Positioning

Positioning is a strategic process that clarifies the position of a company’s products or brand in the target market and determines how it wants to be perceived by customers. Positioning is an essential step to differentiate from competitors and offer unique value to customers.

Importance of Positioning

Differentiation: By clearly distinguishing from competitors' products or services, it provides customers with reasons to choose your product. Example: Emphasizing high quality to avoid getting involved in price competition.

Clarifying Customer Value: Communicates the value and benefits provided by the company’s products to customers. Example: A health-conscious food brand establishing an image as "a healthy and natural choice."

Brand Consistency: Unifies marketing messages and brand communication based on positioning to build a consistent brand image. Example: A luxury brand always emphasizing a sense of luxury and elegance.

Steps of Positioning Strategy

Market Analysis: Compare the company’s products or services with those of competitors to understand the current market position. Example: Creating a positioning map of competitors to identify unoccupied market niches.

Understanding Target Customers: Grasp the needs and preferences of the target customers and clarify the value they seek. Example: Creating customer personas of the target market and analyzing what they value.

Identifying Competitive Advantage: Clarify the company’s strengths and uniqueness, and build a competitive advantage based on them. Example: Emphasizing unique technologies or features of the company’s products.

Creating a Positioning Statement: Express the positioning of the company’s products or brand in one sentence directed at the target market. Example: "Our product is the best choice for consumers who prioritize quality and reliability."

Positioning Map

A positioning map (positioning chart) is a tool that visually represents the position of products or brands in the market. Typically, it uses two axes (e.g., price and quality, innovation and tradition) to plot the positions of competitors’ and the company’s products. Example:

• Horizontal axis: Price (low price to high price)

• Vertical axis: Quality (low quality to high quality)

Using this map allows you to visually understand the market position of your products and analyze which position is advantageous for competition. Positioning is a crucial strategy for companies to enhance their competitiveness in the market and provide clear and consistent value to target customers.