Brand Positioning

by Anoop Kumar Gupta MAIT

Positioning and Differentiation strategies

Positioning

refers to the process of putting the product in the predetermined orbit As the competition intensifies & brands proliferate consumers tend to differentiate between brands in their own way. Positioning is a conscious attempt on the part of the marketer to accelerate this natural tendency and in the process impart a distinct identity to his own brand to make it stand out among the competitors.

Brand Identity

Positioning

Brand Image
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Positioning Strategies
Positioning

by specific product attribute Highlight certain specific product features or attributes e.g. LG Flatron, Fair & LovelyMultivitamin, Godrej Pentacool Positioning by distinct benefits to users Providing specific benefits or problem solutions e.g. Vicks Vaporub Positioning by specific kind of uses or usages A finer ramification of benefits is to position the products on specific usages e.g. Dabur Honey, Roohafza
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Positioning Strategies
Positioning

by Price/Quality When the basic plank of positioning the product is its attractive pricing strategy e.g. Chota Coke, Maggi (Rs 5) or Wheel Positioning by Lifestyle of users In case of items of conspicuous consumption, Positioning by lifestyle is a popular method e.g. Louis Phillipe (The upper crest), Wills (Made for each other),Four Square King (Live Life King Size) Positioning by reference groups Using celebrities for influencing customers to buy product or service e.g. Shahrukh Khan (Santro)
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Differentiation Strategies
Product

features as differentiating strategy Companies can create additional versions by adding extra features or can offer new features to highlight its superiority over its competitors e.g. LG Golden Eye, Whirlpool Agitator system

Performance

quality as a differentiating strategy Basic performance refers to the levels at which the products primary characteristics operate. Differentiating on the basis of quality of performance even enables corporates to charge a premium price e.g. Bajaj Pulsar
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Differentiation Strategies
Exclusivity

and style as a differentiating

strategy Style has the advantage of creating product distinctiveness which is difficult to copy e.g. Nakshatra Jwellery, TAG Heuer watch

Product Range and variety as a differentiating strategy Despite a number of players existing in the same product category, the marketer can differentiate his products on the basis of product range and variety offered : Flavors of Rasna, Lux variants, Ray Ban
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Differentiation Strategies
Service

quality as a differentiating strategy In addition to product features marketers can also differentiate on the basis of accompanying services and can capitalize on them e.g. Modi Xerox, Samsung etc.

Packaging as a differentiating strategy Well designed packages can create an image of convenience or quality for the consumer and promotional value for the producer e.g. Maggi Rs 5, Clinic Plus(Re 1 Sachets)
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Brand Positioning
Brand position is the part of the brand identity and value proposition that is to be actively communicated to the target audience and that demonstrates an advantage over the competing brands
Target Audience
-Subset of identity -Core identity -Points of leverage over other brands -Key benefits

Brand Position

-Create Advantage -Points of superiority -Points of parity

-Actively communicate -Augment the image -Reinforce the image -Diffuse the image

The Ws of Brand Positioning

Against whom: Other Snacks (Nestle Kitkat)

Why: To satisfy in between meals hunger

Cadburys Perk

For Whom: Young, 20-30 yrs M or F

When: Any time (Kabhi bhi) Where:Any where (Kahin bhi)

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The Ws of Brand Positioning

Against whom: No competitive reference

Why: To eat as dessert (after meals) (Kuch meetha ho jaye)

Cadburys Dairy Milk

For Whom: Age no bar Old, Adults, Young adults, Children

When: Any time Where: Any place (during movies, on dining table)
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Brand Identity and Positioning

Positioning

a brand means emphasizing the distinctive characteristics that make it different from its competitors and appealing to the public. It results from an analytical process based on the four following questions: A brand for what benefit? This refers to the brand promise and consumer benefit aspect: Real Juice has real fruit juice, and Maruti is reliable. A brand for whom? This refers to the target aspect. Pepsi for young (Yeh hai Youngistan!).

Brand Identity and Positioning

Reason? This refers to the elements, factual or subjective, that support the claimed benefit. A brand against whom? In todays competitive context, this question defines the main competitor(s), i.e. those whose clientele we think we can snatch. Positioning concept reminds us that all consumer choices are made on the basis of comparison. Thus, a product will only be considered if it is clearly part of a selection process. Hence the four questions that help position the new product or brand and make its contribution immediately obvious to the customer.

Positioning a brand

Brand Positioning
Positioning

is a two-stage process: First, indicate to what competitive set the brand should be associated and compared. Second, indicate what the brands essential difference and raison dtre is in comparison to the other products and brands of that set. Choosing the competitive set is essential. While this may be quite easy to do for a new toothpaste, it is not so for very original and unique products because no worthy reference is available.

