Member-only story
Airbnb — Brand Positioning Strategy & Differentiation
When we start a business or a new brand, it is essential to aim for a long-term payoff for all our efforts and investments — A sustainable ROI. One of the ways to achieve that is to strive for getting maximum value from each customer(higher Customer Lifetime Value(CLTV)) — It means the brand should look for developing loyal customers.
The first step in building a loyal customer base is to position your brand inside a consumer’s mind which is called Brand Positioning. It is called the consumer’s perception of a brand with respect to competing brands.
The ways to enter their mind is
a) Becoming a leader in an existing product/service category(It would need massive investments in money, effort & time and not a practical option)
or
b) Becoming first in any new product/service category. In other words, you need to create a new listing.
Coke is the first cooldrink to enter the consumer’s mind under the Cola category. Seven-up is the first cooldrink under the Un-cola category. Redbull is the first cooldrink under the ‘energy drink’ category. Xerox is the first brand under the ‘photocopying’ category.
If you plan to create a new category, then the first place to start is to decide your target customers. It implies that the business has to choose a niche market.
Finding a Niche Market — The general rule is to start small. Focus on a particular need, work on it, make your product distinctive, and dominate the niche market. Narrower the segment, it is easier for the entire company to focus and meet the customer needs, wants, and desires. Once you become a leader in the niche market, you could grow your market.
