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Brand Positioning & Values

This document discusses brand positioning and values. It defines positioning as identifying the optimal location of a brand in the mind of consumers compared to competitors. It also discusses the concepts of mass customization, target markets, segmentation approaches, points of parity and difference, and updating positioning over time. The key steps for positioning are identifying the target customer, main competitors, how the brand is similar and different to competitors.

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Tech Zenith
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51 views21 pages

Brand Positioning & Values

This document discusses brand positioning and values. It defines positioning as identifying the optimal location of a brand in the mind of consumers compared to competitors. It also discusses the concepts of mass customization, target markets, segmentation approaches, points of parity and difference, and updating positioning over time. The key steps for positioning are identifying the target customer, main competitors, how the brand is similar and different to competitors.

Uploaded by

Tech Zenith
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Brand Positioning &

Values
Positioning
 Identifying optimal location of a brand and
its competitors in the mind of consumers
or a market segment to maximize potential
benefit to the firm
 “Location” of the product is such that the
consumers/market segments think about
the product/service in the desired way
Basic Concepts
 Death of “one-size-fits-all”
 Mass production >> Mass customization
 “act of designing the company’s offer and
image so that it occupies a distinct and valued
space in the target customer’s mind
 Key steps:
 Who is the target customer?
 Who are the main competitors?
 How is the brand similar to the competition?
 How is the brand different from the competition?
Target Market
 Market – set of actual and potential buyers – motivation, ability
and opportunity to buy your product
 Market segmentation – Dividing into Homogenous consumer
groups
 Customization vs. Cost tradeoff – is “Mera wala green”
profitable
 Segmentation base:
 Descriptive – Customer Oriented (who is the customer?)
 Behavioral – Product oriented (customer’s product usage)
Segmentation Approaches
“Market Facts” a research company has
developed a conversion model to measure
strength of the psychological commitment
between brands and the consumers
openness to change.
Segmentation Approaches
This model segments users into-

 Convertibles – Threshold of change-highly likely to


switch brands
 Shallow- Not ready to switch, but may be considering
alternatives
 Average – comfortable with their choices, unlikely to
switch in future
 Entrenched – staunchly loyal, unlikely to change at all
Segmentation Approaches
Behavioral – most valuable - for e.g. toothpastes
and /or deodorants –
 Sensory- seeks flavor & product appearance
 Sociables- seek social acceptability –brightness
of teeth, fresh smell.
 Worriers – seek decay prevention
 Independent – seek low prices
Criteria for Segmentation
 Identifiability
 Size
 Accessibility
 Responsiveness
 Profitability- most important
Positioning Guidelines - Steps
1. Define & communicate a Competitive
Frame of Reference (FOR)
2. Choose POP and/or POD
3. Establish these POP/POD
4. Update Positioning over time
Step 1 -Establish a competitive Frame
of Reference
 Communicate brand category membership
 Provides consumers with a frame of
reference & avoid confusion in consumers
mind
 Important when introducing new products
– ITC- Wiils-Fiama, Bingo etc.
 Well established brands do not need this –
Coke- beverages, Kellogs, McKinsey etc.
Competitive Frame of reference
Company can straddle 2 or more frames of
reference –
 BMW – luxury & performance
 Kellogs – taste & health
 Maggi – fast to cook, healthy to eat
Step 2 -Choose POP/POD

1. Desirability Criteria
 Relevance
 Distinct
 Believable

2. Deliverability Criteria
 Feasible
 Communicable
 Sustainable
Points of Parity
1. Category POP- necessary for a credible
offering –
 Banks must have different saving options. ATMs,
lockers etc.
 Creams must moisturize and keep skin soft – gentle,
protective, caring

2. Competitive POP- negate competition’s POD-


 CNN – POD- in-depth and up-to-date news channel
 POP - adopted varied programming such as interviews
& talk shows like other channels
Points of Difference
 Strong
 Favorable
 Unique brand associations
Based on
 Attribute
 Benefit
 Develop a USP & a Sustainable Competitive
Advantage (SCA)
Points of Difference
 Attributes – Kraft cheese – more milk
 Benefit - Ikea – reasonably priced furniture and
home furnishings for the mass market, TV’s with
remote locators
 USP –
 Dettol vs.Savlon – does not burn
 Iodex vs. Moov – does not leave stains
 Crocin vs. Vicks Action 500 – fast relief
 Lays chips vs. Bingo chips
Step 3 - Establish POD & POP
1. Separate the attributes – Head &
Shoulders – 2 attributes – dandruff
removal & sleek, shine and healthy hair
2. Leverage equity of another entity – brand
ambassadors – Sachin Tendulkar &
Boost, Reid & Taylor
3. Redefine relationships – Apple’s
Mackintosh – user friendly & powerful
Establish POD & POP
 Taste vs. low calories
 Low price vs. quality
 Powerful vs. safe
 Family & Fun
 Nutritious vs. taste
Step 4-Update Positioning over time
1. Laddering – move from low level needs to
higher level needs - Involves a progression
from attributes to benefits to value creation –
(Maslow’s Heirarchy)
• Cream/lotions – moisturizes skin- healthy &
glowing skin- beauty & confidence
2. Reacting –
 Do nothing
 Defensive
 Offensive
3. Create Brand Mantras
Updating brand positioning
 Laddering – Product functions >>> core values

Abstract values
Motivations

Benefits

Attributes
Brand Mantras
 Short 3-5 word phrases that capture the essence & spirit
of brand positioning & values
 Expression of “Heart and soul” of brand
 Creates a mental filter to screen out inappropriate
marketing activities
 Communicate the category and boundaries
 Simplify.. & make brand memorable
 Inspire – stand out with a higher meaning
 3 Aspects –
1. Emotional Modifier
2. Descriptive Modifier
3. Brand function
Brand Mantras- 3 Aspects
Emotional Descriptive Brand
Modifier Modifier Functions

Authentic Athletic Performance

Fun Family Entertainment

Fun Folks Food

Magic Masti Movies

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