Brand Positioning

Brand Positioning and ValuesAt the end of this module, the learning outcomes are:Concept of Brand positioning.Guidelines for positioning.Defining and establishing brand values.1.*

Brand Positioning and ValuesSuggested ReadingsStrategic Brand Management by Keller, Parmeswaran and Jacob 3rd edition Chapter 31.*

*Brand Positioning and ValuesMARKET SEGMENTATION The needCannot serve all customers of this universe.No company has that kind of resources.Customers Too numerous Diverse in their buying requirementNeed to identify the market segments that it can serve more effectively

*Brand Positioning and ValuesArguments for mass market.Creates largest potential market Leads to lower cost Lead to lower prices. Higher margins Why criticised Market fragmentation Splintering of the market Mass media proliferation.Distribution channel proliferation Difficult to practice one size fits all marketing.

*Brand Positioning and ValuesEXAMPLE.How many ways to shop Local kirana shop Weekly bazaars Shopping centres Big departmental stores CatalogueOn the net Door to door salesman Wide variety of options

*Brand Positioning and ValuesConsumer marketsGeographical Demographic Psychographic Behavioural

*Brand Positioning and ValuesGeographical segmentation Divide market in to geographical units NationsStates Region CountriesCities Operate in one or few

*Brand Positioning and ValuesGeographicFord Ikon in India World car Changes for India Higher suspension Larger size air conditioner, higher ambient temperature Lower average speeds Handle adulterated fuelPetrol / diesel adulterated with kerosene

*Brand Positioning and ValuesDemographic segmentation Market divided into groups Age Gender Income Occupation Education religion Nationality Social class Population parameters. Easier to measure

*Brand Positioning and ValuesAge Nestle Maggi Noodles Children Nestle CerelacInfants LevisYouth

*Brand Positioning and ValuesGender Applied in variety of products Virginia slims Targeted on woman cigarette Lakme Cosmetics for woman Park Avenue Cosmetics for Men .

*Brand Positioning and ValuesIncome Mercedes High Income Group Lifebuoy Low middle income group Dove Higher income group

*Brand Positioning and ValuesPsychographic segmentation Buyers divided into different groups on the basis of Lifestyle Personality Values

*Brand Positioning and ValuesLifestyle Nestle ClassicPleasure of making coffeeAdding milk sugar coffee into hot milk Nestle 3 in 1 Office goersPaucity of time Espresso feeling Milk sugar coffee premixed 1

Brand Positioning and ValuesPersonality Targeting consumer personality Customer of Ford Independent Impulsive Masculine Alert to changeSelf confident*

Brand Positioning and Values Personality Customers of ChevroletConservative. Thrifty Prestige.Conscious.Avoid extremes*

Brand Positioning and ValuesPersonality Customers of ChevroletConservative. Thrifty Prestige.Conscious.Avoid extremes*

*Brand Positioning and Values Values Divide the customer by core valued that underline consumers attitudes and behaviors studies have found Altruist 18% of world adults Interested in social issues Welfare of society fun seekers Male female ratio is 54: 46 Fun Seekers12% of world populationMale Female ratio is 54:46

*Brand Positioning and ValuesTourists to Disneyland Fun seekers Families visit Tourists to Udayan child welfare unit at Kolkata Stay and meet poor children Share thoughtsDonate

*Brand Positioning and ValuesBehavioural Segmentation Divide the market on behaviour variables Occasions Benefits User status User rate

Brand Positioning and ValuesOccasions ArchiesCards for different occasionsDiwaliIdNew year*

*Brand Positioning and ValuesBenefits What kind of benefits sought Toothpaste market Freshness Close up Protecting Gums Promise Medical Forhans Cosmetic white teeth MacLean

Brand Positioning and ValuesUser statusEx-usersNon usersFirst-time usersCiti Bank credit cards*

*Brand Positioning and ValuesUsage rate Air Tel Different tariff packages Light users Less benefits Medium users More benefits Better packages High users Highest benefitsTrips, offers Lowest per minute packages

*Brand Positioning and ValuesTARGET MARKETImportant factorsSegments overall attractivenessCompanys objectives and resourcesOverall AttractivenessSizeGrowthProfitabilityEconomies of scaleLow Risk

*Brand Positioning and Values Companys objectives & resourcesDoes it goes with long term objectivesDoes company have competencies

*Positioning How do you differentiate your product from competitors Differentiation, which is Important Distinctive Superior Not easily copied Affordable Profitable

Brand Positioning and Values

Brand Positioning and ValuesA Singapore hotel claims that it is the worlds tallest hotel. It is important to guests?

