How to position a brand powerfully 04 11-2013

How to position a brand How to position a brand powerfullypowerfully

By Maxwell Ranasinghe.By Maxwell Ranasinghe.

What is positioningWhat is positioning

“ “ Disembodied mental image , Disembodied mental image , specifically, a location in consumers specifically, a location in consumers mind”mind”

““Positioning is doing something to Positioning is doing something to the collective mind of the consumer”the collective mind of the consumer”

There is a comparative perspective There is a comparative perspective in positioning as positioning implies in positioning as positioning implies the existence of something else.the existence of something else.

The positioning is the act of creating The positioning is the act of creating a perception or image or status in a perception or image or status in buyers mind.buyers mind.

Positioning is used to make a specific Positioning is used to make a specific brand appear to be different and better brand appear to be different and better than all competing brandsthan all competing brands

Key points to note are Key points to note are

1.1. It is a strategic activity( not tactical)It is a strategic activity( not tactical)

2.2. It is aimed at developing a It is aimed at developing a sustainable competitive advantagesustainable competitive advantage

3.3. It is concerned with Managing It is concerned with Managing Perceptions Perceptions

Brand image and reputation are the Brand image and reputation are the end resultsend results

Strategic not TacticalStrategic not Tactical

Positioning is not a short term tactical Positioning is not a short term tactical activityactivity

Change the consumers perception and Change the consumers perception and reach a unique position.reach a unique position.

Lasting image that is not dependant on Lasting image that is not dependant on the product features or other elements the product features or other elements that can be copied.(by competitors)that can be copied.(by competitors)

Positioning should negate the situation Positioning should negate the situation of your competitors catching up and of your competitors catching up and overtaking you.overtaking you.

Sustainable competitive Sustainable competitive advantageadvantage Aims at long term competitive advantageAims at long term competitive advantage Should offer a proposition of high benefit Should offer a proposition of high benefit

or significanceor significance Real brand strength that reflects a Real brand strength that reflects a

competitive advantage has to be competitive advantage has to be adopted.adopted.

The personality and other intangible The personality and other intangible values to be projected.values to be projected.

Brand has to be capable of consistently Brand has to be capable of consistently performing at least as the competing performing at least as the competing brands.brands.

Managing PerceptionsManaging Perceptions

Consumers do not know who Consumers do not know who produces goods and servicesproduces goods and services

They may not know all the They may not know all the features of a product or servicefeatures of a product or service

But they know in their minds But they know in their minds why they like the product. They why they like the product. They think in terms of the benefits. It think in terms of the benefits. It could be tangible or intangible.could be tangible or intangible.

But it is real to consumers.But it is real to consumers.

Create favorable perceptionsCreate favorable perceptions

Once the perceptions are created it is Once the perceptions are created it is difficult to shiftdifficult to shift

It applies to both good and bad It applies to both good and bad perceptions.perceptions.

It is very difficult to convince a It is very difficult to convince a consumer to try again a product that consumer to try again a product that she or he had bad experience.she or he had bad experience.

If the product lives up to its promise, it If the product lives up to its promise, it has a great chance of achieving a has a great chance of achieving a brand image if not it will lack credibility.brand image if not it will lack credibility.

Positioning is an ongoing Positioning is an ongoing activity to sustain the imageactivity to sustain the image

Once a favourable image is created Once a favourable image is created it should be sustained.it should be sustained.

It should be continually reinforced.It should be continually reinforced. A long term communications strategy A long term communications strategy

is required.is required. Consumers are bombarded with Consumers are bombarded with

thousands of messages everyday. thousands of messages everyday. The Challenge is to keep the brand The Challenge is to keep the brand

at the forefront of their mind.at the forefront of their mind.

Strategies for brand Strategies for brand positioningpositioning

Features Features

And And

AttributesAttributes

BenefitsBenefits Problem Problem SolvingSolving

CompetitionCompetition Corporate Corporate reputation reputation and imageand image

Target userTarget user

CauseCause

emotionemotion

AspirationAspiration Value or Value or pricingpricing

GuaranteeGuarantee

Features and AttributesFeatures and Attributes

This is a very clear strategyThis is a very clear strategy People constantly look for featuresPeople constantly look for features Producing unique features and Producing unique features and

attributes is rather difficultattributes is rather difficult Many features and attributes could Many features and attributes could

be copied by others in at least in be copied by others in at least in long termlong term

Continuous Innovations are Continuous Innovations are necessary necessary

BenefitsBenefits

Closely connected to the features and Closely connected to the features and attributesattributes

This strategy stresses the benefits of This strategy stresses the benefits of possessing itpossessing it

Benefits not be vague. It should be clear, Benefits not be vague. It should be clear, attainable and useful.attainable and useful.

