Ah, it’s a beautiful morning and you’re jonesing for a caffeine fix. You need a cup of coffee STAT. You have two options: brew a pot at home or head down to Starbucks for a cup of joe. Before you know it, you’re half way out the door and eagerly anticipating a venti café latte.
A few decades ago, a cup of coffee cost about 50 cents and research indicated that sales were rapidly declining. Today, Starbucks beverages average $3.00 each and their annual report says they have more than 16,000 stores in more than 50 countries. So, how did the Seattle-based coffee retailer successfully launch a premium product in a declining industry? They identified a vacant niche in the coffee market, then branded and positioned their product to satisfy it.
Branding is more than a name, it's an experience. It's the emotional response, ambiance and point-of-sale interaction that influences brand perception and earns customer loyalty. Successful branding is what keeps coffee drinkers flocking to Starbucks day after day — well that, and the pesky caffeine addiction. Is it more economical to brew a pot at home? Yes. But Starbucks mouth-watering aroma, soothing ambiance and social interactions generate brand loyalty that makes the premium price seem worthwhile.
Branding and market positioning go hand-in-hand and are essential elements of your integrated marketing campaign. A strong brand name allows companies to charge a premium, while bad branding leads to commoditization. This is generally thought of in terms of B2C industries, but the same principles apply to B2B. To successfully position your product in the market, you must understand how consumers perceive your brand so you can shape their attitudes and distinguish your product from your competitors'.
The best way to evaluate your branding and positioning is to conduct market research. Qualitative and quantitative data gives you vital statistics about the consumers you want to buy your products and use your services. Market research will help you identify your niche, classify your target audience and position your brand.
Researchers use multi-phase, qualitative and quantitative survey methods to ensure statistical reliability. The first stage uses a face-to-face delivery method, (e.g. an in-store intercept or focus group) to collect qualitative data about your brand. Personal interactions and first-hand conversations help researchers interpret consumers' emotional responses to your brand.
The second phase polls a larger audience using direct mail, online or phone surveys to collect quantitative data. This is statistically reliable, verifiable data that reveals the median age, gender, income level, marital status and geographical location of the people buying your product or using your services.
The qualitative survey results will help you understand a consumer's emotional response to your brand. Are consumers responding favorably? If not, how can you re-brand your product to improve public perception? The quantitative results will help you determine how to package, price and promote the product in the marketplace. Are you selling your product in the right stores? Is it priced competitively?
This information enables your marketing team to strategically plan an integrated campaign to reach your target audience within your advertising budget. Translation: getting your product in front of the “right people” will raise awareness about your brand, boost sales and increase your profitability.
The next time you make a purchase, ask yourself why you chose that product instead of its competitor. Did the packaging influence your decision? Was it a “good deal?” How are consumers answering those same questions about your product?
Brand positioning influences thousands of subconscious decisions we make every day. If you correctly position your brand, you can build a loyal customer base that rivals Starbucks' – without that pesky caffeine addiction.