11 - Crafting the Brand Positioning

8/4/2019 11 - Crafting the Brand Positioning

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MARKETINGMANAGEMENT


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PART 4 BUILDING STRONG

BRANDS

11. CRAFTING

THE

BRAND

POSITIONING


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Developing & Communicating a Positioning Strategy Positioning is the act of

designing the companysoffering and image to occupy adistinctive place in the minds ofthe target market.

The goal is to locate the brandin the minds of consumers tomaximize the potential benefit

to the firm.


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PODs & POPsPoints-of-difference(PODs)

Attributes orbenefits consumers

strongly associatewith a brand,positively evaluate,and believe theycould not find tothe same extentwith a competitive

brand

Points-of-parity(POPs)

Associations that

are not necessarilyunique to thebrand but may beshared with other

brands

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Dettol vs Savlon Savlon, the product of Johnson & Johnson is a brand,

which is clinically proven to be a better antiseptic than

Dettol, having advantages like better scent and non-stinging properties.

The brand was expected to give the market leader Dettol, arun for its money. But even after millions of rupees spent,Dettol still rules the antiseptic lotion market.


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Dettol vs Savlon Savlon is an effective germ killer than Dettol. It does not

sting while being applied on wounds.

Dettol used to give a stinging sensation while applied onwounds.

Armed with superior properties, Savlon went into a directattack on Dettol. The main differentiators for the brand wereits no-sting property and better smell.

J&J spent heavily on promoting the brand. The launch wasa success and consumers tried out the new product. Butthe story did not continue like that.

Dettol confronted the frontal attack from Savlon in adifferent manner. It tried to attack one of the most valuablebrand of J&J - Band -Aid by launching Dettol plasters. Thismove got J&J defensive. It never expected Dettol to attackanother brand in retaliation.


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Dettol vs Savlon Dettol plasters had the potential to attract consumers

because of the brand equity of Dettol Antiseptic.

J&J scrambled to protect Band-Aid by launching a series ofvariants in the medicated plaster segment. In doing so,resources were spent on defending Band-Aid rather than inadvancing Savlon. Savlon suffered heavily because it lostthe support in terms of investment in brand building.

Dettol had a brand equity built over more than 50 years (atthat period of time). Savlon needed painful long termsustained investment. However Savlon was pushed to aback burner after Dettol introduced the plaster. Savlonnever re-emerged.


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The Product Life Cycle Products have a limited life.

Product sales pass through distinctstages, each posing different challenges,opportunities and problems to the seller.

Products rise and fall at different stagesof the product life cycle.

Products require different marketing,financial, manufacturing, purchasing andhuman resources strategies in each life-cycle stage.

A new product progresses through asequence of stages from introduction togrowth, maturity, and decline.


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The Product Life CycleA new product progresses through a sequence of

stages from introduction to growth, maturity, anddecline. This sequence is known as the product lifecycle.


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The Product Life CycleIntroduction Stage

The firm seeks to build product awareness.

Product branding and quality levels areestablished.

Intellectual property protection such as patentsand trademarks are obtained.

Pricing may be low penetration pricing or highskim pricing.

Distribution is selective.

Promotion is aimed at innovators and earlyadopters.

Marketing communications seeks to buildproduct awareness and to educate potentialconsumers about the product.


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The Product Life CycleGrowth Stage

The firm seeks to build brand preference and

increased market share. Product quality is maintained.

Additional features and support services maybe added.

Pricing is maintained.

Distribution channels are added.

Promotion is aimed at a broader audience.


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The Product Life CycleMaturity Stage

The primary objective at this point is to defend

market share while maximizing profit. Product features may be enhanced.

Pricing may be lower because of the newcompetition.

Distribution becomes more intensive.

Promotion emphasizes product differentiation.


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The Product Life CycleDecline Stage

Maintain the product, possibly rejuvenating it

by adding new features and finding new uses. Harvest the product; reduce costs and continue

to offer it, possibly to a loyal niche segment.

Discontinue the product.

11 - Crafting the Brand Positioning

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