Brand Positioning

Brand Positioning and
Values
At the end of this module, the
learning outcomes are:
Concept of Brand positioning.
Guidelines for positioning.
Defining and establishing brand
values.
1.1

Values
Suggested Readings
Strategic Brand Management
by
Keller, Parmeswaran and Jacob
3rd edition
Chapter 3
1.2
Brand Positioning and Values

MARKET SEGMENTATION
The need
Cannot serve all customers of this
universe.
No company has that kind of resources.
Customers
Too numerous
Diverse in their buying requirement
Need to identify the market segments
that it can serve more effectively
3

Arguments for mass market.
Creates largest potential market
Leads to lower cost
Lead to lower prices.
Higher margins
Why criticised
Market fragmentation
Splintering of the market
Mass media proliferation.
Distribution channel proliferation
Difficult to practice one size fits all marketing.

EXAMPLE.
How many ways to shop
Local kirana shop
Weekly bazaars
Shopping centres
Big departmental stores
Catalogue
On the net
Door to door salesman
Wide variety of options
5

Consumer markets
a. Geographical
b. Demographic
c. Psychographic
d. Behavioural

Geographical segmentation
Divide market in to geographical units
Nations
States
Region
Countries
Cities
Operate in one or few

Geographic
Ford Ikon in India
World car
Changes for India
Higher suspension
Larger size air conditioner, higher ambient
temperature
Lower average speeds
Handle adulterated fuel
Petrol / diesel adulterated with kerosene
8

Demographic segmentation
Market divided into groups
-
Age
Gender
Income
Occupation
Education religion
Nationality
Social class
Population parameters. Easier to measure

Age
-
Nestle Maggi Noodles

Children
Nestle Cerelac
Infants
Levis
Youth
10

Gender
Applied in variety of products
Virginia slims
-
Targeted on woman cigarette
Lakme
-
Cosmetics for woman
Park Avenue
-
Cosmetics for Men .
11

Income
Mercedes
High Income Group
Lifebuoy
Low middle income group
Dove
Higher income group
12

Psychographic segmentation
Buyers divided into different groups
on the basis of
a. Lifestyle
b. Personality
c. Values
13

Lifestyle
Nestle Classic
Pleasure of making coffee
Adding milk sugar coffee into hot milk
Nestle 3 in 1
Office goers
Paucity of time
Espresso feeling
Milk sugar coffee premixed
1
14

Personality
Targeting consumer personality
Customer of Ford
Independent
Impulsive
Masculine
Alert to change
Self confident
15

Personality
Customers of Chevrolet
Conservative.
Thrifty
Prestige.
Conscious.
Avoid extremes
16

Personality
Customers of Chevrolet
Conservative.
Thrifty
Prestige.
Conscious.
Avoid extremes
17

Values
Divide the customer by core valued that underline
consumers attitudes and behaviors studies have
found
Altruist
18% of world adults
Interested in social issues
Welfare of society fun seekers
Male female ratio is 54: 46
Fun Seekers
12% of world population
Male Female ratio is 54:46
18

Tourists to Disneyland
Fun seekers
Families visit
Tourists to Udayan child welfare unit
at Kolkata
Stay and meet poor children
Share thoughts
Donate
19

Behavioural Segmentation
Divide the market on behaviour variables
Occasions
Benefits
User status
User rate
20

Occasions
Archies
Cards for different occasions
Diwali
Id
New year
21

Benefits
What kind of benefits sought
Toothpaste market
Freshness
Close up
Protecting Gums
Promise
Medical
Forhans
Cosmetic white teeth
MacLean
22

User status
Ex-users
Non users
First-time users
Citi Bank credit cards
23

Usage rate
Air Tel
Different tariff packages
Light users
Less benefits
Medium users
More benefits
Better packages
High users
Highest benefits
Trips, offers
Lowest per minute packages
24

TARGET MARKET
Important factors
Segments overall attractiveness
Companys objectives and resources
Overall Attractiveness
Size
Growth
Profitability
Economies of scale
Low Risk
25

Companys objectives & resources
Does it goes with long term
objectives
Does company have competencies
26

Values
Positioning
- How do you differentiate your product
from competitors
- Differentiation, which is
Important
Distinctive
Superior
Not easily copied
Affordable
Profitable
27

