is well worth the effort. 

Ultimately, a brand is the cumulation of all the interactions and experiences a consumer and all key stakeholders (retailers, employees, suppliers, etc.) have with a company and its products — and the sentiment that results due to these interactions with the product/company. When you are in control of your brand, your image will be clear and compelling, and your results will be efficient and consistent. 

In Part II of this article, learn how to create a brand positioning statement. 

Author: Cynthia Batterman is an executive-level leader, strategist, and executer with a passion for taking businesses to new levels. She has 20+ years of leadership experience in Consumer Good businesses, including global expansion (China, Brazil, EU, Canada, etc.), new products, brand marketing, e-commerce, business development, P&L, and general management. Cynthia served as President, North/South America, for AAHP member company Nelsons (2004–2010) and as Vice President of the AAHP Board (2006–2013).