Brand positioning explained with brand examples

Brand positioning (positioning značky in Czech) is a marketing term for the unique value a brand gives its customers and for where the brand, with its offer and the way it is perceived, sits among competitors in its category.

I like to split positioning into the ideal/strategic one (what we set out to achieve) and the current/real one (how customers, search engines and AI actually see us). The job of marketing is then to turn the current/real into the ideal/strategic. That is the core of brand marketing.

If you want to see how to start defining your positioning, take a look at simple positioning in a snap, a simple calculator that helps you cover the main aspects of setting it up.

Strong brand positioning is an absolute must for any company that wants to succeed. The numbers prove it. Brands that are presented consistently and distinctively (holding a planned and strong brand positioning) see an average revenue increase of 10-20%, and successful branding brings benefits such as greater customer loyalty, better memorability, a stronger image and a trustworthy identity that sets you apart from the competition.

Brand positioning is an essential part of brand strategy, the overall document or plan (as with any strategy) for how the brand will operate in the market, what its brand core, messages, communication style and brand assets will be, and how it will reach its long-term goals. It covers every aspect of the brand, from its identity, characteristics and communication to its core vision, mission, values (brand values) and the promises it makes to customers. The strategy sets the direction and framework within which the company’s other activities will operate and which they will respect.

What is brand positioning, in other words?

Brand positioning (positioning značky, or umístění značky in Czech) describes how a brand differs from its competitors and where or how it sits in customers’ minds. A map or axes can be used to illustrate this and make it even clearer.

A brand positioning strategy involves creating brand associations in customers’ minds so that they perceive the brand in a certain way. In the car world, for example, Volvo is strongly associated with safety, Mercedes with luxury and Toyota with reliability.

Volvo is one of the most typical examples of building an association (with safety) and using a so-called functional brand benefit. Volvo has been building this association for many years and has excellent arguments to back it up. The three-point seatbelt was invented by Nils Bohlin specifically for Volvo. It was followed by a long series of patents and improvements to child safety, a side-impact protection system and SIPS airbags.

On the other hand, Ferrari is a good example of emotional benefits. Nothing more needs to be said here.

Kotler defined brand positioning as:

The act of designing the company’s offering and image so that it occupies a distinctive place in the mind of the target market or group.

It is a marketing strategy (tactic) that brands and their marketers create to shape their brand identity in their own minds and in customers’ minds. At the same time, it communicates their value proposition, which is the reason a customer chooses their brand over others in the category.

Brand positioning is also used when a company wants to establish itself with its audience in a particular way, so that customers form associations between the brand and its value proposition.

“In today’s fast-changing business world, a strong brand message is one of the few things that stays constant. Winning new customers is essential for any business, but building and maintaining strong relationships with existing customers through your brand is what secures a real future for your business.”

Why is brand positioning important?

By shaping consumer preferences, brand positioning strategies are directly linked to consumer loyalty, brand equity and willingness to buy the brand. Effective brand positioning can be described as the extent to which consumers perceive the brand as favourable, distinctive and credible.

Being different from the competition is not enough to win the market

Effective brand positioning happens when customers see your brand as favourable, valuable and credible. The sum of these three factors becomes unique to your business, and your customers make a place for you in their minds. So being different at all costs really is not enough.

USP, value proposition, brand essence, what is often confused with positioning

Brand positioning is often confused with several other terms. Let me clear this up so you can get things straight.

Unique Selling Proposition (USP). A specific functional benefit or feature in which your product is unique. “Pizza in 30 minutes or it’s free” from Domino’s. “Melts in your mouth, not in your hands” from M&M’s, or “Order by midnight and it’s in your Alzabox in the morning”. A USP is a very narrow claim about a product or service. Positioning is broader and may include the USP, but also emotions, brand attributes, associations and perception.

Value proposition. The promise of value a customer gets when they choose you. “Spotify: music for every moment of your day.” A value proposition connects what you offer with what the customer is looking for. It is usually part of positioning, not a synonym for it.

