The Product Positioning Statement Playbook

The common business aphorism says that eight out of ten product launches flop because the market never gets why the product matters. The truth is, it varies, but most peer-reviewed evidence places new product failure at 40-50% (1). 

That failure, in a huge portion, traces back to one thing: a weak positioning. Get the product positioning wrong, and the best product in the world looks like noise. Get it right, and you cut through instantly.

This article will show you how to craft a product positioning statement that actually resonates. It’s a step-by-step guide with real examples and a simple template you can use right away.

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What Is a Product Positioning Statement?

A product positioning statement is a concise description of your product and its target audience. It explains how the product meets a specific need in the market. 

In essence, it captures the who, what, and why of your product: who it’s for, what it is, and why it’s better or different. Unlike a public slogan or product vision statement, a positioning statement is typically an internal strategic tool. It’s used to guide marketing, sales, and product decisions so that everyone is aligned on the product’s value and audience. 

In fact, a strong positioning statement acts as a filter for every marketing message or feature decision, ensuring all communication stays consistent and on point.

It’s important to note that a product positioning statement is often documented within a broader product positioning document. This internal document lays out detailed messaging guidelines, target user personas, and the value propositions. It ensures that anyone in your organization knows how to represent the product consistently to customers. 

In short, the positioning statement itself is the one- or two-sentence heart of your product marketing strategy. It’s a mini-manifesto that tells your team and your potential customers what you stand for.

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Step-by-Step Guide to Creating Effective Product Positioning Statements

Crafting a great positioning statement requires a bit of strategic thinking and market research. If you’re wondering how to write a positioning statement for your product, follow these steps. Each step will help you gather the ingredients needed to articulate a compelling statement that truly positions your product for success.

Step 1: Define your target audience and market

The first step is to clearly identify who your product is meant for. A positioning statement should zero in on a specific target customer or segment. 

Ask yourself: 

• Who is the product persona or buyer of this product? 

• What are their characteristics or demographics (e.g. age, profession, industry, interests)? 

The more specific you can get, the better. Understanding your target customers is critical to writing an effective positioning statement. After all, the statement should speak to and about them. If your product serves multiple segments, you might even create a positioning statement for each major segment to ensure the messaging is tailored.

In defining your market, also consider the category or space your product operates in. Are you in the fintech market serving small businesses, or the fitness app market targeting millennials? 

Defining the context (“the where”) helps frame your product in a way that makes sense to the audience. For example, a product management tool might define its target as “remote software teams in midsize tech companies.” Being clear about who and where sets a strong foundation for the rest of your product positioning.

Step 2: Identify the customer’s problem or need

Next, uncover the core problem, need, or desire that your target audience has. Focus on the pain point your product addresses. 

As Kiren Sekar, the CPO at Samsara, wonderfully phrased it on The Product Podcast: 

From the beginning, we've had to just get out into the field and spend time with customers. Our designers thought the app was great until we saw frontline workers struggling because their hands were larger and more calloused. Find customers’ problems and solve them.

A great positioning statement often includes a reference to the customer’s challenge or goal, because that’s what makes your product relevant to them. To find this, think about the following: 

• What key problem does our product solve for this user? 

• What need or gap in the market are we fulfilling?

You might need to do some user research here: talk to your users, read customer feedback, and walk in your customers’ shoes. Leading with empathy is crucial. Understanding the problems your prospective customers face will help you position your product as the solution to those problems. 

For instance, if you’re positioning a meal-kit delivery service, the customer need might be “healthy home-cooked meals without the hassle of grocery shopping.” Identifying that need will allow you to craft a statement that immediately connects with your audience’s motivations.

Step 3: Analyze the competition and your unique differentiators

Every product exists in a landscape of alternatives. You have your direct competitors, indirect competitors, or even the old way of doing things. 

To position your product effectively, you must understand who or what you’re positioning against. Research the top players in your space and also any alternative solutions your target customers. This might include companies offering similar products and companies solving the same customer need in a different way.

As you run the product analysis, pinpoint what makes your product different or better. Maybe your software has a simpler user interface, or your service is more affordable, or your product is the only one that uses a certain technology. 

These differences are your unique selling propositions (USPs); the factors that will form the backbone of your positioning. 

Interestingly, Prashanthi Ravanavarapu, the Product Executive at PayPal, shared on The Product Podcast how she found that differentiation doesn’t always come from adding more features. 

One of the lessons that we just keep learning over and over is how oftentimes you can make a product more appealing by reducing the feature set than you can by adding to it. 

In other words, what sets you apart could be focus and simplicity, not complexity. This is what you find through analysis.

The goal is to find a competitive edge. You’re looking for something your product offers that others don’t (or a way you offer it that others can’t match). By spotting gaps in the market or weaknesses in competitors, you can determine the angle that will help your product stand out in your go-to-market strategy.

In this step, you’re essentially answering, “Unlike other solutions, my product _______.” Keep those differentiators in mind. We’ll weave them into the statement soon.

