Market Research on Brand Positioning: When a startup’s product is out of step with its intended market, it can seriously slow down and even stop performance.
And while thorough market research can easily solve this issue, the sad fact is that many founders don’t realize it until their product has already failed.
Market research is an expensive procedure, few business owners can afford to use their limited resources to experiment and determine the best course for their company to follow to appeal to its target market.
Therefore, we carried out this extensive research to give you a clear understanding of how customers react to brands with historical and traditional brand tones and those with modern and innovative ones.
This will speed up the process and make it easier for you to uncover what works as well as the product and brand image that would attract your customers.
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What Motivated Our Investigation?
We were interested in learning which businesses various customers liked and how those preferences varied by age group.
As a business owner, ensure you’re aware that increasing the likelihood that your company will flourish depends on aligning the name of your company and other branding components with the needs of your target market.
To further our goal of the study, we asked American customers whether they preferred doing business with companies that used standard and classic brand tones or those that used new and creative tones.
How Much Does This Question Matter?
Every entrepreneur should be aware that choosing the appropriate brand positioning strategy is one of the most crucial choices you’ll make when launching or rebranding your company because it will have a big influence on how customers interact with and perceive your company’s personality.
Furthermore, creating a strong brand involves having a thorough understanding of both your target market and your brand’s personality. And acquiring attractive business name ideas is the first step to branding your company.
You must be prepared to invest the time necessary to generate creative and inviting company name ideas for your organization.
Choosing the ideal name will give your company an appealing tone that will strengthen your company’s position and influence how people engage with your company.
That said, let’s look at what our research revealed.
These are the Main Outcomes of Our Study
We separated the data we obtained into various age groups to better show our conclusions. The responses we received were interesting, even though the survey’s results weren’t particularly surprising.
The results from the 301 respondents are as follows:
- According to our research, younger customers are significantly more likely to be drawn to businesses with a modern and fresh tone, while older customers were more inclined to patronize brands with traditional tones.
- Modern and cutting-edge companies were equally beloved by consumers between the ages of 35 and 45. Given how closely the outcomes mirrored one another, it is obvious that this category is open to businesses with both traditional and contemporary tones.
- The study finds that consumers between the age bracket of 45 and 54 prefer classic, reliable, and well-established firms.
- Customers in the 55 and 65-year age groups are particularly drawn to old and time-honoured establishments.
- Based on the report, men don’t appear to have a clear preference for either traditional or contemporary businesses.
- However, women choose established, well-known businesses over new, creative start-ups.
- 148 of the 301 respondents picked fresh, cutting-edge businesses, while 153 went with established, traditional ones.
The information we got from this research demonstrates that, as long as it appeals to the tastes of your target audience, you can portray your business as either historical or contemporary.
This is Exactly What it all Means
The study’s findings show that the majority of young consumers are drawn to contemporary, cutting-edge firms.
So, if you’re marketing to a younger audience, consider giving your organization a distinct, modern, and creative brand image to best align with this demographic.
However, if you want to appeal to an older customer base, such as Baby Boomers and older Gen Xers, you’ll need to go the traditional approach and give your brand a trustworthy and traditional company name.
This study makes it clear why business owners should consistently evaluate their brand’s tone and ask themselves, “Who are we trying to attract?” before settling on a name or brand strategy for their company.
How Do the Results of Our Survey Work in Practice?
Lululemon is an excellent example of a firm with a strong brand position. Lululemon’s savvy business approach provides much more than just clothing.
For years, the company has provided compelling brand engagement through courses, and its work with Mirror—a home interactive boutique fitness brand—shows that the brand’s innovative spark is still alight two decades after Chip Wilson, the company’s founder, established the tone.
Hulu represents yet another fantastic example of a cleverly positioned brand, which they accomplished by selecting a premium brand that is both unique and innovative.
It recognized the proper tone that is ideal for its services and intended audience, which is predominantly young people, ranging from millennial consumers to Gen Xers, who are drawn to “modern and creative” content, according to our study.
And, considering its 40+ million subscribers, we can state with certainty that they chose the perfect name.
As a result, while positioning your company, focus on establishing and creating your brand around the qualities of your target market.
If you are successful in doing so, your organization will certainly be able to pique the attention and loyalty of your customer base.
Maintain a Consistent Tone
Laying down a strong brand image for your company will require a lot of your time, expertise, and work. As you develop your business strategy, marketing plans, and brand identity, keep the survey results in mind.
Your company will have a distinctive and reliable identification in the market if your brand tone is consistent.
Grant Polachek is the head of branding for Squadhelp.com, 3X Inc 5000 startup and disruptive naming agency. Squadhelp has reviewed more than 1 million names and curated a collection of the best available names on the web today.
We are also the world’s leading crowdsource naming platform, supporting clients from early-stage startups to Fortune 500 companies.
