Chapter 3: Brand Positioning and Values

IDENTIFYING AND ESTABLISHING BRAND POSITIONING Basic concepts: Brand positioning: The act of designing the company s offer and image so that it occupies a distinct and valued place in the target customer s minds . It is necessary to decide: 1. Who the target consumer is 2. Who the main competitors are 3. How the brand is similar to those competitors 4. How the brand is different from these competitors

Target market: Market: A market is the set of all actual and potential buyers who have sufficient interest in, income for, and access to a product. Market segmentation: It involves dividing the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior and thus require similar marketing mixes. a) Segmentation bases: i. Descriptive or customer oriented: Related to what kind of person or organization is the customer. ii. Behavioral or product oriented: Related to how the customer thinks of or uses the brand or product. Example: Toothpaste Market. Sensory Segment- Seeking Flavor and Product Appearance Sociable- Seeking brightness Worriers- Seeking Decay Prevention 2 Independent- Seeking low price 1.

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b) Criteria: Identifiability: Easily determined? Size: Adequate sales potential? Accessibility: Distribution outlets and communication media? Responsiveness: Favorable toward marketing program?

The model segments users of a brand into four groups based on strength of commitment, from low to high, as follow: 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 in the future. Entrenched: Staunchly/faithfully loyal; unlikely to change in the forseeable future.

The model also classifies nonusers of a brand into four other groups based on their openness to trying the brand, from low to high, as follows: Strongly unavailable: Strongly prefer their current brand. Weakly unavailable: Preference lies with their current brand, although not strongly. Ambivalent (Unsure): As attracted to the other brand as to their current choice. Available: Prefer the other brand but have not yet switched. 2. Nature of competition: The nature of competition may depend on the channels of distribution chosen. Competitive analysis considers a whole host of factors: including the resources, capabilities and likely intentions of various other firms to choose markets where consumers can be profitably serviced. Example: Baskin-Robbins. In 1990, displayed new dcor reallocate
space for frozen coffee drinks, and became competitors of Starbucks and Jamba juice.
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3. Points of parity and points of difference: a) Points of difference associations: POD are strong, favorable and unique brand associations for a brand. It is similar to the notion of unique selling proposition (USP). Example: Anacin Aspirin. The ad showed three boxes in the skull of a
headache sufferer and a pounding hammer was relived by the little bubbles of Anacin from user s stomach. Announcer stated, Are you looking for fast, fast, fast relief? Then take Anacin.

Sustainable Competitive Advantage: Related with positioning concept, SCA relates, in part, to a firm s ability to achieve an advantage in delivering superior value in the marketplace for a prolonged period of time. Example: Subaru. Subaru was seen as me-too car and advertised as
Inexpensive And Built To Stay That Way undifferentiated from Toyota, Honda . To provide distinct image Subaru decided to sell only all wheel drive car and upgraded its luxury image and price and sold over 175,000 cars by 2000.

b)

i.

Points of parity associations: not necessarily unique to the brand but may infact be shared with other brands. Category Points of parity: These are those associations that consumers view as being necessary to be a legitimate and credible offering within a certain product or service category. Example: Nivea. Nivea became leader in the skin cream category by
creating strong POD on the benefits of gentle, protective and caring . Nivea categories like deodorants, shampoos, cosmetics. So Nivea establish category POP before promoting their brands POD. The POD would get little value unless the consumers belived that Deodorant was strong, shampoo produce nice hair and cosmetics are colored enough. Once POP is established Nevia s other associations could be introduced as POD.

ii.

Competitive points of parity: These are those associations

designed to negate competitors points of difference. Example: Miller Lite Beer. The category POP was Taste

great at the same time the POD was Less filling by comparing 96 calories of Miller Lite versus 150 calories of others.

c.

Points of parity versus points of difference: consumers must feel that the brand does sufficiently well on the particular attribute or benefit so that they do not consider it to be a negative or a problem. Example: Snack Well s. It was the pioneer in reduced-fat snacks.
In late 1990s Nabisco launched a new campaign to reflect the cgange in product by advertising attractive swimsuit couple during their tryst fantacizing escaping to savor some snake well s cookies , a voiceover proclaimed Passion, Desire, devotion, Nah, its goes beyond that . To stay apart from Low fat Nabisco emphasized Taste.

