1. Define Your Target Audience

The first and most essential step in creating brand positioning is defining your target audience. Startups can’t afford to be everything to everyone. Instead, focus on a specific group of customers whose needs align with your product or service offering.

Key Questions to Ask:

• Who are your ideal customers?
• What are their pain points, desires, and values?
• How does your product or service solve their problems?

Defining your target audience ensures that your positioning strategy speaks directly to the people who are most likely to become loyal customers. Neil Patel notes that “positioning starts with understanding who your audience is and what they care about.” By zeroing in on their needs, you’ll create a brand that resonates with them.

2. Identify Your Unique Value Proposition (UVP)

Once you’ve identified your audience, it’s time to establish your Unique Value Proposition (UVP)—what makes your startup different and why your audience should choose you over competitors.

Your UVP should answer these questions:

• What makes your product or service unique?
• How does it benefit your customers in a way that no one else can?
• Why should customers care?

For example, Slack positioned itself as more than just a workplace communication tool. Its UVP was based on being a user-friendly platform that integrated with other tools and streamlined workplace collaboration. This helped Slack carve out a distinct identity in the crowded SaaS market.

Startups that effectively communicate their UVP can stand out from larger competitors, despite having fewer resources. Forbes reports that companies with a clearly defined UVP are 69% more likely to achieve strong growth within their first five years.

3. Focus on Solving a Problem

Customers are drawn to brands that offer solutions to their problems. As a startup, positioning your brand as the solution to a specific pain point can create an immediate connection with your audience.

Example:

Dollar Shave Club entered the razor market, which was dominated by giants like Gillette, by addressing a simple problem: the hassle and expense of buying razors. Its positioning as a subscription service offering affordable razors delivered directly to your door instantly solved a pain point, leading to rapid success.

This problem-solving approach resonated so well that Dollar Shave Club grew to dominate a significant portion of the market, eventually being acquired by Unilever for $1 billion.

4. Leverage Emotional Brand Positioning

Startups can gain a competitive edge by tapping into the emotions of their target audience. Emotional brand positioning goes beyond the functional benefits of a product and connects with consumers on a deeper, emotional level.

For instance, Patagonia is a brand that positions itself not just as an outdoor clothing company but as a brand for people who care about the environment. Patagonia’s commitment to sustainability and environmental causes appeals to consumers who prioritize these values, creating strong brand loyalty.

According to Harvard Business Review, emotionally connected customers are 52% more valuable than highly satisfied customers because they tend to make more frequent purchases and are less price-sensitive.

5. Keep Your Messaging Consistent Across All Channels

One of the keys to effective brand positioning is maintaining consistency across all customer touchpoints. Whether it’s your website, social media, product packaging, or advertising, your brand message should align with your positioning strategy.

Consistency helps reinforce your brand’s identity and ensures your audience has a clear understanding of who you are and what you offer. Lucidpress reports that consistent branding across all platforms can lead to a 33% increase in revenue, proving the power of cohesive messaging.

Pro Tip:

As a startup, you may not have the resources for large-scale marketing campaigns. However, consistency in your brand’s tone, message, and visuals will ensure that each interaction with your audience reinforces your positioning.

6. Adapt and Refine Your Positioning as You Grow

Startups must be agile. As your business evolves, so should your brand positioning. What works in the early stages may need to change as you expand, enter new markets, or develop new products.

Regularly assess whether your current positioning still resonates with your audience and reflects your brand’s growth. Companies like Netflix have demonstrated the importance of evolving positioning. Initially positioned as a DVD rental service, Netflix successfully shifted its positioning to become a leader in the streaming industry, continually adapting to customer needs.

By staying flexible and refining your positioning over time, startups can remain relevant and continue to grow in a dynamic marketplace.

7. Use Competitor Analysis to Find Your Niche

Understanding where your competitors stand can help you identify opportunities to position your brand uniquely. A thorough competitor analysis will reveal gaps in the market that you can fill.

Look at how competitors are positioning themselves:

• What are their strengths and weaknesses?
• What target audiences are they focusing on?
• What can you offer that they don’t?

For example, Airbnb positioned itself in the travel industry by offering a unique experience—living like a local in people’s homes—something traditional hotels couldn’t offer. This distinct positioning helped the company differentiate itself and grow into a global powerhouse.