42 Il BrandManagement

2.1 Introduction
remembered
Branding is all about building a strong brand that is Exhibit 1- Positioning
for all the good reasons both by the customers and consumers. Starbucks
However, customer perception is a variable that organizations
all The Starbucks story began
can only hope to influence. Organizations can communicate in 1971
with a single store in Seattle
the good things about a brand, but how consumers will perceive
number of variables including the roaster and retailer of wholeas
the brand will depend upon a •and ground coffee, tea and bean
customers' own experience with the brand. The unique place the The brand was spices.
is called positioning. named after the
brand occupies in the minds ofthe customers 'first
mate in Herman Melville's
A brand cannot be successfulif it is not well positioned in the 'Moby
Dick'. It evoked the romanceof
minds of the consumers. Positioning a product is therefore the
high seas and the seafaring tradition
integral to the success of a brand. Brand perceptions impact of the early coffee traders.The
business-customerrelationships in the long term (Fournier logo was also inspired by thesea.
1998) and are therefore of strategic importance (Morris 1999). featuring a twin-tailedsirenfrom
The positioning model that is based on consumer perception Greek mythology' and Starbucks
is an invaluabletool for portraying visually the competitive Coffee was inscribed aroundthe
marketplace and also for its diagnosticcapability(Desarbo et siren (refer image l). Over theyears
al. 2002). For successful brand positioning, companies need to the logo underwent some changes
primarily influence the perception of the consumers, and an and the Siren was given 'smalland
organization can use various brand elements to achieve this meaningful updates'. However,
objective (refer Exhibit 1) Starbucks Coffee was alwaysa part
of the logo.
As Starbucks celebratesits
ORBUC&
40th anniversary, the brand has
evolved further. It wants to utilize
the potential of its presencein over
16,000 neighbourhoods across50
countries to the fullest.Starbucks
will continue to retail coffee,butat
1971 198? the same time it wants to widenits
portfolio to include other products
as well. Keeping this in mind it has
retained the siren in the logo,but
from
has removed Starbucks Cottee
it (refer Images I).
will
COFF€€ This new brand identityand
TM
give Starbucks 'freedom
1992 2011 flexibility to explore innovati00S
distribution
and new channels of with
Image 1 : Starbucks Logo from 1971 to 2011 that will keep us in step strong
current customers and build
Source: http://www.starbucks.com/blog/looking-forward-to- customers.
starbucks-next-chapter connections with new
 BrandPositioningIl 43

positioningrequires defining our desired or ideal brand knowledgestructures and establishing

and points-of-difference to establish the right brand identity and brand image.
points-of-parity
Unique,meaningfulpoints-of-difference (PODS) provide a competitive advantage and the "reason
buy the brand. On the other hand, some brand associationscan bc roughly
why"consumersshould
as those of competing brands, so they function as points-of-parity (POPs) in consumers'
asfavorable
minds-andnegatepotential points-of-difference for competitors. In other words, these associations are
to provide "no reason why not" for consumers to choose the brand.
designed
Thechapterreviewshow to identify and establish brand positioning and an examinat_ionof the
a strong brand.
manybenefitsof creating

2.2 Brand Building

Brandbuildingis a strategic process of creating and enhancing a brand's identity, visibility. and reputation
a positiveand enduring connection with its target audience. It involvesa series of planned
toestablish
designedto shape the way a brand is perceived and to foster long-term relationships With
activities
customers.
Thebrand resonancemodel looks at building a brand as a sequence of steps, each of which IS
contingenton successfully achieving the objectives of the previous one. The steps are as follows:
l. Ensureidentificationof the brand with customers and an associationof the brand in customers'
mindswith a specific product class, product benefit, or customer need.
2. Firmlyestablish the totality of brand meaning in the minds of customers by strategically linking a
hostof tangible and intangible brand associations.
3. Elicitthe proper customer responses to the brand.
4. Convertbrand responses to create brand resonance and an intense, active loyalty relationship
betweencustomers and the brand.
Thesefour steps represent a set of fundamental questions that customers invarubly ask about
brands-atleast implicitly. The four questions (with corresponding brand steps in parentheses) are:
l. Whoare you? (brand identity)
2. What are you? (brand meaning)
3. Whataboutyou? What do I think or feel about you? (brand responses)
4, Whataboutyou and me? What kind of association and how much of a connection would I like to
havewith you? (brand relationships)
Noticethe orderingof the steps in this branding ladder, from identity to meaning to response»to
relationships.That is, we cannot establish meaning unless we have created identity; responsescannot
Occur unlesswe have developed the right meaning; and we cannot forge a relationship unless we have
elicitedthe
proper responses,
TOprovidesome structure,
let us think of establishing six brand building blocks with cuatomers we
canassemble in a pyramid, with significant brand equity only resulting if brands reach the top oi the
Pyramid.'Ibis brand-building process is illustrated in Figures 2.1 and 2.2, We'll look at each ot
stepsandcorrespondingbrand
building blocks and their subdimensions the tollowcngsection. AS
44 Il Brand Managenlent

the pyramid represent a more "rational

will become apparent, building blocks up the left side of
to brand building, whereasbuildingblocksup the right side of the pyramid represent a more"emotiond
route." Most strong brands are built by going up both sides of the pyramid.
STAGES OF BRAND DEVELOPMENT BRANDING OBJECTIVES

