Anyone who has ever battled with brand positioning or is currently attempting to do so knows that it’s a difficult endeavor. Making the wrong decision in positioning your business can place your company in front of the wrong audience, endangering its growth and prospects of success.
That’s why, to make a successful start in the market and develop a brand that appeals to their target market, every entrepreneur must understand how to apply brand positioning concepts.
To make things even easier for you, we tested a few brand positioning concepts to observe how consumers react to businesses that take an innovative vs. traditional position.
Why this Survey Matters
The goal of this survey was to determine which brands customers were drawn to and how that differed depending on their demographics.
The data we gathered will help business people, whether they run a small, medium, or large company, to make quick well-informed branding decisions that’d rightly position their company.
But to meet the survey’s objectives, we questioned people in the United States whether they would prefer to work with a well-known or trusted company or one that was new and innovative.
Why’s this Question Necessary?
Now, it’s vital to know that choosing your company’s tone is one of the most important and defining branding decisions you’ll make when launching or rebranding your firm. And choosing the best tone is crucial because it empowers entrepreneurs, product managers, and brand executives to shape the future of their company.
Consider what might have happened to the market today if:
- Apple entered the market as Executex
- Zappos was still known as Shoestore
- Amazon was still named Cadabra
- Nike had maintained its name as Blue Ribbon Sports
- Hydrox had chosen a more appealing name
- Ayds diet candy had quickly rebranded itself.
The tone of your brand has an impact on the entire personality of your company and the feelings people associate with your brand. You can’t afford to overlook your company’s tone when setting up your naming strategy because it’s so vital to your branding.
Now, even though there are several brand tones, most of them fall somewhere between ‘historied and trustworthy’ or ‘modern and innovative’ tones.
To get a better picture, take a look at some popular examples of traditional brands:
- Warby Parker
- Liberty Mutual
Here are some famous examples of modern brands:
- Urban Decay
We meticulously designed our survey to determine which audience demographics are drawn to modern brands and which are drawn to traditional brands. And we did this because one of the most important decisions every business must make when creating a brand is whether to go modern or traditional.
Here’s What the Survey Revealed
Although the survey’s results were somewhat predictable, the answers we got were surprising and refreshing. Here’s a rundown of what we learned from the 301 persons that participated:
- People between the ages of 25 and 34 are drawn to new and innovative companies. More than half of the people we surveyed preferred new and modern brands over traditional and trusted ones.
- People aged 35–45 preferred new and innovative companies over traditional and trusted brands. It’s worth noting, though, that this group was evenly split between the two options.
- Traditional and trustworthy brands were more appealing to people aged 45–54 and 55–65.
- People between the ages of 55 and 65 were particularly drawn to traditional businesses with a long history and a good reputation.
- From the survey, we learned that men showed little to no preference for either modern or historied brands.
- The survey also showed that women are more likely to choose historied and trusted companies over new and innovative ones.
- Out of the 301 people we surveyed, 153 preferred historied and trustworthy companies, while 148 loved new and innovative brands. The study’s findings show that businesses can take any position they choose as long as it’s in line with their target audience.
What Does This Mean to You?
According to the survey’s results, the majority of young people are interested in new, modern, and innovative companies. So, if you want to appeal to a younger market, then give your business a unique, modern, and innovative brand identity.
But if your target audience are Baby Boomers and older Gen Xers then you should position your business as a classic, conventional, and trusted brand because clients aged 45 to 65 are more receptive to classic brands.
In addition, the study makes it clear that if an entrepreneur wants to position their business correctly, they must pay special attention to the tone of their brand. And one of the greatest ways to unite your product, audience, and business is to get a powerful brand name, and you can do that by using a strong business name generator.
Here’s an example of a Well-Positioned Brand
Hulu is an excellent example of a well-positioned brand. The company entered the market with a distinctive brand name that was the extreme representation of a ‘new and innovative’ tone. However, with over 40 million subscribers, it’s clear that their naming decision was a wise one.
Hulu is successful today because its tone is perfect for its business and target audience. Hulu’s target audience are Gen Z, Millennials, and even Gen Xers, and as our study revealed, this demographic loves new and innovative companies.