S3Corp. Tech Blog

Every entrepreneur faces a common challenge: their product or service offers a wide range of benefits, yet they struggle to explain exactly why customers should choose them. The issue is particularly evident in competitive markets, where differentiation is key. For example, consider an e-commerce company selling furniture. They may wonder how to create a compelling pitch that draws customers to their website. Or, consider an e-commerce portal selling garments, where every day brings new competitors attempting to undercut their prices. These businesses must find ways to distinguish themselves and clearly communicate their value.

Attracting a customer’s attention is not easy, even for a powerful business. Take, for instance, the idea of a lion—regardless of how strong and capable it is, it can still fade into the background unless it stands out in some way. A “blue lion,” for example, would catch attention right away. However, standing out is not enough on its own; businesses must maintain the interest they generate.

Understanding Positioning: The Heart of Strategy

Positioning is a fundamental aspect of business strategy, but it is often misunderstood. It is not part of advertising or public relations. Many mistakenly think of positioning as the same as a company’s tagline or slogan. However, positioning statements are not for external use—they are meant for internal reference to guide the overall business strategy.

An ideal positioning statement follows a simple formula:

For [Target Group] who need [Requirement], the [Product/Service] provides [Key Benefit].

This structure highlights the product’s value in a way that speaks directly to customer needs. To refine the message, it is also important to compare the product with competitors and highlight its unique advantages:

Unlike [Competitive Offering], this [Product/Service] provides [Key Differentiator].

Example: Amazon’s Positioning Statement

To better understand how this works, let’s look at an example: Amazon. Their positioning statement could be framed as follows:

For users of the World Wide Web (Target Group) who enjoy reading books (Need), Amazon.com (Product/Service) is a retail bookseller that provides instant access to over 1.1 million books (Key Benefit).

This positioning clearly conveys the core value Amazon provides to its customers. It also contrasts Amazon with traditional bookstores, focusing on the company’s ability to offer convenience, low prices, and a wide selection:

Unlike traditional book retailers (Competition), Amazon.com (Product/Service) provides a combination of extraordinary convenience, low prices, and comprehensive selection (Key Differentiator).

By developing such a clear, simple message, Amazon is able to communicate exactly what it offers to customers, setting it apart from other bookstores.

Applying Positioning: A Case Study

Consider a healthcare management technology company offering a patient management system. The system helps healthcare providers track patients after their first visit, monitor health, schedule appointments, and remind patients to take their medicines. It also stores crucial health data.

When the company first presented their product, they used a 40-slide presentation. By the end of the meeting, the client still did not fully understand what the company was offering. This confusion was largely due to a lack of a clear positioning statement. The solution was to develop a concise statement that made their value clear.

The company’s new internal positioning statement was:

“For healthcare providers, a personalized software program that records and transfers treatment and medication details to the patient’s mobile phone and generates more revenue opportunities per patient.”

The product’s slogan was also simplified to: “Generating more ROI per patient.”

This approach clarified the value of the product, making it distinct from competitors, and it resonated with hospital management, who were quick to see the benefits. The clearer message ultimately led to more business.

Crafting Your Own Positioning Statement

To help solidify the understanding of positioning, let’s write out another example, this time for Facebook:

For users of the World Wide Web (Target Group), who value being connected (Need), Facebook (Product/Service) is a social utility that helps people connect with those who work, study, and live around them, keep up with friends, share photos, links, and videos, and learn more about the people they meet (Key Benefit).

This statement is rooted in Facebook’s original user experience, but it has been refined over time. Initially, Facebook catered only to a select group of people, but it gradually expanded to include everyone. The simple positioning statement of “connecting with others” helped establish Facebook’s role as a universal social platform.

Facebook’s case also highlights a key point: positioning is not static. It can evolve as user experiences change. The company’s initial positioning has adapted to meet the needs of its ever-growing global user base.

Exceptions to Traditional Positioning

While traditional positioning statements are crucial, there are some exceptions. Certain visionary entrepreneurs, such as Steve Jobs, anticipated future customer needs better than the customers themselves. They created products designed to serve those needs before the market was fully aware of them.

For example, Jobs did not simply offer an improved version of an existing product; he envisioned a world where consumers would embrace personal computers, smartphones, and digital music. The key difference in these cases is that these products did not fit neatly into the market’s existing expectations—they created new categories.

Jobs’ strategy was based on his ability to position his products in a way that addressed future needs, even before those needs were recognized by most consumers.

Applying Positioning to Web and Mobile Products

In the context of web and mobile services, positioning is just as important. For businesses offering web and mobile solutions in markets like Vietnam or other outsourcing hubs, the need for clear and effective positioning is even more crucial. As competition increases, especially in the outsourcing industry, businesses must clearly define what sets them apart. Whether the offering is in web application development or mobile solutions, customers must understand the core benefits in clear, simple terms.

For example, a company like S3Corp, which offers web development and mobile application solutions, could use a positioning statement that emphasizes its expertise in both local and international markets. A sample positioning statement for S3Corp could be:

“For businesses in need of reliable, high-quality web and mobile application development, S3Corp provides tailored solutions that meet both local and global needs, with a focus on innovation, security, and scalability.”

This positioning highlights the key benefits of working with a trusted, experienced outsourcing partner and positions S3Corp’s services as both accessible and professional.

Conclusion

When your product has many features, positioning is essential. It helps you focus on what matters most to your target audience and communicate that value clearly. Whether you’re offering furniture, garments, technology, or outsourcing services, a well-crafted positioning statement can set you apart from competitors and capture your customers’ attention. The examples of Amazon and Facebook show how powerful simple, effective positioning can be.

When crafting your positioning statement, remember to keep it clear, concise, and focused on the core benefits your product or service offers. Whether you’re in healthcare, technology, or mobile solutions, a strong positioning statement can help you clarify your message and attract the right customers.