4. RELATIONSHIPS INTENSE WITH ACTIVE

WHAT ABOUT YOU LOYALTY
AND ME
RESONANCE

3. RESPONSE POsmVE, ACCESSIBLE

WHAT ABOUT YOU? REACTIONS
JUDGMENTS FEELING

2.MEANING PERFORMANCE IMAGERY POINTS OF PARITY

WHAT ARE YOU? DIFFERENCE

1. IDENTITY
SALIENCE BROAD BRAND
WHO ARE YOU? AWARENESS

Figure 2.1 : Brand Resonance Pyramid

Source: Keller, 2013

esonance
Loyalty
Attachment
Community
Engagement

Judgments Feelings
Quality Warmth
Credibility Fun
Consideration Security
Superiority Social Approval
Self-Respect

Performance Imagery
Primary Characteristics and User Profiles
Secondary Features Purchase and Usage
Product Reliability, Situations
Durability, and Serviceability Personality and
Service Effectiveness, Values
Efficiency, and Empathy History, Heritage,
Style and Design and Experiences
Price

Salience
Category Identification
Needs Satisfied

Figure 2.2 : Subdimensions of Brand Building Blocks

Sotoee,• Keller, 2013
 ,grancl Positioning Il

Brand Salience
22.1
the right brand identity means creating brand salicncc with
Achieving
Brand salience measures various aspects of the awarcncss of the
customers.
and often the brand is evoked under various situations
brandandhow easilywhat extent is the
To brand top-of-mind and easily recalled
orcircumstances. types of cues or reminders are necessary? How
What pervasive
orrecognized?
awareness? We've said that. brand awareness refers to customers'
, isthebrand
to recalland recognize the brand under different conditions and to link
ability
symbol, and so forth to certain associations in memory. Tropicana
thebrandname, logo,
Consumers should at least recognize the Tropicana
Forexample,TROPICANA: O'LIGHT
brandwhenit is presented to them. Beyond that, consumers should think of
wheneverthey think of orange juice, particularly when they are
Tropicana
considering buying orange juice. Ideally, consumers would think of Tropicana
whenever they were deciding which type of beverage to drink, especially when
seekinga "tastybut healthy" beverage. Thus, consumers must think of Tropicana
assatisfyinga certain set of needs whenever those needs arise.
Image 2 : Tropicana
2.2.2 Brand Performance
Brandperformancedescribes how well the product or service meets customers' more functional needs.
Howwelldoes the brand rate on objective assessments of quality? To what extent does the brand sati.sty
aesthetic, and economic customer needs and wants in the product or service category? For
utilitarian,
example, Subwayhas zoomed to the top as the biggest-sellingquick-serve restaurant through a clever
positioningof offering healthy, good-tasting sandwiches.
Brand performance transcends the product's
ingredients and features to include dimensions that
differentiatethe brand. Often, the strongest brand
SUBUJAV
positioningrelies on performance advantages of some
kind,and it is rare that a brand can overcome severe
performance deficiencies. Five important types of
attributes
and benefits often underlie brand performance,
as follows:

l. Primaryingredients and supplementary

Image 3 : Subway
2. Productreliability,durability, and
serviceability
3. Serviceeffectiveness,
efficiency, and empathy
4. Stylesand
design
5, Price

2,2.3 Brand
Imagery
othermain type of
Properties
brand meaning is brand imagery. Brand imagery depends on the
of the product or
service, including the ways in which the brand attempt> to meet
 46 Il BrandManagement

about a brand abstractly, rather than what

psychological or social needs. It is the way people think
to more intangible aspects of the brand,and
they think the brand actually does. Thus, imagery refers
own experience or indirectlythrough
consumers can form imagery associationsdirectlyfrom their mouth. Many
as word of kinds of intangibles
advertising or by some other source of information, such
can be linked to a brand, but four main ones are:
l. User profiles
2. Purchase and usage situations
3. Personality and values
4. History, heritage, and experiences
such as Nivea, makers of many different skincare
For example, take a brand with rich brand imagery
intangible associations include: (1) family/shared
and personal care products. Some of its more notable
and (4) childhood memories.
experiences/maternal, (2) multipurpose, (3) classic/timeless,

RES

NJVEA
MEN

Image 4 : Nivea

2.2.4 Brand Judgments

Brand judgments are customers' personal opinions about and evaluations of the brand, which consumers
form by putting together all the differentbrand performance and imagery associations. Customers
make all types ofjudgments with respect to a brand, but four types are particularly important: judgmenb
about quality, credibility, consideration, and superiority.

2.2.5 Brand Feelings

alsore
Brand feelingsare customers'emotionalresponses and reactions to the brand. Brand feelings
late to the social currency evoked by the brand. What feelings are evoked by the marketing programtheir
the hand or by other they? How docs the brand affect customers' feelings about themselves and
relationship with others? These feelingscan be mild or intense and can be positive or negative•
More and more firms arc attempting to tap into more consumer emotions with their brands•
foJIowing are six important types of brand-building feelings;
I, Warmth: Many heritage brands such as Quaker oatmeal, tap into feelings of warmth'
with
2. Fun: With its iconic characters and theme park rides, Disney is a brand often associated
 Brand Positioning Il '17

MTV is a brand seen by many teens and young adults as exciting.

