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Customer-based

Brand Equity
and
Brand Positioning
2
h
C
:
5
6
4
MKT

Ch s
d
a
He

1. Customer-based
Brand Equity
(CBBE)
2. Sources of Brand
Equity
3. Brand Positioning
4. Establishing
Positioning
5. Positioning
Guidelines
6. Brand Mantra

1. Customer-based Brand Equity (CBBE)


Satisfying the NWDs of
the Target Market
Power of a brand lies in
what customers have
Learned, Felt, Seen.
Heard and have
Experienced
CBBE is The differential
effect that Brand
knowledge has on
Customer Response
Positive Equity:
favorable Response
(Ps)

Negative Equity:
unfavorable Response

3 constructs of Brand
Equity

Creating the
Brand Differential
Effect : Generic
(price based
competition) vs
Brand (Value
based competition)
Creating Brand
Knowledge
Ensuring Positive
Response:
reflected on

1. Customer-based Brand Equity (CBBE)


Advantages of Strong Brands

t
n
e
m
t
s
e
Inv ld be
u
o
sh sed on
u
c
fo
y
t
i
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a
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qu ing b y
t
d
l
i
i
t
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bu
a
t
u
n
q
e
e
m
th vest
n
i
f
o

Better Perceptions
Greater Loyalty
Larger Margins
Less vulnerability to
Competitive Marketing
Actions and Market Threats
Inelastic response to price
increase and Elastic
response to price decrease
Brand Extension and
Expansion opportunities
Greater Trade/ Gvt Support

2. Sources of Brand Equity (CBBE)


en
h
w
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r
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c
c
o
E
B
B
C
a
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A. the
high level of

awareness

y
t
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,
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B. hold
favorable and
unique brand
associations in
memory
n
w
o
n
k
o
ls
a
e
r
a
These
omponents of

2. Sources of Brand Equity (CBBE)


A. Awareness: Brand Recognition and
Recall: low involvement product
. Recognition: familiarity upon exposure
(plays an important role at Point of
Purchase decision making )
. Recall: Retrieve from memory : product
category wise (plays an important role if
the decisions are made away from Point
of Purchase)

2. Sources of Brand Equity (CBBE)


ss :
e
n
e
r
a
w
a
f
o
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ister
g
re
o
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is
y
it
Advantage
u
q
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uilding
b
f
o
p
e
t
s
t
s
r
f
e
Learning: th
rs
e
m
u
s
n
o
c
f
o
s
d
min
e
th
s
e
s
a
e
r
the brand in the
c
in
s
s
e
awaren
g
in
is
a
r
:
n
io
t
a
the
f
o
r
e
b
m
Consider
e
m
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th
ill be
w
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t
t
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likelihood t
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is
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v
fa
o
evoke set
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d
a
ess le
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re
a
w
a
f
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ts :
c
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o
r
p
t
n
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Choice: high
m
e
lv
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w
lo
e
h
t
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fo
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ll
ia
c
or low
n
io
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ia
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n
making ( espe
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r
e
if
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n: low
io
t
a
iv
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o
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e
s
a
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c
r
Establishing
lack of pu
Brand Aware
)
e
ness:
g
d
ability to ju Repeated Exposer
: of brand
elements thro
ugh IMC
Experiences:
Marketing Mix
Comparison
and Parity

2. Sources of Brand Equity (CBBE)


n
e
l
b
a
r
o
v
a
f
,
g
n
o
r
t
s
:
e
g
a
m
I
d
n
a
B. Br
d
n
a
r
B
h
t
i
w
n
o
i
unique Associat
e
t
u
b
i
r
t
t
a
:
s
e
i
Personalit
d
e
s
a
b
y
t
i
l
a
n
o
s
r
e
p
/
e
u
l
a
v
/
t
f
e
n
(USP)/be
s
f
e
li
e
b
s
e
t
a
r
e
n
e
G
nodes.
n
o
s
d
n
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p
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d
n
io
t
ia
c
o
s
s
A
f
o
h
t
g
n
e
r
t
S
+
M
O
W
(
s
e
c
n
ie
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p
x
e
,
e
c
n
a
v
le
e
r
l
persona
)
o
f
in
f
o
s
e
c
r
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o
s
d
e
ll
o
r
t
n
o
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p
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co
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io
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b
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a
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io
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ia
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s
A
Brand
o
t
g
in
d
r
o
c
c
a
y
r
a
v
d
n
a
t
n
e
d
n
e
p
e
d
t
x
conte
to achieve in that

The Harley Davidson: rugged, macho, freedom-seeking.


Nike: High ambition, young, will for victory, performance, attitude,
excitement.
Adidas: hardworking, muscularity, down to earth, confdence
Thumbs up : bravery / daring
Liril : freshness & Lime
Lux : Beauty, softness
Dove : Softness
Bisleri : Safety
Bajaj Pulsar : Power
Yamaha : Power
Titan : Style, elegance
Cinthol : Freshness
Pepsi: fun, sporty, music, high energy
Coke: emotional bonding, happiness, to inspire moments of
optimism and uplift
BMW: performance, experience sophisticated, stylish, dominant,
sporty & aggressive
Benz: elegant, prestigious , excellence, luxury, traditional.
Audi: progressive, creative, socially inspirational, innovative
Blackberry: professional, classy, independent
Nokia: amateur, fun, colors, relations
Vodafone: faithful, always following.

