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Brand Positioning

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Brand Positioning

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Brand Management Text and Cases (Ed-2)

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Evolution

Brand Positioning

Positioning is the last step in the marketing strategy formulation. Marketing strategy begins with identification of market segmentation and later choosing a target for the marketing activity.

Marketing enjoys close similarity with a military conflict. Strategy is a term that has been conventionally used in the context of military warfare.

Strategy is a blueprint or plan developed to achieve the target by

outmanoeuvering the rival side.

Cont.
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Advertising Persuasion

Brand Positioning

In the early years, marketers relied upon the powers of communication tools like advertising to win customers. The belief that dominated this era was that customers could be sold anything on the basis of persuasive communication.

Message repetition, indeed bombardment or blitzkrieg, was believed to be the key to drilling information into customers brains and thus influencing

consumer buying.
Accordingly, content took precedence over execution. Advertising came to acquire an important status in the corporate functions.
Cont.
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Brand Positioning

Unique Selling Proposition Once advertising ceased to be as effective as it used to be as a persuader, marketers turned to product. In order to create a hot button to pull in the customer, marketers began to look for unique product aspects. The attention shifted to product attributes and benefits that could become unique

selling propositions.
Rosser Reeves called this entire process of discovering uniqueness in the product to sell the product as the USP, or unique selling proposition. Reeves proposed three guidelines for the use of unique selling proposition: it must involve a specific product benefit; to make it unique, it must not be used by competitors; and finally, it must be good enough to sell the product.
Cont.
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Brand Positioning

Brand Image and Personality

David Ogilvy pioneered the idea of brand image and personality2. He argued that every advertisement should be thought of as a contribution to the complex symbol which is a brand image.
The argument of brand image signified a leap forward in the way marketers

communicated with customers and persuaded them to respond favorably to their products and services.
The marketed products do offer some utility for which they are bought, but Ogilvy shifted the attention to a non-product area conceptualized as brand

image.
The brand reputation, image, esteem and prestige are crucial in developing brand pull. This is especially true when we recall that customers in those Cont. days were moving up the social ladder and becoming affluent.
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Brand Positioning

Brand Positioning

Most successful brands occupy distinct position that sets them apart form the competition and provides the target customer a reason to favor them: Liril freshness

Dominos guaranteed pizza delivery in 30 minutes

Fair & Lovely fairness cream Pears tender skin, like babys Bata value for money shoes Woodland sturdy shoes for adventure sports Zodiac fine quality shirts Allen Solly casual formal wear

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Livon after bath hair de-tangler

Ujala easy-to-use liquid fabric whitener
Brand Management Text and Cases (Ed-2) Harsh V Verma
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Brand Positioning

Position And Product Position

The word position is usually used to signify a location on a physical space, for instance, in an architects drawing of a building or display shelves in a

store layout.
Positioning in the advertising or marketing sense is used in the context of customer perceptions. It is something to do with the prospects mind or perceptual space. A brands position is about building an image in the prospects mind. A product is a physical entity. It belongs to a physical space. A products physical space could be measured in terms of its objective dimensions. In a product category like cars, offerings of different manufacturers could be evaluated on functional objective dimensions.
Cont.
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Brand Positioning

Fiat Palio compared to Other cars in its category

Objective Attributes Comparison: Product Positioning

Features Displacement Power BHP Torque Engine Front leg room Rear shoulder room 0-60 KPH Palio NV Sport 1596 cc 100 137 Nm DOHC 4 valve 1220mm 1350 mm 4.5 s Swift 1298 cc 87 113 Nm DOHC 4 valve 1150 mm 1280 mm 5.2 s Getz 1341 cc 82.9 118 Nm SOHC 3 valve 1180mm 1330 mm 5.6 s

Source: Hindustan Times, HT City, April 19, 2006

Cont.
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There are many players in the Indian car industry, each offering a number of brands to target different segments. Two important criteria in brand selection are price and quality. Price is objectively measured in rupee terms and quality is measured through surrogate of problems per hundred vehicles. Using these two dimensions, the position of various brands could be mapped as follows:
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Brand Positioning

4
Problems per 100 vehicles**
116 139 176

Mapping Position of Brands on Objective Attributes Model/Prices*:

Maruti Alto Rs 2.70 Fiat Palio Rs 3.65 Maruti Zen Rs 2.40

Maruti Esteem Rs 4.30

Ford Ikon Rs 4.50 Opel Corsa Rs 5.00 Opel Swing Rs 5.85 Honda City Rs. 6.55 Hyundai Accent Rs 5.05

129
140 212 212 96 167

Maruti Baleno Rs 5.65

Toyota Corolla Rs 9.60 Chevrolet Optra Rs 7.50 Skoda Octavia Rs 10.90 Tata Sumo Rs 5.00 Tata Safari Rs 7.30

169
83 119 198 254 259
Cont.

*Approximate prices; ** industry average 175 Brand Management Text and Cases (Ed-2) Harsh V Verma

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Brand Positioning

The Position Map

Price

Cont.