Ceylinco Insurance “On the spot claims Ceylinco Insurance “On the spot claims payment” is convenient for customers payment” is convenient for customers not having to go to police and lodge not having to go to police and lodge claims and undergo a lengthy procedureclaims and undergo a lengthy procedure

Problem SolvingProblem Solving

Brands that solves problems for Brands that solves problems for consumers are appreciated.consumers are appreciated.

This strategy requires a full understanding This strategy requires a full understanding of consumer problems, well trained staff of consumer problems, well trained staff with social and communication skillswith social and communication skills

Ceylinco “On the spot claim payment” Ceylinco “On the spot claim payment” solves the problem of lengthy claim solves the problem of lengthy claim process.process.

E-channeling- solves the patients going to E-channeling- solves the patients going to the hospital twice, once to make an the hospital twice, once to make an appointment and then to consult the appointment and then to consult the doctor.doctor.

CompetitionCompetition

Positioning against the Positioning against the competitioncompetition

To be handled with care from To be handled with care from legal and advertising standards legal and advertising standards perspectivesperspectives

Coke and PepsiCoke and Pepsi Munchee and MalibanMunchee and Maliban Claiming a position in the market Claiming a position in the market

such No1 – 2such No1 – 2ndnd - Challenger - Challenger

Corporate reputation and Corporate reputation and imageimage

Existing brand and reputation to Existing brand and reputation to be used as a positioning be used as a positioning

e.g.; from the pioneers of cellular e.g.; from the pioneers of cellular phonesphones

with the approval of Dental with the approval of Dental AssociationAssociation

When two competitors merge-When two competitors merge-

They were tough competitors but They were tough competitors but now a strong alliance…….now a strong alliance…….

Target userTarget user Target user positioning says that Target user positioning says that

they clearly address the specific they clearly address the specific requirement of their target requirement of their target audience.audience.

High alcohol beer for hard liquor High alcohol beer for hard liquor drinkers who wants to show they drinkers who wants to show they are moderate drinkers or to beer are moderate drinkers or to beer drinkers who needs the “kick”drinkers who needs the “kick”

Instant food for people who do Instant food for people who do not have time for cooking.not have time for cooking.

Special shoes by Nike for Special shoes by Nike for basketball playersbasketball players

CauseCause

Cause related marketing. Cause related marketing. Associate the company with a Associate the company with a worthwhile cause such as social, worthwhile cause such as social, environmental cause.environmental cause.

E.g.; prevent accidents = CTC E.g.; prevent accidents = CTC EagleEagle

protect wildlife = ODELprotect wildlife = ODEL It gives additional impetus to the It gives additional impetus to the

brand as it is conscious of social brand as it is conscious of social and environmental aspects.and environmental aspects.

AspirationsAspirations

Positioning brands on ambitions, Positioning brands on ambitions, cravings,desires, dreams, goals cravings,desires, dreams, goals hopes, longings and wisheshopes, longings and wishes

E.g.;-Lotteries in Sri LankaE.g.;-Lotteries in Sri LankaLuxury cars, Holidays, Luxury cars, Holidays,

designer dresses, fashion designer dresses, fashion brands, brands,

UsageUsage

How and when consumers use How and when consumers use products can help marketers position products can help marketers position their productstheir products

Beer- relax and unwind after a days Beer- relax and unwind after a days workwork

Coffee- -do-Coffee- -do- Express sophistication by consuming Express sophistication by consuming

a special brand at special times. a special brand at special times. Champagne at celebrationsChampagne at celebrations

ValueValue

Value for money concept Value for money concept positioningpositioning

Value for money expresses a Value for money expresses a combination of price and qualitycombination of price and quality

E.g.: Air con intercity bus E.g.: Air con intercity bus serviceservice Denim clothesDenim clothes

PersonalityPersonality

Positioning based on personality can Positioning based on personality can be one of the powerful strategiesbe one of the powerful strategies

Creating personality to the product or Creating personality to the product or service make it unique where service make it unique where competitors cannot matchcompetitors cannot match

You got to project personality You got to project personality characteristics that the target market characteristics that the target market wants in the productwants in the product

E.g.; Mercedes Benz – Rolex E.g.; Mercedes Benz – Rolex watches, Hilton Hotelwatches, Hilton Hotel

EmotionEmotion

Emotion is a very powerful Emotion is a very powerful positioning strategy.positioning strategy.

Sex, Sex, music,aspirations,nostalgia,humor, music,aspirations,nostalgia,humor, nationality and many other nationality and many other techniques are used in appealing to techniques are used in appealing to the emotional drive of the consumer.the emotional drive of the consumer.

Sisil fridge, Maliban Cream Cracker, Sisil fridge, Maliban Cream Cracker, Elephant Soda, Orange barley, MD Elephant Soda, Orange barley, MD Jam, DSI shoesJam, DSI shoes

Combination of positioning Combination of positioning strategiesstrategies

Most of the products do not solely Most of the products do not solely depend on one strategy. depend on one strategy.