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*What is Positioning?It is the act of designing the companys offering and image to occupy a distinctive place in the target markets mind.Positioning is not what you do to the productPositioning is what you do to the mind of the prospectCustomer do the positioningA product may have many distinctions. Which are most important to the customers


11-*Value PropositionsScorpio, Mahindra and MahindraA vehicle that provides the luxury and comfort of a car, and the adventure and thrills of an SUV DominosA good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price

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Defining AssociationsPoints-of-difference (PODs)Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brandPoints-of-parity(POPs)Associations that are not necessarily unique to the brand but may be shared with other brands

Brand Positioning and ValuesDettol and SavlonTraditionally dominated by DettolAttributesStrong smellTurning cloudy when poured in waterStinging sensation when applied on a woundBecame category properties of an antiseptic liquid*

Brand Positioning and ValuesLaunch of SavlonNone of the properties of DettolHow to gain consumer acceptanceUsed communicationTo counter category perceptionAdvertised the no-sting propertyKey differentiator*

Brand Positioning and ValuesPoints-of-Parity versus Points-of-DifferencePOP versus PODTo achieve POP on an attributeSufficient consumers should believe the brand is good enoughA light beer will never taste as good as normal beer, but it would need to taste close enough to be able to effectively compete*

Brand Positioning and ValuesOften the key to positioning is not so much achieving POD as achieving POP*

Brand Positioning and ValuesVisa versus American ExpressVisa PODMost widely available cardBenefit of convenienceAmerican Express PODPrestige associated with the use of card*


Visa versus American ExpressAttempt to blunt each others advantages to create PODsVisa offers gold and platinum cardsEnhance the prestigeits everywhere you want to be advertisingReinforces exclusivity and acceptabilityAmerican Express increased the number of merchants*

Conveying Category MembershipAnnouncing category benefitsComparing to exemplarsRelying on the product descriptor

Brand Positioning and ValuesAnnouncing category benefitsUse benefits to announce category membershipKelloggsHealth platform*


Comparing to exemplarsWell-known brands in a categoryRecognized membersKelloggsBreakfast categoryParathataste*


Relying on the product descriptorMeans of conveying category originKelloggsHealth, convenience

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Choosing POPs and PODsPODsRelevant/desirable capabilities to deliver the samePOPs negating competitors PODs

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Brand Positioning and ValuesRelevanceDistinctivenessBelievability

Consumer Desirability Criteria for PODsRelevanceTarget audience must find POD personally relevant and importantThe Weston claims itself to be the tallest hotelIs it important to guests*

Consumer Desirability Criteria for PODsDistinctivenessTarget audience must find the POD distinctive and superiorSplenda sugar substitute overtook Equal to become leader in the category in 2003 by differentiating itself on its authenticity as a product derived from sugar, without any of the associated drawbacks.*

Consumer Desirability Criteria for PODsBelievabilityTarget consumers must find the POD believable and credible.A brand must offer a compelling reason for choosing it over the other options.Mountain DewArgue that it is most energizing than other soft drinks and support the claim by noting that it has a higher level of caffeine*

Deliverability Criteria for PODsFeasibilityCommunicabilitySustainability

Deliverability Criteria for PODsFeasibilityThe product design and marketing offering must support the desired association.Is it perceptual or requires changesGeneral MotorsThree years warranty*

Deliverability Criteria for PODsCommunicabilityConsumers must be given a compelling reason and understandable rationale why brand can deliver the desirable benefit What factual evidenceGeneral MotorsCEO promise about three year warranty*

Deliverability Criteria for PODsSustainabilityThe firm must be sufficiently committed and willing to devote enough resources to create an enduring positioningIntelTechnological leadership*

Examples of Negatively Correlated Attributes and BenefitsLow-price vs. High qualityTaste vs. Low caloriesNutritious vs. Good tastingEfficacious vs. MildPowerful vs. SafeStrong vs. RefinedUbiquitous vs. ExclusiveVaried vs. Simple

