Positioning and Branding

By

Mosad S. Abd El-Rahman

DBA_1st year_2nd Term

Assignment no. 1

Presented to

Prof. Dr. Ehab Mohamed Abouaish

The Commerce College Cairo University March, 2013

CONTENTS
1. Positioning..................................................................................................................... 2 1.1 Definition ............................................................................................................... 2 1.2 Brand positioning process......................................................................................... 2 1.3 Product positioning process ...................................................................................... 2 1.4 Positioning concepts ................................................................................................ 3 1.5 Positioning Strategy ................................................................................................. 3 1.6 Recent Research trends in positioning ........................................................................ 5 2. Branding ........................................................................................................................ 7 2.1 Definition ............................................................................................................... 7 2.2 Branding Challenges ................................................................................................ 8 2.3 Brand-Name Strategies ............................................................................................ 8 2.4 Brand Strategy Decision ........................................................................................... 8 2.5 Brand Repositioning ................................................................................................ 9 2.6 Branding New Trends .............................................................................................. 9 3. REFERENCES ............................................................................................................ 11

Positioning and Branding

1. POSITIONING 1.1 Definition Positioning is the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Also there are two main definition regarding positioning, one of them is Re-positioning which involves changing the identity of a product, relative to the identity of competing products. And the other is Depositioning which involves attempting to change the identity of competing products, relative to the identity of your own product.

1.2 Brand positioning process The brand positioning process involves: a) Identifying the business's direct competition (could include players that offer your product/service amongst a larger portfolio of solutions) b) Understanding how each competitor is positioning their business today (e.g. claiming to be the fastest, cheapest, largest, the #1 provider, etc.) c) Documenting the provider's own positioning as it exists today (may not exist if startup business) d) Comparing the company's positioning to its competitors' to identify viable areas for differentiation e) Developing a distinctive, differentiating and value-based positioning concept f) Creating a positioning statement with key messages and customer value propositions to be used for communications development across the variety of target audience touch points (advertising, media, PR, website, etc.) 1.3 Product positioning process Generally, the product positioning process involves: a) Defining the market in which the product or brand will compete (who the relevant buyers are) b) Identifying the attributes (also called dimensions) that define the product 'space' c) Collecting information from a sample of customers about their perceptions of each product on the relevant attributes d) Determine each product's share of mind e) Determine each product's current location in the product space f) Determine the target market's preferred combination of attributes (referred to as an ideal vector) g) Examine the fit between the product and the market.
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1.4 Positioning concepts More generally, there are three types of positioning concepts: a) Functional positions
o o o

Solve problems Provide benefits to customers Get favorable perception by investors (stock profile) and lenders

b) Symbolic positions
o o o o

Self-image enhancement Ego identification Belongingness and social meaningfulness Affective fulfillment

c) Experiential positions
o o

Provide sensory stimulation Provide cognitive stimulation

1.5 Positioning Strategy There are seven approaches to positioning strategies: (1) Using Product characteristics or Customer Benefits as a positioning strategy this strategy basically focuses upon the characteristics of the product or customer benefits. For example if I say imported items it basically tell or illustrate a variety of product characteristics such as durability, economy or reliability etc. Lets take an example of motorbikes some are emphasizing on fuel economy, some on power, looks and others stress on their durability. Hero Cycles Ltd. positions first, emphasizing durability and style for its cycle. At time even you would have noticed that a product is positioned along two or more product characteristics at the same time. You would have seen this in the case of toothpaste market, most toothpaste insists on freshness and cavity fighter as the product characteristics. It is always tempting to try to position along several product characteristics, as it is frustrating to have some good characteristics that are not communicated.

