WHY IT IS IMPORTANT
The term brand positioning refers to a company’s identity and value. Brand identity is the reason a client chooses your organization over a competitor. When a customer thinks of your company, what pops up first? Imagine you are driving to an early meeting and want to bring coffee to your employees. Will you stop at Starbucks or Dunkin’ Donuts? Why? The answer is probably more than just which coffee you prefer.
Brand positioning distinguishes your organization from others
It is important to differentiate your company, and establish what makes your service or product special. For example, Nike is best known for athletic footwear. Most would say they associate Nike with superior athletic performance and high quality. Dunkin’ Donuts is strongly associated with New England, the Boston Creme donut, and munchkins.
Brand positioning rationalizes your pricing
Nike sells approximately 10 million pairs of Air Force 1s every year. Each pair costs about $100 (they range from $80 – $130). This is an expensive price point for most, especially for younger consumers. However, Nike’s positioning as the exceptional, high-caliber brand justifies the cost of their products. Customers are willing to pay more for a service or product they see as worthy of the cost.
Brand positioning allows your company to expand
Nike does not just sell sneakers; their products extend to athletic wear, sports equipment, eyewear, and bags. By positioning themselves as a company that the best athletes and sports teams wear, they have been able to extend their products to many other areas. Dunkin’ used to only sell hot coffee and donuts. As they became an industry leader and solidified their identity, they began serving breakfast sandwiches and specialty coffees. If growing is your goal, spend time positioning your brand.