Examples of Negatively Correlated Attributes and BenefitsImplicationsMarketer has to trade off these benefitsFiatGood looksMileage and after sales service not goodIn quest for looks have they ignored mileage and after sales service*

3.*Brand PositioningIs at the heart of the marketing strategy

. . . the act of designing the companys offer and image so that it occupies a distinct and valued place in the target customers minds.Philip Kotler

3.*Determining a frame of referenceWhat are the ideal points-of-parity and points-of-difference brand associations vis--vis the competition? Marketers need to know:Who the target consumer isWho the main competitors are How the brand is similar to these competitors How the brand is different from them

3.*Target MarketA market is the set of all actual and potential buyers who have sufficient interest in, income for, and access to a product. Market segmentation divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior, and who thus require similar marketing mixes.Market segmentation requires making tradeoffs between costs and benefits.

3.*Example of the toothpaste market Four main segments:Sensory: Seeking flavor and product appearanceSociables: Seeking brightness of teethWorriers: Seeking decay preventionIndependent: Seeking low price

3.*Criteria for SegmentationIdentifiability: Can we easily identify the segment?Size: Is there adequate sales potential in the segment?Accessibility: Are specialized distribution outlets and communication media available to reach the segment?Responsiveness: How favorably will the segment respond to a tailored marketing program?

3.*Nature of CompetitionDeciding to target a certain type of consumer often defines the nature of competition Do not define competition too narrowlyEx: a luxury good with a strong hedonic benefit like stereo equipment may compete as much with a vacation as with other durable goods like furniture

Competitor analysis

Who are the competitors of Brooke Bond Red Label TeaSamsung fax machineTitan WatchRajdhani express*

Competitor analysisThink againHave the sales of Samsung fax machines gone down because of e-mail?Who is your competitor?*

Competitor analysis

Are theyWaterE-mailArrow shirtSpice Jet*

Competitor analysis

Harley Davidson perception of competitionLast American motorcycleSymbol of freedom and adventureTechnically antiquatedNot seen as form of transportSocial statementsCompete against various recreations

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*Competitor analysisPoor understanding of the competitionDeclineAir coolersMopedsSoya-based drinks

*Competitor analysisCompetition happens at four levels

1.Companies offering only similar productsKitkat versus PerkNescafe versus Bru

Competitor analysis

Competition happens at four levels2 Companies consisting of all companies operating in the same categoryCadbury's Eclairs versus. Nestle KitkatCanada Dry versus Pepsi Cola

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*Competitor analysisCompetition at four levels

3. Competitor consists of all companies manufacturing or supplying products which deliver the same serviceAirlines versus RailwaysSecond hand cars versus scooters versus Tata Nano

Competitor analysis

Competition happens at four levels4. Competition consists of all companies competing for the same spending powerDishwasher versus Microwave ovenDesigner jewelry versus Ritu Beri's fabricsDebeers versus Nokia mobile phones*

Brand Positioning and ValuesImplications for Brand managersUnderstanding of the competition.CokeRealized water is their main competitor in India.How to deal with thisThanda Matlab Coca Cola campaign.3.*

3.*Points-of-Parity and Points-of-DifferencePoints-of-difference (PODs) are attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand. Points-of-parity associations (POPs), on the other hand, are not necessarily unique to the brand but may in fact be shared with other brands.

3.*Brand Positioning GuidelinesTwo key issues in arriving at the optimal competitive brand positioning are:Defining and communicating the competitive frame of referenceChoosing and establishing points-of-parity and points-of-difference

3.*Defining and Communicating the Competitive Frame of ReferenceDefining a competitive frame of reference for a brand positioning is to determine category membership.The preferred approach to positioning is to inform consumers of a brands membership before stating its point of difference in relationship to other category members.

