brandmanagementandpositioning

7/28/2019 brandmanagementandpositioning

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CORE TEXT:

“STRATEGIC BRAND MANAGEMENT”

BY KEVIN LANE KELLER (3rd EDITION)

SUPPLEMENTARY TEXT:

“POSITIONING” BY AL RIES AND JACK TROUT (20th EDITION)

“BRAND POSITIONING” BY SUBROTO SENGUPTA (2nd EDITION)

PRESENTED BY:

INDRANSH GUPTA





What is a Brand?Definition: “A brand is a product that adds other

dimensions that differentiates it in some way from

other products designed to satisfy the same need.”



Why Do Brands Matter?

CONSUMERS:

Identification of Source

of Product Assignment of

Responsibility to Product

Maker

Risk Reducer

Search cost Reducer

Promise, Bond, or Pactwith Maker of Product

Symbolic Device

Signal of Quality



Why Do Brands Matter? (Cont)MANUFACTURERS

:

Means of Identificationto Simplify Handling or

Tracing

Means of Legally

Protecting Unique

Features

Signal of Quality Level

to Satisfied Customers

Means of Endowing

Products with Unique

Associations

Source of Competitive

Advantage Source of Financial

Returns



What Can Be Branded? Physical Goods

Services

Retailers and

Distributors

Online Products

and Services

People and

Organizations

Sports, Art andEntertainment

Geographic

Locations

Ideas and Causes



Branding Challenges And Opportunities Savvy Customers

Brand Proliferation

Media Fragmentation

Increased Competition

Increased Costs

Greater Accountability



The Brand Equity ConceptBasic Principles of Branding and Brand Equity: Differences in outcomes arise from the “added value”

endowed to a product as a result of past marketingactivity for the brand.

This value for a brand can be created in many differentways.

Brand equity provides a common denominator forinterpreting marketing strategies and assessing thevalue of a brand.

There are many different ways in which the value of abrand can be manifested or exploited to benefit thefirm.



Strategic Brand

Management Process

Identifying and Establishing Brand Positioning

and Values

Planning and Implementing Brand Marketing

Programs

Measuring and Interpreting Brand Performance

Growing and Sustaining Brand Equity





Sources Of Brand EquityBrand Awareness

Consequences of Brand

Awareness Learning advantages

Consideration advantages

Choice Advantages

Establishing Brand

Awareness

Brand Image

Strength of Brand

Associations Favorability of Brand

Associations

Uniqueness of Brand

Associations



Building A Strong BrandThe Four Steps of Brand Building

1.Identity (Who are you?)2.Meaning (What are you?)

3.Response (What about you?)

4.Relationship (What about you & me?)



Resonance

Judgments Feelings

Performance Imagery

SalienceIdentity

Meaning

Response

Relationship



Customer-based Brand Equity Pyramid

(Cont) Brand Salience: This

relates to aspects of awareness of the brand

Brand Performance: Thisrelates to ways in whichproduct/ service meetscustomers’ needs

Brand Imagery: It’s howcustomers visualize abrand abstractly, with no

relevance to what thebrand actually does

Brand Judgments: Thecustomers’ personalopinions and evaluationswith regard to the brand

Brand Feelings: Thecustomers’ emotionalresponses and reactionswith respect to the brand

Brand Resonance: Theultimate relationship &

level of identification thatthe customer has with thebrand



Brand Positioning





What…

Positioning is owning a piece of consumer’s mind

Positioning is not what you do to a product

It’s what you do to the mind of the prospect

You position the product in the prospect’s mind

‘It’s incorrect to call it Product Positioning’ – Ries & Trout

Source: Al Ries and Jack Trout, Positioning: The Battle for Your Mind.



Examples

ColgateColgate is ProtectionProtection

Lux Lux is GlamourGlamour

Pond’sPond’s is ConfidenceConfidence

Axe Axe is Sexual AttractionSexual Attraction

GilletteGillette is QualityQuality





Three-Way PositioningA company needs to position itself in relation to three

value disciplines: Product leadership, operational

excellence, customer intimacy.

Four rules for success:

Become best at one of the three value disciplines.

Achieve an adequate performance level in the

other two disciplines.

Keep improving one’s superior position in the

chosen discipline so as not to lose out to a

competitor.

Keep becoming more adequate in the other two

disciplines, because competitors keep raising

customers’ expectations about what is adequate.



Five-way Positioning

A company needs to position itself along five attributes:

Product, price, ease of access, value-added service, and

customer experience.

A great company will dominate on one of these, performabove average (differentiate) along a second, and be at

industry par with respect to the remaining three.

Assign a number from 1 to 5 to each attribute: 5

(dominant), 4 (differentiated), 3 (on par with industry),

2 (below par), and 1 (poor).

Source: Fred Crawford and Ryan Mathews, The Myth of Excellence: Why Great Companies Never Try to Be the Best at Everything (NewYork: Crown Business, 2001).



Five-way Positioning (Contd)

A great company will exhibit the pattern 5, 4, 3, 3, 3.

Anything less than a 3 on any attribute is not sustainable.

To be dominant or differentiated on more than one

attribute is excessive and reduces profitability.

Being on par requires a company to match its industry’s

average performance; a company must not let its standing

drop below 3.



Why…

The assault on our mind…

The media explosion

The product explosion

The advertising explosion

So little message gets through that you ignore the

sender and concentrate on the receiver



The Mind…

Like the memory bank of computer , the mind

has slots.

