BRAND POSITIONING

PROCESS

PRACTICAL PROCESS FOR DESIGNING THE

BRAND PLATFORM
By Yash Shridhar
 Brand Positioning
 Positioning is at the heart of marketing
strategy and it is the last step in
marketing strategy formulation. (starts
with segmentation).
 It’s about identifying a suitable location
in the minds of people.
 Task is to identify an optimal location for
the brand vis-à-vis its competitors in the
minds of consumers to maximize
potential benefit to the firm.
Positioning

Why? For Whom?

When to
Against
consume?
whom?
 Segmentation
 Segmentation Bases
 Descriptive or customer oriented
(demographic, Psychographic etc)
 Behavioral or Product oriented (benefits,
user status, usage rate, occasion of
usage & loyalty).
 Criteria
 Identifiability, size (substantiality), accessibility &
responsiveness (measurability)
 Segmentation
 Four main segments for Tooth paste
market uncovered by research.
 The Sensory Segment (seeking flavour and
product appearance)
 The Sociables (seeking brightness of teeth)
 The Worriers (seeking decay prevention)
 The Independent segment (seeking low
price)
 Segmentation
 Model of segments “users of a brand” – four groups
based on the strength of commitment (low to
high).
 Convertible: On the threshold of change;
highly likely to switch brands
 Shallow: Not ready to switch, but may be
considering alternatives
 Average: Comfortable with their choice.
Unlikely to switch
 Entrenched: High loyalty. Unlikely to change in
the near future.
 Segmentation
 “Segments forming “non-users of the brand”.
 Strongly Unavailable: strongly prefer
their current brand
 Weakly unavailable: preference for
current brand. But not strong enough.
 Ambivalent: 50-50 preference for the
current choice as to others.
 Available: prefer the other brand, but
not yet switched.
Competitor Analysis

See slides on competition.

 The Understanding Phase
 Identifying all potential added values for
the brand based on its identity, roots,
heritage and prototypes as well as its
current image (self centered approach).

 Markets are analyzed to understand

consumer’s aspirations or dissatisfactions
on whom the brand can be built.
 Points-of-Parity & Points-of-Difference
 Once the appropriate competitive frame
of reference for positioning has been
fixed by defining the target audience &
nature of competition.
 Next step is to establishing the correct
1. Points-Of-Difference &
 2. Points-Of-Parity
 To define your positioning
Point-Of-Difference

P-O-D’S
 Points of Difference Associations
 POD’s are strong favourable and unique
brand associations.
 May be any type of attribute or benefit
association.
 Are attribute/ benefits that consumers
strongly associate with your brand,
which they will compare, evaluate and
(if found valid) believe that they will not
find the same extent in other brands.
 Points of Difference Associations 2

 Although myriad POD associations are

possible for developing as PODs, generally it
is classified as functional or performance
related functions or abstract imagery-
related aspects.
 POD’s have much in common with unique
selling proposition (USP) and also is
 Rosser Reeves (Ted Bates) distinctive unique
benefit of the product (Anacin – fast relief for your
head ache.)
 Points of Difference Associations 3

 Sustainable competitive Advantage

(SCA) is a related positioning concept.
 Firm’s ability to achieve an advantage in
delivering superior value and sustaining
it for a prolonged period of time.
 SCA could be based on even things like
HR policies, it strongly advocates in
differentiating brands.
 Ikea
 Ikea took a luxury product – in home
furnishings and furniture – and made it a
reasonably priced alternative for the mass
market.
 Ikea supports its low prices by having
customers serve, deliver and assemble the
products themselves.
 Ikea also leverage on the general notion that
Sweden produces good, safe, well built
things.
 Points of Difference Associations 4

 Performance attributes (Milma - low fat

milk, Britania – High shelf life milk)
 Performance benefits (consumer friendly
technologies - Fuzzy logic of whirlpool
where it automatically adjusts time for
various activities; LG golden eye where
your eyes are not strained watching TV)
 Imagery associations (western imagery of
Marlboro cigarettes; British Airways –
world’s best airlines)
Points-of- parity

P-O-P’S
 Points of Parity Associations
 These associations are not necessarily
unique to the brand, but some are typically
product category aspects shared with other
brands.
 Come in two basic forms – category and
competitive
 Category points of parity are those
associations that consumers view as being
necessary to be a legitimate, credible offering
within a certain product category.
 Nivea
 Nivea became leader in the skin cream
category on the “Gentle”, “Protective” and
“Caring” platform.
 As they leveraged into categories such as
deodorants, shampoos and cosmetics, Nivea
had to establish points of parity before points
of Difference.
 Gentle, caring etc are of no value unless
consumers believed that its deodorant was strong
enough, its shampoo would cleanse and its
cosmetics would be colourful enough.
Points of Parity Associations 2

 Competitive POP associations are

those designed to negate the
competitors points of difference.
 The aim is to break-even in those
areas where their competitors are
trying to find an advantage and
 Achieve advantage in some other
area where their own strength lies –
perhaps unbeatable position.
 Miller Lite
 Philip Morris bought Miller brewing and launched
their low calorie beer --- at a time when consumers
had conflicting notion that low calorie beer do not
taste good.
 Initial strategy was to assure POP by stating “taste
Great” and same time attempt to build POD with
the fact that it contained one third less calories –
hence less filling.
 The campaign – “tastes Great & less filling” with the
tag line “ Everything you’ve always wanted in a
beer and less”.
 Points of Parity Associations 3

 To achieve a point of parity on a particular

attribute or benefit, ------------- sufficient
number of consumers must believe that
brand is “good enough” on that dimension.
 There is a zone or range of acceptance with
POPs. (Bajaj’s BYK Motorcycle did not click, even
with its superior mileage and good pricing as it
failed on the pick-up factor)
 Points of parity are thus easier to achieve
than points of difference (where brand must
demonstrate clear superiority)
Establishing the POP’s and POD’s

EXECUTING THE PLANNED

POSITION
Positioning

Why? For Whom?

