Why Brands Need to Take Bigger Risks in 2020

Positioning 101

Market positioning refers to a brand’s ability to influence consumer perception, especially relating to competitors.

Think of the Coke vs. Pepsi ‘feud’. Though they both generate a lot of revenue and nobody can complain about that, you’ll find a lot of consumers defending one over the other. That’s because, for that person, one of the brands has a stronger positioning that connects with them.

The objective in brand and market positioning is to have such a clear identity of a brand or product, that the average consumer identifies you with it, and not your competitors, even if you are both offering virtually the same thing.

Why You Need to Take Risks

It’s really difficult to reinvent the wheel in 2020 when it seems like everything has been done. Still, even if the strategy itself is nothing new, it’s important for brands to think outside the box when trying to improve their market positioning.

For instance, let’s assume you want to sell handbags, and go on the idea that said handbag is a statement of luxury. You have two other brands, your competitors, doing the same thing. What’s worse, you most likely have very similar audiences, and your ads and campaigns reach the same users.

If this is the case, then put yourself in the shoes of a buyer: with three brands selling the same thing, in the exact same way, how could they know which one to choose? What separates the three of them? Sure, if they go on a little research journey they could find said differences, but that’s already a step too far because you have no guarantee they will actually do that.

Without taking risks, your brand could potentially stay buried in the crowd, and while there are ways to get out of it at one point, it could be difficult and time-consuming.

How Can You Set Yourself Apart?

There are several types of positioning strategies:

• Product benefits and attributes;

• Product price;

• Product quality;

• Competitors, or making audience members think you are better than them.

 To know which strategy works best, you have to keep in mind two essential things:

• What are your strengths?

• What are your competitors’ weaknesses?

For example, if you’re selling similar handbags as two of your competitors, you need to find the thing that sets you apart, and the things your competitors lack. Perhaps in terms of quality and benefits, you are on the same plan. But, your prices may be a lot better, making your handbags more affordable. Then, you can leverage the idea that luxury and style can be achievable for everyone, in spite of what your competitors are doing. It could be a risk because people associate high prices with luxury, but this angle could potentially be strong enough to get people to notice your brand.

Over to You: Create the Strategy Now

Market positioning is a complex process that requires a lot of time and effort, but given the high levels of competition businesses often face, it’s not something you want to skip.

Does Your Brand Need a Makeover? Five Signs that it’s Time for a Change

Photo by Andre Mouton

Have you ever put on your favorite pair of jeans, and they seemed a little too snug? What was once a trendy hairstyle ten years ago is now aging. Sometimes a change in style is warranted, and for brands, it’s no different. If your brand is dated or has grown too big for the shoes it once filled, then it’s time for a change. Unsure if your business requires a rebranding? Check out these top five signs that it’s time for the brand to change.
 

1. Handing out your business card or sharing your website makes you cringe.
This is a major sign that changes and rebranding are in order. It’s probably the most significant indication that your brand has gotten too big for its britches. When you, deep down, feel that your brand is stale, unoriginal, or outdated, you need to reach out to a branding agency. When the brand is modern, and you believe in it, you won’t feel embarrassed to share your business cards and website. You know what they say - listen to your gut. 

2. You’ve run out of ways to differentiate.
At the core of an effective branding strategy is having the ability to differentiate the business from your top competitors. If you think your brand has the same look and feel as the rest of your market, then it’s time to rock the boat. Reposition your brand with cutting-edge value propositions, and you’ll stand out from a sea of Stepford companies.
 
3. It’s complicated.
Is your messaging scatterbrained? Would it be easy for someone to get confused about what exactly you do if they come across your website? When your business becomes a complicated jumble of offerings with no narrative to unify it all, then it’s time for a change. When branded messages make the audience cross-eyed and confused, you’ll need to retrace your steps, simplify, and focus your messaging. Complexity in branding means less cohesion, and a tougher time capturing and holding onto market share.
 
4. What’s in a name? Reflection.
Ten years ago, your brand name may have been avant-garde and cutting edge. But most importantly, your brand name was an accurate reflection and representation of your vision for the company. Today, your brand name may no longer serve this vital purpose. Changes in the cultural context and business growth can change the implications and meaning of your brand name. If this has happened to you, then change it. Stale names shouldn’t hold back great brands.
 
5. The brand’s strategy has already changed.
When your brand was founded, you had excellent, strategic objectives, and you were able to meet them. But things change. Emerging market opportunities or technological innovations can cause you to pivot strategy. When your business objectives, models, and strategies change, then your brand should reflect these differences as well. The way your customers are served should align with the way your company operates under the hood.
 
When a change is needed, the signs may be everywhere. If you’re wondering if a rebranding is in order, look for these top indicators and if your brand has outgrown its original mission. With the right strategy, a rebranding investment can pay off exponentially.