Quality
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Brand Positioning

Efforts Directed to Improve Product or Brand Position

Input: Product improvement efforts to improve a products objective performance characteristics

Input: Communication efforts directed to influence brand perception

Recipient: actual

Recipient: prospects mind

Outcome: improved objective product performance

Outcome: changed brand associations (image) in prospects mind

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3 Cs of Positioning

Brand Positioning

Brand image is about connecting a brand with a customer relevant and

competitively different idea or proposition. It is important that a brand must stand for a clear idea. Brand must appropriate a distinct idea.
The search for a successful position must end with an idea becoming proprietary to a brand such that it achieves valued differentiation in its target

market.
In this process of finding a concept that simultaneously bestows the brand with value and differentiation, an analysis of three sides to a marketing exchange is essential:

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The target customer

The target competition
Cont.

The company or brand

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Brand Management Text and Cases (Ed-2)

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Brand Positioning

PositioningThe Search for Valued Differentiation

Company (brand): valued differentiation

Customer: the value space: relevance

Competitors: the rival offers: uniqueness

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Brand Positioning

Competitive Positioning : POPs and PODs

Many times, people responsible for brand creation focus too much on accumulating points on which the brand could be differentiated. Successful brands do need points of differentiation, but how this differentiation is

created is a crucial determinant of brand success.

Keller et al7 argue that managers often pay too much attention to points of differentiation but pay little attention to two other aspects: Frame of reference and Brands common features with competitors. Effective

competitive positioning does not require only paying attention to points of differences but also to points of parity. Exclusive focus on creating points of differences often causes the managers to ignore another important issue. That is, point of the reference that customers use to see and evaluate the brand.
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Brand Positioning

Positioning Strategy
Positioning strategy is aimed at building brand differentiation within the

value frame of the target market.

The need for competitive positioning is primarily triggered by emergence of intense competition in most of the product categories. Positioning is increasingly seen as a device to gain control over markets by

means of customer pulling brand differentiation. A brand can choose from a

number of paths or strategies to position itself against competition. Sengupta8 suggests that positioning strategies revolve around different aspects of the brand. Four questions about the brand can draw attention to

possible ways in which a brand could be positioned. The four questions that
can reveal the totality of a brand are: Who am I? What am I? For whom am I ? Why me?
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Cont.
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Who am I?

Brand Positioning

Through this question, the identity of a person is revealed to the audience. In the context of branding, answering this question would reveal the origin or pedigree of the brand: where it belongs, or where it comes from. Identifying family or origin could give a brand a competitive advantage by allowing it to draw positives or strengths of the family. Two options exist: Positioning by corporate identity Positioning by brand endorsement

Cont.
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What am I ?

Brand Positioning

In this category of strategies, a brands functional capabilities are used for positioning purposes. Within this group, four options exist:

Category Positioning
Benefit Positioning Usage and Use Time Positioning

Price-quality Positioning

Cont.
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For whom am I ?

Brand Positioning

This category of positioning strategies looks at the target market for positioning the brand. A market consists of various segments.

There are many ways of segmenting the market. Depending upon the segmentation scheme used to divide the market, a brand can focus on a specific customer group for positioning purposes.

The market can be broken down into the following types of groups: i. Demographic Groups

ii.
iii.

Behavioral
Psychographic
Cont.
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Brand Management Text and Cases (Ed-2)

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Why me?

Brand Positioning

This group involves positioning the brand on the basis of a unique reason or clincher. Finding out a unique reason or argument to offer to prospects is key in this category of positioning strategy. Unique Attribute Why me Positioning

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Brand Positioning

Positioning Strategies
A product or organization may exist in the perception of customer in the form of an association set. This is what creates overall impression. Positioning a brand or a company involves deciding about both what associations are to be created and emphasized, and what associations are to be removed and de-emphasized. In positioning, the reference point is competition. Broadly, there are six positioning approaches: Attribute positioning Here, the brand is associated with a product attribute, feature or benefit. Examples include Colgates Active Salt positioned as a brand that contains salt for effective teeth cleaning and gum protection. HLLs Pears soap for long used the position as original glycerin soap. Annapurna salt of HLL positions itself as an iodized salt with protective benefits. Philips has been trying to position its CFL bulb range as small enough to easily fit in the lampshade. The lemon drink Limca was positioned as a thirst quenching drink because it contains isotonic salts. Cont. Copyright 2002, Harsh V Verma
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Brand Positioning

Price/ quality positioning A brand can be positioned as high price, high quality while others may take the low price and low quality position. The first category appeals to quality conscious customers and the latter may appeal to value conscious customers. For instance, the Parker Beta and Vector take VFM position

while Waterman range takes the top end quality positioning. The Big Bazaar
chain of markets have been positioned as a value-for-money shopping destination (Isse sasta aur accha kahin nahin) and Life Style departmental stores are positioned towards the higher end of the price quality spectrum. HLLs Wheel detergent brand is positioned as VFM and Surf Excel is positioned as a premium brand.
Cont.
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Brand Positioning

