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  • AQ #29: Brand Positioning in 2023 (Part-3): Reimagining Your Competitive Edge❣

AQ #29: Brand Positioning in 2023 (Part-3): Reimagining Your Competitive Edge❣

Insights from real-world case studies

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We’re now officially in the festive season. In my country, India, we’re now close to celebrating one of the major Hindu festivals, Diwali or Deepavali, festival of lights.

In the run-up to this five-day-long festival, people usually clean out their spaces, and that’s what we’re also doing at home right now as I write this 🙂🙂

Read the first and second parts of this mini-series if you haven’t already.

In the final part, today, we'll explore real-world case studies of some modern brands.

Through in-depth analysis and insights, we'll delve into brands that have successfully navigated the shifting tides of consumer expectations, as well as those who faced the challenges of repositioning their identities.

Here’s what we’ll cover today:

  1. Tesla - a case of innovation

  2. Canva - a case of democratization

  3. Abercrombie & Fitch - a case of exclusion and missing the point

  4. EcoLuxe Adventures - a fictional brand and a fun exercise to define its brand positioning

Whether you're a seasoned marketer or just starting your journey, this edition will provide you with valuable takeaways and inspiration.

Let’s unravel the strategies, triumphs, and lessons from these compelling brand stories.

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1. Tesla - Electrifying the Auto Industry

Introduction

Tesla, founded in 2003 by Martin Eberhard and Marc Tarpenning and later led by Elon Musk, has revolutionized the automotive industry by challenging conventional norms and redefining brand positioning.

This case study explores Tesla's brand positioning in depth, delving into its innovative approach, value proposition, and adaptability.

Innovation as a Core Value

Tesla's brand positioning is rooted in innovation.

As the world’s leading automaker, Tesla is on a mission to accelerate the world's transition to sustainable energy.

Their introduction of the Tesla Roadster in 2008 marked a paradigm shift, as it was the first highway-legal electric vehicle (EV) to use lithium-ion battery cells.

The innovation extended to the development of the Gigafactory in Nevada, which aimed to produce batteries at an unprecedented scale, reducing costs and making electric vehicles more accessible.

Tesla's emphasis on sustainability, represented by electric powertrains and energy storage solutions, aligned with the growing concern for the environment.

Value Proposition

Tesla's value proposition is succinctly articulated:

"Accelerating the world's transition to sustainable energy."

This message emphasizes both environmental responsibility and innovation. By offering high-performance electric vehicles with extended range, they addressed the "range anxiety" issue commonly associated with electric cars.

Their Autopilot feature, combined with over-the-air software updates, has positioned Tesla as a leader in autonomous driving technology. They constantly communicate their commitment to improving safety and convenience through automation.

Additionally, Tesla introduced the Solar Roof, Powerwall, and Powerpack to expand their footprint in sustainable energy solutions.

By providing consumers with alternatives to traditional power sources, they established a complete ecosystem of sustainable products.

Adaptability and Expansion

Tesla's adaptability is demonstrated through its rapid expansion.

In 2019, they unveiled the Model Y, a compact SUV, catering to a broader market. In 2020, the Cybertruck, an all-electric pickup truck, showcased their willingness to diversify their offerings.

Their Supercharger network, strategically located, expanded to make long-distance travel easier. Tesla continued investing in Research and Development, striving for cost reduction and new technologies.

Result and Impact

Tesla's brand positioning has significantly impacted the automotive industry.

As of October 2023, Tesla is the world's most valuable automaker, surpassing legacy giants like Toyota and Volkswagen. Their Model 3 became the world's best-selling electric vehicle in 2020.

Tesla's market capitalization has skyrocketed, and they've influenced other automakers to invest heavily in electric and autonomous technologies.

Elon Musk, Tesla's CEO, is one of the world's richest individuals, and the brand enjoys an enthusiastic following.

Conclusion

Tesla's brand positioning is a masterclass in innovation, sustainability, and adaptability.

Their relentless pursuit of innovation and commitment to sustainability have not only reshaped the automotive industry but also ignited a global shift toward electric and autonomous vehicles.

