Brand Positioning Process

BRAND POSITIONING PROCESS PRACTICAL PROCESS FOR DESIGNING THE BRAND PLATFORM

Brand Positioning  Positioning is at the heart of marketing strategy and it is the last step in marketing strategy formulation. (starts with segmentation).

 It’s about identifying a suitable location in the minds of people.  Task is to identify an optimal location for the brand vis-à-vis its competitors in the minds of consumers to maximize potential benefit to the firm.

Positioning

Why?

When to consume?

For Whom?

Against whom?

Segmentation  Segmentation Bases  Descriptive or customer oriented (demographic, Psychographic etc)  Behavioral or Product oriented (benefits, user status, usage rate, occasion of usage & loyalty).  Criteria  Identifiability, size (substantiality), accessibility & responsiveness (measurability)

Segmentation  Four main segments for Tooth paste market uncovered by research.  The Sensory Segment (seeking flavour and product appearance)  The Sociables (seeking brightness of teeth)  The Worriers (seeking decay prevention)  The Independent segment (seeking low price)

Segmentation  Model of segments “users of a brand” – four groups based on the strength of commitment (low to high).

 Convertible: On the threshold of change; highly likely to switch brands  Shallow: Not ready to switch, but may be considering alternatives  Average: Comfortable with their choice. Unlikely to switch  Entrenched: High loyalty. Unlikely to change in the near future.

Segmentation  “Segments forming “non-users of the brand”.

 Strongly Unavailable: strongly prefer their current brand  Weakly unavailable: preference for current brand. But not strong enough.  Ambivalent: 50-50 preference for the current choice as to others.  Available: prefer the other brand, but not yet switched.

Competitor Analysis See slides on competition.

The Understanding Phase  Identifying all potential added values for the brand based on its identity, roots, heritage and prototypes as well as its current image (self centered approach).  Markets are analyzed to understand consumer’s aspirations or dissatisfactions on whom the brand can be built.

Points-of-Parity & Points-of-Difference  Once the appropriate competitive frame of reference for positioning has been fixed by defining the target audience & nature of competition.  Next step is to establishing the correct 1. Points-Of-Difference &  2. Points-Of-Parity  To define your positioning

Point-Of-Difference

P-O-D’S

Points of Difference Associations  POD’s are strong favourable and unique brand associations.  May be any type of attribute or benefit association.  Are attribute/ benefits that consumers strongly associate with your brand, which they will compare, evaluate and (if found valid) believe that they will not find the same extent in other brands.

Points of Difference Associations

2

 Although myriad POD associations are possible for developing as PODs, generally it is classified as functional or performance related functions or abstract imagery-related aspects.  POD’s have much in common with unique selling proposition (USP) and also is  Rosser Reeves (Ted Bates) distinctive unique benefit of the product (Anacin – fast relief for your head ache.)

Points of Difference Associations

3

 Sustainable competitive Advantage (SCA) is a related positioning concept.  Firm’s ability to achieve an advantage in delivering superior value and sustaining it for a prolonged period of time.  SCA could be based on even things like HR policies, it strongly advocates in differentiating brands.

Ikea  Ikea took a luxury product – in home furnishings and furniture – and made it a reasonably priced alternative for the mass market.  Ikea supports its low prices by having customers serve, deliver and assemble the products themselves.  Ikea also leverage on the general notion that Sweden produces good, safe, well built things.

Points of Difference Associations

4

 Performance attributes (Milma - low fat milk, Britania – High shelf life milk)  Performance benefits (consumer friendly technologies - Fuzzy logic of whirlpool where it automatically adjusts time for various activities; LG golden eye where your eyes are not strained watching TV)  Imagery associations (western imagery of Marlboro cigarettes; British Airways – world’s best airlines)

Points-of- parity

P-O-P’S

Points of Parity Associations  These associations are not necessarily unique to the brand, but some are typically product category aspects shared with other brands.  Come in two basic forms – category and competitive  Category points of parity are those associations that consumers view as being necessary to be a legitimate, credible offering within a certain product category.

Nivea  Nivea became leader in the skin cream category on the “Gentle”, “Protective” and “Caring” platform.  As they leveraged into categories such as deodorants, shampoos and cosmetics, Nivea had to establish points of parity before points of Difference.  Gentle, caring etc are of no value unless consumers believed that its deodorant was strong enough, its shampoo would cleanse and its cosmetics would be colourful enough.

Points of Parity Associations

2

 Competitive POP associations are those designed to negate the competitors points of difference.  The aim is to break-even in those areas where their competitors are trying to find an advantage and  Achieve advantage in some other area where their own strength lies – perhaps unbeatable position.

Miller Lite  Philip Morris bought Miller brewing and launched their low calorie beer --- at a time when consumers had conflicting notion that low calorie beer do not taste good.  Initial strategy was to assure POP by stating “taste Great” and same time attempt to build POD with the fact that it contained one third less calories – hence less filling.  The campaign – “tastes Great & less filling” with the tag line “ Everything you’ve always wanted in a beer and less”.