2. Sources of Brand Equity (CBBE)


Brand
f
o
h
t
g
n
e
r
t
s
e
2 factors of th
association
bout
a
s
k
in
th
n
o
s
r
e
p
a
The more deeply
isting
x
e
o
t
it
s
te
la
e
r
n and
io
t
a
m
r
fo
in
t
c
u
g
d
in
lt
pro
u
s
re
e
h
t
r
e
g
n
e stro
h
t
,
e
g
d
le
w
o
n
k
d
Fa vo r a b i l i t y
bran
.
of Br and
e
b
l
il
w
s
n
io
t
ia
c
o
s
s
a
d
A s so c i ati o n
bran
:
e
c
n
a
v
le
e
R
l
a
n
o
s
By convin
a. Per
cing consum
y
c
n
e
ers
t
is
that the bran
b. Cons
Uniqueness of
d possesses
relevant attr
ibutes and
Brand Association
benefts that
BA is based on USP
satisfy their
NWDs
either by
All Brand
Associations
PODs/POPs or
are
not equally i
mp to the cu
directly
s.
Associati
o
n
is
POP is done for
context

3. Brand Positioning
Brand Positioning
Positioning is designing companys oferings and
image in such a way that is occupies a distinctive
place in the minds of the target customers.
You must establish a mission for the brand and a vision
of what the brand must be and do!
3 levels of Positioning:
A. Positioning by Product Attributes: Pampers,
Colgate, Comtrex, Ritz Carlton Hotel (luxury), Motel
6 (economy) etc
B. Positioning by Product Benefts: Fair and
Lovely, Nike (performance), Volvo (safety)
C. Positioning by creating Values and Beliefs:
Starbucks, Cadbury, Coke, GP.

4. Establishing Brand Positioning

Deciding on Positioning require determining Three dime


I. Market Segments
II. Competitors and Nature of Competition
III. Points of Parity (POPs) and Points of Difference (PODs

II. Co
III. Points of Parity
mpet
itors
N
a
t
u
and
(POPs) and Points of
r e of
Comp
Difference (PODs)
etitio
n
Category
Frame
Competitive
of Ref
shoul
d both erences
Co-relational
marke
indus
t
ry com
t an d
PODs : USP based
p titts
ors
and requires proof I. Market Segmeen
a re
s
t
n
e
m
g
e
points/ reasons to Behavioral S
e in
l
b
a
u
l
a
v
t
s
believe (RTB)
often mo
di n g
n
a
r
b
g
n
i
d
understan
ave
h
y
e
h
t
s
a
issues
gi c

4. Establishing Brand Positioning


I. Market Segments
The more fnely
segmented the market,
the more likely that the
frm will be able to
implement marketing
progs that meet the
NWDs of cus.
Different segment might
have different perception
and pref for the brand.
Demo: Ponds, L'Oreal
facewash, GP
POPs: Correlational:
Behavioral:
low price vs highL'Oreal,
quality
Sunsilk
Shampoo
Taste vs low
Cal
Varied vs simple

II. Nature of
Competition
Direct vs indirect
Multiple frames of ref
Shampoo with Hair Oil
Starbucks : DD,
Nescafe, Local Caf
III. POPs/PODs
PODs: unique value:
IKEA, SONY, British
Airways
POPs: Category: basic
VP s for Caf
POPs: Competitive : BE
at some VP+ some

5. Brand Positioning Guidelines


Developing Positioning
I. Defning and Communicating the Competitive Frame of Ref:
II. Choosing PODs
III. Establishing PODs and POPs
IV. Straddle Positions

I. Defining and Communicating the


Competitive Frame of Ref
Establishing Category Membership by
Communicating Category Benefits: (POPs
and PODs based): better be convincing
Exemplars: ( new/ controversial brands)
Product Descriptor: brand elements
should be selected accordingly
For a established product but at introductory stage ,CM is not the
focal

5. Brand Positioning Guidelines


Developing
Positioning
I. Defning and
Communicati
ng the
Competitive
Frame of Ref:
II. Choosing
PODs
III. Establishing
PODs and
POPs
IV. Straddle
Positions

II.

Ds
O
P
g
n
i
Choos

e
d
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ons
i
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a
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o
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at t r i b
a
t n
(
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o
b
p
Desir a r desires: im
e
custom
m)
e
h
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o
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es
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a
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P
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D e l i ve
o
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c
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e
i
c
eff i
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s )
t
r
e
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v
i
m
t
o
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rel
cus
(
g
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le
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us
Di
s
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e
m
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s
con

5. Brand Positioning Guidelines


III. Establishing PODs and

POPs

Separate the PODs and


POPs through separate
and strong IMC
campaigns
Leverage the Equity of
another Entity :
ingredient based/
celebrity and experts
endorsements
Redefine the

Dev
e
Pos loping
itio
n
I.
Def ing
n
and ing
Com
atin munic
g
Com the
e Fr petitiv
a
Ref me of
:
II.
Cho
o
POD sing
III.
Est s
a
g P blishin
O
and Ds
IV.
Stra POPs
Pos ddle
itio
ns

5. Brand Positioning Guidelines


Developing Positioning
I. Defning and Communicating the Competitive Frame of Ref:
II. Choosing PODs
III. Establishing PODs and POPs
IV. Straddle Positions

e
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d
tra

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Po

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Si m
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wi

Cadillac: Lacking performanc

Corvette: lacking elegan

6. Brand Mantra:

Communicate, Simplify and Inspire

Brand Mantra is a short, three to fve word


phrases that captures the irrefutable essence or
spirit of brand positioning. Also Known as Brand
Essence or Core Brand Promise/ Personality
It works as a guidelines to the external and
internal people of the company
Better be consistent
Three Constructs of Brand Mantra
Brand Functions: nature of the brand
attributes/benefts/ experiences the Brand
provides. Disney: Entertainment
Descriptive Modifer: further clarifes its nature .
Disney: Family