RECAP: WHAT DO WE KNOW? • CONSUMER BASED BRAND EQUITY (CBBE)
Consumers perception, recognition & attitude Value of the brand created by the customer

‘ THE POWER OF A BRAND LIES IN WHAT RESIDES IN THE MIND OF THE CONSUME’ – (Keller, 1998)

OUTLINE
1. 2. 3. 4. 5. BASIC CONCEPTS IDENTIFYING & ESTABLISHING BRAND POSITIONING POSITIONING GUIDELINES DEFINE AND ESTABLISHING BRAND MANTRA BRAND AUDITS

IDENTIFYING AND ESTABLISHING BRAND POSITIONING
• CBBE MODEL – Generalised process to build brand knowledge structures, in order to create brand equity. ULTIMATE GOAL – Brand Resonance / Relationship / Loyalty / Toma

HOW?

BRAND POSITIONING

WHAT IS A BRAND POSITION? • The distinct place a firm / product / brand occupies in a consumers mind relative to competing offerings (Ratcliffe. . 2007). walker & Stanton. 2004). • The way a firms product / brand is viewed relative to competition by current and prospective customers (Etzel.

BRAND POSITIONING (BP)? • Brand positioning is about how we want targeted consumers to think about a brand with respect to competitors. 2011). it refers to both the place a brand occupies in the mind of the consumer relative to (1) their needs (2) competing brands. A STRATEGIC ISSUE: BP DETERMINES THE MARKETING MIX ELEMENTS(4P’S) . and to the marketers decision making intended to create such a position (walker & mullins.

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WHO IS THE TARGETED CUSTOMER WHO THE MAIN COMPETITORS ARE HOW THE BRAND IS SIMILAR TO COMPETITIONS HOW THE BRAND IS DIFFERENT TO COMPETITIONS . 4. 3.IN ORDER TO POSITION A BRAND MARKETERS NEED TO KNOW 1. 2.

2007).A process of dividing the total market for a good or service into smaller groups with similar needs that share distinct characteristics in order for marketers to focus their resources effectively (Cant & Brink. 2005) • . money to spend and the willingness to spend it (Etzel et al. • MARKET SEGMENTATION .Consists of people with needs to satisfy. 2005) TARGET MARKET – A group of people for whom the firm designs. implements and maintains a marketing mix intended to meet the needs of the group (Cant & Brink.POSITIONING • MARKET .WHO IS THE TARGETED CUSTOMER ? STP: SEGMENTATION – TARGETING .

BASES OF SEGMENTATION CONSUMER MARKET SEGMENTATION BASES Type Description Behavioural Benefits desired from the product and the rate at which the consumer uses it. Psychographic Regarding peoples activities. User status Usage rate Usage Occasion Brand Loyalty Benefit sought Light VS Heavy Drinkers Demographic Refers to individual differences among consumers. interests. Wealthy Lifestyle International / Regional Rural/Urban Suburbs / Climate Practical EG Children Cape Town BEST FOR BRANDING: BENEFIT & LOYALTY SEGMENTATION PRACTICES (Cant & Brink 2005)(Keller 2009) . opinions & lifestyle Geographic Location Theory EG LSM Category Income Age Family Structure Values Attitudes Lifestyle Opinions Personality Celebrity.

2. SENSORY Smell (E. Lavender) .BENEFIT SEGMENTATION HEAD AND SHOULDERS SHAMPOO 1. 3.g.5 senses SOCIABLE Clean hair: ..Hygienic WARRIORS Anti-dandruff INDEPENDENT Price . 4.

WHO ARE THE MAIN COMPETITORS? • • Conduct a SWOT analysis of the brand and competing brands Marketers must understand the competitors that exist and how they are perceived by the target market (Cant & Brink. 1982) . different marketing mixes for the same targeted segment and are likely to have a different set of resources and capabilities..2.. • “SOMETIMES IT’S NOT IMPORTANT HOW GOOD CUSTOMERS THINK YOU ARE. IT’S JUST IMPORTANT THAT THEY BELIEVE YOU ARE BETTER OR AS GOOD AS YOUR COMPETITION” (Aaker & Shansby. 2005) – their positioning. Competitors can use different bases of segmentation.

Associations that are not necessarily unique to the brand but may be shared by other brands i.E.3. HOW IS THE BRAND SIMILAR TO COMPETITORS? POP POINT OF PARITY . Where you can at least match the competitors claimed benefits. ( 2009) • CATEGORY POP • COMPETITIVE POINTS OF PARITY • .