3. Excitement:
4. security:LifeInsurance Corporation is a brand that communicates your welfare is our rcsponsibillty,
5. socialapproval: To older generation of consumers, Cadillac is a brand that historically has been a
signalof social approval.
6. self-respect: A brand like Tide laundry detergent is able to link its brand to "doing the best things
forthe family" to many homemakers.
six feelingscan be divided into two broad categories: The first three types of feelings are
and immediate, increasing in level of intensity; the latter three types of feelings are privatc
experiential
andenduring,increasing in level of gravity.

pat

NEW

Tdg
MUSICTELEVISION

Image: 5

2.2.6 Brand Resonance

The finalstep of the model focuses on the ultimate relationship and level of identification
that the
customerhas with the brands. Brand resonance describes the nature of this
relationship and the extent
whichcustomersfeel that they are in sync with the brand, Examples of
brands with historic-allyhigh
resonanceinclude Harley-Davidson, Apple, and eBay.
Resonanceis characterized in terms of intensity or the depth of the
psychological bond that customer
havewith the brand, as well as the level of activity engendered
by this loyalty (repeat purchase rates and
theextent to which customers seek out brand information and
events, and other loyal cw»tomers).

2.3 Brand
Positioning
BrandPOSitioningis at the heart of marketing strategy. It is the
"act of designmg the company's offer and
imageso that it occupies a distinct and valued place in the target
customer's minds." Positiojung
48 Il BrandManagernent

finding the proper "location" in the minds of a group ofconsumers or market segment,
so
about a product or service in the "right" or desired way to maximize potential benefit that
to the firm
brand positioning helps guide marketing strategy by clarifying what a brand is all about,
howit i,
and how it is similar to competitive brands, and why consumers should purchase and
use it.
Decidingon a positioning requires determining a frame of reference (by identifying
market and the of competition) and the optimal points-of-parity
the
nature and points-of-differenq
associations. In other words, marketers need to know (a) who the target consumer is, (b)
whothe
competitors are, (c) how the brand is similar to these competitors, and (d) how the
brand is

2.3.1 Target Market

Identifying the consumer target is important because different consumers may have different
bro.
knowledge structures and thus different perceptions and preferences for the brand. Without
understanding, it may be difficult for marketers to say which brand associations shouldbe
held, favor able, and unique. Let's look at defining and segmenting a market and choosing target
segments.
A market is the set of all actual and potential buyers who have sufficient interest in, incorru
and access to a product. Market segmentation divides the market into distinct groups of homogenou
consumers who have similar needs and consumer behavior, and who require similar marketingma.
Market segmentation requires making trade-offs between costs and benefits. The more finelysegmeec
the market, the more likely that the firm will be able to implement marketing programs thatm«ti
needs of consumers in any one segment. That advantage, however, can be offset by the greatercosoa
reduced standardization.
Segmentation Bases. Figures 2.3 and 2.4 display some possible segmentation bases for
and business-to-business markets, respectively. We can classify these bases as descriptive or
oriented (related to what kind of person or organization the customer is), or as behavioral or
oriented (related to how the customer thinks of or uses the brand or product).

Behavioral
User status, Usage rate, Usage occasion, Brand loyalty,
Benefits sought
Demographic
Income, Age, Sex, Race, Family
Psychographic
Values, opinions, and attitudes,
Activities and lifestyle
Geographic
International, Re ional
Figure 2.3 : ConsumerSegmentationBasis
 BrandPositioningIl 49

Nature of Good
Kind, Where used, Type of buy
BuyingCondition
Purchase location, Who buys, Type of buy
Demographic
SIC code, Number of employees, Number of
production workers, Annual sales volume, Number
of establishments
Figure 2.4 : Business-to-Business SegmentationBasis
Behavioral segmentationbases are often most valuablein understanding branding issues because
theyhaveclearerstrategic implications. For example, defining a benefit segment makes it clear what
shouldbe the ideal point-of-difference or desired benefit with which to establish the positioning. Take
thetoothpastemarket. One research study uncovered four main segments:
l. The sensory segment: Seeking flavor and product appearance
2. The sociables: Seeking brightness of teeth
3. Theworriers: Seeking decay prevention
4, The Independent segment: Seeking low price
Giventhis market segmentation scheme, marketing programs could be put into place to attract
oneor moresegments. For example, Close-Up initially targeted the first two segments, whereas Crest
primarilyconcentrated on the third. Taking no chances, Aquafresh was introduced to go
after all three
segments,designing its toothpaste with three stripes to dramatize each of the three product
benefits. With
thesuccessof multipurpose toothpastes such as Colgate Total, virtually all brands
now offer products
thatemphasize multiple performance benefits.