Values
A Singapore hotel claims that it is

the worlds tallest hotel. It is
important to guests?
28

Values
What is Positioning?
- It is the act of designing the companys
offering and image to occupy a distinctive
place in the target markets mind.
- Positioning is not what you do to the
product
- Positioning is what you do to the mind
of the prospect
- Customer do the positioning
- A product may have many distinctions.
Which are most important to the customers
29
Value Propositions
Scorpio, Mahindra and

Mahindra
A vehicle that provides the luxury
and comfort of a car, and the
adventure and thrills of an SUV
Dominos
A good hot pizza, delivered to your
door within 30 minutes of ordering,
at a moderate price
11-30
Defining Associations
Points-of-difference Points-of-parity
(PODs)
(POPs)
Attributes or benefits
Associations that
consumers strongly
are not necessarily
associate with a
unique to the brand
brand, positively
but may be shared
evaluate, and believe
with
other
brands
they could not find to
the same extent with
a competitive brand

Values
Dettol and Savlon
Traditionally dominated by Dettol
Attributes
Strong smell
Turning cloudy when poured in water
Stinging sensation when applied on a
wound
Became category properties of an
antiseptic liquid
32

Values
Launch of Savlon
None of the properties of Dettol
How to gain consumer acceptance
Used communication
To counter category perception
Advertised the no-sting property
Key differentiator
33

Values
Points-of-Parity versus Points-ofDifference
POP versus POD
To achieve POP on an attribute
Sufficient consumers should believe the
brand is good enough
A light beer will never taste as good as
normal beer, but it would need to taste close
enough to be able to effectively compete
34

Values
Often the key to positioning is not so

much achieving POD as achieving
POP
35

Values
Visa versus American Express
Visa POD
Most widely available card
Benefit of convenience
American Express POD
Prestige associated with the use of
card
36

Values
Visa versus American Express
Attempt to blunt each others advantages

to create PODs
Visa offers gold and platinum cards
Enhance the prestige
its everywhere you want to be advertising
Reinforces exclusivity and acceptability
American Express increased the number
of merchants
37
Conveying Category
Membership
Announcing
Announcing category
category benefits
benefits
Comparing
Comparing to
to exemplars
exemplars
Relying
Relying on
on the
the product
product
descriptor
descriptor

Values
Announcing category benefits
Use benefits to announce category
membership
Kelloggs
Health platform
39

Values
Comparing to exemplars
Well-known brands in a category
Recognized members
Kelloggs
Breakfast category
Paratha
taste
40

Values
Relying on the product descriptor
Means of conveying category origin
Kelloggs
Health, convenience
41

Values
Choosing POPs and PODs
PODs
Relevant/desirable
capabilities to deliver the same
POPs
negating competitors PODs
42
Relevance
Relevance
Distinctiveness
Distinctiveness
Believability
Believability
Consumer Desirability
Criteria for PODs
Relevance
Target audience must find POD
personally relevant and important
The Weston claims itself to be the
tallest hotel
Is it important to guests
44
Criteria for PODs
Distinctiveness
Target audience must find the POD
distinctive and superior
Splenda sugar substitute overtook
Equal to become leader in the
category in 2003 by differentiating
itself on its authenticity as a product
derived from sugar, without any of the
associated drawbacks.
45
Criteria for PODs
Believability
Target consumers must find the POD
believable and credible.
A brand must offer a compelling reason
for choosing it over the other options.
Mountain Dew
Argue that it is most energizing than other
soft drinks and support the claim by
noting that it has a higher level of caffeine
46
Deliverability Criteria for

PODs
Feasibility
Feasibility
Communicability
Communicability
Sustainability
Sustainability

PODs
Feasibility
The product design and marketing
offering must support the desired
association.
Is it perceptual or requires changes
General Motors
Three years warranty
48

PODs
Communicability
Consumers must be given a compelling
reason and understandable rationale
why brand can deliver the desirable
benefit What factual evidence
General Motors
CEO promise about three year
warranty
49

PODs
Sustainability
The firm must be sufficiently
committed and willing to devote
enough resources to create an
enduring positioning
Intel
Technological leadership
50
Examples of Negatively Correlated

