Putting You and Your Company in Position to Own Your Market


Americans have always liked their coffee hot. But then Starbucks made hot coffee desirable, in demand, and extraordinarilyprofitable. And then Starbucks made coffee "cool" with itssuper-popular iced Frappucino drink -- just as trendy,fashionable, and universally appealing.

Starbucks is no doubt one of the greatest marketing stories ofrecent history. How this company turned an unassuming beverageinto an icon of sophistication and taste is no mystery, however.It's all about a marketing tenet called positioning.

The coffee company started out in Seattle's Pike Place market in1971 as a single gourmet coffee shop, and by 1995, the chain'searnings were $26.1 million. Marketing experts agree thatStarbucks' skyrocket to fortune centers on its aesthetic sense.In other words, the public's perception of Starbucks has to dowith how it appreciates this company's style. Sure, Starbucksfilled a need and created unique product brands, but whatattracts coffee drinkers again and again is the experience ofthe Starbucks environment and its products. Smooth,sophisticated, artistic: These are seductive qualities even fora business based on a little brown bean.

The Starbucks story illustrates at least two powerful marketingprinciples. Both help us to better understand effectivepositioning, or the process of finding a "place" for ourselvesin people's minds:

  • People buy for their own reasons, not anyone else's.

  • The stronger position is found in the experience, outcome,or benefit you provide as opposed to the methods you use forproducing those outcomes.Starbucks shows us that it's not about packaging -- it's aboutpositioning. The environment of Starbucks creates an experiencethat invites us to come study for exams, hang out andphilosophize with friends, or get the day started with a warmcup of java and the morning news. Starbucks is an invitation tolinger, not just get your coffee and go.


When you are assessing your own position and considering how youmight improve your image and thus your market share, rememberthat there are essentially four winning positions: better,different, faster, or cheaper. You can certainly positionyourself as one of these, perhaps even two; capturing a positionas three of them is tough and probably not desirable, andcornering all four is just about impossible.

Not everyone is up to the task of creating another Starbucks.It's tempting, with price wars so rampant, to believe that aperception of being cheapest is easiest to establish. Yet intruth this is the most difficult because of fixed costs. It'slike doing the limbo: you can go only so low, and then you'reoverextended or flat on your back. Definitely not the easiestposition to be in.

How about being better instead? Contrary to popular belief, thisis perhaps the easiest position to take, since making animprovement or simply creating the impression of greater qualityor ability has no constraints. One tip: when you capture thedifferent category, you may get the better category as aby-product.

Starbucks capitalized on this technique, as did Dennis Rodman,the oddball of basketball. He came up with a way to take twopositions in fans' eyes: both different and better. Okay, maybehe wasn't actually better than his teammate Michael Jordan, whowas unbeatable, but certainly he was perceived for a time asbetter (cooler, trendier) among those who were captivated by hisstyle. His fashion and fascinating antics made him so unique thathe became unforgettable. And because he was also an excellentball handler, he became famous and highly regarded in hissport.

BMW has also taken the better-different approach. Until fairlyrecently, Mercedes-Benz had the better luxury car market sewnup, so BMW -- a competitor with a parity product -- simplyrepositioned itself. Its tag, "the ultimate driving machine,"appeals to a younger crowd and gives them luxury with power andhandling. This is "hip luxury," which is different from theMercedes position, which could be summed up as "elegant luxury."And voilà: BMW became as hot and desirable as a cappucino on a wintry morning.

BMW marketers had both a strong sense of the position theywanted to hold and precisely defined their premium clients, the créme de la créme within their target market. You can do this,too. Once you've figured out what position you can successfullygain in your business, ask yourself the following.
  • Who is my premium client? Who would be the most enjoyableand rewarding to serve?
  • What are this client's unique desires, needs, andchallenges? How can I best serve this client?
  • What do I (or can I) provide in a unique way to help myclients achieve their business outcomes?
  • How can I position myself as an expert in this market?
With this information, you can tailor your marketing efforts --everything you say to people, any support materials you use,even the way you dress and act -- directly to this audience tohelp establish your position. This is the first step to "owningyour market."

Positioning is like popularity: You have to be seen in the rightplaces and with the right people. This is more than socialclimbing: You learn more about your clients and they learn moreabout you when you frequent the same places, attend the samefunctions, join the same associations, be published in theirperiodicals, and develop products and services specifically forthem.

Positioning is as much about who you are not as it is about whoyou are. Starbucks is not a cheaper and faster cuppa joe; it isan upscale, gourmet coffee experience. BMW is no old-styleluxury; it is stylish performance. Dennis Rodman is no gentlemanforward; he is the outrageous, extreme athlete who is arecognized celebrity even for people who don't know basketballfrom billiards.

Do you want to win big? If so, have the courage to answer thesequestions clearly and define your own game: Who are you? Who areyou not? Who are your clients? These are the essential decisionsyou must make if you want to not only understand but own yourmarket.

