Practical Strategy | Branding Trilogy for Web3
image: midjourney
Brief:
How to find market niches.
Mapping a niche for your Web3 project.
Some opportunities and threats that can help you in Web3.
Practical Study - How I defined the positioning of my personal project - Rio Frenz.
Hello, friends!
2023 was tough for the crypto market but amazing for the development of Rio Frenz, as the extreme ups and downs served as the ideal laboratory to model our project and kick off 2024 hands-on in production.
To end the year in style, I wrote a trilogy about the most requested topic among colleagues here:
BRANDING FOR WEB3.
3 articles will detail the branding assets I created for Rio Frenz - all real-world - with tips for you to implement in your project:
Did you miss the other articles? Check them all out here:
Brand Positioning in Web3: Strategically defining the niche and role of your project in the market.
Brand Storytelling in Web3: Detailing persona, archetype, laddering, storytelling, and brand associations.
Logo and Visual Identity in Web3: Details for a good logo, its visual assets, and the main aesthetic trends in Web3.
All these tools have been successfully tested throughout my pre-Web3 life and adapted to the demands of this new digital revolution. Hold tight, it's all top-notch.
What is Brand Positioning?
Let's start this special with the first strategic analysis for a brand - and perhaps the most important one. After all, POSITIONING IN BRANDING means analyzing the market and defining: What you are going to do and who you want to work for.
The Web3 environment is full of cores that we are well acquainted with:
When these cores intersect, they create market niches:
These and many others.
The niches for quicker or easier profit/success are usually crowded with competitors - like media about investing in crypto, for example. The ideal is to find a crossover that is less explored and fits well with what you do best.
VOLVO chose to position itself as THE SAFEST CAR IN THE WORLD for people with a high standard of living. In this niche - of parents carrying their greatest treasure in the back seats - the enchanting sensuality of Ferrari is irrelevant. Volvo reigns supreme in family safety.
APPLE crossed the axes of Technology and Design to position itself as a luxury item in innovation: “Think Different.”
At the dawn of ride-hailing drivers, the Brasilian Startup 99 TAXI chose to become the Uber for those with less money. It paid a higher percentage to the driver and informed the destination right at the ride request. Thus, those living in slums didn’t have their ride canceled 20 times until finding a driver who would accept the trip.
For Web3 brands, these choices also have relevance:
COURSED STONE planted its sword at the crossroads between traditional RPG Games and the innovation of the Ownership Economy: Fun for those who like Web3 and property rights over their assets for those who like games.
YUGA LABS positioned the Bored Apes as its "Rich Club" at the forefront of NFTs. With their exclusive parties and characteristic mockery, anyone carrying an Ape in their PFP enters the party as the "King of the VIP Area" in Web3: Respect me, 'cause I have power.
Meanwhile, PICNIC followed a path similar to CVC: Just as the Brasilian tourism company opened the doors of resorts to those who thought that was a thing for the wealthy, the Brazilian startup offers crypto investments and transactions with the simplicity of one click for those not interested in the complexities of DeFi.
Positioning Rio Frenz
Ready to get practical? I confess: It's tough to position a business in a market that changes so much and so quickly. But, after a year of looking beyond the frantic headlines that pop up every day, I found two axes that caught my attention:
Tough Natives vs. Normies & Newbies:
On one side, the native Web3 crowd, passionate about the crypto market. On the other, those who know little or nothing about the third digital revolution.
Quick Money vs. Creative IPs:
At one extreme, the short-term market: Folks into AirDrops and Quick Money, searching for the next crypto gem. At the opposite pole, long-term creation: Artistic productions and Intellectual Properties (IPs) that add value to products as the public engages with them.
When crossing these axes, I opened my Twitter and Instagram feeds, Google searches, Ubersuggest analyses, and some media channels like NFT Now. For each Web3 startup, artist, or NFT project I found, I marked its position on the graph against the axes I chose to work with. Analyzing the results, I discovered some interesting things:
Dark dots are active players. Light dots have ceased their activities. The sizes vary according to the player's size.
Data from personal research using Google, Twitter, Ubersuggest, and other channels. Don't regard this as a scientific source.
Quick Money for Tough Natives:
This niche is saturated, yet new projects are being introduced daily. Stepping into this arena is like going to war, where supply far exceeds demand. Bring your best ammunition and energy, as every inch of progress will consume a lot of your resources.
Quick Money for Normies & Newbies:
A less crowded niche, but also a tricky terrain. In the classic "Click here and get rich" style, the number of Instagram experts selling dreams to laypeople is disturbing, you know? - nothing against the platform, it happens on Twitter and YouTube too. Playing the game here implies overcoming the heavy stigma of being a “deceiver.” Despite this, good people are building in this sector.
Creative IPs for Tough Natives:
It's a very powerful sector, with many talented people creating all sorts of art in this new digital frontier. The problem is that the Web3 Tough Natives don't seem to care about them. In the battle for money in the bear market, artists' royalties were the first to go. To survive this, artists and projects pushed more and more NFTs into the market, devaluing production and saturating demand. The result was the collapse of this market as we knew it, the “death” of many small artists, and the elitization of the scene under big names and institutions. Very similar to what we have in the traditional art market, by the way.
Finally, the chosen one:
Creative IPs for Normies & Newbies:
Here, one thing caught my attention: The niche was almost empty although some significant players bet on this market. When this happens, it indicates obstacles like gatekeepers or high initial investment. But in this case, there's something different and curious: The Web3 crowd simply ignores those outside their bubble. They flock to their closed circles, turning a blind eye and deaf ear to the 8 out of 10 people who still don't quite understand the crypto or NFT markets.