Image 6 : Palmolive India

Source: Axis Securities
Marketersoften segment
consumers by their demographics. Demographic segmentation is a marketing
strategythat involves dividing a market into
groups based on demographic factors such as age,
50 Il BrandManagement

gender, income, education, marital status, occupation, race, religion, and nationality. The demographic
segmentation approach is based on the assumption that people who share similar demographicprofiles
are likely to have similar needs, preferences, and buying behaviour. By understanding the
and behaviours of these groups, businesses can tailor their products, services, and marketingmessage
to meet their specific needs and preferences L'Orealeffectively utilizes demographic segmentation,
offering products catering to various age groups and genders. They have skincare and haircarelines
L'Oreal Paris for adults and Maybellinefor younger consumers. Additionally, they offerproducts like
Men Expert specifically for men. Ihrough this segmentation, L'Oreal tailors its products and marketing
strategies to meet the distinct needs and preferences of different demographic segments, maximizing

appeal and relevance.

L'ORÉAL
PARIS

Image 7 : L'oreal
Source:

2.3.2 Criteria for Segmentation

decisions, suchasthe
A number of criteria have been offered to guide segmentation and target mar ket
following:
• Identifiability: Can we easily identify the segment?
• Size: Is there adequate sales potential in the segment?
ble to
• Accessibility: Are specializeddistribution outlets and communication media availa
program?
• Responsiveness: How favorablywill the segment respond to a tailored marketing
 Brand Positioning Il 51

Theobviousoverriding consideration in defining market segments is profitability. In many cases,

can be related to behavioral considerations. Developing a segmentation scheme with direct
profitability
lifetimevalue perspectives can be highly advantageous.
customer

2.3.3 Natureof Competition

Atleastimplicitly,deciding to target a certain type of consumer often defines the nature of competition.
otherfirms have also decided to target that segment in the past or plan to do so in the future,
because
orbecauseconsumersin that segment already may look to other brands in their purchase decisions.
competitiontakes place on other bases, of course, such as channels of distribution. Competitive analysis
considersa whole host of factors including the resources, capabilities, and likely intentions of various
otherfirms,in order for marketers to choose markets where consumers can be profitable served.

2.3.4Points-of-Parityand Points-of-Difference
Thetargetand competitive frame of reference chosen will dictate the breadth of brand awareness and the
situations
and types of cues that should become closely related to the brand. Once marketers have fixed
theappropriatecompetitive frame of reference for positioning by defining the customer target market
andthenature of competition, they can define the basis of the positioning itself. Arriving at the
proper
positioning
requires establishing the correct points-of-difference and points-of-parity associations.

Points-of-Difference
Associations:
Points-of-difference(PODs) are formally defined as attributes or benefits that consumers strongly associate
with abrand,positivelyevaluate, and believe that they could not find to
the same extent with a competitive
brand.Althoughmyriad different types of brand associations
are possible, we can classify candidates as
either functional,performance-related considerations or
as abstract, imagery-related considerations,
POints-of-difference may rely on performance attributes
(Hyundai provides SIXfront and back seat
"side
curtain"airbagsas standard en perform ore all its models for increased safety) or
benefitsIn other cases, PODs come from imagery associations (the luxury
performance
and status unagery of Louis
Vuitton
or the fact that British Airways is advertised as the "world's favourite
airline"). Many top brands
attempt
to createa point-of-difference on "overall superior quality,"whereas
"low-cost other firtns become the
provider" of a product or service.
a host of different types of PODs are possible, PODs are generally
consumer defined in terms of
benefits.These benefits often have important underlying "proof points" or
(RTES), rea»ons to believe
Theseproof points can come in many forms; functional design
system concerns (a unque
technology,leading to the benefit of a "closer electric shave");
key attributes (a unque tread
leading to the benefit of "safer tires"); key ingredients (contains
Preventsdental cavities"); of key endorsements leading to the
benefit
of "superior (recommended by more audio engineers, leading to the
deliverability
music fidelity"), Having compelling proof points and R'l'Bs are often ccitieol to the
aspect of a POD.
Points-of-parity
Points-of-
Associations
factbe shared with
other brands. are three types: and
52 Il BrandManagement

• Category points-of-parity represent necessary-but not necessarily sufficient-conditions

choice. Ihey exist minimally at the generic product level and are most likely at the expectedproduct
level. Thus, consumers might not consider a bank truly a "bank" unless it offered a rangeOfcheckmg
and savings plans; provided safety deposit boxes, traveler's checks, and other such services;andhad
convenient hours and automated teller machines.
• Competitive points-of-parity are those associations designed to negate competitors'pornts.q[
difference. In other words, if a brand can "break even" in those areas where its competitors
trying to find an advantageand can achieve its own advantages in some other areas,thgbrand
should be in a strong and perhaps unbeatable-competitive position.
• Correlational points-of-parity are those potentially negative associations that arisefromthe
existence of other, more positive associations for the brand. One challenge for marketersisthat
many of the attributes or benefits that make up their POPs or PODs are inversely related.Inother
words, in the minds of consumers, if your brand is good at one thing, it can't be seen asalsogood
on something else. For example, consumers might find it hard to believe a brand is "inexpenuve'
and at the same time "of the highest quality",or a food brand that is offering food whichis"tasty'
as well as having "low calories".
To see how POD and POP work in real life, let's look at an example. Figure 2.5 showsthepossible
way that a chain of fast food outlets could challenge the market leader. 'Ihe center circle in thediagram
below highlights the points-of-parity that the rival chain wants to duplicate (which includesa
sumlJ

menu choice, similar in-store dining facilities,and pricing around the same level).
However, the rival firm chain still needs to give consumers a reason to switch, so they have
identified

five points-of-difference to highlight as part of their overall positioning (which are built around
and
quality ingredients and having more flexibilityin the menu for the individual, open 24-7
delivery). The overall combination of POP and POD creates their overall positioning.