Points of Parity Associations

3

 To achieve a point of parity on a particular attribute or benefit, ------------- sufficient number of consumers must believe that brand is “good enough” on that dimension.  There is a zone or range of acceptance with POPs. (Bajaj’s BYK Motorcycle did not click, even with its superior mileage and good pricing as it failed on the pick-up factor)

 Points of parity are thus easier to achieve than points of difference (where brand must demonstrate clear superiority)

Establishing the POP’s and POD’s

EXECUTING THE PLANNED POSITION

Positioning

Why?

When to consume?

For Whom?

Against whom?

Positioning Guide Lines 1. Defining & Communicating Competitive Frame Of Reference 2. Choosing Points Of Parity & Points of Difference. (Desirability Criteria & Deliverability criteria) 3. Establishing Points Of Parity & Points Of difference 4. Updating Positioning Over Time

Defining & Communicating the Competitive Frame of Reference  Determine category membership  Indicates the products/brands with which the brand compete.  For established category it may not be required but for new brands it is better to have clear category membership.  Personal Digital Assistant – either as a computer accessory or a replacement for appointment book.  M & M Scorpio – a Luxury car

Defining & Communicating the Competitive Frame of Reference  It is better to establish a brands category before projecting its P-O-D’s.  By knowing the product category, consumers can know what category it belongs to before knowing whether they dominate over the existing brands.  Three ways to convey category membership: Communicating category benefits (fundamental reason for usage), comparing to exemplars (well known brands in the category) and relying on the product descriptor (US air to US airways, Sony camcorder for handheld video cameras)

The Exploration Phase  Finding the brand platform is not something which you can do in one go. It takes an iterative approach.  Positioning of Baccardi rum produced in Cuba.  The angle of attack will differ depending on whether the target is Smirnoff (world leader) in mixers  Depending on the competitive position one choose, it can be against whiskies, gin/vodka

Dark Straight

White Mixer A

Against whom Why? When? To whom?

Product physique Pricing

C

B

D

Better tasting Experience The ‘absolute’ An original Rum spirit mixer than the Cuba leader Premium rums Whiskies The leader All mixers ‘Taste’ Cocktail/ party

Cuban drink ‘The best rum’ ‘Be different’ Home/dinner Night/mixed Home/bars

25/40; Europe, 18/30, urban 25/40 urban Canada, Bacardi B Europe & heavy rum drinkers in drinkers Canada Canada, UK Spain, Italy,

White

Communication 10% less Mass media

30/45 urban heavy spirit drinker, Europe, Canada, Asia

White

Dark

Par with leader

Premium

Par with whiskies

Hybrid

Hybrid

Hybrid

Dark

Choosing P-O-P’s & P-O-D’s  Two important criteria – will consumer find the POD desirable and deliverable believe that the firm has the capabilities to deliver it.

 Desirability Criteria: three key aspects  Relevance – Target should find the POD personally relevant and important.

 Distinctiveness –

target should find the POD distinctive and superior (& important to consumers needs).

 Believability credible.

target should find the POD believable and

Choosing P-O-P’s & P-O-D’s

2

 Deliverability Criteria  Feasibility:  performance potential or capability of the brand to perform at the level stated. (in terms of resources affordability and time is it feasible).

 Communicability:  current or future prospects of communicating information to create or strengthen the desired association. (can consumers be given a compelling reason that the brand will deliver).

Choosing P-O-P’s & P-O-D’s

3

 Effectiveness of communicability factor will depend on what factual, verifiable proof can be provided to consumers

 Sustainability: of the actual and

communicated performance over time.  Is the positioning pr-emptive, defensible and difficult to attack.  Is the positioning likely to stand for years? Can the favourability of brand associations be reinforced over a period of time?

Establishing P-O-P’s & P-O-D’s  Creating a strong, competitive brand requires establishing the rights Points-Of -Parity and right Points-Of-Difference.

 Difficulties is in the fact that many of the attributes that make up the POP or POD are negatively correlated.  Say - Low cost vs. High quality.  Unfortunately consumers try to maximize these negatively correlated attributes

Establishing P-O-P’s & P-O-D’s

2

 Best option is to develop products that perform well on both dimensions.  Ability of BMW to establish their straddle positioning image of ‘Luxury & Performance’ enabled by suitable product design  Gore-Tex could provide the seemingly impossible benefits ----- both ‘breathable’ & ‘waterproof’ image by technology advances.

Test Phase  The test phase is the time when scenarios are either refined or eliminated.  It requires consumer studies to find out the credibility and emotional responses evoked towards each scenario.  What are being tested are ideas and formulations.

Implementation & Activation  Once the platform has been drawn up, brand’s values must be made palpable and tangible.  The brand must transform them into acts.  Define brand’s marketing strategy, functional objectives and campaign plan.

The Strategic Evaluation  Takes the form of a comparison of scenarios (based on certain criteria followed by economic evaluation).

 Is there a genuine business opportunity here?  Positioning should ideally target on a weakness of the competition and ideally on a long term weakness.

Determining The Flagship Product  In launching a new brand, companies have to be extremely careful in choosing which product or service.  If the company is ambitious about the brand, then they will have to hitch it to star product.  If wrong product is identified there ends the chances for the brand to emerge.

Updating The Positioning Over Time  With established brands, competitive forces often dictate shifts in positioning strategy.  Visa’s POD in the credit category is that of most widely available card (underscores category benefit – convenience).

 Amex highlights the prestige associated with the use of its card.