Brand Positioning and Values Brand Positioning

BRAND POSITIONING AND VALUES
Brand Positioning
Brand positioning: The act of designing the companys offer and image so that it occupies a
distinct and valued place in the target customers' 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
Brand Identity:
Determining the frame of reference will primarily influence deciding on Brand Identity and
Positioning.
Frame of Reference is based on:
Market Segmentation
Target Marketing
Marketing Research
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.
Targeting Market is deciding which market segment(s) present the greatest opportunity.
Segmentation bases:
1. Descriptive or customer oriented: Related to what kind of person or organization is
the customer.
2. Behavioral or product oriented: Related to how the customer thinks of or uses the
brand or product.
e.g.: Toothpaste market.
Sensory-Flavor and Appearance
Worriers-decay
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Sociable-brightness
Independent-low price
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Effective Segmentation Criteria:

* Identifiability
* Size
* Accessibility
* Responsiveness
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 loyal; unlikely to change in the foreseeable 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:
1. Strongly unavailable: Strongly prefer their current brand.
2. Weakly unavailable: Preference lies with their current brand, although not strongly.
3. Ambivalent: As attracted to the other brand as to their current choice.
4. Available: Prefer the other brand but have not yet switched.
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.
E.g.: Baskin-Robbins.1990, frozen coffee drinks, dcor, Became competitors of
Starbucks, Jamba juice
Positioning Guidelines
Key Issues:
Defining and communicating the competitive frame of reference.
Choosing and establishing Points of Parity and Points of Difference.
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POP AND POD
Points-of-difference (PODs) are attributes or benefits that consumers strongly associate

with a brand, positively evaluate, and believe that they could not find to the same extent
with a competitive brand. Ex. BA worlds favorite airline. Magnavox - consumer friendly
TV: smart sound & remote finding button.
Points of difference associations: PODs are strong, favorable and unique brand
associations for a brand. It is similar to the notion of unique selling proposition (USP).
E.g.: Anacin. Three boxes in the skull of a for headache sufferer, -Are you looking for
fast, fast, fast relief?
Sustainable Competitive Advantage: SCA relates, in part, to a firms ability to achieve an
advantage in delivering superior value in the marketplace for a prolonged period of time.
E.g.: Subaru. As seen as me too car, - Inexpensive and built to stay that way
-upgraded image and price, all wheel drive car
Points-of-parity associations (POPs), on the other hand, are not necessarily unique to
the brand but may in fact be shared with other brands.
It is designed to negate competitors POD.
e.g.. Miller Lite tastes great but less filling.

Chevy Malibu as good as Camry but lower price.
a) 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.
e.g. Nivea. -gentle, protective and caring
b) Competitive points of parity: These are those associations designed to negate
competitors points of difference.
e.g. Miller Lite Beer, taste great, less filling 96 calories comparing 150 calories of
others
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.
E.g.: Snack Wells. reduced fat snacks, attractive swimsuit couple, -Passion, Desire,
devotion, Nah, its goes beyond that ,
Defining and Communicating the Competitive Frame of Reference:

Key factors:
Informing, Educating and attracting target consumers.
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Effective use of IMC process

e.g. FedEx. Overnight Delivery Services-ONDS
Communicating category membership informs the consumer about the goals that they might
achieve by using a product or service.
e.g. 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.
e.g. Zima. Itz a secret, Itz 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.
e.g.: BMW. Luxury cars were seen as lack of performance. The Ultimate Driving machine,
Luxury performance car
Main ways to convey a brand category membership

1. Communicating category benefits-
Performance
2. Comparing to exemplars-
if Frosted Flakes then Wheaties
3. Relying on product descriptor-
USAir changed USAirways
Choosing Points of Parity and Points of Difference:

Desirability criteria:
1.Relevance:
e.g.: Clear version of products introduced in early 1990s., did not work
2.Distinctiveness:
e.g.: Aleve, consumers were concern on fast relief than the long lasting relief
3.Believability:
e.g.: Mountain Dew
Deliverability criteria:
1. Feasibility: in terms of affordability, resources necessary, time horizon involved, and
so forth -- to actually create the POD.
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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.
Establishing Points of Parity and Points of Difference:

Consumers typically desire to maximize both of the negatively correlated attributes and
benefits.
e.g.: 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. Separate the attributes:
e.g.: Head & Shoulders.
2. Leverage equity of another entity: e.g.: Miller Lite.