Mike Manor's, Claynosaurs', Gary Lee's, Doodles', and Disney's approaches in this niche intrigue me. So I decided that, at Rio Frenz, we will create with the resources and values of Web3 for people who live outside of this cultural revolution. In a more specific scope, we will be a Cartoon that touches the heart of those who fuel their spirit with positive energy and carry Rio de Janeiro in their hearts.
Being important to fewer people is way more valuable than being noticed by everyone.
Other aspects that caught my Attention
and may interest you:
Collectibles are Saturated:
Despite creating digital scarcity, NFTs are piling up in the billions like America Online CDs at the dawn of the Internet. With supply far exceeding demand, collectible PFPs need a compelling value proposition to survive even in the short term.
Art for New Generations:
Although still marginalized, Digital Art through NFTs resonates much better with the new generations than the cold and tasteless environment of traditional galleries. When this audience reaches its economic potential, we could witness a real boom in this sector.
Barriers to DeFi:
The mainstream public harbors many fears about cryptocurrencies, and their simplest doubts – such as "Who can I turn to if my money is stolen?" – are answered with philosophical and evasive rhetoric. Investing in the development of a Web3 culture and a regulatory framework for the sector is essential for widespread adoption of the DeFi system.
Media Without Technical Jargon:
Although we are bombarded with news about Crypto and NFTs every day, most informative media try to explain how Web3 works instead of exploring the benefits it brings to people's lives. Few texts are intelligible to mere humans. Whoever figures out how to convey news from inside in a way that is understandable to the outside public might find a vast blue ocean in Web3.
Alright. So, what do we do with this?
Once you've established your Positioning, the rule is simple: Advance as much as possible in your chosen quadrant and become increasingly important to your audience.
Price Positions Product
You can't sell an NFT for 10 dollars and call it legendary, rare, or luxury. These names then just become mere allegories. Similarly, selling a popular course on NFTs for 200 dollars is suicidal.
Price is one of the most compelling proofs of product positioning in the market. Remember this when setting your price.
Blockchain Positions Product
When we associate with any brand, we inherit some of its attributes - learn more about this in our next post on Brand Storytelling.
Ethereum positions itself as an 'elite squad' among blockchains. Layer 2 networks like Polygon are characterized by efficiency at low cost. Others, like Solana, are marked by a strong sense of 'brotherhood' in their communities.
By minting our NFTs on these networks, we inherit some of their character. Clarity about your project's positioning is very useful when making decisions like this about the network where it should run.
Although we have not yet defined the network, the positioning of Rio Frenz - as a Creative IP of Web3 Culture for Normies and Newbies (newcomers to the digital revolution) - already leads us to some decisions:
Popping the Social Bubble: Hey, have you noticed how the chatter about Web3 shrank along with its "momma social network," Twitter? It's like a shrinking club where the crypto folks just natter among themselves, stuck in their little echo chamber. So, to mingle with the Normies and Newbies, I'm branching out my chat to different channels.
Audio-Visual Production: The Rio itself is like a superbrand, right? Harnessing its upbeat vibe as a gateway to Web3 is getting some serious traction now. Time to link up with the movers and shakers of Rio's culture and audio-visual scene, and show them how this can jazz up the Web3 culture scene.
Merchs: Sure, Web3 projects are all about branding merch, but here it's a strategic move. It's like a bridge connecting folks to the creative economy's IP. Don't be surprised if you start seeing souvenirs or stuff from the “Rio Beach Fashion Frenzy” line popping up.
Web3 Culture for Business: Here's the deal: “Solve the rich folks' problems and you're golden.” Companies using blockchain tech are also scratching their heads on how to reach the crowd outside Web3. Enter Rio Frenz - could be a game-changer in spreading this culture, opening up a sweet spot for cashing in on our work.
When Should We Do Positioning Analysis?
If you're only launching a collection, it's not worth the effort. A brief market assessment is enough.
But if you plan to build for the medium term (1 ~ 5 years) or more, every right decision now will save you a lot of money and effort soon.
Got the positioning wrong?
Pivot the business until you find your market fit.
Main Positioning Mistakes in Web3.
Pirate Copy: Copying collections to ride the wave of others' success might seem like easy money at first, but it basically tags you as a knock-off artist or a fly-by-night opportunist.
Empty Promise: Offering an "easy peasy" solution that's a beast to use, or hyping up big profits that end up being just smoke and mirrors. In the rush to make ads that “get results” (aka sales), this is one of the easiest blunders to make.
Beautiful Talk: Crafting stances that look super pretty in your marketing plan, but are totally irrelevant to your audience in real life.
The Greatest Success We Can Achieve in Positioning.
It occurs when we combine 2 CONCEPTS already known to the public, creating 1 NEW EMPTY SLOT for our brand in people's minds.
Pizza + Veganism = The best pizza for the vegan audience.
Crypto Transactions + Convenience = The easiest app for buying and selling Crypto in the world.
Cartoon + Web3 = Cartoons for the Web3 Culture.
If we can establish ourselves in this way, before any competitor, we become the TOP OF MIND in the category.
Lesgo Partnership?
I have good news:
Our 'Top-Notch Partnership' season is now open to hit the streets and travel the world with Rio Frenz!
Are you skilled in illustration, drawing, or 2D and 3D animation?
Do you like our project and want to be a part of it?
Contact us via our email and let's head to the Moon!
Find out more about Rio Frenz
Get to know us at www.RioFrenz.com.
Follow us on Medium.
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