When to
Against
consume?
whom?
 Positioning Guide Lines
1. Defining & Communicating Competitive Frame Of
Reference
2. Choosing Points Of Parity & Points of Difference.
(Desirability Criteria & Deliverability criteria)
3. Establishing Points Of Parity & Points Of difference
4. Updating Positioning Over Time
 Defining & Communicating the
Competitive Frame of Reference
 Determine category membership
 Indicates the products/brands with which
the brand compete.
 For established category it may not be
required but for new brands it is better
to have clear category membership.
 Personal Digital Assistant – either as a computer
accessory or a replacement for appointment book.
 M & M Scorpio – a Luxury car
 Defining & Communicating the
Competitive Frame of Reference
 It is better to establish a brands category before
projecting its P-O-D’s.
 By knowing the product category, consumers can
know what category it belongs to before knowing
whether they dominate over the existing brands.
 Three ways to convey category membership:
Communicating category benefits (fundamental reason for
usage), comparing to exemplars (well known brands in the
category) and relying on the product descriptor (US air to US
airways, Sony camcorder for handheld video cameras)
 The Exploration Phase
 Finding the brand platform is not something
which you can do in one go. It takes an
iterative approach.
 Positioning of Baccardi rum produced in
Cuba.
 The angle of attack will differ depending on
whether the target is Smirnoff (world leader) in
mixers
 Depending on the competitive position one
choose, it can be against whiskies, gin/vodka
 White Mixer Dark Straight

A B C D

Better tasting Experience The ‘absolute’ An original

mixer than the Cuba Rum spirit
leader
Against whom The leader All mixers Premium rums Whiskies

Why? ‘Taste’ Cuban drink ‘The best rum’ ‘Be different’

When? Cocktail/ party Night/mixed Home/bars Home/dinner

To whom? 25/40; Europe, 18/30, urban 25/40 urban 30/45 urban

Canada, Bacardi B Europe & heavy rum heavy spirit
drinkers Canada drinkers in drinker,
Canada, UK Europe,
Spain, Italy, Canada, Asia
Product
White Dark Dark
physique
Par with Premium Par with
White
Pricing leader whiskies
Communication 10% less Hybrid Hybrid Hybrid

Mass media
 Choosing P-O-P’s & P-O-D’s
 Two important criteria – will consumer find the
POD desirable and deliverable believe that the firm
has the capabilities to deliver it.
 Desirability Criteria: three key aspects
 Relevance – Target should find the POD personally
relevant and important.
 Distinctiveness – target should find the POD distinctive
and superior (& important to consumers needs).
 Believability - target should find the POD believable and
credible.
 Choosing P-O-P’s & P-O-D’s 2

 Deliverability Criteria
 Feasibility:
 performance potential or capability of the brand to
perform at the level stated. (in terms of resources
affordability and time is it feasible).
 Communicability:
 current or future prospects of communicating
information to create or strengthen the desired
association. (can consumers be given a compelling
reason that the brand will deliver).
 Choosing P-O-P’s & P-O-D’s 3

 Effectiveness of communicability factor will

depend on what factual, verifiable proof can be
provided to consumers
 Sustainability: of the actual and
communicated performance over time.
 Is the positioning pr-emptive, defensible and
difficult to attack.
 Is the positioning likely to stand for years? Can
the favourability of brand associations be
reinforced over a period of time?
 Establishing P-O-P’s & P-O-D’s
 Creating a strong, competitive brand requires
establishing the rights Points-Of -Parity and right
Points-Of-Difference.
 Difficulties is in the fact that many of the
attributes that make up the POP or POD are
negatively correlated.
 Say - Low cost vs. High quality.
 Unfortunately consumers try to maximize
these negatively correlated attributes
 Establishing P-O-P’s & P-O-D’s 2

 Best option is to develop products that

perform well on both dimensions.
 Ability of BMW to establish their straddle
positioning image of ‘Luxury & Performance’
enabled by suitable product design
 Gore-Tex could provide the seemingly
impossible benefits ----- both ‘breathable’ &
‘waterproof’ image by technology advances.
 Test Phase
 The test phase is the time when scenarios
are either refined or eliminated.

 It requires consumer studies to find out

the credibility and emotional responses
evoked towards each scenario.
 What are being tested are ideas and
formulations.
 Implementation & Activation
 Once the platform has been drawn up,
brand’s values must be made palpable
and tangible.
 The brand must transform them into
acts.

 Define brand’s marketing strategy,

functional objectives and campaign plan.
The Strategic Evaluation
 Takes the form of a comparison of
scenarios (based on certain criteria followed by
economic evaluation).
 Is there a genuine business
opportunity here?

 Positioning should ideally target on a

weakness of the competition and
ideally on a long term weakness.
Determining The Flagship Product
 In launching a new brand, companies
have to be extremely careful in
choosing which product or service.
 If the company is ambitious about the
brand, then they will have to hitch it
to star product.
 If wrong product is identified there
ends the chances for the brand to
emerge.
 Updating The Positioning Over Time
 With established brands, competitive
forces often dictate shifts in positioning
strategy.
 Visa’s POD in the credit category is that
of most widely available card (underscores
category benefit – convenience).
 Amex highlights the prestige associated
with the use of its card.