How strategic positioning can strengthen your business
Strategic positioning is one of the keys to a company’s success. This is the case of Fábrica de Suplementos Floripa . It adjusted its operating strategies and reached a turnover of R$ 110 thousand in the midst of the pandemic.
To stand out in the market and achieve great results is like playing chess: after all, one careless step and defeat is premeditated. Strengthening your business is like putting together a jigsaw puzzle: piece by piece being fitted together so that a big picture is formed.
Strategic positioning works by bringing these two games together. In short, it is the way a company must act in the market so that it can achieve an advantage over its other competitors.
This position becomes consistent when the company defines and puts various methods into practice. That is, action strategies, put together in a plan.
According to Henry Mintzberg, a reference in management, strategy is planned to achieve effective results in meeting your goals and objectives.
The strategy that makes up these plans can still, according to the author, be understood in 5 different approaches, known as the 5 P’s. Are they:
- Plan: when the strategy directs the actions that will be taken to achieve an objective;
- Ploy: In this case, strategy is a maneuver or tactic to compete with competitors;
- Pattern: the strategy is put into practice following the strengths of the company’s culture;
- Position: Here, the strategy concerns the position vis-à-vis customers;
- Perspective (perspective): the strategy considers the intention about the customers’ behavior aiming at the best decision to make.
When we think about the strategic positioning of a company, we mean: all these approaches constitute the actions that must guide the way a company operates.
Why is strategic positioning important?
In order to have a strategic positioning consistent with the company’s objectives, it is necessary to have a broad view of:
- Available resources;
- The set;
- The current situation;
- The company’s customer profile.
When the company is willing to know its own processes and the current situation, it is much easier to make corrections and adjustments.
Thus, the results tend to improve without more effort than those already planned.
Another important point about strategic positioning is that through it it is possible to measure a company’s performance.
That’s because the strategies are based on data. They are the ones who are able to give an idea of whether a certain technique will work or not, as well as it is possible to evaluate the results after applying them.
Some types of strategic positioning
For a strategic positioning to be accurate, it is necessary to pay attention to the type that best fits the company’s needs. See below 4 ways to strategically position yourself in the market.
Benefit Offered: In this type of approach, the focus is on propagating the benefits that the customer will have when buying from that brand.
Price: in these cases, the brand offers more affordable prices to win a wider range of customers.
Differentiation: this strategy requires the company to stand out among many others in the same segment by strengthening its image.
Similarly, evidence also comes from innovations resulting from market research, in addition to investment in technology and human resources.
Monopolization: strategic positioning based on the monopolization of a market segment happens when the company is the only one offering a certain product or service. Thus, this type of strategy is put into practice intentionally or unintentionally.
How strategic positioning can strengthen your business: a success case with Fábrica de Suplementos Floripa
Imagine managing two physical stores in a major urban center and being, at the same time, in the process of opening a third unit in the midst of a global crisis?
Know that it’s possible and Fábrica de Suplementos Floripa, a company that sells vitamins and food supplements in Greater Florianópolis (SC), is proof of that!
With a small team, the owner and manager Thiago Gandon already had part of his structured sales process, but he lacked that detail that only a specialization in sales could offer: strategic positioning to sell more and better!
Thiago says that the food supplement market in Brazil is still small against US statistics: only 7% of the Brazilian population consumes this type of product, while the Americans are already 56%. For this same reason, we see companies in this field growing.
The Floripa Supplement Factory had the most affordable price as its differential, but this strategy had to be remodeled when the manager realized that the public served by the company was not faithful.
“I was already trying to understand the client’s mind to solve their problem. So, I was running away from inappropriate clients and started looking for ideal clients: financially stabilized, those who want to take care of their health, and not just for two months”, says Thiago.
With the help of IEV, the Floripa Supplement Factory team began to understand their PCI (Ideal Customer Profile) and, thus, were able to put into practice their own strategic plan to reach new buyers.
According to the manager, the company changed a lot, and very quickly, in this process:
“The moment we have a different strategic position and begin to understand this whole issue that I learned from the IEV, who is my client, where he is, how to communicate with him… Then we start to create the product”.
The clear definition of a strategic positioning made Fábrica de Suplementos Floripa the main vitamin and food supplement company in the metropolitan region of Florianópolis. In addition, they gained new clients and the company expanded its operations and now plans to open franchises.
“I had a clear vision of where I was positioned, where I should be, and most importantly, how I should position myself. Today, the service, process, and flow I have is very large and complex. What I did was to win over clients from other companies”, says Thiago.
After a year with IEV, the manager confirms the importance of using sales performance indicators to adjust different strategies for each store in the group. With the implementation of the techniques and processes transmitted by the IEV, the Supplements Factory grew 7% in 2020 and today makes, on average, 160 deliveries per month within a radius of 50 kilometers.
“When I arrived in the market here, we were a small store against stores with 5, 8 years in the market. With the IEV, I was able to learn new things and polish what I had already built. I started to treat it in a different way, I started to sell a solution”, concludes Thiago.
Defining your strategic positioning
Certainly, the first step to start building a strategic positioning is to know your company and align your goals. In simpler tasks: understand your Ideal Customer Profile (PCI), study the current situation of the company, analyze your competitors, identify your differentials and advantages in relation to the rest of the market and, finally, define your value offer!
In conclusion, wanting to play chess without knowing the board and the particularities of each piece is waiting for defeat. First of all, start by putting together your business puzzle!