Professional Documents
Culture Documents
Positioning
Positioning is a strategy to identify a distinct
position for a brand in the consumer’s mind
and occupy it.
Choosing what value to offer/ What meaning
to assign to the brand that is different from
competition
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Positioning
• Is not what you do the product alone, but you do to the
consumers’ mind.
• Is a set of associations the consumer has with the brand
• Is typically relative to competition
• Good positioning
• clarity of what brand stands for
• stress certain chosen aspects (value propositions) only and not all
• all elements of marketing mix has to be integrated around them
• has to be consistent
• Is a ‘fit’ between a group of unique attributes (differentiation)
with a group of consumers (segment) for whom these attributes
are salient
Differentiation
Consumers’ Competitors’
needs offerings
Their POD
POP
Company’s
Offerings
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Brand Positioning
What
A brand for
benefit?
whom?
Point of
Target
difference/
Value
Brand
How this against
benefit? whom?
Reason Competitor
Set
Steps in Developing Value
Proposition
• What is Company’s Competence?
• What benefits customers require?
• List of Benefits
• Importance of benefits
• Who are your competitors? How would you club
them to define the category in which you compete?
• What are Points of Parity & Points of
Differentiation?
• What are their PoDs?
• What are our PoDs?
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Evaluating Value Proposition
Statement
• Relevance: Do customers care?
• Clarity: Will customers ‘Get it’?
• Credibility: Will customers believe it?
• Uniqueness: Does it set apart from competition?
• Attainability: Can we deliver? Claims in Consistency
with performance?
• Sustainability: Can the position be maintained over
time?
How to articulate Value
Proposition?
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Marketing Strategy Statement
To <Target Segment & Need>, a <Brand> is
<Category Reference Point> that <Point‐of‐
difference> because <reason to believe>
Mountain Dew Marketing Strategy
• To the 18 year old males, who embrace
excitement, adventure and fun Mountain Dew
is the great tasting Carbonated Soft Drink that
exhilarates like no other, because it is
energizing (more sugar and caffeine), thirst
quenching and one‐of‐kind citrus flavor .
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Marketing Strategy Statement
For <target/ end user>, who wants/ need
<compelling reason to buy> the <brand> is a
<product category> that provides <key
benefits>. Unlike <main competitor>, the
<brand> has <point of difference>
Pantene Marketing Strategy
• To the females 18‐49 who possess dry damaged
hair and believe they cannot achieve truly
healthy/shiny hair Pantene is a hair care system
(shampoo/conditioner/ styling aids) that offers
“hair so healthy it shines” because it
“penetrates from root to tip” through its
patented Pro‐Vitamin B5 formula.
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Positioning Strategy Statement
To <Who are you talking to>, a <Brand> is
<whom you want to beat> that <how you
are going to beat him>
Snickers Marketing Strategy
Among snackers, Snickers is the brand of
candy bar that satisfies your hunger because
it is packed with peanuts
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For the game called road 1
For the game called road 2
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For the game called road 3
Marketing Strategy Statement
To <Target Segment & Need>, a <Brand> is
<Category Reference Point> that <Point‐of‐
difference> because <reason to believe>
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• To the young, middle‐class vehicle owners who
find driving on Indian roads extremely
challenging CEAT is a vehicle tyre that offers
“superior road grip” because it has “advanced
polymer” technology.
Go far to come closer
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Evaluating Positioning Statement
• Relevance: Do consumers care?
• Clarity: Will consumers ‘Get it’?
• Credibility: Will consumers believe it?
• Uniqueness: Does it set apart from competition?
• Attainability: Can we deliver? Claims in Consistency
with performance?
• Sustainability: Can the position be maintained over
time?
Perceptual Maps
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Perceptual Maps
• How similar are each of the following
brands?
A‐B 1 2 3 4 5
B‐C 1 2 3 4 5
C‐A 1 2 3 4 5
B A
Positioning Using Perceptual Maps
• Define category in which the brand would compete
• Identify competing brands
• Identify attributes which are relevant
• Survey
• Determine Competitor’s positions (Perceptual Mapping)
• Analyze Consumers (Preference Mapping)
• Identify Holes/ Ideal Points
• Select Position
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3 Popular ways to produce
perceptual maps
• Attribute Ratings
•Each brand rated on various attributes by consumers
•Few factors from the large set of attributes are
arrived at using factor analysis. 2 dimensional maps
are plotted with all brands.
•Optimal weighted combination of attributes found
using discriminant/ factor analysis
•Consumers also rate an ideal brand
3 Popular ways to produce
perceptual maps
• Similarity Judgments
•Consumers are asked to judge similarity of pairs of
the brands. No attributes.
•Multidimensional scaling procedures are used to plot
all brands on 2 dimensional map.