James Arthur Ray of James Ray International is an expert inteaching individuals how to achieve Harmonic Wealth? inall areas of their life by focusing on what they want, opposedto what they don't want. He has been speaking to individuals aswell as Fortune 500 companies for over 20 years and is theauthor of four books and an inventor of numerous learningsystems. His studies of highly successful people prove that theycontinually achieve results by taking control of their thoughtsand actions to create and shape their own reality.

The Power to Win seminar (http://www.ThePowerToWin.com)will explain in detail how success is state of mind and how theprinciples of quantum physics (as seen in the movie What theBleep) can be applied to proven success-building techniques.James will also cover why people who are successful in onearea of their life tend to be successful in all areas. For more information,visit http://www.ThePowerToWin.com.

More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Branding Information:

Related Articles

Brand Boring or Brand Buzz?
I heard an advertisement on the radio the other day that surprised me, not because they were saying anything noteworthy, but because it was so banal. It was a national company's ad.
Franchising is Virtually Fraud Free
The number of complaints to the Federal Trade Commission on Franchising do not indicate ramped fraud in the franchising sector. The FTC before Congress gave a report showing that the number of complaints was fewer than one tenth of one percent, lower than any other industry.
The Face of Your Business, Part I
When we initially started our businesses, we had to decide how we were going to market ourselves. Kind of an obvious statement - every business has to do that.
Business Case Study Automotive Detailing Franchise Company
How do automotive detailing companies start? What makes them work and how do they grow? How do they choose which services they will offer? This is an interesting case study about a test market of a franchise company in the cleaning business and how they went about setting up Auto Detailing Shops. It maybe of interest to your business study and research; I am familiar with this story because it is one of the companies that I founded.
Company Vehicles Have Advertising on Them; Tips on Driving in Parking Lots
Try to avoid backing up whenever possible. Occasionally some one in a small car will park directly behind you at a gas station or stop sign.
Nike / Sears / Kmart
The Sears-Kmart merger hopes to fabricate some sort of silver lining for both retailers but instead seems to embody the inevitable philosophy of "going down together." Kmart, an already sinking ship, certainly worsens conditions for Sears, and Sears does not have a strong enough current to keep Kmart afloat when there are enterprises like Wal*Mart and Target constantly blasting holes in the stern with brand messages of "smart and classy.
What the Heck is Branding and Why Should I Care?
There's been a lot of buzz lately about branding. But what exactly is it, and who needs to do it? Simply put, a brand is what makes your business uniquely YOU! It's the way you present your business and how the world perceives it.
Business Image
One of the most important things in a business is a clean image. I started a small business when I was twelve years old and built it up in a very large small business and then franchised the business.
A good logo vs. a FABULOUS logo
If you had a choice, which one would you choose, a good logo or a fabulous logo? Think about it for a second here, although I know the answer is crystal clear. Because many of us settle for a good logo created by a credible logo designer just because he or she is a credible logo designer who charges low prices.
Brand Building 201: Finding The Ideal Way
The strongest and longest lasting brands branch off of anexisting category. Branching takes patience and time.
Branding: Bring Back the Jingle!
Did you grow up in the '70s and '80s? If so, you probably have a slew of campy jingles from various TV commercials filed away in your brain. Today, advertisers still use jingles to help identify their brand, but not nearly as much as they did "back in the day.
Create a Niche: Stoke Your Market With Affiliate Branding
Propose success, demand performance, and brand your market with appeal. In a world of costly business start-ups, expensive design tools, and rugged competition you can still beat the system.
Understand Brand
Branding has been defined, explained and examined extensively. There are books, articles, publications, seminars, and groups all dedicated to exploring the meaning and use of brand today.
Hawaiian Heirloom Jewelry
Back to the era of the Hawaiian monarchy, the origin of Hawaiian heirloom jewelry can be found. The Hawaiian kingdom had long enjoyed a favorable relationship with England.
Logo-ize For Instant Identification & Increased Awareness
The task of creating an indelible impact on the memory of your target market is arduous but can be made much easier with a well thought out logo. The word comes from the ancient Greek where it was used in philosophy and theology to mean "the divine reason implicit in the cosmos, ordering it and giving it form and meaning.
The Importance of Branding - Can It Really Make a Difference?
As consumers, we don't really think about the importance of branding. We just seem to go with the flow of brand names that have become synonymous with our daily living.
Living Your Brand on the Web - Part 2
Now that everyone has conformed to Living Your Brand on the Web, Part 1, it's time to add a couple of tweaks that will further reinforce your brand.Tweak #1: Your Signature FileA signature file is the simple text that, once activated is attached to your email automatically.
Simple Risk Reversal Formula Will Send Your Sales Into Space (2 of 2)
Make A Bold Promise Then Back It Up With An Awesome GuaranteeWe finished the last article with a mnemonic..
McDonalds Supply Chain of Potatoes
McDonald's buys its potatoes from corporate farmers in Idaho not the commodities market; therefore it limits its exposure to price gouging that might have occurred by using the commodity exchange to get those potatoes. Starbucks is doing the same thing, but instead of having partnerships and coffee beans, they are all of in-house.
My First Year In Cyber Space
My first year as a Cyberpreneur was a steeplearning-curve. I was an academic beforestarting an online business, so I had a lot to learn.