Brand essence. The essence of the brand. A very short, often one-word or two-word distillation of what the brand stands for. Disney = “magical experiences”. Volvo = “safety”. Nike = “triumph”. Brand essence sits at the very top of the hierarchy, and positioning, values, visual identity and communication all flow from it.

Brand identity. Everything visible that a brand communicates outwardly. Logo, colours, mascot, face, typography, tone of voice. Brand identity is an expression of positioning and the brand, not its source.

What is a brand positioning statement?

A brand positioning statement is a short document that defines how a company expresses the value its brand brings to target customers. This document should answer these questions:

• Who is the target market or customer?
• What category is your product or service in?
• What is the biggest benefit and impact of your product or service?
• What is the proof of this benefit and impact?

It should definitely also answer these questions, which I use, for example, in my first brief with clients.

• What is it for?
• Who is it for?
• How is it different?
• What are its advantages?
• And why should anyone care at all?

Brand positioning can also include:

• Brand values are the core principles and beliefs that guide the brand and its representatives. Values reflect what the brand stands for and strongly influence how the brand behaves both internally and externally. Values are also boundaries and rules that the company will not cross under any circumstances.
• Brand promise is the commitment a brand makes to its customers. It sums up what customers can expect from the brand in terms of products, behaviour, service or the overall experience. An effective brand promise is clear, credible and consistent across all communication channels. For example, Patagonia promises to give 1% of its sales to environmental causes.
• Brand purpose, or more loftily the meaning or mission of the brand. It is the deeper reason the brand exists beyond mere profit and making money. It answers the question of why the brand exists and how it contributes to society or to its customers’ lives. A brand’s mission can be an important tool for building loyalty and an emotional connection with customers.
• Brand vision is the point the brand wants to reach. The vision is the main, ultimate goal the brand is heading towards. It should be ambitious enough.
• Brand personality is the set of human characteristics attributed to a brand. These characteristics help create an emotional connection between the brand and its customers. Brand personality can include attributes such as friendliness, reliability, innovativeness or trustworthiness.

Brand pyramid

A pyramid framework that builds a brand from the ground up, and one I find quite useful.

1. Product features (attributes): what the product actually does
2. Functional benefits: what the customer gets from it in practice
3. Emotional benefits: how the customer feels
4. Brand personality: how the brand would behave if it were a person of flesh and blood
5. Brand essence: all of that distilled into one sentence or word

The brand pyramid is a good tool for brands with a functional product that needs an emotional layer built on top of it. Breweries, electronics, car makers and others. That said, it can be used elsewhere too.

Brand archetypes

It draws on Jungian psychology and twelve archetypes that resonate with human consciousness across cultures. Your brand chooses one primary archetype and one secondary archetype. It is certainly a controversial and more abstract approach, but the examples are interesting for inspiration:

• The Hero – Nike, Adidas (overcoming obstacles)
• The Outlaw/Rebel – Harley-Davidson, Diesel (freedom, rebellion)
• The Lover – Chanel, Victoria’s Secret (sensuality, relationships)
• The Jester – M&M’s, Dollar Shave Club (joy, humour)
• The Caregiver – Johnson & Johnson, Volvo (care, protection)
• The Sage – Google, BBC (knowledge, truth)
• The Creator – LEGO, Apple (creativity, originality)
• The Ruler – Mercedes-Benz, Rolex (control, status)
• The Magician – Disney, Tesla (transformation, vision)
• The Everyman – IKEA, Target (authenticity, belonging)
• The Explorer – Jeep, The North Face (freedom, adventure)
• The Innocent – Coca-Cola, Dove (purity, optimism)

A brand archetype is a powerful tool for brands that want a consistent emotional tone across all channels. When you know your brand is the Hero, you know what tone of voice to use, which visual style to choose and how to run your campaigns. But it has its limits.

Simon Sinek’s Golden Circle

Three concentric circles: Why, How, What. Sinek argues that most companies communicate from the outside in (what we do, how we do it, why), while strong brands communicate from the inside out (why we do it, how, and what specifically). You can read the book on it, but a distilled version of this rather interesting idea and approach is enough.

How do you create brand positioning?

Depending on a brand’s size, mission and segment, there are different ways companies can create their brand positioning.