24-7

delivery o o Location
O
Similar menu choice,
similar in-store ore
facilities, similar enu
o pricing fl xibility
Higher
o
uality
ingre

Figure 2.5 : Fast foodoutletsPOD and POP

Source: Sergiy S/'ivakovs/qvy(2010)
 BrandPositioningIl 53

2.4 Brand Repositioning

repositioningrefers to the strategic process of changing the way a brand is perceived in thc market.
Brand
Thisinvolvesaltering the brand's positioning, messaging,and often its visual identity to bcttcr align
withtheevolvingneeds and preferences of the target audience. Companies may choose to reposition
theirbrandfor various reasons, such as changes in market dynamics, downward trend in sales, shifts in
consumer behavior,increased competition, lack of brand appeal to younger generations or a desire to
appealto a new audience.
Forestablishednames, successful brand repositioning can refresh a stale image or renew Interest
inanhistoricbrand. Taco Bell- Cheap Mexican Food to Youth Lifestyle Brand. Taco Bell is a Meucan
restaurantthat carried a "Cheap" perception and reputation that was hampering it's growth.
fast-food
Withincreasingcompetition and healthier options Taco Bell needed a new approach. It's repositjonjng
tookon a freshyoung approach and instead of competing on the nutritional value of their food, they
gavetheircustomersthe freedom to make the "lifestyle choices" that worked for them. "Ihe launch of
theexperientialnew "Live Mas!" ("live more") slogan coincided with a number of other posttjomng
changeslikestheir introduction of higher-end "Cantina" venues and revamped interior designs helped
themto shakethe "Cheap" perception to give their customers a modern lifestyle choice.

LiV_
TACO
BELL
Image 8 : Taco Bell
Source: Taco Bell
Anotherexample is Spotify — Free-Music-With-Ads to Content Creator & Tastemaker
Spotifymight seem like a brand well-positioned to thrive in a pandemic•
— it's digital, remote. and
Providesstressed or struggling customers with a welcome escape. However, Spotify
also relies heavily
onrevenuefrom the advertisements served to its many free listeners,
tocutbudgets, COVID caused many advecti.secs
and this business model struggled.
'Ibisrequireda pivot towards a more successful model for the
market --- one that has already proven
Profitable
Withbrands like Netflix. Spotify repositioned itself in two essential
ways: "Ihey increased thew
emphasis on original content like podcasts and Spotify• Originals
curated and they put enormous ettoct into
playlists(from internal experts, external
experts, AL and celebrities),
 54 Il BrandManagement

Spotify's Top Ten Most Popular

Curated Playlists

Image : 9
Source: Spotify

2.4.1 Why Brand Repositioningis necessary?

When a brand tries to alter the position it occupies in the mind of customers, it is termed as repositiorung
There can be a number of reasons for an organization to want to change the position its brand occup es
in the minds of consumers. Some of them are (Sagar et al. 2007), Ramaswamy and Namakumari2009 )
as follows:

1. Lacking in achieving the desired position:

An organization'scurrent positioning strategy might not have achieved the desired results,thereby
compelling the organization to rethink and change its positioning. For example, when Alto was launched
by Maruti, it was positioned as 'the hottest car in town'. However, this positioning failed to clickwiththe
target market and Alto was repositioned as a vehicle for 'young India' with the 'Let's GO'campaign•

PowerCut.

let's
Image 10 : MarutiAlto
Soutve.•CampaignIndia

2
 BrandPositioningIl 55

the market:
2. Topenetrate
market penetration can be achieved by repositioning to increase the usage occasion or to
Increased
widenthe target market. An example is Milkmaid, which was launched in the 1960s for use in tea and
asa convenient form of milk. "Ihe 1980's saw Milkmaid sales plateau and thc company repositioned
coffee
Milkmaidas an ingredient for sweets and other preparations apart from use in tea and coffee. Recipes
printedon the packaging and well-planned advertising campaigns were launched.
were

Mango Shahi 'Iukdå•, 'lutti IYutti Sheer Khurma

Enjoy your

Nöstleid
Milkma

100* roctpe• • www milkmaid

Image 11 : Nestle Milkmaid

Source: Scroll. in

3. Tomatch consumer
preferences:
Consumerpreferences change with time.
WhenMargo,which
has been in existence clean skill-
since1920,was
launched as a medicinal
soapwiththe natural antihaclcciu!
it
qualities of neem, and
was well-received
(refer Image: 12).
However, Quality re
over a period of time, Margo
lostits
appealdue to the
onslaught of new
eautysoaps and
forthesame. consumers' preference
The recent years have seen Ou•u
herbalsoapsand personal L.guuot

regaining care products

their favour with the masses. øae
HenkelSpic,which
bought the brand from MARGOSOAI)
Calcutta
Chemicals, the original owners,
consequently Image : 12
gave the brand a facelift and
S011rce:The Better India Classic Indian .'ldvcrii.se'tnentv
 56 Il

