UNIT II

B R A N D S T R AT E G I E S

D r. P. S .Ve n k a t e s w a r a n ,
P r o f e s s o r, P S N A C E T
 Strategic Brand Management Process
STEPS
1. Identify and Establish
Brand Positioning and Values
2. Plan and Implement brand marketing
3. Measure and Interpret Brand Performance
4. Grow and Sustain Brand Equity
KEY CONCEPTS
Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
Mixing and matching of brand elements
Integrating brand marketing activities
Leveraging of secondary associations
Brand Value Chain
Brand audits
Brand tracking
Brand equity management system
Brand-product matrix
Brand portfolios and hierarchies
Brand expansion strategies
Brand reinforcement and revitalization
1.Brand Positioning
1. How can a firm develop and
establish an effective positioning in
the market?
2. How do marketers identify and
analyze competition?
3. How are brands successfully
differentiated?
 Marketing Strategy
Segmentation Targeting Positioning

S T P
 Positioning
The act of designing a company’s offering and
image to occupy a distinctive place in the minds of
the target market.
A good brand positioning helps guide marketing
strategy by clarifying the brand’s essence, identifying
the goals it helps the consumer achieve, and showing
how it does so in a unique way.
 Brand Positioning
Quality

• Customer wants and needs

Brand A
• Company capabilities
• Competitive actions

Price
D
E
G

F C
B
Value Proposition
What the
What the brand could
brand is be

A customer-focused value
proposition gives customers a
persuasive reason to buy your
product
Brand Positioning
Frame of Reference
Points of parity / difference
Brand mantra
Positioning requires that
marketers define and
communicate similarities and
differences between their brand
and its competitors:
1.Determine a frame of
reference by identifying the
target market and relevant
competition
2.Identify the optimal points of
parity and points of difference
brand associations given that
frame of reference
3.Create a brand mantra to
summarize the positioning
and essence of the brand
Competitive Frame of Reference

Identifying Competitors
Analyzing Competitors
 Points of Parity / Difference
Points of Parity
POP

Points of Difference
POD
Choosing POPs and PODs

Brand Benefits

Brand Attributes

Reasons Proof
to believe points
Brand Mantras
Nike – “authentic athletic performance”

Disney – “fun family entertainment”

Brand Mantra Criteria:

• Communicate
• Simplify
• Inspire
 Establishing Brand Positioning
Communicate Category Membership
• Category Benefits
• Compare to exemplars
Internally • Product descriptor

Points of difference

Points of parity
Differentiation Strategies
Competitive Advantage

Sustainable Leverageable

Customer Advantage
Means of Differentiation

Employees
Channels
Image
Services
 Emotional Branding

Lovemarks
• Mystery
• Sensuality
• Intimacy

Emotional

Rational
 Emotional Branding
Share of Market

Share of Mind

Share of Heart
 Positioning in the market place
What is Positioning?
- It is the act of designing the company’s offering
and image to occupy a distinctive place in the
target market’s mind.
- Positioning is not what you do to the product
- Positioning is what you do to the mind of the
prospect
- Customer does the Positioning
- A product may have many distinctions. Which are
most important to the customers?
 Positioning and Differentiation

• Positioning statements:
– To (target group and need) our (brand) is (concept) that
(point-of-difference)
• Example: To young, active soft-drink
consumers who have little time for sleep,
Mountain Dew is the soft drink that gives
you more energy than any other brand
because it has the highest level of caffeine.
 Positioning in the market place
Positioning
- How do you differentiate your product from
competitors
- Differentiation, which is
 Important
 Distinctive
 Superior
 Not easily copied or Unique.
 Affordable
 Profitable
 Developing and Communicating a
Positioning Strategy
• Positioning: How many ideas to promote?
• Unique selling proposition vs Unique value
proposition