Positioning and Branding

(2) Pricing as a positioning strategy - Quality Approach or Positioning by Price-Quality Lets take an example and understand this approach just suppose you have to go and buy a pair ofjeans, as soon as you enter in the shop you will find different price rage jeans in the showroom say price ranging from 350 rupees to 2000 rupees. As soon as look at the jeans of 350 Rupees you say that it is not good in quality. Why? Basically because of perception, as most of us perceive that if a product is expensive will be a quality product where as product that is cheap is lower in quality. If we look at this Price quality approach it is important and is largely used in product positioning. In many product categories, there are brands that deliberately attempt to offer more in terms of service, features or performance. They charge more, partly to cover higher costs and partly to let the consumers believe that the product is, certainly of higher quality. (3) Positioning strategy based on Use or Application Lets understand this with the help of an example like Nescafe Coffee for many years positioned it self as a winter product and advertised mainly in winter but the introduction of cold coffee has developed a positioning strategy for the summer months also. Basically this type of positioning-by-use represents a second or third position for the brand, such type of positioning is done deliberately to expand the brands market. If you are introducing new uses of the product that will automatically expand the brands market. (4) Positioning strategy based on Product Process Another positioning approach is to associate the product with its users or a class of users. Makes of casual clothing like jeans have introduced designer labels to develop a fashion image. In this case the expectation is that the model or personality will influence the products image by reflecting the characteristics and image of the model or personality communicated as a product user. Lets not forget that Johnson and Johnson repositioned its shampoo from one used for babies to one used by people who wash their hair frequently and therefore need a mild people who wash their hair frequently and therefore need a mild shampoo. This repositioning resulted in a market share. (5) Positioning strategy based on Product Class - In some product class we have to make sure critical positioning decisions For example, freeze dried coffee needed to positions itself with respect to regular and instant coffee and similarly in case of dried milk makers came out with instant breakfast positioned as a breakfast substitute and virtually identical product
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Positioning and Branding

positioned as a dietary meal substitute. (6) Positioning strategy based on Cultural Symbols - In todays world many advertisers are using deeply entrenched cultural symbols to differentiate their brands from that of competitors. The essential task is to identify something that is very meaningful to people that other competitors are not using and associate this brand with that symbol. Air India uses maharaja as its logo, by this they are trying to show that we welcome guest and give them royal treatment with lot of respect and it also highlights Indian tradition. Using and popularizing trademarks generally follow this type of positioning. (7) Positioning strategy based on Competitors - In this type of positioning strategies, an implicit or explicit frame of reference is one or more competitors. In some cases, reference competitor(s) can be the dominant aspect of the positioning strategies of the firm, the firm either uses the same of similar positioning strategies as used by the competitors or the advertiser uses a new strategy taking the competitors strategy as the base. A good example of this would be Colgate and Pepsodent. Colgate when entered into the market focused on to family protection but when Pepsodent entered into the market with focus on 24 hour protection and basically for kids, Colgate changed its focus from family protection to kids teeth protection which was a positioning strategy adopted because of competition. 1.6 Recent Research trends in positioning The effective brand strategies are the result of brand research and no brand positioning should ever be done without doing some research first. The reason is very simple. Its highly likely that where and how you think your brand should be positioned is quite different from what consumers want, expect, and will accept. There are

To identify what your brand position should be, you need to take time to research customers, competitors and your industry. More specifically, the following four phases of brand positioning research should be performed to achieve valuable results.
a) Phase I: Secondary research

The first step is to collect publically available information and build profiles for each competitor. Examples of information you want to collect include general business structure, product/service offerings, sales data, market share data, general marketing communication messages, distribution, general company financial data, etc. Once the competitor profiles are complete, that information can be utilized in crafting more specific lines of inquiry for
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Phase II research.
b) Phase II: Exploratory qualitative research

Qualitative methodologies such as focus groups or one-on-one in-depth interviews (IDIs) enable your organization to explore customer brand and product perceptions. This phase generates insight to what product attributes and external influences are important to decision makers. This process not only identifies existing brand perceptions/positions occupied by your brand and competitive brands, but also allows you to identify brand positioning gaps not yet filled by another brand. This information will be utilized to develop a quantitative instrument for Phase III that is more targeted and effective than one that could be developed without this exploratory research.
c) Phase III: Initial quantitative research

Findings from Phase II should be utilized to develop a quantitative survey to gain feedback from a larger audience. This phase is focused on assessing the depth and breadth of awareness and penetration for your brand and select competitor brands. Survey topics often include evaluating the importance of identified product/service attributes and measuring how key brands rate on these features. This information helps your organization understand what product/service characteristics to emphasize in marketing communications and how to better link your brand to the emotional benefits customers seek.
d) Phase IV: Follow-up quantitative research

Once you have completed your initial quantitative research, it is likely you may need to follow-up with a second study with specific questions related to your proposed or suggested brand position. For example, you can utilize this round of research to test product prototypes or marketing communications and gauge customer reactions. This last step will help you deliver a strong, believable message about your brand. Taking the time to conduct brand positioning research gives your brand a much greater chance for long-term success. By understanding which product/service benefits are important to key customers in your market and how your product/service performs on these attributes, your organization can make better decisions about your brand and business portfolio. Based on the specifics of your product/service, current market conditions and your business objectives, you and your research partner can custom design a brand positioning research study. If you don't have a market research partner, Strategic Marketing Services would welcome the opportunity to assist your organization.