Use or application positioning Positioning by use involves building clear connections between the product or brand and the use it is to be put to. Maggi Noodles for long promoted itself as a quick meal for kids when they return from school. Titan brand promoted its watches as a gift for special occasions. Pidilite brand Mr Fixit is positioned as a paste to be used to solve the problem of leaking pipes. Vicks Vaporub brand used use positioning by promoting the product as a balm to be applied on a childs chest for quick relief (touch therapy). User positioning User positioning involves developing connections between the brand and the user or user class. For instance, there is no ambiguity about the user of the Johnson & Johnson soap, body oil and talc. The brand is positioned for kids and infants. Mountain Dew clearly signals the user class. Creative Line brand of woolens is positioned sweaters for women. Amul lean milk is positioned as the milk for young, figure conscious women. The Energic 31 brand is positioned as health supplement tablets for middle-aged men who Copyright 2002, Harsh V Verma experience fatigue. Cont.
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Brand Positioning

Product class positioning Some marketers position their brand with respect to a product class by developing class related associations. Nescaf is positioned as instant coffee (product class) whereas Bru brand is related with filter coffee (product class). Perk Brand of Cadburys chocolate-coated wafers

attempted positioning itself not as a chocolate but as a quick snack.

Suryansh diamond brand is positioned as a good investment option (product class).

Cont.
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Brand Positioning

Positioning with respect to competition This strategy involves making direct or indirect reference of competition. This allows the brand to exploit the competitors image. By making reference to competition, the brand gains ground as something that is good enough to be compared (if not as good) with an established brand. One

often cited example is that of Avis rent-a-car which was a distant second to
the market leader, Hertz. By claiming We are number two the brand exploited the competitors position. Currently, the Indica Xeta brand is being positioned as a better alternative to Maruti Alto, in print ads.

Adapted from: David A. Aaker and J. Gary Shansby, Positioning your product, Business Horizon, May-June 1982.
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Brand Success

Brand Positioning

What first comes to mind when one thinks of the following brands? Rasna Moov Krack Ujala Anchor White Lijjat MDH Action Shehnaz Hussain Tortoise

The chances are that these brands would lead to primacy of concepts like: drink concentrate; remedy for backache; cream for cracked heels; liquid fabric whitener; vegetarian toothpaste; papad; quality spices; durable economy sports shoes; herbal cosmetics; and mosquito repellent coils.
Cont.
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Brand Positioning

Core Benefit Identification

What benefits would the brand promise to customers? Benefits pull the
customers to the brand. The manager must decide on what benefits the brand should be associated with. For instance, in the context of a toothpaste brand, the benefits sought may be numerous, like the following: Teeth whitening Decay prevention Economy Herbal properties Fresh breath Being vegetarian Flavour

Lasting effect
Gum protection Sensitive teeth
Cont.
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Own Key Words Once the benefit set

Brand Positioning

Brands and the Owned Words

is

chosen for building a brands core association, the next issue focuses on the choice of the word that represents that benefit. Words represent the brands in the memory or perceptual space. Words are short signatures of the brands. Words signify what the brands in question are all about.

The following are some of the brands in the Indian marketing space. These brands owe their success to the words they own in consumers mind: Rooh afza - refreshing drink Roopa - comfortable innerwear Nataraj - long lasting pencil Bisleri - bottled water Hajmola - tasty digestive tablets Symphony - coolers

MDH - quality spices

Usha - sewing machines Action - inexpensive sports shoes Servo - engine oil
Cont.
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Brand Positioning

Connect the Word with Meansend Element Customers believe that Pepsodent toothpaste remains effective even after brushing because it contains an attribute called germi-check. In the initial years of communication, the Close Up advertisements showed mouthwash flowing from a bottle to the past to lend credibility to its claim that it is a freshness toothpaste. The meansend hierarchy connects the product with the customers end states of existence through attribute to benefits to values (end states of existence).

Cont.
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Brand Positioning

Reinforce Hold on Core Benefits The brands positioning must evolve in tune with changing times. Evolution implies that brand must maintain its hold on the core benefits that form its essence or core selling proposition. Brands operate in a competitive environment. Accordingly, competitors cannot be physically prevented from launching attacks. Unless core benefits are reinforced, the brand faces the risk of being attacked by competitors in two ways:

i.
ii.

More is better strategy

Multiple situation strategy.
Cont.
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Add More Benefits

Brand Positioning

There is more about creating a successful brand than simply owning a word. Owning a word overly simplifies the process.

Besides the key word associated with the brand, a network of association must be formed to develop linkages in a more complete fashion. A brands key word cannot stand in isolation.

Accordingly, the brand associations should be extended to build a complete picture. The first association concerns the core benefits that are defined as a part of positioning. These are further linked with meansend elements to form the positional benefits. And finally, the brand develops a value proposition.
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