– Four major positioning errors

1. Underpositioning
2. Overpositioning
3. Confused positioning
4. Doubtful positioning
 Positioning in the market place
What to avoid
1. Under positioning
– Seen as just another entry in a crowded market
– Pepsi introduces its clear crystal Pepsi 1993
– Customer not impressed
– “Clarity” not seen as an important benefit
 Positioning in the market place
3. Confused Positioning
Company making too many claims

Milkmaid
Started as Tea Whitener
Did not click
As a topping on pudding
Did not click
Finally clicked as base for dessert
 Positioning in the market place

4. Doubtful Positioning
Find it to difficult believe in what company claims

Maruti 1000
- Launches in ’89
- Positioned as ‘ultimate in luxury’
- Only luxury car
- Launch of Esteem in ’94
- More luxurious than Maruti 1000
- Is it now ‘Ultimate in luxury
- Sales dipped
- Customer confused
- Repositioned as ‘Affordable luxury’
 Positioning in the market place
Right Positioning is Critical
– Make or break the organization

Nestle Maggi noodles

• launched in 1983
• Noodles a new concept in Indian households
• Two options for Nestle
1.As a dinner item
2.As a snack item
• Targeted at children
 Positioning in the market place
1. As a Lunch or Dinner
– Housewives / Mothers take decisions
– Noodles as lunch or dinner item
– Replacing current lunch items
– Housewives want to serve children
‘nutritious’ food
– Would noodles provide nutrition and replace
tradition food?
 Positioning in the market place
2. As a ‘Snack Item ‘
– Between lunch and dinner
– Children play
– Spend energy
– Want to eat something
– Quick preparation and delicious
– Variety of flavors
– Filing
– Will mothers accept this as a ‘snack Item’
 Positioning in the market place
Which Positioning – Maggi
- Which Positioning platform is acceptable
- Careful study of mothers and children
behavior
- Nestle found that as a snack item would
be more acceptable
- Sales picked up
- As a lunch / dinner would have been
disaster.
Right positioning was critical for the success of
Maggi noodles.
 Developing a Positioning Strategy
– Positioning possibilities:
• Attribute positioning
• Benefit positioning
• Use or application positioning
• User positioning
• Competitor positioning
• Product category positioning
• Quality or price positioning
• Which Positioning to Promote?
 Positioning in the market place
1. ATTRIBUTE POSITIONING
- Positioning on attribute
 Size
 No of years in existence
 Culture
Disneyland
Positioned as the largest manmade park in the
world
Dove soap
Contains moisturizing cream
 Positioning in the market place
2. BENEFIT POSITIONING
– Positioned as a leader in certain benefit

McDonald’s
– Positioned as a family restaurant (QSCV)
Honda
– Economy and reliability
BMW
– Ultimate driving machine
Volvo
– Safety and Durability.
 Positioning in the market place

3. USE / APPLICATION POSITIONING.

– Positioning for some use or application
Nestle ‘Maggi Noodles’
–Positioned as a snack item
–Between meals
–Fast to cook, good to eat
Nestle Milkmaid
–Positioned as a base for dessert preparation.
 Positioning in the market place

4. USER POSITIONING
– Positioning the product as best for some user
group.

‘Red and white’ cigarettes

• Positioned for people who are bold and brave
• Give ‘bravery’ awards.
 Positioning in the market place

5. COMPETITOR POSITIONING
– Product claims to have better performance than
competitors
Brooke Bond Taj Mahal Tea
Endorsed by Zakir Hussain
– “If you find a better tea than Taj Mahal, then Zakir
Hussain will stop playing Tabla.
– Directly or indirectly refer competitors.
 Positioning in the market place
6. PRODUCT CATEGORY POSITIONING
– Positioning as a leader in certain category.
Hero Honda
• Four Stroke, fuel efficiency
• Claimed as the leader in fuel efficiency
• Fill it, shut it, forget it
Livon
• After hair wash oil
• Smooth and silky hair
 Positioning in the market place

7. QUALITY OR PRICE POSITIONING

– Positioning as offering the best scooters

Bajaj Scooters
– Lowest prices
– You just cannot beat a Bajaj
– Repositioned as ‘Hamara Bajaj’