The value proposition, combined with a diverse product line and expansion, cements Tesla as a trailblazing brand, solidifying its position in the ever-evolving world of modern marketing.

2. Canva - Redefining Design for All

Introduction

Founded in 2012 by Melanie Perkins, Cliff Obrecht, and Cameron Adams, Canva is a graphic design platform that has revolutionized the way people create visual content.

This case study delves into Canva's brand positioning, focusing on its innovative approach, value proposition, and global impact.

Innovation and Democratization

Canva's brand positioning centers around innovation and the democratization of design.

The platform was launched to make graphic design accessible to everyone, regardless of their design skills.

Canva introduced an intuitive drag-and-drop interface, templates, and a vast library of assets that empowered users to create professional-quality designs.

Their disruptive approach challenged the traditional design software industry, which often required extensive training and was expensive.

By offering a free version with affordable premium options, Canva aimed to provide design tools to individuals, businesses, and organizations.

Value Proposition

Canva's value proposition is clear and concise:

"Empower the world to design."

They have focused on simplifying design for a broad audience, making it easy for anyone to create visuals for social media, marketing, education, and more.

Our mission is to empower people to design anything.

Melanie Perkins, Canva's co-founder and CEO

This message underscores their commitment to user-friendly design tools.

Canva has also introduced the Canva for Education program, which provides free access to Canva Pro for K-12 teachers and students, further emphasizing their value proposition of inclusivity and education.

Adaptability and Global Expansion

Canva's adaptability is demonstrated by its continuous expansion.

They have introduced numerous new features, such as Canva Video, Canva Print, and Canva for Nonprofits. The platform supports multiple languages and offers a vast array of templates catering to various cultures and industries.

Canva's real-time collaboration feature allows teams worldwide to work together seamlessly.

Through strategic partnerships and acquisitions, Canva has diversified its offerings. In 2020, they acquired Pixabay and Pexels, two popular stock photo platforms, enhancing their library of assets.

Result and Impact

Canva has become a global design powerhouse, and a clear brand positioning definitely played a significant role in that.

The platform boasts over 80 million active users in 190 countries. It has consistently raised capital, peaking at a valuation of $40 billion in September 2021, making it one of Australia's most valuable tech companies.

Canva has not only disrupted the design industry but also fueled a creative revolution, enabling entrepreneurs, educators, social media managers, and individuals to craft compelling visuals.

Their educational initiatives and philanthropic efforts have further reinforced their brand positioning as a company committed to social good.

Conclusion

Canva's brand positioning is a testament to the power of innovation, inclusivity, and adaptability.

By democratizing design and offering an accessible platform with a clear value proposition, they have transformed the way people create visual content.

Their continued global expansion, strategic acquisitions, and commitment to education have solidified Canva's position as a leader in the design industry and a champion of creative empowerment.

3. Abercrombie & Fitch - A Brand in Transition

Introduction

Abercrombie & Fitch, founded in 1892, was once an iconic American brand synonymous with casual luxury and youth.

However, in the early 21st century, the brand faced challenges and a need for brand repositioning.

This case study delves into Abercrombie & Fitch's brand positioning, highlighting the issues they encountered and the subsequent transformation efforts.

Original Brand Positioning

Abercrombie & Fitch originally positioned itself as a high-end, casual, and aspirational brand.

Their marketing strategy emphasized exclusivity, often employing provocative imagery and a focus on young, attractive models.

This approach was wildly successful in the late 1990s and early 2000s, cementing Abercrombie & Fitch as a popular choice among teenagers and young adults.

Challenges and Brand Image Issues

We want to market to cool, good-looking people.

We don't market to anyone other than that.

Mike Jeffries, Former CEO of Abercrombie & Fitch

The brand faced criticism for its exclusive approach and controversial marketing campaigns. They were accused of promoting a narrow definition of beauty and exclusionary practices.

In 2004, they faced a lawsuit alleging employment discrimination based on looks.

Additionally, Abercrombie & Fitch faced a decline in sales and profitability in the mid-2000s. The brand struggled to adapt to changing consumer preferences and fashion trends.

Inadequate international expansion and a lack of digital presence further hampered their growth.

Transformation Efforts

To address these challenges, Abercrombie & Fitch initiated a brand repositioning strategy.

