Competitive Frame of Reference:

The competitive frame of reference is a fancy way of describing the market or context in
which you choose to position your brand. A starting point in defining a competitive frame of
reference is to determine the category membership. With which products or sets of products
does the brand compete? Choosing to compete in different categories often results in different
competitive frame of reference and thus different point of parities and point of differences.
The products category membership tells consumers about the goals they might achieving by
using a product or service. The competitive frame of reference provides the context for
positioning, and it is a fancy way of describing the market or context in which you choose to
position your brand.
Choosing a competitive frame of reference based on the most powerful motivators for the
target customers can lead to a previously undefined category in which your brand has few, if
any competitors. That category definition helps your brand own the benefit more quickly
before any other brand is able to claim it. Being able to redefine the category requires out-of-
the box thinking.
To determine the competitive frame of reference, you find the answers of the following
questions:
What are the product categories?
What are the ideal points-of-parity and points-of-difference brand associations vis--
vis the competition?
Who the target consumer is
Who the main competitors are
How the brand is similar to these competitors
How the brand is different from them
Competitive Framework of Ambala Milk Shop
Selected business:
Dairy Milk
Selected Shop:
Ambala Dairy Milk Shop
Location:
Block-C, Faisal Town near Moon Market
Product Categories:
Milk
Yogurt
Kheer
Lassi
Main Competitors:
Tetra pack milk (Nestle Milk Pack, Olpers etc.)
Local Milk providers (Gawala)
Local milk shops
Ambalas Target Market:
Ambala is targeting those individuals and families who are health conscious and thus willing
to pay more to buy the pure and healthy milk.
Points of Parity Points of Difference
Same packing as other milk shops are using Milk quality
Home delivery service
Blend of manual work and automation (m/cs
and chillers)
Distribution and logistics network Higher price

Superior customer service as compared to
local shops
Neat and clean environment

How Ambala is positioning:
Drink pure milk because its a complete diet. Ambala believes in healthy environment to
provide you impurities free healthy and pure milk with convenience and superior customer
service.
Ambalas Means End Chain
Attribute Benefit Value
Calcium, Vitamin-D etc. Strengthen the bones,
Sharpen your mind
Healty life, pleasure, wisdom

Competitive frame of reference effecting the positioning of Ambala:
Ambala has compelling points of differences which are critical for effective brand
positioning. Ambala is defining their products categories very effectively and their benefits
the consumers will get. Thus the consumers can decide whether it dominates the brands
against which it competes.

Reference:
http://www.brandingstrategyinsider.com/2013/02/defining-your-competitive-frame-of-
reference.html#.U3XiWVIU_IU
http://www.quepublishing.com/articles/article.aspx?p=1749174&seqNum=3
Strategic Brand Management, 3
rd
edition by Kevin Lane keller, M.G. Parameswaran & Isaac
Jacob