With how fast the world is advancing in technology, it’s becoming painfully tricky for entrepreneurs to cut through the loud brand noise in the market and position their business, so it maintains a constant connection with their target audience.
In today’s world, where customers are not only becoming numb but increasingly challenging to predict, everyone hoping to start a business must have a clear idea of brand positioning, so their business doesn’t get left behind in this fast-evolving market.
And because brand positioning principles are the keys to keeping up with the market, we tested these principles to get a clear understanding of how customers react to companies with a modern vs. traditional position.
What Were We Thinking When We Did This?
Successful companies in any industry didn’t only build a strong brand around their products and services; they also strategically positioned their brands to guarantee that they had a significant effect on their target audience.
From afar, it was clear that some customers were drawn to brands that were positioned in a certain way, and we wanted to figure out which demographics were drawn to different positions.
This research would play a critical role for executives of the small, medium, and large brands who want to—regardless of industry—establish a strong brand identity by making early branding decisions that will help them determine the correct position for their business.
So, to assist us in achieving our aim, we surveyed customers in the United States to see if they preferred new businesses over traditional and reputable ones.
Why was this Survey Necessary?
The tone you choose when building your brand and naming your business is one of the most fundamental decisions you’ll have to make.
And while this may not seem like a big deal for business owners, brand executives, and product managers, it’s a crucial choice that’ll define their company’s future and direction.
Have you ever considered how different the market would’ve been if:
- Steve Jobs had chosen Executex instead of Apple?
- Zappos was still known as Shoestore?
- Amazon still maintained Cadabra as its brand name?
- Nike hadn’t changed its name from Blue Ribbon Sports?
- Hydrox had chosen a more appealing name?
The tone of your brand name determines the entire attitude your primary audience will have about your organization. It all boils down to whether you want to be a trustworthy, timeless, and conventional brand or one that is cutting-edge, current, and innovative.
Every entrepreneur who wants to build a successful company must know the best tone for their brand because it’d also help them find the perfect brand name. And when it comes to finding the perfect brand name, brainstorming or using a powerful business name generator are two of the most dependable techniques of obtaining a great name that fits your tone.
With that in mind, let’s look at which segments of people preferred modern brands over traditional ones.
Here’s What We Discovered
Although the findings of this research were expected in some aspects, they were jaw-dropping in others. Here’s a quick overview of the information we gathered from the 301 people who completed the survey:
- Modern and innovative businesses caught the attention of young adults between the ages of 25-34. A little over half of the participants preferred modern and innovative companies over well-known and trustworthy businesses.
- People between the ages of 35 and 45 favored innovative and modern businesses; however, this age group is evenly split between modern and traditional businesses.
- People between the ages 45 to 54 and 55 to 65 preferred traditional and trustworthy brands.
- According to the survey, men exhibited a little preference for traditional businesses over modern ones.
- It also revealed that just under 60% of women choose traditional companies.
- In the end, 153 people chose traditional companies. In comparison, 148 people, on the other hand, preferred modern and innovative companies. This shows that both positions are beneficial, but it all depends on the audience demographic your company wants to target.
So, what does this mean?
From the research, we learned that most young adults were interested in new and innovative companies. That implies that if Gen Z, Millennials, or younger Gen X are your target customers, you should consider correctly positioning your company by giving it a modern and unique brand identity.
However, let’s say you’re trying to reach out to an older population, such as Gen Xers and Baby Boomers, then you’d need to stick to the traditional path and position your company with a classic brand name because people between the ages of 45 and 65 have a significant affinity for traditional and trusted companies.
Also, the research highlights why you need to thoroughly analyze your brand’s tone before positioning or naming your company. Your company’s position is a crucial factor in determining how your target audience sees you.
Here’s a Great Example
Lululemon is a one-of-a-kind company that is more than just a clothing brand. For years, they’ve offered exciting brand interaction through courses, and their most recent partnership with Mirror, a home interactive boutique fitness class, shows that the brand’s fire of innovation is still burning two decades after Chip Wilson, its founder, set the tone.