As a luxury company, branding is one of your most important elements in the success of your business. Indeed, the way people perceive your brand is your top priority. One of the key components of your brand strategy is positioning. Positioning will allow you stand out from the crowd. Your prospects need to understand why they should buy your products as much as why they should not choose your competitors.
There are 4 key questions that you must answer to have an effective strategic positioning:
- How you do it
- What you do
- Why you do it
- Who you do it for
This article explains how to effectively define your own brand positioning in the competitive luxury sector.
How to position your luxury company effectively: What do you do?
What you do is the core of your business. Prospects that come to know about you must know what you exactly do. The easier they understand, the better it is for your brand to stand out.
You must provide your prospects with a clear statement as the example below.
Exceptional Events company provides bespoke luxury services in the event sector.
Having a clear definition of your business is key to promote your unique selling points to your prospects. They ideally want to know quickly what is your offer and what they should expect.
You should always aim to offer a USP your competitors don’t. Moreover, what you don’t do is equally important. Michael Porter from Harvard Business School said: “The essence of strategy is choosing what not to do”. For example, if you are in the fashion sector, you must decide if your products are prêt-à-porter, designer or else.
How to position your luxury company effectively: How do you do it?
The more unique your “how” is, the more distinctive your brand will be. How you achieve what you do is part of your brand strategy. In luxury, this could be a customer experience, a unique and limited range of services and products.
Berluti understood how important it is to explain the know-how behind each pair of shoes.
When you operate in the luxury sector, savoir-faire is one of your most important assets. So it is crucial to communicate effectively. It makes your brand unique and increases your value. Combined with an exquisite customer experience, your brand can unlikely fail.
How to position your luxury company effectively: Why do you do it?
What is the reason you started this business? Your reason shouldn’t only be about profit. Most of the time, an idea comes from an ascertainment. Your business should answer a problematic. If you answer an unsolved problematic, your positioning will be unique. But most of the time, several solutions are offered to answer one problematic. In any case, you must know the most relevant problem you can solve. In other terms, why do you do what you do?
When LuxDeco shared their business purpose, they talked about passion and vocation. “We believe that your home should tell your story. This understanding means that we are passionate about finding stylish furniture and homeware which are as unique and individual as you are”.
How to position your luxury company effectively: Who do you do it for?
Everyone knows a good positioning means having a specific target audience. Your products and services cannot be for everyone, you have to find a niche market. A niche market can still be very large. In the luxury sector, your target audience is clients who can afford your products or services. But It can also be even more precise.
Here is an example:
Secret Me company offers premium self-defence training. Their target is not everyone but the wealthy ones. The brand visuals and content focus on prospects caring about protecting their relatives.
Nailed it? Well, complete this short exercise
Fill in the blanks and create your unique luxury positioning.
For (Who)… , we (What)… , by (How)… , because (Why) … .1