Brand Position

BRAND POSITIONING…BRAND POSITIONING…

Brand is . .Brand is . . .Brand is . .Brand is . . .

• . . . a promise by a company to . . . a promise by a company to its customers that differentiates its customers that differentiates its products and services over its products and services over

time.time.

• The objective is customer The objective is customer loyalty.loyalty.

More than a ProductMore than a Product

PRODUCTScope

AttributesQualityUses

OrganizationalAssociations

Country of Origin

User Imagery

Self-ExpressiveBenefits

EmotionalBenefits

Brand-customer Relationships

Symbols

Brand Personality

BRAND

Understanding the Brand Understanding the Brand PromisePromise

We want to dobusiness with youon your terms--when you want,where you want.

Low prices are just the beginning.

With our singular focus oncustomer service, we provide themost useful and ethical financialservices in the world.

With all of us working togetherto provide our customers withthe best service and products,we are forming a model for theindustry’s future.

We are Citigroup.Being the most successfulcomputer company in theworld at delivering the bestcustomer experience inmarkets we serve.

THE RITZ-CARLTONWe are ladies and gentlemenserving ladies and gentlemen.

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

Brand Identity and Brand ImageBrand Identity and Brand Image

Brand Positioning

Brand Positioning

“To position a product/service in the minds of consumers

relative to competitors”

Ries and Trout

“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

A ‘reason to be’

“The brand has to be distinctive, relevant and appealing to its target

audience”

Robbertson 2000

Positioning LevelsPositioning Levels

• By attribute - Omo , Dove, Volvo

By product user - Diesel, Chivas Regal

Marketing StrategyMarketing Strategy

SegmentationSegmentation

TargetingTargeting

PositioningPositioning

Target Market SegmentationTarget 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 SegmentationToothpaste Segmentation

• Four main segments :-

• Sensory segment– Flavor and product

appearance

• Sociable– Brightness of teeth

• Worriers– Decay Prevention

• Independent– Low Price

3 stripes, one for each of the 3 main segments

Flavor, Brightness

Decay Prevention

Target Market SegmentationTarget 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?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 PositioningProper 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…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!!

Communicate category membershipThis 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

How do I begin to Position my Brand?How do I begin to Position my Brand?

FOCUS OF POSITIONINGFOCUS OF POSITIONING

• Attributes and benefits of the product

• Competition

• Product user

• Product use or application

• Product class

• Cultural symbols

• 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

STEPS IN POSITIONINGSTEPS IN POSITIONING

Brand PositioningBrand 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….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 PositioningIdentifying 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…. 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.

• Points of Parity?

The frame in which we are competing!

E.g. Subways Dove

• Points of Parity?

The frame in which we are competing!

E.g. Subways Dove

Positioning - The Process….

POP and PODPOP and POD

Points-of-difference –unique brand values

• Desirable• Deliverable

Points-of-parity–shared brand values

• Necessary• Competitive

Nuts and BoltsNuts 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 PODPOP 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 PODPOP 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 yearsPOP AND POD: BMW over the years

1971

1975

1985

1991

• International• Desirability

• Fun to drive• Economical

• Affluence, exclusivity• Fun to drive

• Affluence, exclusivity • Fun to drive

Managerial issuesManagerial issues

• Criteria for POD

– Desirability• Must be Relevant• Must be Distinctive• Must be Believable

– Deliverability• Feasibility• Communicability• Sustainability

Establish POP and POD in marketplaceEstablish 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

• Point of Difference?Point of Difference?

“Announce the frame of reference but “Announce the frame of reference but compete on point/s of difference.” - Kellercompete on point/s of difference.” - Keller

RelevantRelevantCompellingCompelling

BelievableBelievableDeliverableDeliverable

Difficult to attackDifficult to attack

• Point of Difference?Point of Difference?

“Announce the frame of reference but “Announce the frame of reference but compete on point/s of difference.” - Kellercompete on point/s of difference.” - Keller

RelevantRelevantCompellingCompelling

BelievableBelievableDeliverableDeliverable

Difficult to attackDifficult to attack

Positioning - The Process….

Point of Difference Questions…. 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

• 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

• Integration

Experienced at every point of contact - over time

Three ElementsThree Elements

• Target Audience

• Compelling benefit

• Reason Why (Kitchen Logic)

All ElementsAll Elements

• Packaging, Pricing, Distribution, Manufacturing, Sales, Marketing….

• All work in unison to the beat of the brand positioning statement.

The CornerstoneThe 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.

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 PositioningStatement

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?

Product

Creative Leaps

Going From Strategy to IdeaGoing From Strategy to Idea

Consumer Understanding

Strategy / Positioning

Advertising Idea

Brand PositioningProvides 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.

Some Definitions. . .

Going From Strategy to IdeaGoing From Strategy to Idea

Brand PositioningBrand Positioning

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

• Positioning is defined relative to:– competitive

offerings– consumer needs

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

Brand Positioning

A brand can be positioned in several ways:

A brand can be positioned in several ways:

• Benefit positioning.

• Target positioning.

• Price positioning.

• Positioning by distribution.

Similar conceptsSimilar 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….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.)….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.