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POSITIONING GUIDELINES Defining and communicating the competitive frame of reference: Example: Fedex. Overnight Delivery Services-ONDS Communicating category membership informs the consumer about the goals that they might achieve by using a product or service. Example: Personal Digital Assistants. Black Berry model to encompass e-mail It is important that consumers understand what the brand stands for, and not just what it is not. Example: Zima. It z a secret, It z zomething different---A few Degrees Cooler

Efforts to inform consumers of membership and points of difference in the same ad, however, are often not effective. Example: BMW. Luxury were seen as lack of performance The Ultimate Driving machine, Luxury performance car Main ways to convey a brand category membership 1. Communicating category benefits2. Comparing to exemplars3. Relying on product descriptorPerformance if Frosted Flakes then Wheaties USAir changed USAirways

Choosing points of parity and points of difference: Desirability criteria: 1.Relevance: example: Clear version of products introduced in early 1990s., did not work 2.Distinctiveness: example: Aleve, consumer were concern on fast relief than the long lasting relief 3.Believability: example: Mountain Dew Deliverability criteria: 1. Feasibility: in terms of affordability, resources necessary, time horizon involved, and so forth -- to actually create the POD. 2. Communicability: The factual, verifiable evidence or proof points that can be given as support so that consumers will actually believe in the brand and its desired associations. 3. Sustainability: It depends on internal commitment and use of resources as well as external market forces.

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Establishing points of parity and points of difference: Consumers typically desire to maximize both of the negatively correlated attributes and benefits. eg: BMW (luxury and performance) Gore-Tex (breathable and waterproof) The following three approaches are listed in increasing level of effectiveness but also increasing level of difficulty. 1. 2. 3. Separate the attributes: Example: Head & Shoulders. Leverage equity of another entity: Example : Miller Lite. Redefine the relationship: Example: Apple Computers.

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Updating positioning over time: example: Visa and American Express-Prestige issue. 1. Laddering: It is how to deepen the meaning of the brand to tap into core brand values or other, more abstract considerations. Example: Maslow s hierarchy Failure to move up the ladder may reduce the strategic alternatives available to a brand. Example: Dash detergent by P & G, low-sudsing for frontloading washing machine. Some attributes and benefits may lend themselves to laddering more easily than others. example: Nivea. Caring, gentle and protective.

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2.

Reacting: eg: Goodyear introduced Run-Flat tires (1990), Michelin quickly responded with their Zero Pressure tire, which offered the same consumer benefit. Do nothing: Stay the course and continue brand-building efforts. Go on the defensive: Add some reassurance in the product or advertising to strengthen POPs and PODs. Go on the offensive: Launch a product extension or ad campaign that fundamentally changes the meaning of the brand.

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1.

2.

DEFINING AND ESTABLISHING BRAND VALUES Core brand values: These are those set of abstract associations (attributes and benefits) that characterize the 5 to 10 most important aspects or dimensions of a brand. It can be identified through a structured process: Create a detailed mental map. Mental map: It accurately portrays in detail all salient brand associations and responses for a particular target market. Example: brand users., when you think of this brand, what comes to mind. Brand associations are grouped into categories according to how they are related, often with two or four associations per category. Example -Michael Jordan and Nike.

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Brand mantras: It is an articulation of the heart and soul of the brand. 1. Designing a brand mantra: Brand mantras must economically communicate what the brand is and what the brand is not. The Nike and Disney examples show the power and utility of having a well designed brand mantra. Emotional modifier Nike Disney Authentic Fun Descriptive modifier Athletic Family Brand functions Performance Entertainment

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2.

Implementing a brand mantra: To arrive at the final brand mantra, the following considerations should come into play: Communicate: It should define the category (or categories) of business for the brand and set the brand boundaries. Simplify: It should be memorable short, crisp and vivid. Inspire: Ideally it should also stake out ground that is personally meaningful and relevant to as many employees as possible.

a)

b) c)

There will always be a level of meaning beneath the brand mantra itself that will need to be articulated. --------------------------------------------------------------------------------------16

INTERNAL BRANDING The manner by which the brand positioning is explained and communicated internally. Example: Hewlett Packard, 200 top managers were shown a video of customers talking about how incoherent/disjointed HP had become. From now on, HP had to present one face to the consumer.

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