What is brand positioning?

If you need to transfer money online, would you think of Internet banking or MoMo? Successful brands like Coca-Cola and MoMo all have one thing in common: they all have a clear and consistent brand positioning strategy. In fact, many brand names have become terms to refer to actions related to product functions.

- If you don't have cash, just MoMo me

- If you don't know something, just Google it."

What is brand positioning?

Brand positioning has been defined by Philip Kotler as “the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market”.

“Brand positioning is an effort to bring the product a unique image, easy to get into theperception of customers. Or more specifically, what businesses want customers to relateto when dealing with their brands ” (Marc Filser)

People always seek social status in order to be respected and assert themselves, brands also need to have a position to affirm the product quality and corporate image of the business.

What is brand positioning important?
Competing in a fierce environment, businesses that want to entice customers from competitors are forced to have a strong and consistent brand positioning strategy. Brand positioning allows a business to differentiate itself from its competitors. This differentiation helps businesses raise brand awareness, communicate values, and justify pricing higher than competitors. All of which affect the company's bottom line.

Types of brand positioning?

But not all branding strategies are the same or have the same goals. Depending on the nature of the product and category, the positioning and message of the brand will also be different. Here are some common brand positioning strategies:

• Customer Service Positioning Strategy
• Convenience-Based Positioning Strategy
• Price-Based Positioning Strategy
• Quality-Based Positioning Strategy
• Social Media Positioning Strategy

Customer Service Positioning Strateg

An excellent customer service strategy helps the brand to charge a higher price for its product/service. For example, Apple Care plans are quite expensive, but the technicians are always 24/7, friendly and quick responds.

Convenience-Based Positioning Strategy

A convenience-based positioning strategy highlights why a company's product or service is more convenient to use than its competitors. This convenience can be based on factors such as location, ease of use, availability, and cross-platform presence..

Price-Based Positioning Strategy

When businesses position their products as the cheapest in the market, they can expand their customer segments because many people prefer “delicious, nutritious, and cheap” products.

However, this strategy comes with risks, which is poor quality of products/services because businesses have to cut costs related to product investment.

For example, Vietjet is a famous airline with competitive prices. Despite providing low-cost flight services, it still maintains the position of a strong brand. However, the company's limitation is that the service quality is underestimated due to frequent delays, rude attitude of staff and reduction of accompanying services.

Quality-Based Positioning Strateg

Companies follow this strategy when they want to emphasize the quality of their products. Therefore, the price for the product/service will also increase accordingly.

The quality of a product is reflected in sophisticated processing, high-quality materials, limited quantities and the use of environmentally friendly ingredients that make them more expensive.

Social Media Positioning Strategy

When using this strategy, it's important to choose the channels with the most target customers. Factors to consider when choosing a social media platform as a brand positioning strategy:

• What is the channel to reach the most target customers?
• Where do they spend the most money?
• Where do they look for information and advice?

All three areas can be found on the same or spread across several platforms. Once the right platform is found and present, the business can convey the right message to the right customer segment.

At TOP GROUP, we provide solutions to build brand strategy, if needed, you can contact us at: hello@wearetopgroup.com