Positioning & Branding

Presented by

Pankaj Jain & Brajesh Mishra

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Summary and Learnings

Positioning got its attention when in 1972 Jack Trout and Al Ries wrote a series of articles entitled The Positioning Era for the trade paper Advertising Age. Today positioning has become the buzzword of advertising and marketing, all over the world. Positioning starts with a product .A piece of merchandise ,a service ,a company ,an institution or a person. Perhaps yourself. But it is not what you do to a product. Positioning is what you do to the mind of the prospect. that is ,you position the product in the mind of the prospect.
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LEARNINGS Even as an individual you need to manage perceptions of others, about yourself how they feel and believe about youso it does not matter in which stream you will be into (Marketing,HR,Finance etc.) you just have to do positioning

Shahrukh Khan Romantic,talented,monogamus

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Vocabulary

Brand Perception Positioning Brand value Mind share

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Brand. A name, sign or symbol used to identify items or services of the seller(s) and to differentiate them from goods or services of competitors.

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GOOGLE. SEARCH.

BMW. DRIVING.

INDIA. DIVERCITY.

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Positioning

When you listen ward Mercedes-Benz The first ward that comes to your mind is prestige Here Mercedes-Benz is a brand which has been positioned in our minds in such a way that whenever we listen to it, we start thinking of prestige (Naam,Rutva and status) it is called Positioning.
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Definition.
Positioning is not what you do to a product. Positioning is what you do to the mind of the prospect. Positioning is ,how you differentiate yourself in the mind of your prospect. e.g. Mysore Sandal -Purity and natural fragrance. Margo- Herbal(neem). Lifebuoy-Hygiene.
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How these companies positioned themselves

Mercedes-Benz prestige. BMW driving. Volvo.. Safety. Starbucks high-end coffee.. Rolexhigh-end watches. Google .Search. Red bull energy drink. FedEx overnight (delivery)
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FedEx
See how FedEx , the American courier has positioned itself as a fastest and most accurate (overnight) courier giant ,which is impossible to be stopped!

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Why positioning?

There are two kinds of products commodities and brands. A commodity is a product that is same as those made by every other company. As a result the only way to sell a commodity is by selling it cheaper than your competitor.

A brand on the other hand, is (at least perceived in that way!) a product that is unique and different. A customer can buy Tata Indica for a lot less money than a Mercedes Benz, but most Mercedes customer wont buying tata or any other vehicle simply because its not a Mercedes-Benz.

so, you need unique brands to make money.

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Why positioning?
The mind rejects much of the information offered to it due to over-communication (Per capita consumption of advertising in America today is about $200 a year) from each side. In general , the mind accepts only that which matches with its prior knowledge or experience. In todays communication jungle out there, the only hope to score big is to be selective, to concentrate on narrow targets, to practice segmentation. In a word positioning
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Why positioning?
You narrow the focus
Starbucks narrowed its focus to high-end coffee and became the world's largest coffee chain.
Dell Computer narrowed its focus to personal computers "sold direct" and became the world's largest PC manufacturer. BMW narrowed its focus to "driving" and became the largest-selling European luxury car in the U.S. Focus is the key to successful brand building in today's ultra-competitive marketplace
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The Oversimplified Message

Today the best approach to take, in our over communicated society is to simplified message. you simplified the message, then simplified it some more if you want to make a long last impression. -Al Ries and Trout

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Volvo owns a single word in the minds.

Volvo. Safety.

Volvo has successfully simplified and Communicated this message.

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You differentiate or die

Advertising has entered a new era where creativity is no longer the key to success ,today a company must create a position in the prospects mind. A position which is unique and based on companys strengths and on realities.You dont lie you only exaggerate.

Camlin (marker)-Permanent.
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Heidelberg Bud Bud Lite Millers Lite Coors Coors light

the working mans beer. the athletic beer the party beer the fun and great test the environment beer the fastest beer
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Marlboro Virginia slims Camel Benson & hedges

- the rugged male - the independent female - cool and sophisticated - intellectual

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So is positioning always beneficial?

Xerox first made photo copy machine & sold them world wide, as the time passed Xerox become synonymous to photocopy. Xerox. When it launched its Photocopy. Xerox data system", fax machine, and PC all were disastrous and Xerox lost billions of dollar since it could not change or reconstructed minds of prospects. Same happened with IBM & Dalda
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Repositioning :Reconstruction of perceptions.

Companies like IBM, Bajaj and Xerox did it.

Company IBM Xerox Bajaj

Traditional image Computer hardware copier Scooters

Repositioned image Services & hardware Hardware & software motorcycles

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Positioning makes brands and brands give value to companies

BRAND
1 Coca-Cola

2 Microsoft
3 IBM 4 GE 5 Nokia
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VALUE $bil 65.3 55.8 57 51.5 33.6

BRAND
6 Toyota 7 Intel 8 McDonalds 9 Disney 10 Mercedes-Benz

VALUE $bil 32 30.9 29.3 29.2 23.5

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Top brands of the world

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In the end, have a..

HUMAN TOUCH

In the automobile market where technology and innovations are key to success see how a company trying to differentiate itself from its competitors.

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References
BOOKS- Positioning: the battle for your mind by Al Ries & Jack Trout Marketing Management by Philip Kotler and Kevin Keller And of course Google.com! You may get this presentation on my blog i.e. brajeshsudarshan.blogspot.com

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Recommended readings
Author Al ries Jack trout Michael porter Books 22 immutable laws of branding The new positioning Good to great

C.k.prahalad
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The fortune at the bottom of the pyramid

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Feedbacks are welcome.

pankaj_jain47631@yahoo.com mishrabraj@rediffmail.com

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THANK Yo

u.

Question please.

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