In business, “positioning” refers to creating a unique, differentiated market position for a brand, product, or service. Variety-based positioning (VBP) is a specific positioning strategy that focuses on a particular product feature or aspect of customer service to stand out from the competition.
There are a few different ways businesses can implement a VBP strategy. One common approach is to focus on a unique selling proposition (USP). This involves identifying a particular feature or benefit of the product or service that any competition does not offer and then emphasizing this USP in marketing and advertising messages.
Another approach is to focus on a particular target market niche. This involves identifying a group of consumers with specific needs or wants that are not adequately met by the competition and then tailoring the product or service offering to meet these needs.
Since variety-based positioning strategies involve focusing on a specific product feature or customer need, they can be very effective in helping businesses stand out from the competition and win market share. In this article, we’ll look at how variety-based positioning works and how you can leverage it to benefit your business.
What Is Variety-Based Positioning?
Variety-based positioning is a marketing strategy that involves creating differentiating points between your product or service and your competitors. It’s about finding ways to make your offering stand out in the market and then communicating those points of difference to your target audience.
It’s important to remember that your competitors are not necessarily the other businesses selling similar products or services. They can also be any business that your target market might consider when making a purchase decision.
For example, if you’re selling bicycles, your competitors might include public transport, walking, and driving. Your competitors might include other financial products like investments and superannuation if you’re selling life insurance.
Creating a variety-based positioning strategy starts with understanding your target market and what they’re looking for. Once you know this, you can identify how your product or service is different from (and better than) the competition.
Once you’ve identified your points of difference, you need to communicate them to your target market. The most effective way to do this is through marketing and advertising.
A variety-based positioning strategy can give your business a sustainable competitive advantage because it’s based on creating differentiating points that are not easily copied by the competition.
For example, if you’re the only business offering a particular product feature in your market, it will be challenging for your competitors to copy you. Even if they manage to copy you, they’ll be playing catch-up and will always be one step behind.
When done well, variety-based positioning can be an effective way to grow your business. It can help you attract new customers and retain existing ones. It can also make charging premium prices for your products or services more accessible.
Other types of positioning strategies include:
Access-based positioning
The first type of positioning strategy is access based positioning. This involves making your product or service available to as many people as possible.
For example, a business might use an access-based positioning strategy if they’re selling a new type of product that’s not yet available in stores—making the product available online increases the chances of people finding and buying it.
Needs-based positioning
The needs-based positioning strategy is about finding a target market niche that’s not being adequately served by the competition.
Since this strategy involves meeting a specific need, it’s often used by businesses that offer unique or customized products or services.
For example, a business that sells custom-made wedding dresses uses a needs-based positioning strategy. They’re targeting a market niche that’s not adequately served by the competition (i.e., mass-produced wedding dresses).
Geographic positioning
The geographic positioning strategy involves targeting a specific geographical area. This can be done for several reasons, such as:
- There’s less competition in the target area
- The business has a unique selling proposition that appeals to people in the target area
- The business is located in the target area
For example, a business that sells snowboards might use a geographic positioning strategy and target the market in areas with a lot of snow.
Do you want to leverage your business by using variety-based positioning?
Demographic positioning
The demographic positioning strategy involves targeting a specific group of people based on age, gender, income, etc.
For example, a business that sells baby clothes might use a demographic positioning strategy and target their marketing at parents of young children.
Psychographic positioning
The psychographic positioning strategy involves targeting a market segment based on psychological factors like lifestyle, values, attitudes, etc.
For example, a business that sells organic food might use a psychographic positioning strategy and target health-conscious and environmentally conscious people.
How Does Variety-Based Positioning Work?
To understand how variety-based positioning works, it is first essential to understand what positioning is. Positioning is the process of creating an image or identity for a product, service, or company in the minds of consumers. This image or identity differentiates the company from its competitors and serves as a guide for marketing decisions.
There are several different types of positioning, but variety-based positioning is one of the most effective for businesses that offer a wide range of products or services. Variety-based positioning is all about creating a unique identity for each product or service within the company’s portfolio.
For example, let’s say that Company A sells both paper towels and laundry detergent. Company A could create two separate identities for these products, such as “the paper towel company” and “the laundry detergent company.” This would allow consumers to understand what each product is and what it does quickly. Additionally, it would make it easier for Company A to market each product to its target audience.
There are a few different ways companies can create separate identities for each of their products or services. One common approach is to focus on the unique benefits that each product or service offers. For example, Company A might position its paper towels as super absorbent and its laundry detergent as gentle on clothes.
Another approach focuses on the different target markets for each product or service. For example, Company A might position its paper towels for families with young children and its laundry detergent for people with sensitive skin.
No matter which approach is taken, the goal is to create a unique identity for each product or service that distinguishes it from the competition. This can be done through marketing campaigns, packaging, branding, and even how products are displayed in stores.
