Positioning has been an important part of marketing since companies began to recognize thernrelevance of having control over their image of the brand. It is a first element to address inrnstrategic marketing, & everything else is aligned to it. The fact that how foundational mostrnorganization recognize brand positioning to be, but just how little companies are willing tornspend to get it done right. Which indicate, there is lack of knowledge of understanding of thernvital role of positioning in oneâ€™s business success with the relationship between positioningrn&customer loyalty. Therefore, the objective of this research paper is to determine the effect ofrnpositioning Relevance, Differentiation, Delivery & Communication on customer loyalty atrnAnbesa Shoe S.C. Stratified Sampling Method was used & the data collection methods wererndocuments, questionnaire & interview. A total no of 308 questionnaires were distributed to allrnAddis Ababa retail shops individual customers, out of it 257 questionnaires returned & properlyrnfilled. The questionnaires were analyzed using Cronbach Alpha, descriptive statistics, ANOVA,rncorrelation & regression. Positioning relevance, differentiation, delivery & communication haverna strong relationship with customer loyalty & the variability of customers overall loyalty can bernexplained to the extent of 71.2% by Positioningâ€™s Relevance, Differentiation & Communicationrnbut Delivery has almost negligible effect on the variability of overall customer loyalty. Finally, itrnwas recommended that, to keep the highest customer perceived positioning or image i.e.rnâ€œDurabilityâ€ in its current positioning statement &; to communicate effectively on few majorrnstrength of the company through assuring the actual delivery of the claimed positioning withrncontinuous customers feedback. The negligible effect of delivery on customer loyalty doesnâ€™trnnecessary to mean it has no influence since there is strong correlation between delivery &rnloyalty. However, it could have been better to work more on the delivery of the articulated valuernin order to increase the customerâ€™s credibility, image &loyalty level & to do further study tornidentify the reason behind this result.