Step 4: Articulate the key benefit or value proposition

Now, distill your product’s main benefit or the primary value it delivers to customers. This is the answer to why your target audience should choose your product. Often, it’s related to the pain point from Step 2, flipped into a positive outcome. 

For example, if the pain point is “spending too long on manual data entry,” the key benefit might be “automating data entry to save you time.” Try to express the benefit in a way that resonates emotionally or tangibly with your audience (e.g. faster, easier, more secure, cost-saving, enjoyable).

The value lies in the entire experience, from start to end, not the features. For Prashanthi Ravanavarapu, this is quite obvious:

User experience is the heart of product design. If users struggle, the product fails. Being customer-centric is really as simple as being kind and gaining empathy for your customer, understanding their entire context before, during, and after they use your product.

It’s easy to list many benefits, but in a positioning statement, you want to highlight the one or two most compelling, differentiating benefits. Think about the promise you’re making to your customer: what outcome can they expect by using your product? 

This is essentially your value proposition boiled down to a sentence. Make sure this benefit links back to your unique differentiator as well. If your product’s differentiator is, say, AI agents for product managers, then the benefit to the user might be “achieving in seconds what used to take hours,” thanks to that technology. 

Remember, crafting a positioning statement means creating an effective differentiation, so your core benefit should reinforce how you stand apart from the pack.

Step 5: Draft the positioning statement (combine the elements)

With all the pieces in place (target audience, market context, customer need, product category, key benefit, and differentiator) you can now write the positioning statement. The classic formula is a fill-in-the-blank sentence that brings these elements together. 

For example, one popular format is:

For [target customer] who [need or desire], [Product Name] is a [product category] that [key benefit or solution] because [primary differentiator].

In practice, you might not always include the word “because”. Some positioning statements simply imply the differentiator. But the idea is to concisely communicate 

• who it’s for, 

• what it is, 

• what benefit it provides, 

• and why it’s unique. 

Keep the statement clear and brief. The best positioning statements manage to convey a lot of information in just a few words, being both brief and comprehensive. Avoid jargon or fluff. Every word should have a purpose. 

It might take a few drafts to get a sentence that flows well and covers the essentials. Don’t worry about making it perfect on the first try. Get something down and then refine.

As an example, using our meal-kit service scenario, a draft positioning statement could be: “For busy professionals who want healthy home-cooked meals without shopping, HomeChef Kit is a weekly meal-kit subscription that delivers fresh, pre-portioned ingredients and easy recipes to save you time and stress, unlike grocery delivery or takeout.” 

In one or two sentences, anyone reading this (even internally) should grasp exactly what the product is and why it’s compelling.

Step 6: Review, test, and refine the positioning statement

Once you have a draft, take a step back and evaluate it. Does it clearly describe your product’s unique value from the perspective of your target customer? It can help to get feedback from others. Share it with team members or stakeholders and see if it resonates and if they interpret it as you intended. 

Some product teams even test variations of their positioning statement by informally running them by a few friendly customers or using surveys to gauge which message is most compelling.

Karandeep Anand, President & CPO at Brex, takes this even further on The Product Podcast. As a rule, the first 25 customers for a new feature are sold directly by the product manager. 

We have a rule: the first 25 customers are sold by the PM itself. So, building a new feature, the PM is the one who's actually on a sales call explaining why what they build is actually much better than what customers have.

This approach forces PMs to test the positioning live in front of real customers, making sure the value proposition isn’t just theory.

When reviewing, also check for overused buzzwords or vague claims. For credibility, you want the statement to feel specific and believable. 

Ensure it passes the “so what?” test: if someone reads it, will they understand what makes your product special and why they should care? If not, tweak the wording. This step is also a good time to verify that the product positioning aligns with your overall brand values and product strategy.

Finally, remember that a positioning statement isn’t set in stone forever. Markets and products evolve, so ask yourself periodically if your statement is still relevant as things change. Check yourself:

• Have customer needs shifted? 

• Have you added features? 

• Are new competitors around?

A positioning statement is a living guide. You should update it according to your product and audience. By keeping it up-to-date, you ensure your messaging framework continues to hit the mark. 

Once you’re happy with the statement, document it in your product positioning document and share it with the broader team. You’ll find it immensely helpful for maintaining consistency in everything from your website copy to your sales decks.

Real-Life Product Positioning Statement Examples

Nothing brings the concept to life better than seeing how real companies articulate their positioning. Here are several positioning statement examples from well-known brands and products. Each example nails the formula in its own way, clearly conveying who the target is and what the unique value is. Note that some of these are brand-level positioning statements, but the same principles apply to individual products.

Nike’s positioning statement 

Nike’s positioning statement highlights its focus on delivering performance and quality to its target market of athletes, emphasizing material quality as a key differentiator:

“For athletes in need of high-quality, fashionable athletic wear, Nike provides customers with top-performing sports apparel and shoes made of the highest quality materials.” 

Netflix’s positioning statement

“To be the leading subscription-based streaming platform in the global mass media and entertainment industry.” 

Netflix’s positioning statement is straightforward about its product goal. It positions itself as the top choice worldwide for entertainment streaming, underscoring its leadership ambition in that space.