3.*Choosing POPs & PODsDesirability criteria (consumer perspective)Personally relevantDistinctive and superiorBelievable and credibleDeliverability criteria (firm perspective)Feasible ProfitablePre-emptive, defensible, and difficult to attack

3.*Attribute and Benefit Trade-offsPrice and qualityConvenience and qualityTaste and low caloriesEfficacy and mildnessPower and safetyUbiquity and prestigeComprehensiveness (variety) and simplicityStrength and refinement

3.*Strategies to Reconcile Attribute and Benefit Trade-offsEstablish separate marketing programsLeverage secondary association (e.g., co-brand)Re-define the relationship from negative to positive

Brand Positioning and ValuesEstablish separate marketing programsFiat PalioOne campaign on fuel efficiencyAnother campaign on performance3.*

Brand Positioning and ValuesLeverage secondary association (e.g., co-brand)KingfisherBeer brandHas caloriesKingfisher DietLow on calories and trying to maintain taste3.*

Brand Positioning and ValuesRe-define the relationship from negative to positiveApple ComputersFirst PCConsidered user friendlyNot as powerful as a MainframeCame up with a campaignPower to be your bestEase of use is indication of power.3.*

3.*Core Brand ValuesSet of abstract concepts or phrases that characterize the five to ten most important dimensions of the mental map of a brand Relate to points-of-parity and points-of-differenceMental map Core brand values Brand mantra

3.*Brand MantrasAn articulation of the heart and soul of the brandsimilar to brand essence or core brand promise Short three- to five-word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values ConsiderationsCommunicateSimplifyInspire

Brand Positioning and ValuesMcDonaldsFood, Folks and FunNikePerformance, Athletic, AuthenticDisneyEntertainment, Family, Fun3.*

3.*Designing the Brand MantraThe term brand functions describes the nature of the product or service or the type of experiences or benefits the brand provides. The descriptive modifier further clarifies its nature. The emotional modifier provides another qualifierhow exactly does the brand provide benefits, and in what way?

3.*Designing the Brand Mantra

EmotionalModifierDescriptiveModifierBrandFunctionsNikeAuthenticAthleticPerformanceDisneyFunFamilyEntertainmentFunFolksFood

Designing the Brand MantraNike Brand MantraThree wordsAuthentic athletic performanceAffected product developmentExpanded meaning from running shoes to athletic shoes to athletic shoes and apparel to all things associated with athleticsLaunched successful apparel line.3.*

Designing the Brand MantraNike Brand MantraDid not use name for casual shoes.Did not fit with brand mantra.Was not successful in Europe.Brand mantra had different meaning there.Had to involve soccer in a major way.3.*

3.*Internal BrandingHow positioning is explained internally to employees.Members of the organization are properly aligned with the brand and what it represents.Crucial for service companiesHow company communicates as one voice?

3.*Brand AuditExternally, consumer-focused assessementA comprehensive examination of a brand involving activities to assess the health of the brand, uncover its sources of equity, and suggest ways to improve and leverage that equity It includes brand vision, mission, promise, values, position, personality, and performance

3.*Importance of Brand Audits Understand sources of brand equityFirm perspectiveConsumer perspectiveSet strategic direction for the brandRecommend marketing programs to maximize long-term brand equity

3.*Brand Audit Steps Brand inventory (supply side)

Brand exploratory (demand side)

3.*Brand Inventory A current comprehensive profile of how all the products and services sold by a company are branded and marketed:Brand elementsSupporting marketing programsProfile of competitive brandsPOPs and PODsBrand mantra

3.*Brand Inventory (Cont.)Suggests the bases for positioning the brandOffers insights to how brand equity may be better managedAssesses consistency in message among activities, brand extensions, and sub-brands in order to avoid redundancies, overlaps, and consumer confusion

3.*Brand Exploratory Provides detailed information as to how consumers perceive the brand:AwarenessFavorabilityUniqueness of associationsHelps identify sources of customer-based brand equityUncovers knowledge structures for the core brand as well as its competitors

3.*Suggested Brand Audit OutlineBrand audit objectives, scope, and approachBackground about the brand (self-analysis)Background about the industriesConsumer analysis (trends, motivation, perceptions, needs, segmentation, behavior)Brand inventoryElements, current marketing programs, POPs, PODsBranding strategies (extensions, sub-brands, etc.)Brand portfolio analysisCompetitors brand inventoryStrengths and weaknesses

3.*Brand Audit Outline (Cont.)Brand exploratoryBrand associationsBrand positioning analysisConsumer perceptions analysis (vs. competition)Summary of competitor analysisSWOT analysisBrand equity evaluationStrategic brand management recommendations

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Brand Positioning