Brand Positioning Process

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BRAND POSITIONING PROCESS PRACTICAL PROCESS FOR DESIGNING THE BRAND PLATFORM

Transcript of Brand Positioning Process

Page 1: Brand Positioning Process

BRAND POSITIONING PROCESS

PRACTICAL PROCESS FOR DESIGNING THE BRAND PLATFORM

Page 2: Brand Positioning Process

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.

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Positioning

Why? For Whom?

Against whom?

When to consume?

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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)

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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)

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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.

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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.

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Competitor Analysis

See slides on competition.

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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.

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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

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P-O-D’S

Point-Of-Difference

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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.

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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.)

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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.

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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.

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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)

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P-O-P’S

Points-of- parity

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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.

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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.

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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.

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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”.

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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)

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EXECUTING THE PLANNED POSITION

Establishing the POP’s and POD’s

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Positioning

Why? For Whom?

Against whom?

When to consume?

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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

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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

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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)

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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

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Against whom

Why?

When?

To whom?

Product physique

Pricing

Communication

White

A

Better tasting mixer than the

leader

The leader

‘Taste’

Cocktail/ party

25/40; Europe, Canada, Bacardi drinkers

White

10% less

Mass media

Mixer

B

Experience Cuba

All mixers

Cuban drink

Night/mixed

18/30, urban B Europe & Canada

White

Par with leader

Hybrid

Dark

C

The ‘absolute’ Rum

Premium rums

‘The best rum’

Home/bars

25/40 urban heavy rum drinkers in Canada, UK Spain, Italy,

Dark

Premium

Hybrid

Straight

D

An original spirit

Whiskies

‘Be different’

Home/dinner

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

Dark

Par with whiskies

Hybrid

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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 - target should find the POD believable and credible.

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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).

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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?

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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

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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.

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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.

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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.

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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.

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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.

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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.