Global brand positioning

GBM – Lecture week 4

Prof. Lia Zarantonello
A.Y. 2020/2021
Agenda
• Fundamentals of brand positioning
• Definition of brand positioning
• Steps of brand positioning
• Brand positioning statement
• Implementing brand positioning
• Updating brand positioning over time
• Representing brand positioning through maps

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Agenda
• Fundamentals of brand positioning
• Definition of brand positioning
• Steps of brand positioning
• Brand positioning statement
• Implementing brand positioning
• Updating brand positioning over time
• Representing brand positioning through maps

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Global brands are uniquely positioned

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What is brand positioning?
• “Positioning is not what you do to a
product. Positioning is what you do
to the mind of a prospect” (Al Ries &
Trout, 1969)
• Brand positioning is “the act of
designing the company’s offer and
image so that it occupies a distinct
and valued place in the target
consumers’ minds” (Kotler &
Armstrong, 2014)

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Steps in brand positioning

01 02 03 04
Market Definition of the Identification of Development of
segmentation competitive points-of- the reason to
and selection of frame of difference in believe
target market reference relation to
competition

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1. Market segmentation and selection of
target markets
• Market segmentation divides the market into distinct groups of
homogeneous consumers
• Common consumer segmentation bases:
• Socio-demographic (e.g. income, age, gender)
• Behavioural (e.g. user status, usage rates, usage occasion)
• Psychographic (e.g. values, opinions, activities, lifestyle)
• Geographic (e.g. global, international, regional)
• Segments must be evaluated in terms of their size, profitability, and
appropriateness for the brand

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An example of segmentation: HCC market
• Hygiene fanatics: interested in hygiene
• Hedonists: interested in product smell
• Impatients: who do not have time to clean
• Inexperts: who use one product for everything
• Consumers seeking low price

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2. Definition of the competitive frame of
reference
• Competitors should be defined at the benefit level
rather than the attribute level
• Competitors should not be defined too narrowly
because of the risk of “marketing myopia” (Levitt,
1969)
• Once competitors are identified, competitors’
offerings and gaps in the market must be analysed

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3. Identification of points-of-difference
• Points-of-difference are unique aspects that the company wants consumers to
strongly associate with their brands versus other brands
• They can occur at three different levels
• Feature or attribute level, which focuses on a special feature, ingredient, or capability of the
service or brand
• Benefit level, which focuses on specific benefits consumers receive from using the product or
brand
• Value level, which focuses on helping consumer achieve the values that are important for
them
• They must be relevant, superior, reliable, and credible for consumers; feasible,
profitable, and difficult to attack for the company

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Laddering up from features to benefits to
value: Dove’s brand positioning

Promotes self-esteem

Contains 1/4 moisturising cream Moisturises your skin

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Global/local as a point of difference: the
concept of “consumer culture”
• Consumer culture is the shared
set of symbols referring to
Global consumer culture
consumption, such as product
categories, brands and Local consumer culture
consumer activities (Lee & Tai,
2006)
Foreign consumer culture

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Global consumer cultural positioning (GCCP)
• A GCCP strategy is defined as one that identifies the brand as a
symbol of global culture
• Different from standardised advertising which uses similar content
around the world
• Examples: Sony (“My First Sony”) positioned one of its products as
appropriate for young people around the world; Philips (“Let's Make
Things Better”) advertisements feature people from different
countries; Benetton (“The United Colors of Benetton”) emphasises
unity of humankind in its slogan

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Local consumer cultural positioning (LCCP)
• LCCP associates the brand with the local consumer culture, reflects
the local culture’s norms and identities, is portrayed as consumed by
local people in the national culture, and/or is depicted as locally
produced for local people
• Example: Budweiser’s association with small-town American culture
in its U.S. advertising

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Foreign consumer cultural positioning (FCCP)
• FCCP associates the brand with a specific foreign culture
• The brand is positioned as symbolic of a specific foreign consumer
culture; that is, a brand whose personality, use occasion, and/or user
groups are associated with a foreign culture
• For example, in the UK, Muji is associated with Japanese minimalism
whereas IKEA with Swedish style of living

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4. Development of the reason to believe
• The reason to believe, also called “reason why” and “brand truth”, is
the supporting evidence that is given by the company to influence
consumers
• The supporting evidence can be related to the product itself (e.g. formula,
design, source, process) and/or people (e.g. an endorser)
• It adds credibility to the brand and its products

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Brand positioning statement

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Examples of brand positioning statements
• Coca-Cola https://www.coca-cola.co.uk/
To all people around the world in need of refreshment, Coca-
Cola is the brand of soft drinks that opens up happiness,
because of its trusted role in popular culture.

• Brewdog https://www.brewdog.com/uk/
To all rebels and pioneers who are fed up with “boring” beers,
Brewdog is the brand of craft beers that offers distinctive flavour
experiences because of its authentic approach to quality
ingredients and brewing process.