Why Brands need Identity and Positioning

A brands positioning is a key concept in its

management. It is based on one fundamental principle: all choices are comparative. Remember that identity expresses the brands tangible and intangible characteristics everything that makes the brand what it is, and without which it would be something different. Identity draws upon the brands roots and heritage everything that gives it its unique authority and legitimacy within a realm of precise values and benefits.

Why Brands need Identity and Positioning

Positioning

is competitive: when it comes to brands, customers make a choice, but with products, they make a comparison. This raises two questions. First, what do they compare it with? For this, we need to look at the field of competition: what area do we want to be considered as part of? Second, what are we offering the customer as a key decision-making factor? A brand that does not position itself leaves these two questions unanswered and it is a mistake.

Why Brands need Identity and Positioning

Products increase customer choice; brands simplify it. This is why a brand that does not want to stand for

something, stands for nothing. The aim of positioning is to identify, and take possession of, a strong purchasing rationale that gives us a real or perceived advantage. It implies a desire to take up a longterm position and defend it. Brand identity is more stable and long-lasting, for it is tied to the brand roots and fixed parameters.

Brand Positioning
How is positioning achieved? The standard positioning formula is as follows: For (definition of target market) Brand X is (definition of frame of reference and subjective category) Which gives the most (promise or consumer benefit) Because of (reason to believe)

Brand Positioning
The target specifies the nature and psychological

or sociological profile of the individuals to be influenced, that is, buyers or potential consumers. The frame of reference is the subjective definition of the category, which will specify the nature of the competition. What other brands or products effectively serve the same purpose? This is a strategic decision: it marks out the field of battle.

Brand Positioning
The third point specifies the aspect of difference

which creates the preference and the choice of a decisive competitive advantage: it may be expressed in terms of a promise (for instance, Volvo is the strongest of all cars) or a benefit (such as, Volvo is the safety brand). The fourth point reinforces the promise or benefit, and is known as the reason to believe. For example, in the case of the Dove brand, which promises to be the most moisturizing, the reason is that all of its products contain 25 per cent of moisturizing cream.

Brand Positioning
In marketing, perception is reality. Positioning is a concept which starts with

customers, by putting ourselves in their place: faced with a plethora of brands, are consumers able to identify the strong point of each, the factor that distinguishes it from the rest? This is why, ideally, a customer should be capable of paraphrasing a brands positioning: Only Brand X will do this for me, because it has, or it is

Brand Positioning
The tool called brand platform will comprise, first, the

brand identity, that is to say, brand uniqueness and singularity throughout the world and whatever the product. Brand identity has six facets, and is therefore larger than the mere positioning. It is represented by the identity prism. At its centre one finds the brand essence, the central value it symbolises. Second, the brand platform comprises brand positioning: choosing a market means choosing a specific angle to attack it. Brand positioning must be based on a customer insight relevant to this market.

Brand Positioning
Brand positioning exploits one of the brand identity facets. Positioning can be summed up in four key questions: for whom, why, when and against whom? It can be represented in the form of a diamond, the positioning diamond. In positioning, the brand/product makes a proposition, plus (necessarily) a promise. The proposition may additionally be supported by a reason to believe, but this is not essential.

Brand Positioning

Marlboro presents its smoker as a man a real man, symbolised by the untamed cowboy of the Wild West. No support is offered for this proposition; no proof is necessary. It is true because the brand says so. And the more often it is repeated, the more credible it becomes.

Brand Positioning
In this way the brands proposition, which forms the basis of the chosen positioning at a given moment in a particular market, may be fuelled by various edges contained within the brands identity: a differentiating attribute (25 per cent moisturizing cream in Dove); an objective benefit: an iMac is user-friendly, Dell offers unbeatable value for money; a subjective benefit: you feel secure with IBM; an aspect of the brands personality: the mystery of the Bacardi bat;

Brand Positioning
The

realm of the imaginary, of imagery and meaning (the American Wild West for Marlboro, Old New England for Ralph Lauren); a reflection of a consumer type: successful people for Honda City; deep values (Nikes sports mentality, Nestls maternal love)

Brand Positioning
What

is the connection between identity, essence and positioning? Clearly, for existing brands, positioning derives from identity. But it exploits a specific aspect of identity at a given point in time in a given market and against a precise set of competitors.

