Here’s an Exclusive Research on Brand Positioning That Will Help Your 2023 Business Strategy
One simple truth in the business sector is that any company that launches a product without conducting proper market research on its customers is very likely to generate products that don’t resonate with its target market.
And when a business’s product doesn’t appeal to its target market, performance will significantly decline, if not cease. This misfortune has caused many products to fail in the market, even though good market research could've readily prevented it.
However, we understand that market research is a costly process few business owners can afford to carry out because of their limited resources. Therefore, we decided to help you in the only way we could.
We conducted detailed research to help you understand how consumers respond to brands with traditional and historical brand tones versus those with current and inventive ones.
This will simplify the process and make it simpler for you to identify what’s most effective for your target audience, for example, in picking a business name from a name generator, as well as the kind of products and brand image that would draw people to your business.
Why Did We Conduct This Investigation?
We were interested in the types of companies that various clients preferred over others, as well as how those choices differed by age group.v
We asked American consumers if they preferred doing business with firms that utilized new and innovative ones or those that employed traditional and historic brand tones in order to advance our study's aim.
How Important is This Question?
Every business owner, including you, should know that selecting the best brand positioning strategy is a vital decision you’ll have to make when establishing or rebranding your company since it’ll significantly affect how customers interact with and perceive your business.
For your brand positioning strategy to be complete, you must find an interesting tone that resonates with your target audience, an approach to present your business offerings to them, and a way to tailor your branding elements to position your brand in the minds of your clients.
Consider how these brands, and the market, would have fared if:
- Amazon had remained Cadabra.
- Apple had been named Executex.
- Nike had remained Blue Ribbon Sports.
- Zappos hadn't been renamed Shoe Store.
- Hydrox had chosen a more enticing business name.
- Ayds had changed their name and redeemed their reputation early on.
A solid grasp of your target market is necessary to build a powerful brand for your business that’ll help you stand out in the competitive market and gather more consumers.
Let's now examine the results of our research.
These are Our Study's Primary Results
To further illustrate our findings, we divided the information we collected into distinct age groups. Even though the survey's results weren't especially unexpected, the replies we got were fascinating nonetheless.
The following are the findings from the 301 respondents polled during our research:
- Our study found that younger consumers of ages 25-34 were substantially more likely to be drawn to companies with a contemporary and upbeat tone, whereas older consumers were more likely to support companies with traditional tones
- Customers aged between 35 and 45 were equally devoted to contemporary and cutting-edge businesses. It is clear that this category is attracted to businesses with both classic and contemporary tones, given how closely the results reflected one another.
- According to the reports of our study, people between ages 45 and 54 choose traditional, trustworthy, and well-established businesses.
Old and established businesses are particularly popular with customers in the 55-65 age group.
- According to the study, males don't seem to prefer conventional or modern enterprises.
- However, women choose well-established companies over fresh, innovative startups.
- 148 of the 301 respondents chose innovative, cutting-edge companies, while 153 chose well-known, traditional ones.
The findings of this study show that you may portray your company as either historical or modern as long as it appeals to the interests of your target audience.
Here’s What This Means for Your Business
Our study's results show that the majority of young people are drawn to new, trendy, and cutting-edge companies. If you plan on marketing your business to a younger audience, consider giving your company a distinct, modern, and creative identity so it can better connect with this demographic. Think of brands like TikTok, KitKat, and Snapchat. These brand names carry a young, exciting vibe that Gen Zs are drawn to.
However, if you want to appeal to an older customer demographic, like Baby Boomers and older Gen Xers, you'll need to give your brand a traditional tone like Facebook, Dolce and Gabbana, Amazon, and Apple.
Our study makes it clear why business owners should evaluate their brand's tone and ask themselves, "Who are we trying to reach?" before settling on a name or brand strategy for their company.
How Do the Results of Our Survey Work in Reality?
Lululemon is an excellent example of a fitness apparel company with a strong brand position. Lululemon's savvy business approach provides much more than just clothing.
For years, the company has provided compelling brand engagement through courses, and its work with Mirror—an interactive boutique fitness brand—shows that the brand's clever spark is still alight two decades after Chip Wilson, the company's founder, established the tone.
Hulu is another fantastic example of a carefully positioned brand, which they accomplished by selecting a brand name that is both novel and innovative.
It recognized the suitable tone that is ideal for its brand's service and target audience, which are young people, ranging from millennials to Gen Xers, who are drawn—according to our survey—to new, modern, and exciting companies.
And, considering Hulu’s 47+ million paying users, it’s pretty clear that their brand’s name, which can be connected to “Hulu,” the Hawaiian word for “gathering,” and the Chinese word "Hu Lu," which translates to “embrace abundance.”
As a result, while positioning your company, focus on establishing and creating your brand around the qualities of your target market. If you are successful in doing so, your organization will certainly be able to pique the attention and loyalty of your customer base.
But is There Another Way?
Yes, Compass, the modern real estate firm, is an excellent example of a brand that skillfully combines traditional and modern tones. Real estate is a traditional industry, but Compass does an excellent job of appealing to older and younger clients by introducing some innovative components to the market.
As a result, while positioning your firm, pay close attention to identifying and building your brand around the demographics of your target market. If you execute this well enough, your firm will undoubtedly capture your target audience's attention and affection.
Keep Your Tone Consistent
It will take a significant amount of your time, knowledge, and effort to establish a solid brand image for your business.
So consider the survey results when you create your business strategy, marketing strategies, and brand identity. If your brand tone is constant, your firm will have unique and dependable recognition in the market.
Grant Polachek is the head of branding at Squadhelp.com, a three-time Inc. 5000 company that provides cutting-edge naming solutions. Squadhelp has created a list of the top-performing domain names based on an analysis of over one million names. We are the world's largest crowdsource naming platform, and our services have helped countless Fortune 500 companies and early-stage startups.