it was tvpositione€l as a tvgulavuse soap, and the hetl"ll flagrance

was tnodetÄ1tedto shed the tnedicinal itnage (Retot•linage: 13),
'10 appeal to the segntent of consuntets, the cote
ingtvdient neetii was retained but it was also ensutvd that the soap
generated lather (Shashidhar
4. Crafting the brand as current: CLE.Ail AM) 'j.
SKIN MAnc,o.
Brands beeonw obsolete and need to be upgtmled to tnak•e thetn
contemponu•y and tvlevant.Ihe section on situation analysis
discusses how Bank of Baroda had to change its positioning to
0\Qtvotne the outdated and boring bank itnage to an exciting
bnxnd with new schetnes and tnodern-day tlwilities. Another
e.xatnple is Hatnatn, which initially launched by Totnco in
1931 as a tnen•ssoap and "as later tvpositioned as a tlunily soap. Image : 13
In 199-1,the pmduct was repositioned as a •herbal skincatv soap' Soume.• At€rgo-J.b01hi Labs
that could be trusted tor skincare. Ilistor.v of Indian advcrsinsing (C)/

Yama Ä -EV Y HILO SAFE.

JOIN THE HAMAM
MOTHERS'SAFETY FORCE.
a nussea call on 216 0' too on to homanvin
aGoSafeOgtside

Imago 14 : Hamam
Source: Equi0'

5. Change In market or market conditions:

Change in the existing jnarket conditionsor entry into a Il
new jnarket calls for repositioning
For example, Mcl)onald's tjied to reposition itselfas an
econonlie brand by launching the
 BrandPositioningIl 57

andthe, 'Baap ke Zamaane ke Daam', or prices that were charged during the times of your father,
menu
campaign.

MCDona1dS EACH
HAPPMENU
PRICE

Image : 15
Source: Brookings Institution

6. Toovercome
competition
Arethin
k in the positioning can be forced by increasing competition in the segment. For example,
Philips
has been a dominant player in the Indian electronics market for many years.
The arrival of
Korean
players,such as Samsung and LG, however, heated up the market for Philips. To
overcome the
comPetition,
Philipslaunched the 'Sense and Simplicity campaign. "Ihey studied that many
modern day
gadgets
saddleconsumers with more features than they can handle and functions they
This will never need.
Philipsincorporated the 'Simplicity Litmus Test', whereby each product was designed sound
userneeds,was easy to experience, i.e., was not complex specific
atthesame and the features could be understood easily, and
time was technologically advanced and innovative,
IfanOrganizationmanages its brand positioning
well by re-positioning and staying current then
theProductlife cycle can be
extended and the company can generate profitability through continued
consumer
interest and preference. It has been studied that repositioning
Positively leads to a turnaround and
impactsthe performance
of the con)pany (Boyne
 58 Il BrandManagement

2.4.2 Repositioning Strategies

The generic repositioning strategies discuss the following ways by which organizations can attempt
to
reposition themselves:
A. Image repositioning
B. Product repositioning
C. Intangible repositioning
D. Tangible repositioning

Image repositioning
When the same product of an organizationis launched again in the same market it is termedas
repositioning. The idea is to change the image of the organization, so that it is perceived favourablyby
the target audience. When Maruti launched Omni, it was positioned as a Multi-Utility-Vehicle (MUV).
The car had to face tough competition from Matador and Tempo and could not acquire a dominant
position in the van market. Maruti then repositioned the van as 'the most spacious family car atthe
lowest price', which proved to be more advantageous. Another example is Dettol, which was positioned
as an antisepticliquid for cuts and bruises. It was then positioned for multiple uses like after-shave
purposes, washing babies' clothes, cleaning, etc. This repositioning helped it increase its use and hence
its sales,

healtbyhomeo I Stet•

DettolAntiseptic
Disinfectant Liquid
from 100 illness causing germs
-
MultipurposeDisinfectant that protects

iö
Image : 16
Source: Healthy Homes

Product repositioning
to
Targeting the same market with a different product is called as product repositioning. This is done
make the product more relevant and attractive to the current target market. Most of the
come out with product modifications and newer variants to attract customers. For example,
companies launching their latest models. Hyundai, for instance, launched Santro in India in 1998
image 17) and in 2003 the Santro Xing (refer linage 18) as the new improved version of the earlier
with better performance, international design, etc.
 The '

Image : 17 Image : 18
Source: Team-BHP.Com Source: Youtube

repositioning
Intangible
repositioning.
When thesameproduct is launched for a different target market, it is called as intangible
Forexample, Cadbury'sDairy Milk was earlier targeted at children. Saturation of the market made them
campaign.
shiftthetargetto the youth as well with the 'Asli Swaad Zindagi Ka' or the 'Real Taste of Life'
During festiveseasons like Diwali, Rakhi, and Bhaidooj, it was positioned as a substitute for sweets and
astheidealgift for a brother or a sister. Currently, adults are also being targeted with the campaign
"hidge memeetha,to ghar meetha",which means that if you have sweets in your refrigerator then you
willalsohavepositive vibes in your house.

