Brand positioning: A relic of the past or future necessity?

Traditionally, brand positioning played a crucial role in shaping every aspect of a product, from its features to how it was marketed to consumers. Companies spent considerable time and effort crafting their brand's unique position in the market to differentiate themselves from competitors.

However, new businesses today seem less focussed on this aspect. With the market evolving rapidly, some question whether the concept of brand positioning has become outdated. There is a perception that brand positioning nowadays is either being used less frequently or not applied effectively. As companies adapt to a fast-paced market environment, they may prioritise flexibility and responsiveness over maintaining a consistent brand position.

In a panel discussion, held at the fourth edition of Marketers' Excellence Conference 2024, hosted by afaqs!, marketers discuss the continued relevance and effectiveness of traditional brand positioning strategies, the emergence of social media, and whether it is making the lives of brands easier in the contemporary marketing landscape.

The panel comprised Shubhranshu Singh, chief marketing officer, Tata Motors; Ashima Mehra, CEO, FCB India; Neeraj Sharma, executive VP – Planning, Ogilvy Mumbai and Kolkata; Pratik Mukherjee, head of business - Beauty, House of Masaba; and Alok Arya, chief marketing officer, Equentis Wealth Advisory. The session was moderated by Sreekant Khandekar, co-founder and CEO, afaqs!

Khandekar opened the session by questioning the current relevance of brand positioning. He asked what factors might suggest that brand positioning is less impactful than it once was and whether the concept holds as much importance today as it did in the past.

Singh responded by saying that if one views brand positioning as answering the questions "Who am I?", "Why buy me?", and "What does your possession of me as a brand say about you?", then it is now even more important than it was earlier. He added that consumers' lives are changing, and much of what brands construct as reality is now mediated by algorithms on social media.

"Very few people are building the concept of a brand exclusively with one medium. Television and print do not have the clout today compared to the compelling grip of the digital life that we lead. One needs a stronger anchor, which is mutually beneficial for both consumers and brands. A consumer needs to know that what they think is reality is probably being served to them by an algorithm. The rate card era is gone. Therefore, everybody has a great shot at creating a brand, which is why so many direct-to-consumer (D2C) brands have mushroomed as well," he said.

Mehra elucidated the nature of consumers and how brands experiment on social media as new platforms emerge, affecting how marketers convey their brand messages. She stated that the messages nowadays have become more complex.

“Even if the messaging is complex, it is a learning curve that is happening much faster for marketers and advertisers. Back in the days when there was less interaction, there were assumptions and one would get to know the sentiment of a consumer later. Today, marketers get the result immediately. But we have to use that to our merit. This also makes us sure about what we are doing,” she added.

Arya describes social media as driven more by emotions than science, likening it to conversations happening behind a brand’s back. “There are brands that have juiced out the space to the maximum. For example, Zomato and Durex have owned the social media space and there are other such brands as well. Having said that, some brands do not have the right to tell a story but still latch on to social media trends which might get fatal. Keeping aside all of this, it is a huge opportunity. As brand marketers, we have to ensure that we are on top of our games but in a rightful manner,” he remarked.

As brands have become active on social media, they have also become more interactive, trying to maintain momentum by communicating with consumers. Mukherjee highlights that the job of a brand custodian has become tougher, especially for D2C-first or online-first brands. It is always a seesaw battle over how much control one can maintain.

“We all are in a situation where it is a seesaw balance to keep the lights on, get daily revenue, and keep return on ad spend (ROAS) in check. And for this, I need to let those chatters happen. I cannot control an influencer narrative beyond a certain point. Nowadays, I have made peace with the fact that I cannot control the narrative as a Dove team, for example, may be able to do or any other iconic brand. So, define your guard rails, and be okay with a little bit of give and take. It is a good thing that people are reaching out as it shows that they are curious about my brand,” he conveyed.

Sharma added to Mukherjee's point by explaining that one should also consider who is listening since everyone is always talking. If a brand says something interesting, people will listen. The first job of communication is to be heard and then to be understood.

“Having different set of channels comes with its own set of challenges but the basic philosophy of communication is that if you are saying something, someone should be ready to listen and give you an ear,” he added.

We would like to thank our Marketers’ Excellence Awards 2024 sponsors, MiQ, JioAds, and RedFM 93.5.