Attributes and Benefits
Low-price vs.
High quality
Taste vs. Low
calories
Nutritious vs.
Good tasting
Efficacious vs.
Mild
Powerful vs.
Safe
Strong vs.
Refined
Ubiquitous vs.
Exclusive
Varied vs.
Simple
Examples of Negatively
Correlated Attributes and
Benefits
Implications
Marketer has to trade off these benefits
Fiat
Good looks
Mileage and after sales service not
good
In quest for looks have they ignored
mileage and after sales service
52
Brand Positioning
Is at the heart of the marketing

strategy
. . . the act of designing the

companys offer and image so that it
occupies a distinct and valued place
in the target customers minds.
Philip Kotler
3.53
Determining a frame of
reference
What are the ideal points-of-parity and

points-of-difference brand associations
vis--vis the competition?
Marketers need to know:
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
3.54
Target 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 divides the market
into distinct groups of homogeneous
consumers who have similar needs and
consumer behavior, and who thus require
similar marketing mixes.
Market segmentation requires making
tradeoffs between costs and benefits.
3.55
Example of the
toothpaste market
Four main segments:

1.
2.
3.
4.
Sensory: Seeking flavor and product

appearance
Sociables: Seeking brightness of teeth
Worriers: Seeking decay prevention
Independent: Seeking low price
3.56
Criteria for
Segmentation
Identifiability: Can we easily identify the

segment?
Size: Is there adequate sales potential in
the segment?
Accessibility: Are specialized distribution
outlets and communication media available
to reach the segment?
Responsiveness: How favorably will the
segment respond to a tailored marketing
program?
3.57
Nature of Competition
Deciding to target a certain type of

consumer often defines the nature of
competition
Do not define competition too
narrowly
Ex: a luxury good with a strong hedonic

benefit like stereo equipment may
compete as much with a vacation as
with other durable goods like furniture
3.58
Competitor analysis
Who are the competitors of
Brooke Bond Red Label Tea
Samsung fax machine
Titan Watch
Rajdhani express
59
Competitor analysis
Think again
Have the sales of Samsung fax
machines gone down because of email?
Who is your competitor?
60
Competitor analysis
Are they
Water
E-mail
Arrow shirt
Spice Jet
61
Competitor analysis
Harley Davidson perception of
competition
Last American motorcycle
Symbol of freedom and adventure
Technically antiquated
Not seen as form of transport
Social statements
Compete against various recreations
62
Competitor analysis
Poor understanding of the
competition
Decline
Air coolers
Mopeds
Soya-based drinks
63
Competitor analysis
Competition happens at four levels
1.Companies offering only similar products
Kitkat versus Perk
Nescafe versus Bru
64
Competitor analysis
2 Companies consisting of all companies
operating in the same category
Cadbury's Eclairs versus. Nestle Kitkat
Canada Dry versus Pepsi Cola
65
Competitor analysis
Competition at four levels
3. Competitor consists of all companies manufacturing
or supplying products which deliver the same service
Airlines versus Railways
Second hand cars versus scooters versus Tata Nano
66
Competitor analysis
4. Competition consists of all companies
competing for the same spending
power
Dishwasher versus Microwave oven
Designer jewelry versus Ritu Beri's
fabrics
Debeers versus Nokia mobile phones
67

Values
Implications for Brand managers
Understanding of the competition.
Coke
Realized water is their main
competitor in India.
How to deal with this
Thanda Matlab Coca Cola
campaign.
3.68
Points-of-Parity
and Points-of-Difference
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.
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.
3.69
Brand Positioning
Guidelines
Two key issues in arriving at the

optimal competitive brand
positioning are:
Defining and communicating the

competitive frame of reference
Choosing and establishing points-ofparity and points-of-difference
3.70
Defining and Communicating

the Competitive Frame of
Reference
Defining a competitive frame of

reference for a brand positioning is
to determine category membership.
The preferred approach to
positioning is to inform consumers of
a brands membership before stating
its point of difference in relationship
to other category members.
3.71
Choosing POPs & PODs
Desirability criteria (consumer

perspective)
Personally relevant
Distinctive and superior
Believable and credible
Deliverability criteria (firm

perspective)
Feasible
Profitable
Pre-emptive, defensible, and difficult to attack
3.72
Attribute and Benefit Tradeoffs
Price and quality

Convenience and quality
Taste and low calories
Efficacy and mildness
Power and safety
Ubiquity and prestige
Comprehensiveness (variety) and
simplicity
Strength and refinement
3.73
Strategies to Reconcile
Attribute and Benefit
Trade-offs
Establish separate marketing

programs
Leverage secondary association (e.g.,
co-brand)
Re-define the relationship from
negative to positive
3.74

