Hierarchy of Brands
Mind Ladders
Consumers can typically hold only a few brands in their mind for any given product category. The number of rungs on a ladder varies, but it usually doesn’t exceed seven brands due to the limited capacity of human memory.
Positioning aims to place a brand on the highest possible rung in the consumer’s mind. A brand’s position on the ladder depends on its perceived quality and relevance compared to competitors.
It's Cool to be Different
Dominating the Category
Brands that are first to market or first to position themselves effectively often occupy the top rung. Subsequent brands must position themselves in relation to the leader.
Effective positioning shapes how consumers perceive the brand relative to others in the category. This can influence their decision-making and loyalty.
Narrowing the Focus
Owning a Word
Companies should avoid trying to appeal to everyone. Effective positioning requires a clear, simple message that consumers can easily understand and remember.
This means focusing on one key idea or attribute that differentiates the brand from its competitors. The most successful brands often “own” a word or concept in the consumer’s mind. This word should represent the primary benefit or differentiator of the brand.
e.g. Disney = Magic, Coca-Cola = Happiness, Volvo = safety, Crest = cavity prevention, FedEx = overnight delivery, BMW = driving performance…
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Being a passionate believer in Simon Sinek’s “Golden Circle” concept, which consists of three concentric circles labeled “Why,” “How,” and “What.” Everything we do, we start with “Why”.
With over 15 years of experience, we specialize in:
- Strategy: where-to-play, how-to-win.
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- Marketing: connecting with purpose.
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