Image : 19
Source,' The Retail Times
tangible
repositioning
ena newproduct
is launched for a different target market, it is terjned as tangible repositioning. For
Lifebuoylaunched LifebuoyPlus-the old Lifebuoy with a liquid Lifebuoy
 60 Il BrandManagement

and Lifebuoy Gold-a white coloured soap with a different fragrance and even priced higher to tapthe
market (Ramaswamy and Namakumari 2009; Sagar et al. 2009; University of Nottingham 2009).
To be successfuland relevant to consumers, brands need to occupy a favourable positioninthe
minds of the consumers.If the positioning does not have the desired effect, organizationscanattempt
to reposition their brands. The end result is to ensure that the brand occupies a favourableposition
in the particularcategoryit operatesin. However,the environment is dynamic and brandsalsoneed
to adapt themselves with the changing social, political, economic, and technological factors. This
for repositioning exercises over a period of time. The strategy adopted for repositioning can be chosen
according to the type of repositioning the organization wishes to undertake.

2.5 Brand Life Cycle

Understandingthe brand life cycleis crucial for any business to establish and maintaina successful
brand- Similar to products, brands go through distinct phases, including phases of introduction, growth
maturity, and decline. Businessesmust successfully manage their brands in the market by navigating
the various opportunities and challenges presented by each stage. Identifying a brand's life cyclestageis
crucial for formulating wise decisions regarding product development, marketing tactics, and resource
distribution.
Thefour brand life cycle stages are:

2.5.1 The IntroductionStage

ies
In the minds of consumers, a brand' life cycle truly begins at the introduction phase. Compan
extensively promote their brands and goods during the introduction phase, as well as execute tradeshow
and in-store promotions for potential wholesale and retail customers, respectively.
a
The primary goal of company advertising is to increase brand recognition. In order to recover
portion of their development costs, companies typically charge a relatively high price for their brands
when they first launch. There is little to no competition at this point. As a result, a strong brand concept
will typically result in significant sales and advance the brand into the growth stage.

2.5.2 The Growth Stage

When sales begin to grow exponentially, brands move into the growth stage of the product lifecycle
Brand managers may decide to expand distribution during the growth stage in order to boost sales
more. A business may also enhance the quality of its product brands by incorporating new tastes brands
characteristics. As a result of one or more businesses' success, new com petitors with their own
will enter the market. In an effort to increase their marketing share, some rivalsmight try to cut
prices.

2.5.3 The Maturity Stage

aged
A companys brands will eventually reach the maturity stage of the product life cycle clue to
competition. %ere may be intense competition for market share as a brand matures. Due to the
limited potential, new competitors frequently struggle to make an impact.
 Brand Positioning Il 61

Abusinessfrequently needs to tailor its product brand to appeal to a particular market niche. For
the business that pioneered the market might have concentrated on becoming the leader in
instance,
Topreserveits premium image, the company might continue to charge comparatively more. The
quality
marketmay include older users with a higher household income.
target

Stage
25.4 The Decline
declinestageis the point at which a company's product brands' sales begin to decline. Currently,
arestillwaysto increase the product's lifespan, such as expanding the brand into foreign markets or
there
discoveringnewapplicationsthrough brand repositioning. In the end, if a brand is no longer profitable,
itmightneedto be sold or gradually discontinued.

EARLY STAGE MID STAGE LATE STAGE END STAGE

BEhNiTOS OßEO

2015Stage TL 1% 11% 85% 2%

Avg. • IS Brand $ 41% 2% -15%

Image : 20

2.6 Brand Personality

lustlikepeoplehave personalities, brands can have personalities, which help customers connect and
Understand brands on a deeper level. Brand personality is a recognizable set of characteristics and traits
thata brandconveysto its customers. It refers to a set of human characteristics that are attributed to
abrandname.An effectivebrand increases its brand equity by having a consistent set of traits that
aspecificconsumer segment enjoys, "Ihis personality is a qualitative value-add that a brand gains in
additionto its functional benefits. If the consumer becomes a regular customer. they may start to identify
Parts
Oftheir own personality
with the brand personality,
2.6.1
BrandPersonality Traits
company's brand personality
abrand elicits an emotional response in a specific consumer segment. Developing
Personalityaims to encourage positive behaviours that advance the company's interests. It a
rand's
Personalityappeals to them, they are more likelyto buy it. Five dimensions that aid in defining
62 Il BrandManagetnent