But with a difference , computer accepts all

things but our mind does not It rejects information which it can not

“compute” , it accepts only that new

information that matches current state of mind.



An Inadequate Container

Humans reject information which does not match

their prior knowledge or expectation.

According to Harvard psychologist Dr. George A.

Miller, the average human mind can not deal withmore than 7 digits at a time like 7 wonder of world,

seven days etc.

If asked to name brands of any category, no one

can name more than 7 and that too if its their

interest category.



An Inadequate Container(Contd)

To cope with complexity , people have

learned to simplify everything.

People can often remember positioning

concepts better than names.



The Product Ladder

To cope with product explosion , people rank

products and brands in the minds.

On each step of a ladder is a brand and each

different ladder represent a different category.

A competitor who wants to increase share of the

business must either dislodge the brand above or

somehow relate its brand to the other company’s

position.



Today competitor’s position is as important as your own

position.

“ Avis is only no.2 in rent-a-car, so why go with us? We try

harder .”

People assumed they try harder.

Avis was successful, as it related itself to Hertz.

Hertz

Avis

National

Those little ladders in your head



The “Against” Position

Time magazine followed the same lead.

Frustrated with competition they adopted

“We try damned Harder.”

Later, found the word offensive and the accounts

executive was fired.

If the company is not the first then must occupy

second position.

Those little ladders in your head (Cont)



Conventional Logic – find your conceptinside yourself or your product.

Not true, must look inside prospect’s mind.

7-Up positioned itself as the uncola drink &sales increased drastically.

Mc Cormick Comm. acquired WLKW andpositioned it as the unrock radio station &

became no.1.

The Uncola Position



The Oversimplified Message

Today the best approach to take, in our over

communicated society is to simplified message.

“ you simplify the message, then simplify it somemore if you want to make a long lasting impression.”

-Al Ries and Trout

07/15/13 31



How…

The easy way to get into a person’s mind is to befirst

Xerox, Kodak, Polaroid, Sun TV, The Hindu, F&L

If you didn’t get into the mind of your prospect

first, then you have a positioning problem

Better to be first than be best

In the positioning era, you must, however, be

first to get into the prospect’s mind



How…

The basic approach is not to create something newor different, but manipulate what’s already in themind

To find a unique position, you must ignore

conventional logic

Conventional logic says you find concept insideproduct Not true; look inside prospect’s mind

You won’t find an uncola idea inside 7-up; youfind it inside cola drinker’s head





Guidelines…

Start by looking not at the product but at theposition in the market that you wish to occupy, in

relation to competition

Think about how the brand will answer the mainconsumer questions

What will it do for me that others will not?

Why should I believe you?

Try to keep it short and make every word countand be as specific as possible

Vagueness opens the way to confused executions



Guidelines…

Keep the positioning up-do-date

Give as careful consideration to change as you did to the

original statement

Look for a Key Insight Key Insight !

An ‘Accepted Consumer Belief’ ‘Accepted Consumer Belief’



What is key insight?

Key Insight is ‘seeing below the surface’ / ‘seeing inside the consumer ’

Insight expresses the totality of all that we know

from seeing inside the consumer

An insight is a single aspect of this that we use togain competitive advantage

By identifying a specific way…That the brand can either solve a problem or

Create an opportunity for the consumer



Key InsightKey Insight

‘ ‘ I wish to get I wish to get

married to amarried to a

handsome prince’ handsome prince’



Key InsightK ey Insight

‘ ‘ Fragrance of my current talcFragrance of my current talc

does not last long and I missdoes not last long and I miss

opportunities to enjoy life’ opportunities to enjoy life’



Key InsightKey Insight

‘ ‘ Soap leaves my Soap leaves my

skin feeling dryskin feeling dry

and tight’ and tight’



The 3C’s of positioning

Be Crystal clear

Be Consumer-based

Be relevant and credible to the consumer

Write in consumer language and from consumer’s view point

Be Competitive

Be distinctive

Focus on building brand elements into powerful discriminator Be persuasive

Be sustainable



And then…

The brand name!

The name is the first point of contact between the

message and the mind

‘ ‘ The brand name is a knife that cuts the mind to let theThe brand name is a knife that cuts the mind to let the

brand message inside’ brand message inside’

– Ries & Trout Ries & Trout



Guidelines…

It’s not the goodness or badness of the name in anaesthetic sense that determines effectiveness

It’s the appropriateness of the same

Name begins the positioning process, tells theprospect what the product’s major benefit is

Fair & Lovely

Close Up

Krack

Head & Shoulders

Vaseline Intensive Care Body Lotion



Checklist: Brand name

Should be simple

Should be acceptable in all key languages

Should be appropriate when geographically spread

Should be amenable for easy registration



“Forgot what made them successful”

After being sold to ITT, Avis adopted,

“Avis is going to be No.1” No frequent increase in revenues and campaign was

waste.

7-Up also fell in the trap and adopted.

“America’s is turning 7-Up”

Sales fell and now Sprite has 50% market share.

The F.W.M.T.S Trap



Hindustan Petroleum

positioned it as the best

refill available for LPG cylinder in the country.

Brand Positioning – Subrota Sengupta



Forhan was the first

to position its

toothpaste with,

“Like a breadth of fresh air”.

Brand Positioning – Subrota Sengupta



Thank

You

brandmanagementandpositioning

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