•No attributes and hence the axes are interpreted.
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3 Popular ways to produce
perceptual maps
• Attribute Associations
•Consumers are asked to name one or more brands
that best describes a particular attribute for each of
the identified attributes.
•Correspondence analysis is used to arrive at
correspondence map.
•Correspondence map has both brands and attributes
presenting multi‐dimensional map on 2 dimensional
space.
Perceptual map of a beer market
Heavy
•
• Old Budweiser Beck’s
Milwaukee Miller • •
Heineken •
Meister Brau
•
• Stroh’s
Coors
•
Budget Premium
Michelob
•
Miller Lite
•
Old Milwaukee •
Light • Coors Light
Light
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Preference Map Juxtaposed with
Perceptual Map
Heavy
•
1 Budweiser
• Old Beck’s
Milwaukee Miller • 4 •
Heineken •
3 Meister Brau
•
• Stroh’s
Coors
•
Budget Premium
Michelob
5 •
2
Miller Lite
Old Milwaukee • •
• Coors Light
Light
Attributes of Laptops on a
Perceptual Map
Common
∙ Toshiba 1960CT
Easy setup
Slow
Performance
Light
Value
∙ IBM 701 C
“Butterfly”
Elegant
Looks
The six attributes were measured on semantic differential scales: 1) Slow–Fast operation, 2) Plain–Elegant,
3) Easy–Difficult setup, 4) Poor–Excellent value, 5) Light–Heavy, and 6) Common–Distinctive.
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Interpreting Perceptual Maps
• The arrow indicates the direction in which that
attribute is increasing (The attribute is decreasing in
the direction opposite to the arrow).
• The length of the line from the origin to the arrow
is an indicator of the variance of that attribute
explained by the 2D map. The longer this line, the
greater is the importance of that attribute.
Attributes of Laptops on a
Perceptual Map
(Plain)
Common
∙ Toshiba 1960CT
Easy setup
Slow
Performance
Light
Good
∙ IBM 701 C Value
“Butterfly”
Elegant
Looks
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Interpreting Perceptual Maps
Attributes that are both relatively important and close
to the horizontal (vertical) axis help interpret the
meaning of the axis.
To position a laptop on each attribute, draw an
imaginary perpendicular line from the location of
the laptop onto that attribute. (These are shown
by dashed lines on the map).
Perceptual Map of Beer Market
(only Brands)
Old Milwaukee
•
Budweiser
• Beck’s•
Meister Brau •Heineken
• Miller •
•
• Coors
Stroh’s
•Michelob
• Coors
Miller
Lite
• Light
•
Old
Milwaukee Light
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Perceptual Map of Beer Market
(Only attributes)
Heavy Popular
Full Bodied Heavy with Men
Special
Occasions
Blue Collar Dining Out Premium
Good Value
Budget Premium
Popular
Pale Color with
Women
On a
Budget Light Less Filling
Light
Perceptual Map of Beer Market
(both products & attributes)
Heavy Popular
Full Bodied Heavy with Men
Old Milwaukee
•
Budweiser
• Beck’s•
Meister Brau Special •Heineken
• Miller • Occasions
Blue Collar
Good Value • Dining Out Premium
• Coors
Budget Stroh’s Premium
•Michelob
• Coors Popular
Pale Color
Miller
Lite
• Light with
On a
• Women
Old
Budget Milwaukee Light Light Less Filling
Light
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News Channel Study
The Perceptual Mapping of Channel
Brands
• Category Definition
•Hindi News Channel
• Competing Brands The picture can't be display ed.
•AajTak
•Zee News The picture can't be display ed.
•NDTV India
The picture can't be display ed.
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The Perceptual Mapping of Channel
Brands ‐ Relevant Attributes
• Credibility • Ability to Relate with anchors
• Honest • Look of the Anchors
• Fair • News Delivery
• Unbiased • Presentation
• Courageous • Arrangement of the studio
• Reliable • Appearance of the studio
• Trustworthy • Production
• Integrity • Quality
• Broad Range of subjects • Staging
covered • Feel of the studio
• Subjects that the viewers can • Language/Words used
relate with • Quality of the Graphics
• Speed • Clarity of the Picture
• Promptness with which news is • Clarity of sound
updated
• First to report
• Breaking News
• Anchors/Host Reputation
Findings of Survey
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Brand - Attribute Map
0.6
Breaking News
Ze e Ne ws
Aaj Tak
Good Production
First to report Credible Quality
-0.2
Fair
Good Presentation
Reliable NDTV India
Good Looking Anchors
-0.4 Ability to relate with
anchors
Trustworthy
-0.6
-1
-1.5 -1 -0.5 0 0.5 1 1.5 2
-- axis 1 (56% ) -->
Jaihind
Creepy Crowlies
Repeatitive
Viewer Participation
Social Issues
Amrita
Common People
Local coverage
Indiavision
Unbiased, good Surya Biased, Not well
Sensational
Presentation Neutral to caste Religion Presented
0 Infotainment
-2 Studio Graphics 0Debates, discussions 2
Well researched Manorama Kairali
My voice
Credible & Trustworthy
Attractive Anchors
Accurate
Asianet Politically biased
Breaking news
News Updates
Premium,
-1 Analysis Based
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Thank you
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Scorpio
Car Market Overview
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Scorpio launch plans
• Mahindra Baggage
• Unrealistic objectives
– 1200 vehicles a month
– Category leader – Safari was selling 250 vehicles
a month
Evolved consumers
• The expectations on comforts
• Definition of luxury
• Wanted thrill of an SUV, but the comforts of
a car
• At the same time was savvy in terms of
price‐value equation
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Competition
• Saw themselves as a car vs. UV
manufacturers
• Divided market on the basis of ‘car
segments’
– A,B,C,D,UV etc.