Brand Positioning

E.g. Cadburys dairy milk has various positionings such as Meethe mein kuch meetha ho jaaye as dessert (against traditional sweets) Suhbaarambh ke liye (aapko ghar par drop kar doon, Jeans ad) Celebrations - Miss Palampur & Pappu pass ho gaya (positioning against traditional Indian sweets) As Gifts against other various product categories As ingredient at parties Khane walon ko khane ka bahana chahiye Fun snack

Brand Positioning
It is this degree of freedom between identity, essence and positioning that enables a brand to change over time while still remaining itself. What is the connection between the positioning of the brand and the positioning of its products? It is true that todays brands are increasingly based on multiple products. Dove was born as a soap in the United States, but now encompasses shampoos, shower gels, moisturising cream, deodorants and so on.

Brand Positioning
The essence of Dove is Femininity restored. But Dove is being launched in a market via one or more products that have to fight for their own space amid a host of competitors Hence when Dove soap was launched, its positioning was: Dove is a premium beauty bar for the mature women, worried about their skin, which wont dry your skin like soap because it contains one quarter moisturising cream.

Brand Positioning

When a brand consists of multiple products, care should be taken to ensure that their respective positioning converges on attaining the same core value (that of the parent brand).

Brand Positioning
Is 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

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Determining a frame of reference

What are the ideal points-of-parity and pointsof-difference brand associations vis--vis the competition? Marketers need to know:
Who the target consumer is Who the main competitors are How the brand is similar to these competitors How the brand is different from them
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Target Market
A 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.
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Example of the toothpaste market

Four main segments:
1. 2. 3. 4. Sensory: Seeking flavor and product appearance Sociables: Seeking brightness of teeth Worriers: Seeking decay prevention Independent: Seeking low price

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Criteria for Segmentation

Identifiability: 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?
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Nature of Competition
Deciding to target a certain type of consumer often defines the nature of competition Do not define competition too narrowly
Ex: 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

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Points-of-Parity and Points-of-Difference

Points-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.
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Brand Positioning Guidelines

Two key issues in arriving at the optimal competitive brand positioning are:
Defining and communicating the competitive frame of reference

Choosing and establishing points-of-parity and points-of-difference

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Defining and Communicating the Competitive Frame of Reference

Defining 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.

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Choosing POPs & PODs

Desirability criteria (consumer perspective)
Personally relevant Distinctive and superior Believable and credible

Deliverability criteria (firm perspective)

Feasible Profitable Pre-emptive, defensible, and difficult to attack
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Attribute and Benefit Trade-offs

Price and quality Convenience and quality Taste and low calories Efficacy and mildness Power and safety Ubiquity and prestige Comprehensiveness (variety) and simplicity Strength and refinement
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Strategies to Reconcile Attribute and Benefit Trade-offs

Establish separate marketing programs Leverage secondary association (e.g., co-brand) Re-define the relationship from negative to positive

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Core Brand Values

Set 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-ofdifference
Mental map Core brand values Brand mantra

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Brand Mantras
An articulation of the heart and soul of the brand similar 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 Considerations
Communicate Simplify Inspire

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Designing the Brand Mantra

The 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?
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Designing the Brand Mantra

Emotional Modifier Descriptive Modifier
Athletic

Brand Functions
Performance

Nike

Authentic

Disney

Fun

Family

Entertainment

Fun

Folks

Food
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Internal Branding
Members of the organization are properly aligned with the brand and what it represents. Crucial for service companies

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Brand Audit
Externally, consumer-focused assessement A 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

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Importance of Brand Audits

Understand sources of brand equity
Firm perspective Consumer perspective

Set strategic direction for the brand Recommend marketing programs to maximize long-term brand equity

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Brand Audit Steps

Brand inventory (supply side) Brand exploratory (demand side)

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Brand Inventory
A current comprehensive profile of how all the products and services sold by a company are branded and marketed:
Brand elements Supporting marketing programs Profile of competitive brands POPs and PODs Brand mantra

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Brand Inventory (Cont.)

Suggests the bases for positioning the brand Offers insights to how brand equity may be better managed Assesses consistency in message among activities, brand extensions, and sub-brands in order to avoid redundancies, overlaps, and consumer confusion

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Brand Exploratory
Provides detailed information as to how consumers perceive the brand:
Awareness Favorability Uniqueness of associations

Helps identify sources of customer-based brand equity Uncovers knowledge structures for the core brand as well as its competitors
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Suggested Brand Audit Outline

Brand audit objectives, scope, and approach Background about the brand (self-analysis) Background about the industries Consumer analysis (trends, motivation, perceptions, needs, segmentation, behavior) Brand inventory
Elements, current marketing programs, POPs, PODs Branding strategies (extensions, sub-brands, etc.) Brand portfolio analysis Competitors brand inventory Strengths and weaknesses

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Brand Audit Outline (Cont.)

Brand exploratory
Brand associations Brand positioning analysis Consumer perceptions analysis (vs. competition)

Summary of competitor analysis SWOT analysis Brand equity evaluation Strategic brand management recommendations

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