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Crafting the Brand Positioning

What is Positioning?
Positioning is the act of designing the companys offering and image to occupy a distinctive place in the mind of the target market. The result of positioning is successful creation of customer-focused value propositions.

Value Propositions
Brand/ Product Scorpio Target Customers Life style oriented customers Convenienc e minded pizza lovers Benefits
Luxury and comfort

Value Proposition

Dominos Pizza

Vehicle that provides luxury and comfort, spacious car Delivery, speed A good, hot pizza and good delivered at your door quality within 30 minutes

Examples

Competitive Frame of Reference

To determine category membership with which brand it competes. Defining target market and competitors. Example: Lakme Cosmetics Raymond Mens formal wear TCS Consulting firm

Conveying Category Membership

Announcing category benefits Comparing to exemplars - When Tomy Hilfiger was unknown, advertisment was associated with great American designer Geoffrey Beene, Perry Ellis etc. Relying on the product descriptor

Defining Associations
Points-of-parity Points-of-difference (PODs) (POPs) Attributes or benefits Associations that are consumers strongly not necessarily unique associate with a brand, to the brand but may positively evaluate, and be shared with other believe they could not brands find to the same extent with a competitive brand

Points of difference

Cust. needs

Brand A

Brand B Points of difference

Points of parity

Consumer Desirability Criteria for PODs

Relevance - Westin Stamford hotel in Singapore Distinctiveness - POD should be distinctive and superior. Believability - Mountain Dew may argue that it is more energizing but support by claiming higher level of caffeine.

Deliverability Criteria for PODs

Feasibility - Product design and marketing offering must support the desired association. Communicability - proof points - Nivea Wrinkle Control with Q10 co-enzyme. Sustainability

Negatively Correlated Attributes and Benefits

Low-price vs. High quality Taste vs. Low calories Nutritious vs. Good tasting Powerful vs. Safe Varied vs. Simple

Differentiation Strategies
Competitive advantage Sustainable competitive advantage Means of differentiation: Product Channel Personnel Image

Claims of Product Life Cycles

Products have a limited life Product sales pass through distinct stages each with different challenges and opportunities Profits rise and fall at different stages Products require different strategies in each life cycle stage

PLC

-Slow growth - No profit

- Rapid acceptance

-Profit stabilize

Common PLC patterns

Style, Fashion and Fad

Marketing Strategies: Introduction Stage

Sales
Promotional Costs
Low sales Highest Negative or Low Create product awareness, trial and secure distribution Offer a basic product High Early adopters and high income groups

Profits
Marketing Objectives

Product Price Focus

Contd
To enter first can be risky, rewarding and expensive. Pioneer gains the greatest advantage. Eg. Amazon.com, Hallmark

Marketing Strategies: Growth Stage

Sales Competition Profits
Marketing Objectives Rapidly rising sales Competitors enter with new product features and more distribution Rising profits Maximize market share Same or more to meet competition

Promotional Exp Price

Price remains same or fall slightly

Contd: Strategies to sustain the growth

Add new product features and improved styling Adds new models and flanker products. New market segments Increase in distribution coverage Lowers prices to attract the next layer of price sensitive buyers Product preference advertising

Marketing Strategy: Maturity Stage

3 phases: growth, stable and decaying maturity In first phase, sales growth rate starts to decline. In second phase, sales flatten. In third phase, sales starts to decline and customers begin to switch. Competitors increase advertising and promotion, frequent mark downs. Abandon weaker products

Contd: Ways to change course for a brand

Market modification Product modification Marketing program modification - Prices - Distribution - Advertising - Sales promotion - Personal selling - Services

Marketing strategies: Decline stage

Many reasons- technology, consumer tastes, competition. Firms may start withdrawing from weaker channels, unprofitable products, smaller market segments and cut their promotional budgets.

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