importance of brand positioning

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Brand positioning is the most effective way of increasing your brand growth and making an impact directly on the desired market and desired audience.


Brand positioning in simple words means allocating your brand’s position in the minds of your audience. Position here means how do you want your audience to categorize your brand. This process of associating a ‘category’ with your brand in the consumer’s mind whenever they hear your brand’s name is called brand positioning.


Brand position is one of the most important components in building up a brand reputation. 

  • By brand positioning, you fix an area where your brands stand and fit. 
  • This makes it easy for your customers to find you and buy from you.
  • It gives your brand clarity and attracts just the crowd you want to target.
  • It deals with the value of your product and not just the price and hence you compete on the basis of the product value.
  • Brand positioning enables you to convey your message easier, faster, and to the right audience.


The strategies a company chooses in order to position its brand in some particular areas are called brand positioning strategies.

Here is a list of some effective brand position strategies:

  1. On the basis of Quality 

    As we have mentioned earlier brand positioning enables a company to compete in regards to the quality of its product or service. Under this strategy, the company uses materials with minimal defects and with supreme quality. The company uses top suppliers for its goods and services. This way the company stands out from its competition and fixes its position at the best when it comes to quantity. 

For example, Tesla is a luxury brand and is more expensive than its competitors. It focuses on the quality of its vehicles rather than price and is no doubt the leading car manufacturer in the industry.

  1. On the basis of Price 

    Although brand positioning encourages quality products, some companies do employ this strategy. In pricing strategy, a company basically chooses or launches its product or service at a cheaper price than its competitors in the market. This way they sell their products at larger rates as compared to others. Hence, pricing becomes its brand position. 

For example, for years TacoBell has maintained its position of selling Mexican-inspired food at cheaper rates than its competitors.

Brand positioning strategies
  1. On the basis of product/service characteristics 

    This is the most commonly used strategy. In this, a company launches a product or service with some additional feature that benefits the customer in some unique way. This way it stands out from the pool of similar products or services. And hence feature or characteristic becomes its brand position.

For example, Hyundai has released Santro stressing its swift mobility on the roads, and has witnessed great profits in the very first year of launch in India. 

  1. On the basis of application 

    In this strategy, the company emphasizes how or when a particular product is used. ‘Easy to use’, the most common phrase that we all have heard in many product descriptions, falls into this category. For example, Cadbury has associated its Chocolates with celebrations and as a sweet gift to be gifted on occasions.
  1. On the basis of Competition 

    In this strategy, companies tend to use the exact same strategy that their competitors are using in order to promote their products or services. 

For example, Gillette and Dollar Shave Club are famous competitors in the market and both attract consumers on their low price point.


Let’s understand the difference between Brand, Branding and Brand positioning in order of their operation.

BRANDING is the process of giving your business identity to stand out in the market. You do this by associating it with some name, symbol, tagline, or logo. 

BRAND is the outcome of branding. A brand is a reputation. 

BRAND POSITIONING is the category in which you want to stand your brand. This category comes to mind of your audience when they hear your brand’s name.

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