Track Pants & Brand Strength: Kmart vs. Nike

At Kmart you can buy a pair of black, fleecy track pants for $8. Or you could go to Nike to buy a pair of black, fleecy track pants but instead of $8, you’ll pay $130. 

Similar product, very different prices.

Both brands meet the same basic need of warm, comfortable clothing. The audience demographics are also, on a broad level, similar (middle income earning, Australian women). So why can Nike charge fifteen times more than Kmart? 

The answer is brand position.

Before you jump to the conclusion that Nike is the “better” brand and can therefore charge more, Kmart is ranked the 5th strongest brand in Australia by Brand Finance, whereas Nike doesn’t make the list.

Kmart doesn’t sell trackies so cheaply because its brand is weak, but because it is strong. It knows, and is secure in, its position in the market. Every single thing Kmart does helps cement the position in place. 

According to Philip Kotler, Brand Positioning is “the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market”. Or I define it as “the role you play and the place you hold in the heart and mind of your customer”.

I own activewear from both Kmart and Nike, but my reason for shopping at each brand is vastly different. Kmart has built its brand around cost and convenience. I know that I can pop down to kmart and quickly pick up a new pair of trackies cheaply. But it’s unlikely you will ever see me wearing these out of the house (sorry Kmart!). Whereas Nike’s brand is more about fashion and how I feel about myself when I wear them – which is a whole lot more active than I really am.

Your brand position is more than just marketing jargon, it is the very essence of your organisation. It’s what makes you great and why you stand out from your competition. It’s why people love to interact with you and what might get them talking. It goes beyond the product you sell to the role you play and the place you hold in their hearts and minds.

Leaders (particularly founders) often have a picture in their mind of where they want the organisation they lead to be positioned, but can struggle to articulate it. 

It is easy to fall into the trap of assumptions when we’re not clear. Assumptions lead to inconsistencies and confusion that limits and erodes brand value. It would be like Kmart selling trackpants for $130.

However, when you have a clearly articulated brand position you create an anchor point that all other activity is attached to. Your team then has the opportunity to take ownership of how the brand is deployed through their channels and build a truly great brand. It builds clarity and confidence both internally and externally. 

So often we get caught up in the busyness of activity driven by a fear of missing out. But instead of more output resulting in more income, we tend to discover that more for the sake of more merely leads to confusion and burnout.

The underlying reason is that the organisation’s marketing strategy is missing a clearly defined brand position built on a unique value proposition. So instead of activity working together it works against each other.

What can you do to establish a clear brand position?

1. Clarify & Define 

Start by clarifying:

• Who you serve
• What value you offer them
• Where you sit in the market

Then articulate this in a way that your teams and stakeholders can take hold of and apply to their functional areas. 

2. Audit 

Once you have a clear idea of where you want to be positioned, measure everything you do to assess alignment. Your website, campaigns, fundraising, customer experience – everything you do both internally and externally – should work together to cement a single brand position.

Take note of anything that isn’t in line and develop a plan to either adjust or remove.

3. Apply

Your position is realised when you intentionally, meticulously and consistently produce everything through this lens. 

Ensure it is embedded throughout the organisation, it is everyone’s responsibility. Make sure each team member understands both the strategic approach and how their role contributes.

The brand position is the north star that guides every customer facing (and I would argue employee facing) decision – brand identity, customer experience, advertising, packaging, website, partnerships, right through to the way your staff speak to your audiences. Everything must reflect a unified image in order to successfully form a solid and accurate perception in the hearts and minds of your customers.

Remember that the details matter. One rogue department or channel weakens the whole.

So, are you more Kmart or Nike?