Apple’s positioning statement

“For individuals who want the best personal computer or mobile device, Apple leads the technology industry with the most innovative products.” 

This positioning statement speaks to consumers who seek top-tier devices, and it claims industry leadership through innovation. This makes it clear why Apple stands out (quality and product innovation at the forefront).

Slack’s positioning statement

“Slack is the collaboration hub that brings the right people, information, and tools together to get work done.” 

Slack’s statement identifies it as a “collaboration hub” (product category) and emphasizes the key benefit of unifying teams and resources in one place to improve productivity. It’s a simple, concrete articulation of Slack’s value to its target users (teams needing better communication).

Airbnb’s positioning statement

“For local and international travellers, Airbnb is the only booking website that connects you to unique experiences worldwide because we offer the largest selection of diverse, top-rated, and personalized places to stay.” 

This example showcases Airbnb’s unique value: unlike traditional hotels, Airbnb lets travelers find unique, personalized stays. It clearly defines the target (travelers) and boldly claims to be the “only” platform offering such a product experience, supported by having the largest and most diverse selection.

Each of these positioning statements is slightly different in wording, but you can spot the common threads. They all mention the target audience or user, define the category or frame of reference, and highlight a distinguishing benefit or attribute. 

Notice that some (like Airbnb) explicitly call out what makes them unique (“the only… because we offer…”), while others imply it through their wording (Nike implying quality leadership, Slack implying centralization). 

These brand positioning statement examples can serve as inspiration as you craft your own statement. The key is that when you read each one, you instantly understand the product’s identity and value in the market.

Product Positioning Statement Template

Ready to write your own positioning statement? Here’s a simple template to guide you. Think of it as fill-in-the-blanks for the core components we discussed:

For [target customer] who [needs/problem], [Product Name] is a [product category] that [key benefit or solution]. Unlike [alternative or competitor], [Product] [primary differentiator].

To use this template, plug in the specifics for your product:

• Target customer: Who is the statement for? (e.g. “for busy parents,” “for small business owners,” “for marketing teams at tech startups”).

• Need or problem: What is the main problem or desire of that customer? (e.g. “who want to cook healthy meals without spending hours,” “who struggle to manage their social media efficiently”).

• Product category: What type of product is it? (e.g. “a meal-kit delivery service,” “a social media management tool”).

• Key benefit: What primary benefit does it provide or what solution does it deliver? (e.g. “that saves time on weekly meal prep,” “that schedules posts across all platforms in one click”).

• Alternative/Competitor: (Optional) Who or what are you differentiating against? You can name a category of competitor or a status quo (e.g. “unlike grocery delivery services,” “unlike traditional project management software”).

• Primary differentiator: How do you outperform or differ from the alternative? (e.g. “our service curates recipes to your diet,” “our tool uses AI to recommend optimal posting times”).

By answering these questions, you’ll have the raw content to form a strong positioning statement. Combine the pieces into one or two polished sentences. Make sure it reads smoothly and that anyone, even outside your company, could understand it. 

While the above template is a great starting point, feel free to tweak the structure as needed. The goal is not to rigidly follow a formula, but to clearly communicate the essence of your product’s positioning. Once completed, your positioning statement will serve as a guiding light for your product marketing and brand messaging moving forward.

How to make your statement market-ready and captivating

A positioning statement in its raw formula form is not always ready to share outside of your team. To resonate with customers, it often helps to refine it into something simpler and more catchy. Closer to a tagline, but still rooted in product strategy. The idea is to keep the bones of the formula while trimming unnecessary words and giving it a more natural flow.

Take Slack as an example. A pure formula-based version might look like this:
“For teams who need a better way to collaborate, Slack is a collaboration hub that brings the right people, information, and tools together in one place.”

That’s effective for internal use. It’s precise and includes all the elements. But for the market, Slack simplifies it into something snappier:
“Where work happens.”

The catchy version doesn’t spell out every detail, but it builds on the positioning statement and captures its essence in a way that sticks. 

Think of your positioning statement as the strategic foundation, and the refined, catchy version as the public-facing shorthand. When you do this, you’re making sure the core idea lands more naturally with customers.

Don’t Underestimate the Importance of a Positioning Statement 

A great product positioning statement distills endless research, strategy, and market insights into a guiding truth. A truth that keeps your team aligned and your customers intrigued. Without it, you’re leaving your product’s story to chance. With it, you’re giving everyone a shared compass that points toward growth.

So don’t rush it. Draft, refine, and test until it’s both precise and captivating. Learn from the giants at Nike, Netflix, and Apple, but tailor their approach ruthlessly to your audience, product, and market reality. Then lock it in and let it guide everything you build and communicate.

Get it right, and you’ll do more than position your product. You’ll position your team, your brand, and your future for lasting success.

Hype to Human

In this playbook, Tricia Maia, Director of Product Management at TED, explains how to leverage AI for products that address real user pain points and elevate your brand.

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(1) https://www.jstor.org/stable/48766474