Brand Positioning

BRAND POSITIONING…

Brand is . . . • . . . a promise by a company to its customers that differentiates its products and services over time. • The objective is customer loyalty.

More than a Product BRAND Organizational Associations Country of Origin User Imagery

Brand Personality

PRODUCT Scope Attributes Quality Uses

Self-Expressive Benefits

Symbols

Brand-customer Relationships Emotional Benefits

Understanding the Brand The brand promise defines the customer’s expectations for Promise the experience.

We want to do business with you on your terms-when you want, where you want.

With all of us working together to provide our customers with the best service and products, we are forming a model for the industry’s future. We are Citigroup.

Being the most successful computer company in the world at delivering the best With our singular focus on customer experience customer service, we THE RITZ-CARLTON in provide the We are ladies and gentlemen markets we serve. most useful and ethical serving ladies and gentlemen. financial services in the world. Low prices are just the beginning.

Brand Identity and Brand Image

↑ Brand Positioning

“To position a product/service in the minds of consumers relative to competitors” Ries and Trout

A ‘reason to be’ “The brand has to be distinctive, relevant and appealing to its target audience” Robbertson 2000

Positioning Levels • By attribute - Omo , Dove, Volvo

By price/quality - Mr. Price, Woolworths

By product user - Diesel, Chivas Regal

Marketing Strategy

Segmentation

Targeting

Positioning

Target Market Segmentation • A market segment should have similar knowledge structures and brand knowledge – Similar knowledge structures might mean similar perceptions and beliefs about your Brand • There are 2 ways to segment :– Descriptive: characteristics of the individuals in the market – Behavioral: grouped by how individuals in the market perceive or use the product

Toothpaste Segmentation • Four main segments :• Sensory segment – Flavor and product appearance

Flavor, Brightness

• Sociable – Brightness of teeth 3 stripes, one for each of the 3 main segments

• Worriers – Decay Prevention

• Independent – Low Price

Decay Prevention

Target Market Segmentation • Which works better? Behavioral – Easier to match perceptions (right/wrong) or beliefs (right/wrong) with strategy (reinforce/change). – Many times, behavior and descriptive go hand in hand • Demographics may be basis of targeting, but tend to represent some underlying behavioral reason – In some cases, demographics may mask underlying differences

What is Positioning?

Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.

Proper Positioning • Proper positioning – Clarifies what the Brand is all about – How it is both unique and similar to competitive brands – Why customers should purchase and use the Brand

In order to Position a Brand… • …you must decide :– Who the Target Consumer is – Who your main competitors are – How the Brand is similar to your competitors – How the Brand is different from your competitors

• Where do you get this information? – Your BRAND INVENTORY!!

How do I begin to Position my Brand? Communicate category membership This is the “frame of reference”, where customers can activate what they know about the category and how apply it.

• How? – Communicate category benefits – Compare your product to exemplars – Rely on product descriptor

FOCUS OF POSITIONING • Attributes and benefits of the product • Competition • Product user • Product use or application • Product class • Cultural symbols

STEPS IN POSITIONING • Identify Competitors. • Determine most important attributes consumers use in choosing a brand. • Determine consumers’ perceptions of competitors. • Determine perceptions of your brand • What is the ideal brand for your market segments? • Assess best positioning strategy • Track image of brand over time

Brand Positioning Brand Positioning – Brand positioning is all about identifying the optimal location in our customers’ minds for our Brand and our competitors. – Proper positioning makes it easier to facilitate understanding of our Brand.

• Taken to its’ logical conclusion, you might think of the Principle as an indicator of a brand’s position.

First Steps…. • The first step is to identify and establish Brand positioning and brand values (Keller) • Positioning is the foundation for creating and fostering the desired knowledge and perceptions of your customers – remember our 3 types of associations in memory? – We can really only manage one (positive), can respond to a second (negative), and have no control over the third (idiosyncratic)

Identifying and establishing Brand Positioning The Integrated Brand Model – Six elements that define a brand • Unified • Leverage each other • Brand Drivers a function of Organization Drivers – These six elements serve as a “roadmap” to our Brand Equity model • At every step, we can figure out what to do from our Brand and Organization Drivers

Brand Positioning Guiding Principles….

1. A brand's positioning should be updated every three to five years, or as often as needed to update the company's overall growth strategy. 2. Positioning should drive all of an organization's brand strategies, as well as revenue and profit streams. 3. Senior management has to lead the charge in implementing a brand's positioning. 4. Employees, not advertising agencies, bring a brand positioning to life. 5. A strong brand positioning is customer driven and fits with customer perceptions of the brand.

