How Startups Can Carve Out a Winning Spot in the Market
Brand positioning—this one element can almost attract the entire target market if done right, but this one element demands the synergy of all the other aspects to work in accordance with the brand strategy for startups to ensure the perfect brand positioning occurs and gets maintained in the mindset of people. At the grassroots level, the only thing that matters is how a brand is perceived in the market and in the eyes of its target audience. Every founder must work and pay close attention to brand positioning to craft the right image because if they don’t position their startup deliberately, the market will do it for them. But let me inform you that's not good.
Startups, especially in industries that are already crowded, become invisible and then unfortunately operate with a live-or-die situation by how well they differentiate themselves. That’s why brand positioning for startups is not an option anymore; it's about rising above the competitors and hitting the bullseye with a unique identity. We comprehend the significance of brand positioning, and that’s why we defined this small blog that will highlight some of the most effective positioning strategies for new ventures, explain how to choose the right one, and give real-world startup examples that worked perfectly.
What Is Brand Positioning (and Why Should Startups Care)?
Again, let’s start with the very basic question. Brand positioning in a nutshell is all about the space a brand occupies in its potential customer's mind relative to competitors. It's how people describe the brand when they talk about it in meetings, gatherings, and casual conversations. According to a 2022 LinkedIn B2B Institute report, brands with strong positioning grow 2x faster than those without, especially in their first 5 years.
For startups, good positioning makes marketing cheaper, sales easier, and redefines personal branding growth faster. A clear position tells people why you exist, who you're for, and why you're different. This is not just important to happen but needs to happen at an early stage. Only by creating a successful brand perception with crystal-clear brand positioning are customers more likely to trust you, even when they are new, especially when they are new.
3 Proven Brand Positioning Strategies for Startups
Branding & marketing campaigns are not something for which you can say that one-size-fits-all. For every brand, the positioning shifts and changes accordingly, mostly as per the brand strategy. Here are the top three brand positioning strategies for startups.
1. Cost Leadership
One thing that every customer pays attention to is the price of the product. It is the most integral part of any purchase decision that they will be making. We always come across products that we like so much but tend to avoid buying them because of their higher price. Of course, there is a vice versa scenario as well, but most often the price can actually make or break the deal. So a good brand positioning strategy can be to opt for cost leadership. This strategy is all about being the most economical option in the market. You position yourself as offering the best value for money, often by streamlining operations or using tech to undercut traditional players.
This strategy works fine, especially for new startups entering the market with commoditized products or price-sensitive customers. For instance, OYO Rooms disrupted India’s hotel industry by standardizing budget accommodations. In a market where customers are mostly struggling with inflated prices and poor services, OYO offered and positioned itself as a company offering clean, affordable rooms under a trusted brand name, ideal for middle-class, budget-conscious travelers. So the idea here is that you enable yourself to say, “We’re the most affordable choice.”
2. Differentiation
The second proven brand positioning strategy is simply offering something new, unique, and fresh to the customers and promoting it as your brand’s USP. This is the go-to positioning for most startups. In a highly competitive market where you can't change prices, you must offer something unique to your target audience. You stand out by offering something your competitors don’t, whether that’s better design, superior service, advanced tech, or a unique experience.
Differentiation builds loyalty. People pay more for something that feels tailor-made for their needs or worldview. It is best for startups and founders with a distinctive product, UX innovation, or strong brand story.
3. Niche Focus
Lastly, this strategy is based on the idea that if you can’t offer a good price or differentiation, dig deep and relate to a specific community of customers. That is where the brand will flourish the most. Instead of targeting everyone, the brand focuses on a narrow segment and serves it better than anyone else. And just like that, you become the go-to brand for that niche. This brand positioning strategy is best suited for startups with limited resources or deep knowledge of a specific customer segment.
This may require quite a bit of time to completely understand the ideal customer segment and how you can penetrate your target market to reach out to them and become more visible and the best choice for them. But again, it's all a subpart of brand positioning.
How to Choose the Right Brand Positioning for Your Startup
When you are trying to choose the right brand positioning, you need to study the market and, of course, study your own product. Choosing the right strategy depends on your market, audience, product maturity, and resources. Here’s a simple framework to help:
Study Your Market
Know Your Customer
Audit Your Strengths
Look at Your Lifecycle Stage
I feel that these four pointers completely explain themselves, and you can carve your path following them. Of course there are numerous other ways to analyze and then choose the right brand positioning strategy that suits your brand accordingly. But this framework will help you move forward one step at a time.
Last thoughts
Branding is incomplete if you can’t position yourself in the minds of your target audience. Consistent positioning builds trust. And trust, especially for startups, is the fastest shortcut to traction. It is a substantial part of any brand strategy to make sure people remember, think, and talk about the brand in a positive way. For this, seek clarity in your thoughts and bring in actionable insights into the brand strategy. Make sure it incorporates product roadmap, marketing campaigns, messaging and brand voice, customer service style, hiring, and internal culture. Well, this brings us to the end of this blog. I sincerely hope you do incorporate the techniques and choose the right strategy for your brand.