3. Redefine the relationship:
e.g.: Apple Computers
Updating Positioning Over Time:

Strategies:
Laddering
Reacting
e.g.: Visa and American Express-Prestige issue.
Laddering: It is how to deepen the meaning of the brand to tap into core brand values or
other, more abstract considerations.
E.g.: Maslows hierarchy
Failure to move up the ladder may reduce the strategic alternatives available to a brand.
e.g.: Dash detergent by P & G, low-sudsing for front-loading washing machine.
Some attributes and benefits may lend themselves to laddering more easily than others.
e.g.: Nivea. Caring, gentle and protective.
Reacting:
e.g.: Goodyear introduced Run-Flat tires (1990), Michelin quickly responded with
their Zero Pressure tires, which offered the same consumer benefit.
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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.
Defining and Establishing Brand Values:

Core Brand Values
Brand Mantras
Core Brand Values:
Core Brand Values are those set of abstract associations (attributes & benefits) that
characterize most important aspects or dimensions of a brand.
It serves as the basis for brand positioning in terms of how they relate to POP &
POD.
Ex. Brand values for Toyota could be
Durability,
Service-ability,
Resale-ability etc.
Core brand values 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:
1. Create a detailed mental map.
Mental map: It accurately portrays in detail all salient brand associations and responses
for a particular target market.
E.g.: brand users, when you think of this brand, what comes to mind.
2. Brand associations are grouped into categories according to how they are related,
often with two or four associations per category.
e.g. Michael Jordan and Nike.
Brand Mantras
Brand Mantras are short three to five word phrases that capture the spirit of the
brand positioning and brand values
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Ex. AIUB Where Leaders are Created,

Disney Fun Family Entertainment
Panasonic Ideas for Life
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.
Nike
Disney
Emotional
Descriptive
Brand
modifier
modifier
functions
Authentic
Athletic
Performance
Fun
Family
Entertainment
2. Implementing a brand mantra: To arrive at the final brand mantra, the following
considerations should come into play:
a) Communicate: It should define the category (or categories) of business for the
brand and set the brand boundaries.
b) Simplify: It should be memorableshort, crisp and vivid.
c) Inspire: Ideally it should also stake out ground that is personally meaningful and
relevant to as many employees as possible.
There will always be a level of meaning beneath the brand mantra itself that will need to
be articulated.
Internal branding:
The manner by which the brand positioning is explained and communicated internally.
e.g.: Hewlett Packard (200 top managers were shown a video of customers talking about
how incoherent HP had become. From now on, HP had to present one face to the
consumer.)
Note: For details please see text & reference books.
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BRAND POSITIONING AND VALUES

Effective Segmentation Criteria:

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 loyal; unlikely to change in the foreseeable future.

The nature of competition may depend on the channels of distribution chosen.

POP AND POD

Points-of-difference (PODs) are attributes or benefits that consumers strongly associate

It is designed to negate competitors POD.

e.g.. Miller Lite tastes great but less filling.

Defining and Communicating the Competitive Frame of Reference:

Effective use of IMC process

Main ways to convey a brand category membership

if Frosted Flakes then Wheaties

3. Relying on product descriptor-

USAir changed USAirways

Choosing Points of Parity and Points of Difference:

Establishing Points of Parity and Points of Difference:

e.g.: Head & Shoulders.

2. Leverage equity of another entity: e.g.: Miller Lite.

e.g.: Apple Computers

Updating Positioning Over Time:

Do nothing: Stay the course and continue brand-building efforts.

Defining and Establishing Brand Values:

Core Brand Values:

Ex. AIUB Where Leaders are Created,

1. Designing a brand mantra: Brand mantras must economically communicate what

Note: For details please see text & reference books.

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