Product positioning is key to effectively communicating what a product is and who it is for. A positioning statement is a strategic tool that synthesizes the core essence of a product into a memorable, compelling message. This singular statement distills the target customer, product category, main benefit statements, and differentiation to orient the product within the market.
Developing a strong positioning statement provides critical guidance for product managers as well as communication touchpoints when interfacing with customers. This succinct encapsulation of the product strategy also fuels marketing messages and guides benchmarking metrics for success. Products with clarity of positioning are better equipped to stand out among the competition.
In this guide, we will demystify product positioning statements and provide tangible examples for crafting an effective statement. Whether you are looking to shape an initial product launch or re-evaluate an existing product, sharpening its positioning will enable the product to resonate in the market.
What is a Positioning Statement?
A positioning statement is a strategic articulation of the target customer, product category, primary benefit statement, and point of differentiation for a product. In one or two sentences, an effective positioning statement establishes:
- Who is the target customer? Detail the ideal customer profile and segment.
- What product category does the offering fit within? Frame the landscape.
- What is the main benefit statement or key value proposition? State the primary compelling reason for the target customer to use this product over alternatives.
- What makes this product unique from competitors? Express the differentiation.
A strong example is the following positioning statement for the financial planning app Mint:
“For young adults who want to independently take control of their finances, Mint is a free online financial planning app that makes money management easy and automatic, unlike any other budgeting tool.”
In this positioning statement, Mint clearly defines its target audience as financially independent young adults. The product category of online financial tools and apps provides context around competitor alternatives. The main benefits highlighted are ease of use and automation of finance tracking. Lastly, the differentiation as the most user-friendly, automated option compared to other budgeting tools is clear. This well-crafted statement serves as a guiding North Star for Mint.
An effective positioning statement is essential because it provides critical clarity in a succinct package to internal product teams and external markets. Internally, the statement feeds product roadmaps, user stories, and development priorities. Externally, it fuels branding, messaging, and go-to-market plans to attract the ideal customers. The litmus test for a strong positioning statement is if a new employee or customer could understand the essence of the product in a brief exchange. Great positioning statements pass that test.
Elements of an Effective Positioning Statement
Crafting a compelling positioning statement requires clearly defining and integrating key elements. We will break down what comprises an effective positioning statement, along with examples:
Target Customer
Defining the target customer persona in the positioning statement establishes who the product is intended for. This framing should include:
- Demographic information like age range, location, gender, income level
- Behaviors, attitudes, and beliefs
- Specific pain points and needs
Example:
“For busy young professionals in urban areas who need healthy grab-and-go snacks, FuelBox delivers customized snack packs with nutrient-dense real foods.”
In this example for a snack delivery service, the target customer is urban-based millennial professionals seeking healthy snacks. Details like demographics, behaviors, values, and needs create a specific customer profile.
Product Category
Categorizing the product offering establishes context about competitors. The product category paints a picture of the landscape the product plays within.
Example:
“For music lovers craving on-demand access, Spotify provides an industry-leading streaming music subscription service unmatched in song catalog size and user experience”.
This example positioned Spotify within the music streaming subscription category during its launch, framing the competitive set.
Key Benefit(s)
The main benefits or value proposition state why the defined customer persona will find this product offering compelling. The key benefit should be an aspirational and emotionally resonant desire of the target customer.
Example:
“For pressed-for-time execs seeking professional growth outside of work, Audible provides unlimited audiobooks that make personal development possible during life’s mundane moments.”
Audible promises the benefit of self-improvement in otherwise wasted moments of a busy target customer.
Differentiation
The differentiation draws a contrast between the product and alternatives, expressing its competitively unique attributes. The differentiation highlights why the product best delivers on the stated key benefit promise.
Example:
“For eco-conscious suburban families wanting cleaner energy, Tesla solar panels deliver innovative high-efficiency solar technology with integrated batteries unlike any other company.”
Here, the differentiation for Tesla Energy captures unique technology and integration advantages.
How to Write a Positioning Statement
With the foundational elements of an effective positioning statement covered, here is a step-by-step process for crafting a statement:
- Conduct Customer Research
Gather insights into potential target customer demographics, behaviors, attitudes, pain points, and desires. Profile an ideal customer.
- Understand the Competitive Landscape
Research product alternatives and assess the broader product category and market landscape.
- Identify Benefits and Differentiators
Analyze research findings to develop value proposition statements and differentiation based on unique offering attributes.
- Draft Initial Positioning Statement
Integrate key elements into concise sentences with a clear flow.
