The Power of Positioning

I have used this product called Mudwtr for a few months. 

Mudwtr is a powdered mix of supplements like Lion’s mane, Reishi, Turmeric, etc. Most people have probably not heard of these or are convinced about their benefits. But Mudwtr didn’t position their product as a wellness supplement or nootropic. That’d appeal to an enthusiastic but very small market of body and mind hackers. 

Instead, they did something brilliant. They mixed masala chai (tea) with it and positioned it as a coffee alternative. They started talking about how this is better than a coffee, instead of trying to sell people on wellness benefits of taking dried mushroom supplements. 

It’s much more familiar and easier to understand. It’s an easier purchase decision to try a different coffee vs taking a mushroom supplement. It fits into their current lifestyle. 75% of the world drinks coffee - so suddenly their target market is 100x! Nearly the same product, but with much more effective positioning. 

Lululemon is another example of clever positioning. They entered a crowded market of sportswear that’s dominated by Nike, Adidas, etc. Instead of getting crushed as a small, new, and unknown player in a well-established category, they invented a new category “athleisure” that offered stylish functional clothes that can be worn in the gym and outside. Why not go to brunch and yoga in the same clothes?!

Most product and engineering-oriented founders tend to overthink product and underthink positioning when doing a startup. In today’s crowded marketplace, inventing a great product is necessary but not sufficient. Positioning and GTM are equally important levers that can determine the success of your business.