Brand Positioning

Ramanuj Majumdar
Brand Positioning

– Brand positioning is all about identifying the

location in your target customers’ minds for a
particular Brand vis a vis its competitors

– Proper positioning makes it easier to facilitate and

managing growth of a Brand
Positioning

 Positioning
– Clarifies what the Brand is all about
– How it is both unique or different from competitive
brands
– Why should customers patronage the particular
brand
Example: Pepsi One
Pepsi One Brand :
Then and now

 Full flavored, healthy  “Breakthru Sweetener”

alternative to regular  “Too good to be one
cola calorie, but it is”
 “Only one has it all”
 “True cola taste, one
calorie”
 “Tastes like regular
cola”
Fundamental Step

 To identify what the brand stand for

 Positioning is the foundation for creating and
fostering the desired knowledge and
perceptions of your customers
– It is generally said people can manage one
(positive), can respond to a second (negative),
and but they have no control over the third
(idiosyncratic)
Identifying a Brand’s Position

 Integrated Positioning Model

– Look at different elements that define a brand
 They are then Unified
 Leverage on each other
 Brands become a function of Organization Drivers
– Consumer Perceptions
At every step, figure out how consumers perceive
the Brand
In order to Position a Brand…

 …you must decide

– Who the Target Consumer is
– Who your main competitors are
– How the Brand is similar to your competitors
– How the Brand is different from your competitors
Target Market Segmentation

 A market segment should have similar

knowledge structures and brand knowledge
– Similar knowledge structures might mean similar
perceptions and beliefs about your Brand
 There are 2 ways to segment
– Descriptive: characteristics of the individuals in
the market
– Behavioral: grouped by how individuals in the
market perceive or use the product
Toothpaste Segmentation

 Four main segments

 Sensory segment
– Flavor and product
appearance
 Sociables Flavor, Brightness
– Brightness of teeth
 Worriers
– Decay Prevention
3 stripes, one for
 Independent each of the 3 main
– Low Price Decay Prevention segments
Target Market Segmentation

 Which works better? Behavioral

– Easier to match perceptions (right/wrong) or beliefs
(right/wrong) with strategy (reinforce/change).
– Many times, behavior and descriptive go hand in hand
 Demographics may be basis of targeting, but
tend to represent some underlying behavioral
reason
– In some cases, demographics may mask underlying
differences
Criteria to form a Segment

 Identifiability
– Can the segment be easily identified?
 Size
– It is big enough to bother?
 Accessibility
– Are distribution outlets and media available to us to reach
the segment?
 Responsiveness
– How favorably will the segment respond to a tailored
marketing program? (this one is tough to quantify)
The Competition

 Market Segments define competitors

– They are targeting the same segments
 Don’t be too narrow in your definition of
competitors
 Consider Sprite
– Product Type (non-cola soft drinks)
– Product Category (all soft drinks)
– Product Class (all beverages)
Point of Difference (POD)

 POD (Point of Difference)

– Strong, favorable, unique brand associations
– May be any kind of attribute or benefit
 Two types of PODs
– Attribute Based
 Functional, performance related differences
– Image Based
 Affective, experiential, brand image related differences
Point of Parity (POP)

 POP (Point of Parity)

– Associations that are shared with other brands
 Two types
– Category: attributes that are required to include
your product as a member of that category
– Competitive: POP that negate your competitors
PODs
 By POPs, a brand should be “good enough”,
but in terms of PODs it should be “superior
 POP AND POD: BMW over the
years
1991

1985
1975
1971
• Affluence, exclusivity
• Fun to drive
• Affluence, exclusivity
• Fun to drive

• Fun to drive
• Economical
• International
16
• Desirability
Managerial Issues

 How do I begin to position my Brand?

– Communicate category membership
– This is the “frame of reference”, where customers
can activate what they know about the category
and apply it to your POPs and PODs
 How?
– Communicate category benefits
– Compare your product to exemplars
– Rely on product descriptor
Nuts and Bolts

 How do I decide on my PODs and POPs?

 POPs
– Analysis of any Product Category
 What attributes do my competitors have? I probably need to
have those, or else, my competitors will gain a POD
 POPs get you included in category
 PODs are more difficult
– Don’t use PODs that are product centric (dominate
competition)
– Ideally ,it is customer centric (unique need of the customer)
Managerial issues

 Criteria for POD

– Desirability
 Must be Relevant
 Must be Distinctive
 Must be Believable
– Deliverability
 Feasibility
 Communicability
 Sustainability
Establish POP and POD in marketplace

 Difficulty: Many attributes that make up POP

and PODs are negatively opposed
– Low price vs. High quality
– Tastes Great vs. Less filling
 Separate the attributes
 Leverage equity in another entity
 Redefine the relationship
Similar concepts: USP/ SCA

 Unique Selling Proposition (USP)

– Advertisers should give a compelling reason to
buy a product that competitors could not match
 What component of the IBM reflects this?
 Sustainable Competitive Advantage (SCA)
 The advantage of delivering superior value in the
marketplace for a prolonged period of time
 Further, SCAs can result from any component of the firm
– Similar to notion that Principle exists in every part of the
firm
What makes a good positioning?
Three Principles

 Three components
– Emotional component
– Descriptive modifier
– Unique functional attributes
 Examples
– Nike: Authentic, Athletic Performance
– Coke: Fun Family Entertainment
– Sony, BMW, Apple made brands
Ultimate Objective of Positioning:
Creation of Brand Equity

– Brand equity (BE) is a

function of awareness, strength, favorability, and
uniqueness of the nodes and links in consumer’s
memory
 BE is created in a progressive manner
– Establish proper Brand Identity
– Create suitable Brand meaning
– Elicit positive Brand responses
– Forge strong Brand relationship
Questions?