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Other examples of brand positioning
statements
• Lay’s North America https://www.fritolay.com/
To shoppers and consumers looking for a savoury snack, Lay’s is
the brand of fresh-tasting and perfectly crispy chips that shares
the moment because it has been America’s favourite snack for
more than 75 years.
• Lay’s China http://www.lays.com.cn/
To shoppers and consumers looking for a savoury snack, Lay’s is
the brand of flavourful, crispy, and natural chips that brings
happiness because Show Lou endorses it.

(Source: Yemen and Wilcox, 2012)

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Level of consistency of brand positioning
• Brand positioning can be consistent across markets or
present some degrees of local adaptation
• This depends on the target market as well as the
competitive frame of reference
• If the brand identifies an international target market which is
consistent across countries and competes with other
international brands, the need for adaptation is small and
usually delivered through executional aspects
• If cultural differences are relevant to identify a target market and
competition is different across countries, then the brand might
adapt more central aspects of its positioning (i.e. points-of-
difference, reason to believe)

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Agenda
• Fundamentals of brand positioning
• Definition of brand positioning
• Steps of brand positioning
• Brand positioning statement
• Implementing brand positioning
• Updating brand positioning over time
• Representing brand positioning through maps

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Implementing brand positioning (1): brand
communication options
Advertising
Events and
and
experiences
promotions

Interactive
communication

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Implementing brand positioning (2): how to
communicate GCCP, LCCP, and FCCP
• Language
• GCCP: English words; LCCP: local language; FCCP:
language specific of a market
• Aesthetic systems
• Brand elements can be symbolic of specific
cultural traditions or tied less to specific cultures
• Story themes
• Global/local/foreign themes

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Example of Coca-Cola (1)
• Coca-Cola has been
communicating with consumers
in an exceptional manner; it is a
great example of constant,
consistent, and brilliant
communication
• This example is the “Happiness
machine” ad and is part of Coca-
https://www.youtube.com/watch?v=NwCn-D5xFdc
Cola communication centered
on the idea of happiness

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Example of Coca-Cola (2)
• Coca-Cola has used traditional
ad as well as print ad
• This is another example of the
happiness-centered
communication
• Traditional ad was useful to build
the association between the
brand Coca-Cola and the
concept of happiness

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Example of Coca-Cola (3)
• In addition to traditional advertising,
Coca-Cola has been communicating
through events and experiences over the
years
• This way, the company can create
engagement with consumers as they can
be part of the happiness created by Coca-
Cola
• Examples include the happiness vending
machine and the happiness truck in
various countries in the world

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Example of Coca-Cola (4)
• The company has also been using a
variety of social media over the years
• This way, the company can create
interactions with consumers and
initiate conversations about what
happiness is and means to them
• Consumers create Coca-Cola and
happiness-related contents in an
active way

GBM – Lecture week 4, Prof. Lia Zarantonello

Agenda
• Fundamentals of brand positioning
• Definition of brand positioning
• Steps of brand positioning
• Brand positioning statement
• Implementing brand positioning
• Updating brand positioning over time
• Representing brand positioning through maps

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Updating positioning over time
• Updating brand positioning over time ensures the brand is aligned
with changing consumers
• Companies may revise their brand positioning strategy and make
changes in relation to some aspects
• Drastic changes in brand positioning are rare and happen infrequently

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Brand positioning process

Aspirations: the company desired brand positioning

Co-creation: what the consumer does

The company The consumer

Reaction: the company adjusted brand positioning

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Axe/Lynx: adjusted brand positioning

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Agenda
• Fundamentals of brand positioning
• Definition of brand positioning
• Steps of brand positioning
• Brand positioning statement
• Implementing brand positioning
• Updating brand positioning over time
• Representing brand positioning through maps

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Representing brand positioning: brand
positioning maps
• Defined as a two-dimensional map used as a tool in brand
positioning; the market positions of major competing brands are
plotted on the map according to key attributes or criteria, such as
price, quality and extent of service offered, in order to identify market
gaps that might be exploited
• Can be used when deciding how to position a new brand, in the
analysis of current positioning of a brand, or in the context of
repositioning

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Example of positioning map (1)
Niche

Smeg

Siemens
Bosch
Zanussi Whirlpool

Tradition Innovation
LG
Cannon
Indesit
Hotpoint Servis Candy
Electrolux
Creda
Hoover

Mainstream
Source: Company of home appliances brands

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Example of positioning map (2)

https://www.perceptualmaps.com/map-format/repositioning_on_a_perceptual_map/

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Wrap up
• Key concepts in the analysis of brand positioning
• Steps in brand positioning
• Brand positioning statement
• GCC, LCC, and FCC
• Brand communication
• Managerial aspects to think about
• Change of brand positioning over time
• Tools that can support your analysis
• Brand positioning maps

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Thank you