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Brand Positioning & Values

Positioning

Identifying optimal location of a brand and its competitors in the mind of consumers or a market segment to maximize potential benefit to the firm

“Location” of the product is such that the consumers/market segments think about the product/service in the desired way

Basic Concepts Death of “one-size-fits-all” Mass production >> Mass customization “act of designing the company’s offer and

image so that it occupies a distinct and valued space in the target customer’s mind

Key steps: Who is the target customer? Who are the main competitors? How is the brand similar to the competition? How is the brand different from the competition?

Target Market Market – set of actual and potential buyers – motivation, ability

and opportunity to buy your product Market segmentation – Dividing into Homogenous consumer

groups Customization vs. Cost tradeoff – is “Mera wala green”

profitable Segmentation base:

Descriptive – Customer Oriented (who is the customer?) Behavioral – Product oriented (customer’s product usage)

Segmentation Approaches

Behavioral – most valuable - for e.g. toothpastes and /or deodorants –

Sensory- seeks flavor & product appearance Sociables- seek social acceptability –brightness

of teeth, fresh smell. Worriers – seek decay prevention Independent – seek low prices

Segmentation Approaches

Baldinger- Loyals Rotators Deal Selectives Price Driven

Segmentation Approaches

“Market Facts” a research company has developed a conversion model to measure strength of the psychological commitment between brands and the consumers openness to change.

Segmentation Approaches

This model segments users into-

Convertibles – Threshold of change-highly likely to switch brands

Shallow- Not ready to switch, but may be considering alternatives

Average – comfortable with their choices, unlikely to switch in future

Entrenched – staunchly loyal, unlikely to change at all

Criteria for Segmentation

Identifiability Size Accessibility Responsiveness Profitability- most important

Consumer Segmentation bases

Behavioral User status Usage rate Usage occasion Brand loyalty Benefits sought

Demographic Income Age Gender Race Family

PsychographicValues, opinions, attitudes, activities, lifestyle

Geographic International Regional

B2B Segmentation bases

Nature of Good Specification Kind Where used Type of buy

Buying Condition Purchase location Who buys Type of buy

Demographics Financials Number of employees Size of production Number of establishment

Points of Difference Strong Favorable Unique brand associationsBased on Attribute Benefit Develop a USP & a Sustainable Competitive

Advantage (SCA)

Points of Difference Attributes – Kraft cheese – more milk Benefit - Ikea – reasonably priced furniture and

home furnishings for the mass market, TV’s with remote locators

USP – Dettol vs.Savlon – does not burn Iodex vs. Moov – does not leave stains Crocin vs. Vicks Action 500 – fast relief Lays chips vs. Bingo chips

Points of Parity

1. Category POP- necessary for a credible offering – Banks must have different saving options. ATMs,

lockers etc. Creams must moisturize and keep skin soft – gentle,

protective, caring2. Competitive POP- negate competition’s POD- CNN – POD- in-depth and up-to-date news channel POP - adopted varied programming such as interviews

& talk shows like other channels

Positioning Guidelines - Steps

1. Define & communicate a competitive frame of reference

2. Choose POP and/or POD3. Establish these POP/POD4. Update Positioning over time

Step 1

Establish a competitive Frame of reference

Communicate brand category membership This helps provide consumers with a frame of reference

& avoid confusion in consumers mind Important when introducing new products – ITC- Wiils-

Fiama, Bingo etc. Well established brands do not need this – Coke-

beverages, Kellogs, McKinsey etc.

Competitive Frame of reference

Company can straddle 2 or more frames of reference –

BMW – luxury & performance Kellogs – taste & health Maggi – fast to cook, healthy to eat

Step 2

Choose POP/POD

1. Desirability Criteria Relevance Distinct Believable2. Deliverability Criteria Feasible Communicable Sustainable

Step 3

Establish POD & POP Taste vs. low calories Low price vs. quality Powerful vs. safe Family & Fun Nutritious vs. taste

Establish POD & POP

1. Separate the attributes – Head & Shoulders – 2 attributes – dandruff removal & sleek, shine and healthy hair

2. Leverage equity of another entity – brand ambassadors – Sachin Tendulkar & Boost, Reid & Taylor

3. Redefine relationships – Apple’s Mackintosh – user friendly & powerful

Step 4Update Positioning over time1. Laddering – move from low level needs to

higher level needs - Involves a progression from attributes to benefits to value creation – (Maslow’s Heirarchy)

• Cream/lotions – moisturizes skin- healthy & glowing skin- beauty & confidence

2. Reacting – Do nothing Defensive Offensive

Abstract valuesMotivations

Laddering – Product functions >>> core values

Updating brand positioning

Benefits

Attributes

Brand Mantras

Short phrase that captures the spirit of positioning Provides guidance to all the activities of the brand Emotional modifier>> descriptive modifier>> Brand function McD – “Food, folks and Fun Nike – “Authentic Athletic Performance” Disney – “Fun Family Entertainment” Zee Cinema – “Movies Masti Magic” Its should

Communicate the category and boundaries Simplify.. To make brand memorable Inspire – Should stand out with a higher meaning

Brand Mantras Expression of “Heart and soul” of brand Short 3-5 word phrases that capture the essence & spirit of brand

positioning & values Creates a mental filter to screen out inappropriate marketing

activities Communicate the category and boundaries Simplify.. To make brand memorable Inspire – Should stand out with a higher meaning

3 Aspects – Emotional – Descriptive - Function McDonalds – Food -Folks - Fun Nike -Quality -Athletic - Performance Disney -Fun -Family - Entertainment