- Test Statement
Solicit feedback on draft statements from the target customer segment through surveys and interviews.
- Refine as Needed
Incorporate learnings from testing into further statement iteration.
Example: Snack Company X seeking healthy positioning
Market research showed urban millennial professionals are an ideal target seeking grab-and-go healthy snacks. Competitive analysis determined gaps among existing offerings for freshness and taste. The identified hero benefit was providing guilt-free snacks without sacrificing flavor.
From the insights gathered, an initial positioning statement was drafted:
“For busy young workers seeking great-tasting healthy snacks, Snack Company X delivers farm-fresh grab-and-go snack packs full of flavor and nutrition.”
Testing revealed the key benefit resonated strongly with the target group and set the product apart from perceived lower-quality competitive options. After refinement, the final approved positioning statement was completed.
Using Positioning Statements
Once a positioning statement is developed, it serves as an invaluable tool to align priorities and messaging. Ways to leverage the statement include:
Drive Product Development
A positioning statement keeps product development efforts focused squarely on the target customer. Product managers can reference the statement to prioritize backlogs and roadmaps toward the key benefit and differentiation promises.
For example, software company InVision’s statement targets designers with collaboration benefits. Their development invests heavily in features like design system repositories and interactive prototypes to deliver on this.
Craft Marketing Campaigns
The marketing team can derive campaigns directly from the core positioning statement elements. Campaigns should speak to the target persona about the aspirational benefits highlighted.
For example, Trail Running Magazine’s positioning targets trail runners by promoting mental benefits. Their lead nurturing campaigns feature content on the mental clarity and self-growth possible in nature.
Benchmark Metrics
A statement provides a framework to identify metrics indicating performance against the intended positioning. Tracking metrics lets teams assess whether the intended differentiation and benefits are being achieved.
For example, the blog platform Medium measures time spent reading, claps, and reading completion rates to benchmark whether they deliver immersive reading benefits.
Ensure Customer Feedback Alignment
Soliciting target customer feedback is a chance to evaluate if their perception aligns with the envisioned positioning. The process can reveal gaps to refine messaging or features to better deliver the promised benefits.
For example, a survey might ask: “Does our product provide the key benefits we intend to differentiate on compared to other solutions you considered?”
Common Mistakes to Avoid
While crafting positioning statements, product teams commonly dilute effectiveness by:
Not Clearly Defining Target Customer
Without specifics on the target persona, statements become too generic. Teams lose sight of who they need to build and market towards.
Focusing on Non-Differentiating Features
Statements leading with generic features rather than emotional benefits fail to connect with customers and differentiate.
Too Many Claims
Trying to cram every possible benefit weakens the clarity. Prioritize the primary value proposition instead.
Forgetting Validation
Neglecting to test statements with target customers risks misalignment with their needs and desires.
Product Positioning Statements in Action
Strong product positioning serves as a pillar for excellent products. Here are examples of market-leading products with positioning precision:
Slack
Slack’s positioning statement focuses on tech teams who need seamless communication:
“For technical teams who need more efficient online collaboration, Slack provides an intuitive real-time messaging platform that brings all team communication together in one place more seamlessly than email.”
This focus helped Slack become the fastest-growing business application ever. Their customer-centric development continuously enhances team communication with features like shared channels, eliminating information silos. True to positioning, their marketing cleverly highlights efficiency and seamlessness.
Hinge
Dating app Hinge targets users exhausted by swiping through incompatible matches. Their statement captures this pain point:
“For metropolitan singles tired of endless swiping, Hinge provides a relationship app that matches compatible personalities through mutual friends rather than strangers.”
This guides Hinge to invest in machine learning matching algorithms versus gimmicks. Their marketing emphasizes authentic connections in advertising like “Designed to be Deleted”.
Peloton
Peloton addresses aspiring athletes lacking flexibility:
“For busy professionals who want immersive elite fitness experiences at home, Peloton provides premium equipment and live classes that make high-intensity training accessible without rigid schedules.”
This drives Peloton to offer ambitious at-home workouts. With instructors guiding classes all day, members can exercise whenever fits their lives. From the equipment quality to music licensing, Peloton spares no expense in an integrated experience.
Conclusion
An insightful positioning statement serves as a compass for product teams to make decisions that best serve customers. Defining the target user, competitive environment, emotional benefits and differentiation in concise positioning is no easy feat. But dedicating upfront effort towards developing and validating strong positioning pays continuous dividends. With sound positioning, product managers can confidently guide development, marketing, and innovation to best deliver value to users. Just as importantly, crisp positioning allows target customers themselves to easily understand whether a product fits their needs.