1. Understand how your brand has been positioned in the past and how it is positioned today.
2. Identify your competitors and their positioning.
3. Research what your customers care about, what they want and how they make decisions.
4. Define your unique value proposition or USP.
5. Create a brand positioning statement that will resonate with your target audience.
6. Try to sum up your brand positioning in three words.
7. Apply your brand positioning across your entire marketing mix and everything you do.
8. Evaluate and test whether your positioning works. If necessary, start repositioning.
9. Strengthen your brand’s distinguishing features.

However, not all brand positioning strategies are the same or share the same goal. Positioning and messaging will differ depending on the nature of the offer and the industry.

The steps above are meant to help brands dig deep into what sets their brand apart, while illustrating the unique value customers get from the brand’s product or service. By focusing on what they can offer their target market, brands can create a compelling brand positioning strategy that resonates with customers.

What are the different types of brand positioning?

There are several types of brand positioning in marketing. You will find a great many variations of how to categorise them online.

• Value-based positioning – An emphasis on cost-effectiveness, price or the excellent value of your product or service (value for money).
• Quality-based positioning – Highlighting the excellent, premium quality, craftsmanship, great materials or performance of your product or service.
• Benefit-based positioning – A focus on the unique advantages or benefits consumers can only get from your product or service.
• Problem/solution positioning – Offering a clear solution to a specific problem your target audience faces, with your product as the best solution.
• Competitor-based positioning – Differentiating your brand from the competition based on factors such as product features, customer service or price.

Brand positioning examples

Tesla is a car maker that does not position itself as a car maker but as a technology company whose mission is to accelerate the world’s transition to sustainable energy. It emphasises benefits such as environmental protection, simplicity and fun. Tesla also has a completely different marketing mix from other brands and does not use conventional techniques.

Nike focuses on innovation and is a partner on the road to success. Nike is all about empowerment, from the “Just Do It” slogan to its namesake, the Greek goddess of victory. Its models and athletes do not smile and are not shown as happy; instead, they are doing physical activity, striving to win and to outdo themselves. Nike is about individuals pushing their limits. The brand motivates people and helps them get to the top.

Starbucks is the largest coffee chain in the world and has built its brand on several key pillars. One of them is convenience: you will find a Starbucks on almost every corner. It focuses on the experience and creates a pleasant, cosy atmosphere in its stores, where writing on the cups also keeps staff in contact with customers.

Dyson – offers unique design and technology. Dyson consistently highlights its features, such as strong suction power and advanced filtration systems. By emphasising these features, Dyson positions itself as an industry leader and appeals to customers looking for high-performance products or innovation in the field. Its brand positioning is built on product benefits, although Dyson has partly moved into status territory too.

Airbnb built its brand on the idea of providing unique travel experiences. You will find Airbnb in almost every country, and each one offers unique experiences. It focuses on a personal approach and local guides who show you around their city like a friend. This appeals to travellers looking for accommodation that offers more than just a place to sleep.

Patagonia is an outdoor company selling clothing and gear for activities such as hiking, camping and surfing. Customers associate the brand with high-quality, sustainable products. Patagonia has built its brand on environmental stewardship and social responsibility. It uses sustainable materials and processes for its products and donates 1% of sales to environmental causes. Patagonia became famous for the stance and actions of its founder, as well as for a very bold advertising campaign.

Patagonia also focuses on social responsibility and ensures fair treatment and decent wages for all workers.

Repositioning, when a brand changes direction

Positioning is not forever. The market changes, customers age, competitors grow stronger and technology expands what is possible. Sometimes the moment comes when a brand has to switch its positioning, or management arrives at it as a last resort. This is called repositioning, and it is one of the hardest disciplines in marketing. For large companies in particular, it can be risky.

A few classic examples that show this well.

Old Spice. In 2010, it went from being a deodorant for dads to a brand for young men who want to feel confident. The “The Man Your Man Could Smell Like” campaign turned perceptions of the brand around by a hundred and eighty degrees. Sales grew by 125% within a few months.