Positioning and Branding

2. BRANDING 2.1 Definition In Kotler (2001, p188), The American Marketing Association defines a brand as a name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. A brand identifies the seller or maker. Whether it is a name, trademark, logo, or another symbol, a brand is essentially a sellers promise to deliver a specific set of features, benefits, and services consistently to the buyers. The best brands convey a warranty of quality. But a brand is an even more complex symbol. It can convey up to six levels of meaning, as shown in the following Table.

Adapted from Kotler 2001

Positioning and Branding

2.2 Branding Challenges Branding poses several challenges to the marketer. The first is whether or not to brand, the second is how to handle brand sponsorship, the third is choosing a brand name, the fourth is deciding on brand strategy, and the fifth is whether to reposition a brand later on. 2.3 Brand-Name Strategies

Adapted from Kotler 2001 2.4 Brand Strategy Decision A company has five choices when it comes to brand strategy. The company can introduce line extensions (existing brand name extended to new sizes or flavors in the existing product category), brand extensions (brand names extended to new-product categories), multibrands (new brand names introduced in the same product category), new brands (new brand name for a new category product), and co-brands (brands bearing two or more well-known brand names).
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2.5 Brand Repositioning However well a brand is currently positioned, the company may have to reposition it later when facing new competitors or changing customer preferences. Consider 7-Up, which was one of several soft drinks bought primarily by older people who wanted a bland, lemonflavored drink. Research indicated that although a majority of soft-drink consumers preferred a cola, they did not prefer it all of the time, and many other consumers were noncola drinkers. 7-Up sought leadership in the noncola market by calling itself the Uncola and positioning itself as a youthful and refreshing drink, the one to reach for instead of a cola. Thus, 7-Up successfully established itself as the alternative to colas, not just another soft drink. 2.6 Branding New Trends There are many new trends for branding, these trends may be summarized in the following statements:
a) Brands will get fit

With nearly 1 in 3 people in the US battling weight issues, fitness is in and obesity is out. The message that the nation needs to be fitter is being heard by brands, and they are acting. Whether its by improving a product, changing a perception or just getting with the program, brands will be increasingly aligning their messages and actions to focus on health and fitness. Consumers want it and need it. From PepsiCo and Burger King to Sesame Street and MetLife, brands are making some big investments to promote public awareness and education and putting their money where their mouth is with big donations to healthy charities. Brand managers take note a healthier brand is going to be a more profitable one.
b) Global Partnership

International brands are going to need each other more. Western brands going east; eastern brands going west. We are going to see more deals, more tie-ups and more relationships as brands look to become more relevant and more pervasive in expanding communities around the world. The truth is, brands dont necessarily need to or know how or to do it on their own. International partnerships will give them inroads to new territories and new users where they can find success not just eventually in the long-term, but immediately in the short-term. A new era of global collaboration is underway.
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c) The .COM has gone

With Facebook, Twitter and mobile apps, maybe you dont even need a website anymore
d) Every one's a designer e) 500 million users can't be ignored

Brands will increasingly push the limits of Facebook to enable richer interactions and more meaningful connections. Facebook will be the first point of connection with brands and not just in some limited way theyll have more content, more commerce and more community. Just accept that the rules of privacy have changed, that people will spend millions of dollars on virtual goods and that you really cannot have enough friends. This year, Facebook has won.
f) Etc.

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3. REFERENCES Philip Kotler (2001). Marketing Management, Millenium Edition, (pp. 188-192). Prentice-Hall, Inc. http://aytm.com/blog/research-junction/brand-positioning-standards-and-practices-part-2/ http://info.sms.uni.edu/blog/bid/111074/4-Key-Phases-of-Brand-Positioning-Research http://www.marketing91.com/positioning-strategies/ http://www.trendsinbranding.com/ http://en.wikipedia.org/wiki/Positioning_(marketing)#Brand_positioning_process

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