How to Create a Brand Positioning for a Small Business

When you say your business name, what image or thought pops into your customers’ heads? That’s what brand positioning is. A brand positioning strategy tries to shape what consumers associate with a business to grow the customer base. Businesses do this every day through marketing, but it’s a little trickier for a small business. You’re probably not working with a huge budget or a marketing team to help. Don’t worry! It sounds like a complicated concept, but it’s a lot simpler than you might think. With some careful work and planning, you can develop the perfect brand positioning for your business, no matter what industry you’re in.

Method 1
Method 1 of 3:

Conducting Research

  1. You can’t decide how to position your brand with customers if you don’t learn who your customers are first. [1] This is unique to all businesses, but there are some similarities. Spend some time thinking and identify the main audience for your business to focus your branding. [2]
    • For example, the audience is very different for a local pub than for a trendy coffee shop. For the pub, your main audience is probably adult men and women getting off work, whereas the coffee shop might cater to a younger, more laid-back crowd.
    • If you aren't sure what your main clientele is, spend some time observing your business. Take not of who comes in, calls, and visits your website to collect some data.
    • Since you're a small business, your customers are probably interested in more personalized service than they might get from a large chain, no matter what the industry is. This is an important part of developing a loyal clientele, and it’s common to small business customers. [3]
  2. The point of brand positioning is differentiating your brand from competitors. To do that, identify who your competitors are. Analyze the market to see who you’ll have to outdo with your branding and services. A quick internet search should help you locate nearby businesses in your industry, Make a list of all these competitors to keep track of them. [4]
    • Your competitors depend on your industry. If you run a hair salon, then your competitors are other local hair salons. However, if you run a coffee shop, then your competition is not only other coffee shops, but restaurants and chains that serve coffee.
    • Depending on your industry, not all competitors need to be physically close to you. If you run an internet marketing business, for example, you could technically be competing with all other marketers on the internet.
    • If you can, try to avoid directly competing with large brands. They’ll probably outdo you on price and availability. Instead, present yourself strictly as a small business with personalized service. [5]
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  3. You aren’t only competing with your competitors’ services, but also their branding. Visit their stores, restaurants, websites, and social media pages to see how they brand themselves. This shows you what you have to compete against, and might give you some ideas for your own branding. [6] [7]
    • Don’t directly copy your competition. Your customers will notice this. However, there’s nothing wrong with taking some influence from other business branding ideas.
    • Remember that some competitors might not be very good at branding. This is another reason not to copy them.
  4. There are gaps in every market, even if there is a lot of competition. A major part of your branding is what you offer that’s different from your competitors. Use your research into your target audience and competitors to develop a business that offers something different. [8]
    • If you’re in a market with a strong competitor, present yourself as working extra hard to meet your customers’ expectations. The existing business doesn’t have to work as hard, and you could take advantage of that.
    • If you’re a restaurant or cafe, try coming up with super creative menu items that your competitors don’t have. This will give customers a reason to come to you instead.
  5. Once you have a feel for the market, you can start planning your branding approach. Since you’re a small business, you probably don’t have a lot of money at your disposal for marketing. Draw up your budget to see what your limitations are. Then plan your strategy within these limits. [9]
    • With the internet, you really don’t need a lot of money to market your business. This is great, because you can develop a strong brand campaign without a huge budget.
    • On average, businesses spend about 11% of their annual budgets on marketing. [10] Keep that in mind when you're planning, and don't shy away from committing 10-15% of your budget to your branding campaigns.
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Method 2
Method 2 of 3:

Developing Your Brand

  1. A great name can really stick in people’s minds and set your business apart. There are tons of ways you could approach coming up with a name. Try to align it with your main brand position. If you have a fun, wacky position, then reflect that in your name. If you’re more of a low-key, family-oriented business, then go for a more relaxed name. [11] [12]
    • Try to get creative with your name so it’s memorable. Bowlorama is a catchy name for a bowling alley, for example, and makes it sound like a fun place to be.
    • Simple names could also work. For example, Joe’s Pizza is a good name for a local pizza shop. It sounds simple, but that’s what makes it a personal, small business.
    • It's okay if your business is already named. You can design a branding strategy around it, or make a new name if you want to start over.
  2. In 1 or 2 sentences, write out what your business offers. Explain what you give to your customers and what differentiates you from your competition. This short statement will give you a guide for how to present yourself during brand campaigns. [13]
    • For example, “At Martha’s Bistro, we use all local ingredients and serve everything homemade. Nothing in our restaurant is processed, canned, or frozen.” This makes customers feel like they’ll get a home-cooked meal, and differentiates your restaurant from others that might use less fresh ingredients.
    • Remember to avoid making promises you can’t keep with your positioning statement. If you present yourself as a restaurant offering fresh ingredients and then use frozen or processed meals, you’ll lose customers fast.
    • If you can, try testing your positioning statement with a test audience of potential customers. If the statement isn’t a hit, don’t hesitate to change it.
  3. Think of a short slogan to communicate your position. A great slogan sticks in your customers’ minds, so it’s a huge part of brand positioning. Use your positioning statement to come up with a catchy slogan, just a few words long, that aligns with your brand and helps customers remember you. [14]
    • Spend some time brainstorming your slogan and trying out ideas. Don’t rush it.
    • A popular small business slogan is something like “We treat you like family.” This sends the message that this is a welcoming place where anyone can feel at home.
    • For a long time, the slogan for Las Vegas was "What happens in Vegas, stays in Vegas," branding the city as a place to party. This could be a good inspiration for a bar or club.
    • Your positioning statement probably isn’t short enough to be your slogan, but it might work if you shorten it. This is a good idea if you came up with a really snappy positioning statement.
  4. Visuals are a huge part of brand positioning too. Could you imagine McDonald’s without the golden arches? Work on designing a great logo to lock your business into your customers’ minds. [15] [16]
    • Simple logos are usually the easiest for people to remember. The Apple logo, for example, is instantly recognizable, and it's a great example of good brand positioning.
    • Remember to align your visuals with your positioning. [17] If you’re a low-key neighborhood pub, don’t put lights and fireworks on your ads. This makes you look like a nightclub.
    • It’s okay if you don’t have any design skills yourself. Websites like Upwork or Fiverr can connect you with professional designers at a low price.
    • For a small business, photos of you or your family working are also great. This connects with your audience and shows them that you’re a family-run business trying to make it work.
  5. Pricing is a big part of how your customers will assess your business. You don’t want to drive people away with high prices, but you need to make money for your business to survive. Try to charge based on your branding. If you’re advertising yourself as a laid-back restaurant, then you don’t want to charge New York City prices for a simple meal. Lining up your prices with your branding is a good way to stay consistent and keep customers. [18]
    • There isn't a very scientific way to price your products or services. Generally, add up all your costs to provide your services, plus about 10-20% for your profit. But it also depends on what people are willing to pay, so drop your prices if you aren't getting customers. [19]
    • In general, cheaper prices will attract more people. However, pricing doesn’t always have to be low to attract customers. If you’re a clothing company appealing to a more upscale crowd, then it’s fine to charge a bit more, as long as the clothes are high-quality. This establishes your niche in the luxury field.
    • As a small business, you might not be able to charge as little as chain brands. However, you can make up for this with an excellent product and service.
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Method 3
Method 3 of 3:

Communicating with Customers

  1. Stories are a huge part of the appeal of small businesses. Customers love hearing about how you started the business with very little money and built it from scratch. This can really differentiate you from larger chain businesses that don’t seem personal, and gives your customers something to connect with. [20]
    • If you’re running a commercial, for example, put a quick sound bite of you explaining how you founded the business. This adds a personal touch.
    • Add this story to written ads as well, like social media posts.
    • Don’t lie with these stories. It’s easy for people to look you up nowadays, and your business could suffer if you’re exposed. It’s better to tell a slightly less exciting story than risk criticism.
  2. The only way for customers to associate these with your brand is to show them! Whenever you design flyers, menus, ad campaigns, or commercials, always insert your slogan, logo, and any other visuals there for everyone to see. This puts your brand right into their memory. [21]
    • Always add your slogan and logo to advertisements, whether they’re on TV or Facebook.
    • Be sure that your name and logo is front and center on menus you hand out so customers know right away.
  3. Don’t confuse your customers! If you advertise with one message but present another one when customers come in, your branding is inconsistent. This can turn customers off and stop them from coming back. [22] [23]
    • If you own a bar and advertise it as a swanky place to be, but don’t have a DJ, lights, or a good sound system, then your presentation doesn’t line up with your brand. Work on making your bar more consistent with your branding.
    • If you aren’t sure if something lines up with your positioning, look at your positioning statement again. Use this as your guide to stay consistent with your brand.
  4. All the brand positioning in the world won’t mean anything if you don’t offer great service to your customers. The tried and true way to maintain customers is to offer great service, no matter what business you’re in. If you treat customers well, they’ll keep coming back. [24]
    • No matter what industry you’re in, most customers want friendly and efficient customer service, a good product, and fair prices. You can never go wrong by offering these.
  5. As a business owner, you might be thinking in terms of growth and gaining more customers. But don’t forget about the customers you have now. Engage with them to make sure they’re happy, and be willing to take their suggestions or feedback. This establishes a loyal customer base and will help your business stay successful. [25]
    • This is especially important for small businesses, which are often supported by a small, core group of regular customers. These regulars can keep you in business, so stay on their good sides at all costs.
    • Events like a customer appreciation day or coupons for long-time customers are a great way to get continued loyalty.
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      Tips

      • Remember that brand positioning doesn't necessarily rely on a lot of money. You can spend tons of money but still have a bad strategy that doesn't work. It's better to focus on a good strategy first.
        Thanks
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      • Don't be afraid to revisit and change your branding strategy if you feel like something isn't working. Big businesses do this all the time.
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      References

      1. ↑ Imran Alavi. Marketing Expert. Expert Interview. 31 March 2021.
      2. ↑ https://njsbdc.com/how-to-create-a-brand-positioning-strategy/
      3. ↑ https://www.entrepreneur.com/encyclopedia/positioning
      4. ↑ https://www.entrepreneur.com/encyclopedia/positioning
      5. ↑ https://medium.com/on-advertising/a-big-positioning-idea-for-small-businesses-97fb11cb0c09
      6. ↑ Imran Alavi. Marketing Expert. Expert Interview. 31 March 2021.
      7. ↑ https://thenextscoop.com/brand-positioning-tips-set-small-business/
      8. ↑ https://www.forbes.com/sites/briansutter/2016/05/06/easy-tips-on-how-to-create-a-brand-position-for-your-product-or-service/
      9. ↑ https://thenextscoop.com/brand-positioning-tips-set-small-business/
      1. ↑ https://deloitte.wsj.com/cmo/2017/01/24/who-has-the-biggest-marketing-budgets/
      2. ↑ Imran Alavi. Marketing Expert. Expert Interview. 31 March 2021.
      3. ↑ https://www.thebrandingjournal.com/2016/11/brand-positioning-definition/
      4. ↑ https://www.entrepreneur.com/encyclopedia/positioning
      5. ↑ https://www.forbes.com/sites/briansutter/2016/05/06/easy-tips-on-how-to-create-a-brand-position-for-your-product-or-service/
      6. ↑ Imran Alavi. Marketing Expert. Expert Interview. 31 March 2021.
      7. ↑ https://www.entrepreneur.com/encyclopedia/positioning
      8. ↑ Imran Alavi. Marketing Expert. Expert Interview. 31 March 2021.
      9. ↑ https://smallbusiness.chron.com/positioning-marketing-plan-22983.html
      10. ↑ https://www.inc.com/guides/price-your-products.html
      11. ↑ https://thenextscoop.com/brand-positioning-tips-set-small-business/
      12. ↑ https://www.entrepreneur.com/encyclopedia/positioning
      13. ↑ Imran Alavi. Marketing Expert. Expert Interview. 31 March 2021.
      14. ↑ https://www.marketingdonut.co.uk/marketing-strategy/branding/ten-ways-to-build-a-brand-for-your-small-business
      15. ↑ https://www.marketingdonut.co.uk/marketing-strategy/branding/ten-ways-to-build-a-brand-for-your-small-business
      16. ↑ https://thenextscoop.com/brand-positioning-tips-set-small-business/

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