Škoda. From a maker of cheap cars that people in the nineties ironically called “a great buy for little money”, Škoda repositioned itself as the pragmatic family brand of the VW Group, with the slogan “Simply clever”. Thanks to its build quality and its positioning as a slightly cheaper but clever car, Škoda has been the most successful brand in the VW Group since 2020. Today it sells all over the world and nobody laughs at it.

Mastercard. Repositioned from a transaction service (a payment card) to a brand of experiences and moments. The “Priceless” campaign shifted attention from the mechanics of paying to the things money cannot buy. Today, Mastercard is a cultural brand, not just a fintech company.

Apple in the nineties. When Steve Jobs returned to Apple in 1997, the company was on the brink of bankruptcy and was seen as an outsider next to Microsoft. It repositioned with “Think Different”: not the best office computer, but the brand of creatives, designers and visionaries. Apple later had to change direction once again, because it had essentially become a kind of smart mainstream.

What do these repositioning stories have in common? None of them was just a visual refresh. Each time, it was a deep strategic change reflected in the product, communication, distribution and partnerships. Repositioning that is merely cosmetic does not work. People see through it.

How to measure whether your positioning works

This section is often skipped, but it is the important part. Believing is not enough. If you have no metrics, all you have is a feeling.

Brand awareness. How many people in your target audience know the brand at all. It is measured through surveys (unaided vs. aided recall), i.e. whether people remember you without a prompt or with one.

Brand search volume. How many people search for you directly on Google. You can see this in Google Trends or Ahrefs. The trend line of brand searches shows whether a brand is growing or fading. Of course, this metric has its limits. During scandals, for example, brand searches go up, but not in a positive way. That is why it is a good idea to measure sentiment as well.

Sentiment. Do people like you or not?

Brand associations. What do people link to your brand? When you say “safety”, does your brand name come to mind? This is measured through association tests in brand tracking. It ties in closely with what I wrote in my article on brand associations: if your customers spontaneously attach the values you want to your brand, you have won.

Net Promoter Score (NPS). How willing your customers are to recommend you. It is not purely a brand metric, but it is a strong signal of whether the brand keeps its promise.

Brand equity. The value of the brand as an asset. For large brands, it is measured by Interbrand, BrandZ and Brand Finance. For smaller brands, a proxy is the price premium you can charge for the same product compared with generic competitors.

Share of voice. What share of the conversation about your industry you own compared with your competitors. It is measured with social listening and PR monitoring tools (Brand24, NewtonMedia in the Czech Republic). But you can also do it in some form with various SEO tools such as Ahrefs.

Customer lifetime value (CLV). A higher CLV usually correlates with a stronger brand. People who trust a brand stay with it longer and spend more.

Brand positioning in the era of AI and digital entities

This section is a newer layer that classic textbooks do not yet cover. I consider it the most important update to brand strategy in the last decade.

Today, search engines and AI models do not judge brands by what your logo looks like or how nicely the value proposition on your website is written. They judge them by how consistently your brand appears in texts and outputs across the internet, in which contexts, alongside which topics and with which attributes.

When Google or ChatGPT “sees” your brand, it sees it as an entity, a node in a graph with properties, relationships and contexts. Your entity is strong when:

• content across the internet mentions you often and in connection with the topics you want
• you are linked to specific attributes (quality, innovation, care, price)
• authoritative sources cite you
• customers search for you directly and readily associate you with certain categories or products

In other words. What old brand strategy called brand associations and brand awareness, algorithms now measure directly and in real time. The game is the same. The pitch has moved.

In another article I called this “brand is the new link“, because links are no longer the only way to build authority in the eyes of a search engine. A brand mention without a link now has value it did not have before.

The practical consequence for positioning:

• Consistency across all digital channels is now a ranking factor, not just an aesthetic preference
• Topical focus (you talk mainly about one thing) beats a vague identity
• Co-occurrence (your brand appears alongside specific topics) builds your entity more strongly than a logo
• PR and digital PR are part of brand strategy, not a parallel discipline

When you plan positioning today, you do not just ask “how do we want customers to perceive us”. You also ask “how do we want AI models, search engines and digital entities to classify us”. Or even better. You want to imprint your ideal positioning on the minds of customers, AI models and search engines alike.