Values
Establish separate marketing
programs
Fiat Palio
One campaign on fuel efficiency
Another campaign on performance
3.75

Values
Leverage secondary association
(e.g., co-brand)
Kingfisher
Beer brand
Has calories
Kingfisher Diet
Low on calories and trying to
maintain taste
3.76

Values
Re-define the relationship from negative
to positive
Apple Computers
First PC
Considered user friendly
Not as powerful as a Mainframe
Came up with a campaign
Power to be your best
Ease of use is indication of power.
3.77
Core Brand Values
Set of abstract concepts or phrases

that characterize the five to ten most
important dimensions of the mental
map of a brand
Relate to points-of-parity and pointsof-difference
Mental map Core brand values Brand

mantra
3.78
Brand Mantras
An articulation of the heart and soul of

the brand
similar to brand essence or core brand
promise
Short three- to five-word phrases that
capture the irrefutable essence or spirit of
the brand positioning and brand values
Considerations
Communicate
Simplify
Inspire
3.79

Values
McDonalds
Food, Folks and Fun
Nike
Performance, Athletic, Authentic
Disney
Entertainment, Family, Fun
3.80
Designing the Brand

Mantra
The term brand functions describes the

nature of the product or service or the
type of experiences or benefits the brand
provides.
The descriptive modifier further clarifies
its nature.
The emotional modifier provides another
qualifierhow exactly does the brand
provide benefits, and in what way?
3.81
Designing the Brand

Mantra
Emotional
Modifier
Descriptiv
e
Modifier
Brand
Functions
Nike
Authentic
Athletic
Performance
Disney
Fun
Family
Entertainment
Fun
Folks
Food
3.82
Designing the Brand

Mantra
Nike Brand Mantra
Three words
Authentic athletic performance
Affected product development
Expanded meaning from running shoes
to athletic shoes to athletic shoes and
apparel to all things associated with
athletics
Launched successful apparel line.
3.83
Designing the Brand

Mantra
Nike Brand Mantra
Did not use name for casual shoes.
Did not fit with brand mantra.
Was not successful in Europe.
Brand mantra had different meaning
there.
Had to involve soccer in a major way.
3.84
Internal Branding
How positioning is explained internally

to employees.
Members of the organization are
properly aligned with the brand and
what it represents.
Crucial for service companies
How company communicates as one
voice?
3.85
Brand Audit
Externally, consumer-focused
assessement
A comprehensive examination of a
brand involving activities to assess
the health of the brand, uncover its
sources of equity, and suggest ways to
improve and leverage that equity
It includes brand vision, mission,
promise, values, position, personality,
and performance
3.86
Importance of Brand Audits
Understand sources of brand equity
Firm perspective
Consumer perspective
Set strategic direction for the brand

Recommend marketing programs to
maximize long-term brand equity
3.87
Brand Audit Steps
Brand inventory (supply side)
Brand exploratory (demand side)
3.88
Brand Inventory
A current comprehensive profile of

how all the products and services sold
by a company are branded and
marketed:
Brand elements
Supporting marketing programs
Profile of competitive brands
POPs and PODs
Brand mantra
3.89
Brand Inventory (Cont.)
Suggests the bases for positioning the

brand
Offers insights to how brand equity
may be better managed
Assesses consistency in message
among activities, brand extensions,
and sub-brands in order to avoid
redundancies, overlaps, and
consumer confusion
3.90
Brand Exploratory
Provides detailed information as to

how consumers perceive the brand:
Awareness
Favorability
Uniqueness of associations
Helps identify sources of customerbased brand equity

Uncovers knowledge structures for
the core brand as well as its
competitors
3.91
Suggested Brand Audit

Outline
Brand audit objectives, scope, and approach

Background about the brand (self-analysis)
Background about the industries
Consumer analysis (trends, motivation,
perceptions, needs, segmentation, behavior)
Brand inventory
Elements, current marketing programs, POPs,

PODs
Branding strategies (extensions, sub-brands, etc.)
Brand portfolio analysis
Competitors brand inventory
3.92
Strengths and weaknesses
Brand Audit Outline (Cont.)
Brand exploratory
Brand associations
Brand positioning analysis
Consumer perceptions analysis (vs. competition)
Summary of competitor analysis

SWOT analysis
Brand equity evaluation
Strategic brand management
recommendations
3.93

Brand Positioning

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