Scorpio communication strategy
• Call itself a CAR
– Connotes the comforts, luxury and imagery
associated with it
• Give international look & feel
• Keep it within the city
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Branding strategy
• Scorpio to dominate Mahindra
– Bring up the imagery of Mahindra
Product design
• The spare wheel at the bottom
• Seats
• Hand rests at the doors
• Music system as part of the original equipent
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Result for Scorpio
• Sales of more than 2500 vehicles per month
• One month waiting period in a highly
competitive market
• Various awards in “CAR” category
• Effies award for advertising
• Created a whole new category &
terminology in Indian four wheeler market
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Positioning Approaches
• Product Characteristics or Benefits
– Physical, pseudo physical, benefits
• Use or Application
– Time of use, Type of use , Place of use
– Usually 2nd or 3rd time positioning for expanding market
• User
– Stimulate aspiration motivations, Lifestyle association
– A good market expansion option
• Product Class
– defining new category
• Competitor based
– leverage well crystallized competitor image
• Price based
– Communicating ‘quality’ message at low‐price is risky
Bottled Water – 3 alternative Brand
Propositions
• For [middle‐class consumers looking for an
affordable and accessible luxury], PQR is
the only brand among all [bottled waters]
that offers [an elegant, sparkling, and
refreshing water, with just a hint of
zaniness] because [it is naturally carbonated
by volcanic gases deep beneath the soil in
southern France and features clever bottle
designs by Andy Warhol].
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Bottled Water – 3 alternative Brand
Propositions
• For [upscale consumers looking to make a
design statement with their choice of
water], ABC is the only brand among all
[bottled waters] that offers [the purest and
most distinctive drinking experience]
because [it derives from an artesian source
in southern Norway and is packaged in a
stylish, iconic glass bottle
Bottled Water – 3 alternative Brand
Propositions
• For [millennial consumers who are socially
conscious], XYZ is the only brand among all
[bottled waters] that [cares about solving
the world’s clean water crisis], because [it
donates five cents for every bottle sold to
programs that help support water,
sanitation, and hygiene education programs
in water‐stressed countries].
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Mountain Man Beer company
Branding Decisions
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Branding Decisions
•Brand Sponsor Decision
• Manufacturer/ Private/ Licensed
•Brand Strategy Decisions
•Blanket Family
•Separate Family
•Company name combined with individual names
•Branding new offer/ Brand strategy grid
•Dual Branding/ Co‐branding – ingredient/ same‐
company/joint‐venture or alliance
Brand strategy Grid
Product Line
Existing
Line Extension Category Extension
Brand
New
Multibrand New brand
Existing New
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Brand Extensions
• Pros
•New Product Success at low cost, Quickly
•Positive feedback effects
• Cons
•Brand dilution
•Cannibalization
What’s a Mercedes?
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A Mercedes for every driveway.
Mercedes is downsizing sticker.
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The cheap Mercedes.
$40,000
The off‐the‐road Mercedes.
35,000
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The Mercedes minivan.
$27,000
The Mercedes minitruck.
$25,000
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The mini Mercedes.
$17,000
Mercedes Smartcar.
$9,000
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Mercedes mountain bike.
$1,900
The Baby Benz.
$89.50
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An engineering icon slips.
Failed the moose test.
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Mercedes’ quality tumbles.
Mercedes tumbles in quality.
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“Mercedes racks up problems.”
Lexus quality.
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A Mercedes taxicab?
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How Broad/ Narrow Benefit?
• Feature Positioning
•What is in it?
•Dove: contains ¼ moisturizing cream
• Benefit Positioning
•What is in it for me?
•Dove: provides baby soft skin
• Value Positioning
•Why is it for me?
•Dove: because you are beautiful by skin and not by
size, shape or color
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