Benefits of Variety-Based Positioning
Variety based positioning can help you leverage your business in the following way:
Identify your key competitors and what they are known for
Variety-based positioning is all about understanding what your key competitors are known for and then finding a way to differentiate yourself in the market. This can be done by offering a unique product or service that they don’t provide or by positioning yourself as an expert in a particular area.
Since you know what your competitors are known for, you can start to work on creating a unique selling proposition that will help you stand out from the crowd.
Appeal to a specific target market
When you know who your target market is, you can start to focus on creating a message that appeals to them. This can be done by understanding what they are looking for and creating content that speaks to their needs.
It’s also important to consider how you can reach your target market. This can be done by using various marketing channels such as social media, email marketing, or even paid advertising.
Create a brand that is recognizable and trustworthy
A crucial part of variety-based positioning is creating a solid brand that is recognizable and trustworthy. This can be done by ensuring that your branding is consistent across all channels and that your message is clear.
It’s also important to focus on creating a positive reputation. This can be done by providing excellent customer service, delivering on your promises, and always looking for ways to improve.
Focus on key differentiators
When you know what makes your business unique, you can start to focus on promoting those key differentiators. This can be done by creating marketing materials that highlight those features or developing a sales process.
You can also use variety-based positioning to create a competitive advantage. This can be done by focusing on areas where your competitors are weak and then developing a plan to capitalize on those weaknesses to gain a strategic position in your target market.
Creating a solid brand identity can help build trust and credibility, essential for attracting new customers. The strategic positions you take with your business should be reflected in all aspects of your branding, from your logo and website design to how you answer the phone.
Create a competitive strategy (strategy development)
Variety-based positioning can help you create a competitive strategy (strategic positioning) by focusing on your unique selling proposition. This can be done by understanding what your target market is looking for and then tailoring your products or services to meet their needs.
Another thing to consider is how you can reach your target market. This can be done by using various marketing channels such as social media, email marketing, or even paid advertising. The operational effectiveness of your business should also be taken into account when developing a competitive strategy, as this can help you identify any potential weaknesses that need to be addressed, especially if you are in a competitive market.
Focus on customer satisfaction
Since customer satisfaction is essential for any business, it’s essential to focus on creating a positive customer experience. This can be done by providing excellent customer service, delivering on your promises, and always looking for ways to improve. In a corporate strategy, customer satisfaction should be one of the key performance indicators that you focus on.
Evaluate and adjust as needed
It’s essential to evaluate your variety-based positioning and adjust as needed constantly. This can be done by monitoring your results and changing your strategy based on what you see. Like with any business, it’s vital to adapt and evolve to constantly stay ahead of the competition. A unique and valuable position can help you attract new customers and grow your business.
Get an edge over your competition through variety-based positioning!
How to Use Variety-Based Positioning to Leverage Your business
Now let’s have a look at the steps you can use variety-based positioning to leverage your business:
Analyze your current positioning
The first step is to take a close look at your current positioning. What are the unique benefits that you offer? What differentiates you from your competitors? What is your target market? You need to understand your current positioning before starting to change it clearly.
Identify your unique selling points
Once you understand your current positioning, you need to identify your unique selling points. These features or benefits make your products or services different from your competitors. It is important to choose unique selling points meaningful to your target market.
Develop a positioning strategy
Once you have identified your unique selling points, you need to develop a positioning strategy. This will involve creating an identity for each product or service within your company’s portfolio. You can do this by focusing on the unique benefits of each product or service or by targeting different market segments.
Implement your positioning strategy
The final step is to implement your positioning strategy. This will involve creating a marketing mix that supports your new positioning. You will need to create new marketing materials, change how you package and display your products, and develop new branding guidelines.
Positioning is a vital part of any marketing strategy. It allows you to differentiate your products or services from your competitors and create your business’s unique identity. If you want to leverage your business, variety-based positioning is a great place to start.
Final Thoughts on Variety-Based Positioning
Variety-based positioning can be a great way to grow your business. By focusing on your unique selling proposition, you can create a competitive advantage and appeal to a specific target market. Creating a solid brand identity can help build trust and credibility with potential customers. A particular group of loyal customers can also be a valuable asset, so it’s essential to focus on creating a positive customer experience.
Finally, it’s essential to focus on customer satisfaction to create a positive experience. If you keep these things in mind, you can use variety-based positioning to grow your business and stay ahead of the competition.
Growth Hackers is an award-winning digital marketing and growth hacking agency helping businesses from all over the world grow. There is no fluff with Growth Hackers. We help entrepreneurs and business owners leverage their business through variety-based positioning, generate qualified leads, optimize their conversion rate, gather and analyze data analytics, acquire and retain users and increase sales. We go further than brand awareness and exposure. We make sure that the strategies we implement move the needle so your business grow, strive and succeed. If you too want your business to reach new heights, contact Growth Hackers today so we can discuss about your brand and create a custom growth plan for you. You’re just one click away to skyrocket your business.