They use a combination of They use a combination of strategies.strategies.

Such as value for money, emotionSuch as value for money, emotion Aspirations and personalityAspirations and personality Corporate reputation and cause. Corporate reputation and cause.

How many positions can a How many positions can a brand have?brand have? Brand should have only one central Brand should have only one central

positionposition A position presents the identity and A position presents the identity and

personality of the brand to the personality of the brand to the outside world.outside world.

Multiple positioning in the same Multiple positioning in the same market segment seem odd and market segment seem odd and disorderlydisorderly

Discuss in relation to “Nestomalt” of Discuss in relation to “Nestomalt” of NestlesNestles

E.g.; Nestomalt’s central E.g.; Nestomalt’s central positioning is nutritious drink- but positioning is nutritious drink- but it is presented various segments it is presented various segments in different forms such as – in different forms such as – energy giving drink for active energy giving drink for active people- dietary supplement for people- dietary supplement for elderly- growth supplement for elderly- growth supplement for youngsters- relaxation drink for youngsters- relaxation drink for people with work pressure.people with work pressure.

Make the brand live through Make the brand live through positioningpositioning Positioning is strategic and it is not short Positioning is strategic and it is not short

termterm Unless re-positioning the positioning will Unless re-positioning the positioning will

not changenot change The sole aim of the positioning is to The sole aim of the positioning is to

persuade customer that persuade customer that this brand is this brand is different and better than other brandsdifferent and better than other brands

It tries to occupy a special position in the It tries to occupy a special position in the minds of the customer.minds of the customer.

Everything relates to the consumer to the Everything relates to the consumer to the brand has to be consistent. No brand has to be consistent. No compromises.compromises.

Positioning and segmentationPositioning and segmentation

If the product is globally focused on one If the product is globally focused on one market segment a standard positioning market segment a standard positioning could be adopted such as Nike, Rolex and could be adopted such as Nike, Rolex and BenzBenz

If the product has different segments then If the product has different segments then different positioning may be required. Eg. different positioning may be required. Eg. BajajBajaj

Positioning may be perceived differently from Positioning may be perceived differently from market to market – e.g.. Beer may be an average market to market – e.g.. Beer may be an average drink one country but may be regarded as a drink one country but may be regarded as a prestige drink in another country.prestige drink in another country.

Positioning in actionPositioning in action

1. Identify the Target Audience (ITA)1. Identify the Target Audience (ITA)Segment the market and select the target Segment the market and select the target market wellmarket wellAddress the needs of the market Address the needs of the market

Marketing communications matters a lot in Marketing communications matters a lot in this processthis processDiscuss in detail with add agenciesDiscuss in detail with add agenciesInternal staff should also know the Internal staff should also know the objectives and the exact position that the objectives and the exact position that the product is going to be positionedproduct is going to be positioned

2. Identify Point of Parity 2. Identify Point of Parity (POP)(POP)- - Know the similar product Know the similar product features and benefits other features and benefits other products in the marketproducts in the market- Keep an eye on the - Keep an eye on the competition and their competition and their reactionreaction

3. Portray Point of Difference 3. Portray Point of Difference ( POD)( POD)

- - Mention a USP Mention a USP - Indicate the benefits that - Indicate the benefits that

consumers get in comparison to consumers get in comparison to others productsothers products-State the brand name and -State the brand name and inform the market that “it is inform the market that “it is better than others”better than others”

4. Provide Reasons to Believe 4. Provide Reasons to Believe ( RTB)( RTB)Leverage on your reputation Leverage on your reputation

and brand nameand brand nameTalk about the guaranteesTalk about the guaranteesTalk about testimoniesTalk about testimoniesIndependent reportsIndependent reports

Conceptual MappingConceptual Mapping Mobile phone service providersMobile phone service providers

Coverage

VAS

Image

Price

Representative Brand Denominating Colour-Product Attribute-Rating

Dialog GSM Light Blue Colour Line Brand Image 5

Coverage 5 Price 5 Value Added Services (VAS) 5

Mobitel GSM Green Color Line Brand Image 4 Coverage 4 Price 3 Value Added Services (VAS) 3

Airtel Red Colour Line Brand Image 3 Coverage 3 Price 3 Value Added Services (VAS)4

Etisalat Dark Blue Colour LineBrand Image

3 Coverage 4 Price 2 Value Added Services (VAS) 3

Hutch Orange Colour LineBrand Image 3

Coverage 3 Price 1 Value Added Services (VAS) 3

This Rating should be based on research findings.

Lickert scale questions (from 1-5) can be used to do the research

So you know how to do it. Then go and do it So you know how to do it. Then go and do it in the market. Good Luck. University of in the market. Good Luck. University of KelaniyaKelaniya

So you know how to do So you know how to do it it

Then go and do it in the market Then go and do it in the market placeplace

Thank youThank you

Good luck…….. Maxwell Good luck…….. Maxwell

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