Positioning - The Process…. • Points of Parity? The frame in which we are competing! E.g. Subways Dove

POP and POD

Points-of-difference –unique brand values • Desirable • Deliverable Points-of-parity–shared brand values • Necessary • Competitive

Nuts and Bolts • How do I decide on my PODs and POPs? • POPs – Analysis of category

• What attributes do all of my competitors have? I probably need to have those, or my competitors automatically have a POD • POPs get you included in category • PODs are more difficult – Don’t use PODs that are product centric (dominate competition) but customer centric (uniquely address need of customer)

POP and POD • POD (Point of Difference) – Strong, favorable, unique brand associations – May be any kind of attribute or benefit

• Two types of PODs – Attribute Based • Functional, performance related differences – Image Based • Affective, experiential, brand image related differences

POP and POD • POP (Point of Parity) – Associations that are shared with other brands

• Two types – Category: attributes that are required to include your product as a member of that category – Competitive: POP that negate your competitors PODs

• POPs can be “good enough”, but PODs should be “superior

POP AND POD: BMW over the years 1991 1985 1975 1971 • Affluence, exclusivity • Fun to drive • Affluence, exclusivity • Fun to drive • Fun to drive • Economical • International • Desirability

Managerial issues • Criteria for POD – Desirability • Must be Relevant • Must be Distinctive • Must be Believable – Deliverability • Feasibility • Communicability • Sustainability

Establish POP and POD in marketplace • Difficulty: Many attributes that make up POP and PODs are negatively opposed – Low price vs. High quality – Tastes Great vs. Less filling

• Separate the attributes • Leverage equity in another entity • Redefine the relationship

Positioning - The Process…. • Point of Difference? “Announce the frame of reference but compete on point/s of difference.” - Keller Relevant Compelling Believable Deliverable Difficult to attack

Point of Difference Questions….

• Is the key benefit important to our customer? • Can we deliver the benefit? • Can we own this point of difference over time? • Is this point of difference sustainable over our competition and their directions?

• Craft the Brand Positioning Statement Relevant, differentiated and single-minded! Plato - Deep within everything is the idea of that thing (essence) The “defining idea” Moon 2000

• Integration Experienced at every point of contact over time

Three Elements

• Target Audience • Compelling benefit • Reason Why (Kitchen Logic)

All Elements

• Packaging, Pricing, Distribution, Manufacturing, Sales, Marketing…. • All work in unison to the beat of the brand positioning statement.

The Cornerstone

• The brand positioning statement is the single most important item in all of marketing. • It defines EVERYTHING about what your brand is to the consumer.

Brand Positioning Statement

For homemakers, Dow Bathroom Products are the easy way to get a great clean shine for your tub, tile and toilet. That’s because only Dow Bathroom Products contain scrubbing bubbles that cut through dirt and grime clean to the shine!

Brand Positioning Statement

For women ages 25-55, Loreal Revitalift Anti-wrinkle and firming cream reduces facial wrinkles and firms your skin.

NO REASON WHY!

Brand Positioning Statement

For single consumers ages 30+ who prefer upscale fine-dining, Hormel offers four great meat entrees.

NO PRODUCT NAME! WHAT IS IT?

Going From Strategy to Idea

Creative Leaps

Advertising Idea Strategy / Positioning Product Consumer Understanding

Going From Strategy to Idea

Some Definitions. . .

Brand Positioning Provides the strategic framework for how we are going to differentiate our brand vs. competition.

Advertising Idea: Transforms the strategy into a powerful, motivating, and consumer relevant selling idea.

Brand Positioning

• Perceived fit between a particular product offering and the needs of target market

• Positioning is defined relative to: – competitive offerings – consumer needs

Brand Positioning Physical Positioning • How a firm’s product compares to the competition’s on some set of objective physical characteristics Perceptual Positioning • How a firm’s product compares to the competition’s on some set of subjective characteristics

A brand can be positioned in several ways: • Benefit positioning. • Target positioning. • Price positioning. • Positioning by distribution.

Similar concepts • Unique Selling Proposition (USP; Reeves and Bates) – Advertisers should give a compelling reason to buy a product that competitors could not match • What component of the IBM reflects this?

• Sustainable Competitive Advantage (SCA) • The advantage of delivering superior value in the marketplace for a prolonged period of time • Further, SCAs can result from any component of the firm – Similar to notion that Principle exists in every part of the firm

CONCLUSION…. Adopting a strong position is not a passive act; rather it is a deliberate attempt to influence events. It requires ignoring certain business targets in favor of others, and if successful, will yield growth in sales and profits and a consumer franchise who believe that your brand has no adequate substitute, even if it costs more.

CONCLUSION (cont.)….

• Neither innovation or quality are, by themselves, sufficient to guarantee that a brand will achieve all that it is capable of in the market place.

PRESENTED BY :JOY MAJUMDER TONY PAUL EDWIN ABISHEK BANERJEE DEBOJIT DUTTA POOJA MALIK AMIT SARKAR

“THANK YOU FOR HEARING”