They sought to diversify their product range, reduce their reliance on logo-centric designs, and enhance inclusivity in their marketing and hiring practices.

The brand started implementing changes in its marketing campaigns, moving away from the once-controversial image of "cool kids" to more inclusive and diverse representations. They also invested in employee training and diversity programs.

Result and Impact

The transformation efforts have received mixed success.

Abercrombie & Fitch saw an improvement in sales, particularly in their Hollister brand, which focused on a more inclusive and diverse image.

However, the brand continues to face challenges in reclaiming its former glory. The controversies also don’t seem to end for the brand with fresh ones that keep cropping up including the recent abuse and exploitation allegations by several brand models on its former CEO.

By 2018, Abercrombie & Fitch announced plans to close underperforming stores and invest in their e-commerce operations to adapt to changing shopping habits. These measures contributed to the stabilization of the brand.

Conclusion

Abercrombie & Fitch's brand positioning faced significant challenges stemming from exclusivity and marketing controversies.

Their repositioning efforts, while making strides in the right direction, underscore the difficulty of changing a brand's image and appeal.

The brand's journey highlights the importance of being attuned to changing consumer values, inclusivity, and the need for adaptability in an ever-evolving retail landscape.

Abercrombie & Fitch's still ongoing transformation journey serves as a reminder that even iconic brands must evolve to stay relevant.

4. EcoLuxe Adventures - Fictional Brand Positioning Exercise

Introduction

EcoLuxe Adventures is a newly established travel company offering exclusive, eco-conscious adventure experiences in pristine natural environments.

The brand's focus is on providing upscale, sustainable adventures for travelers seeking an immersive and responsible journey.

As the fictional brand manager of EcoLuxe Adventures, I will guide you through the process of defining its brand positioning.

Step 1: Know Your Audience

The first step in defining EcoLuxe Adventures' brand positioning is to understand our audience.

We're targeting affluent, environmentally-conscious travelers who seek unique, off-the-beaten-path adventures without compromising on luxury.

To profile our audience effectively, we'll conduct market research, and surveys, and use data analytics to create detailed customer personas.

Step 2: Competitive Analysis

As the brand manager of EcoLuxe Adventures', I must conduct a comprehensive competitive analysis.

We identify competitors in the luxury adventure travel segment and analyze their offerings, strengths, and weaknesses.

This research will reveal gaps in the market and opportunities for differentiation.

Step 3: Crafting a Brand Story

EcoLuxe Adventures' brand story is about a deep connection with nature and a commitment to sustainability.

We'll narrate how the brand was founded by passionate environmentalists who recognized the need for luxurious adventures that harmonize with the environment.

This story will be woven into all our marketing materials, making EcoLuxe Adventures a brand that stands for both adventure and responsibility.

Step 4: Value Proposition

EcoLuxe Adventures' value proposition is clear:

"Where Luxury Meets Nature." 

We offer travelers the opportunity to explore the world's most stunning destinations in the lap of luxury while contributing to environmental conservation.

We ensure this message is consistently communicated through our branding and marketing campaigns.

Step 5: Brand Persona

EcoLuxe Adventures adopts a brand persona that resonates with our audience – responsible, sophisticated, and passionate about nature.

This persona will guide all our communication and customer interactions, from website design to customer service interactions.

Step 6: Consistency and Adaptability

As EcoLuxe Adventures' brand manager, I would emphasize both consistency and adaptability.

I would maintain a consistent brand image that reflects our values and luxury positioning.

At the same time, we would be ready to adapt to emerging travel trends and changing environmental concerns, ensuring that our brand remains relevant and responsive to evolving customer needs.

Wrapping Up

As modern marketers, let these case studies and insights serve as your compass in the ever-evolving world of brand positioning.

Stay tuned for more.

In the next edition - A pause, some reflection and festive vibes

Looking back at 30 weeks of this fulfilling journey with you.

What topics would you want to see here?

Hit reply (if you’re reading it in email) or leave a comment (if you’re reading it on the web) and tell me what topics, brands, or case studies you would want me to analyze, and I'll add them to my list of ideas. You’ll also get a shout-out.

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