and characterising a brand's personality have been developed by behavioural scientist and
professor Jennifer Aakeras part of her Brand Personality Framework (refer to figure2.6)
1. Excitement: Carefree, spirited, playful, modern, trendy, and youthful. For example,
athletes can relate to Nike's livelybrand persona. The company's motto, "Just Do It,"conjuresupG
image of a motivated, fit individual who is constantly eager to take on new challenges.
2. Sincerity: Kindness,thoughtfulness, and an orientation toward family values,environment,
sustainability,or care for workers and communities. For example, Dove chooses Sincerity
brand personality.In doing so, the business hopes to draw in female customers whodislike
ts
superficial image that many personal care and beauty brands are linked with.
3. Ruggedness: Rough, tough, outdoorsy, unfussy, and athletic. Rugged brands are outdoorsy.
and associated with resilience and durability —for example The North Face and Jeep.Theytendt
appeal to customers who value strength, longevity, and durability in products or services.Showcar
bold imagery, powerful statements, and content that align with a daring and adventurouslifew,t
to appeal to an audience seeking thrilling experiences.
4. Competence: Successful, accomplished, and influential, which is highlighted by leadershe
Apple'sleadership in the tech industry has been established through consistent reinforcement
their brand values and the use of sleek and simple advertising tactics. "Ihese strategies havefostered
strong brand loyaltyand driven consumer behaviour. Apple is a shining example ofhow a company'
success can be fueled by a distinct brand personality.
5. Sophistication: Elegant, prestigious, exclusive, luxurious, and sometimes even pretentnn•
For example, Luxurious brands, like Chanel and Michael Kors, strive to develop a glamorous
sophisticated personality that draws in affluent customers.
Particularly in the digital age, where automation and artificial intelligence (Al) technoU'V

and having businesses anticipate their needs, research indicates that people still prefer tace-tO"taCC
communication and direct customer service when doing business with corporations.

Personality

eaiia
Traits

Dove
Figure : BronOPersonality Traits
 BrandPositioningIl 63

Brand Image
18.2
refersto the perception or impression that consumers have about a particular brand. It is
impressionthat a brand creates in the minds of its target audience, encompassing various
—nt_ssuchas brand identity, values, personality, and the emotional connections it establishes with
_t„sumers.
Astrong and positive brand image is crucial for building trust, loyalty, and preference among
coumers.
Busedon the personal perceptions of associations that consumers have with the brand, an image
brandis created-Like,Volvo is known for its safety. Toyota is known for its dependability. Being
firsteco-friendlyapparel brand to use hemp in every product, Arrow Clothing Brand solidified its
Compared to cotton, polyester, or other fibres, hemp is a more sustainable and friendly raw
reputation.
materialfor the environment. By investigating novel approaches to weave hemp thread for stronger
dothing added features like waterproofing and rip-resistant fibres, the brand upholds its reputation
forsustainabilityand toughness.

Image : 21
Theconceptof brand image holds that when a customer buys a product or service,
buyingtheimagethat goes along with it. A they are also
brand should have a distinct, positive, and instant image.
Astrongimageof the brand can boost recognition and foster
the development of a devoted customer
basethatwillbring in money for the business for many years to come.
Brand communications, such
aspackaging,word-of-mouth marketing, advertising, and other promotional strategies, can help to
frengthenbrand images. In contrast to the image of its competitors, a product's brand
and image develops
communicatesits character in a distinctive way.
Factors
influencingbrand image
Several
factorscontribute to
shaping a brand's image:
BrandIdentity: This includes
elements like the brand name, logo, color scheme, and other visual
elementsthat help distinguish the brand from others.
BrandMessaging: The
way a brand communicates its values, mission, and unique selling
Pr0POsitions
plays a significant role in shaping its image. Consistent and compelling messaging
helpsestablish
a clear brand identity.
 64 Il BrandManagetnent

quality of a brand's products or m,e.

• Product and Service Quality: 'Ihe actual performance and
brand's offerings can enhance
contribute significantly to its image. Positive experiences with a
reputation.
• Customer Experience: The overall experience customers have when interacting Witha
from purchasing to customer service, can impact the brand image. Positive experiences can
favorable perceptions.
• Marketing and Advertising: The way a brand promotes itself through various channels.
advertising, social media, and other marketing efforts, influences how it is perceived by the
• Brand Associations: The associations consumers make with a brand, including any
endorsements or partnerships, can shape its image. Positive associations can enhance
Cultural and Social Factors: lhe cultural and social context in which a brand operates can imp.:
its image. Adapting to societal trends and values can help a brand stay relevant and appe—
Consistency: Maintaining consistency across all brand touch-points is crucial. Inconsida
messaging or visual elements can confuse consumers and weaken the brand image.
Competitor Comparisons: How a brand compares to its competitors can also influence Its
Highlighting unique strengths and differentiators is essential.
Brands often invest significant resources in brand management to carefully cultivate and maantuoj
positive image. A positive brand image can lead to increased customer loyalty. positive word-of-mouli
and a competitive advantage in the market. Conversely, a negative brand image can result in Iou oitr'0L
customer dissatisfaction, and a decline in market share.

Topic Review Questions

What is positioning? Discuss with the help of examples.
(22, Explain the concept of Brand Building? Explain with the help of examples.
Q3. How can organizations decide on the positioning strategy?
Q4. Out of the varjous options availableto position brands, which do you think are the four
physical aspects of the product, this is called tangible repositioning.
Q5, With the help of discuss the ways which an organuatlOJi can repo.ition
the majiet,
06. Discuss the relevance of repositioning brands,
07. Briefly discuss upon the life stages of a brand.

Critical Thinking Questions

Q), Identify brand that has been in the mackeq»lacefor more than two decades,
have
its brand history Identiij the areas ot strengths and weaknesses and how you nughi

Q2, Choose a brand that you feel is not appropoaiely positioned, Pelingate the for
What strategy can you suggest to gain fivourable po.ioomng this brand?
JJJ