POINTS WHERE YOU ARE CLAIMING SUPERIORITY OR EXCLUSIVENESS OVER OTHER PRODUCTS IN THE CATEGORY. (KELLER. HOW IS THE BRAND DIFFERENT TO THE COMPETITION ? : POD • POINT OF DIFFERENCE . 1998) UNIQUE SELLING PROPOSITION SUSTAINABLE COMPETITIVE ADVANTAGE • • POPS CAN BE “GOOD ENOUGH”. BUT PODS SHOULD BE “SUPERIOR. 2003) .4. (Perkins.

than normal or possible expectations – Cadbury.MORE. 2011 .

website. WHAT ARE THE POINTS OF DIFFERENCE? . warmth – packaging.. wants energy. classic ( since 1824) • • • • • = RECOGNITION & RECALL ( AWARENESS) + BRAND IMAGE = BE/CBBE . products.Contemporary wrappers.Slogan: glass and a half full of. Essential and distinctive taste profile. beacon. age-old recipe & method Established. sizes and range/assortment. communication. WHO IS THE COMPETITION? . up-to-date with the chocolate industry. woolworths: any other chocolate alternative. WHAT ARE THE POINTS OF PARITY? . prices and distribution. endorphins (benefit). promotions.Nestle..POSITIONING EXAMPLE? • WHO IS THE TARGET MARKET? – Psychographic & behavioural : anyone who likes chocolate ( attitude). family. Joy (exceeding possibility) – fun. lindt. respected.

flv .Cadbury.

POSITIONING GUIDELINES .

DISCOVERY OVERVIEW • LARGEST PRIVATE HEALTHCARE FUNDER WITH OVER 2 MILLION MEMBERS MARKET SHARE OF 40% ESTABLISHED BY ADRIAN GORE IN 1992 GROWTH ENTIRELY ORGANIC RECOGNISED AS THE MOST FINANCIALLY SOUND SCHEME IN INDUSTRY • • • • .

CHOOSING AND ESTABLISHING POINTS OF PARITY (POP) AND POINTS OF DIFFERENCE (POD) .2 STEPS TO POSITIONING THE BRAND 1. DEFINE AND COMMUNICATE THE COMPETITIVE FRAME OF REFERENCE 2.

DEFINING AND COMMUNICATING THE COMPETITIVE FRAME OF REFERENCE • DETERMINE CATEGORY MEMBERSHIP – Which products / set of products does Discovery compete with? • CATEGORY MEMBERSHIP TELLS CONSUMERS ABOUT THE GOALS THEY MIGHT ACHIEVE BY USING THE PRODUCT/ SERVICE – Healthcare Insurance – Life Insurance – Financial services – Wellness .

Category POP’s – Compare to exemplars -well-known brands in product category – Relying on product descriptor -brand name category origin .DEFINING AND COMMUNICATING THE COMPETITIVE FRAME OF REFERENCE • 3 WAYS TO COMMUNICATE CATEGORY MEMBERSHIP – Communicating category benefits .

DESIRABILITY CRITERIA – FROM THE CONSUMERS POINT OF VIEW • Personally relevant and important – RELEVANCE • Discovery provides products that empower consumers to take control of their health .CHOOSING POINTS OF DIFFERENCE 1.

CHOOSING POINTS OF DIFFERENCE • Distinctive and superior – DISTINCTIVENESS • Integrated product range .

CHOOSING POINTS OF DIFFERENCE • Believable and credible .BELIEVABILITY • Discovery provides cover to over 2 million lives .

THERE IS SOMETHING FOR EVERYONE! .CHOOSING POINTS OF DIFFERENCE • DELIVERABILITY CRITERIA – COMPANIES ABILITY TO DELIVER • Can the firm create the point of difference – FEASIBILITY • Discovery have extensive product offerings to accommodate all types of consumers with affordable packages.

SUSTAINABILITY • Discovery has grown organically since 1992 and the founder Adrian Gore is still the CEO today and actively involved in the company. .CHOOSING POINTS OF DIFFERENCE • Is the positioning capable of enduring over time .

• • .CHOOSING POINTS OF DIFFERENCE • Consumers perception and awareness of the brand and brand associations . Their wide range of sponsorship allows them to constantly communicate the brand.COMMUNICABILITY Discovery is heavily engaged in various sponsorship initiatives to extend their brand vision of making people healthier.

DISCOVERY’S DIFFERENTIATION RELATIVE TO COMPETITORS • • • • • • A wide spectrum of plan options to meet different needs Affordable Extensive medical cover and support Control of day-to day medical spend Wellness programme Constantly evolving .

.ESTABLISHING POD’S AND POP’S • Many attributes or benefits determine POP/POD’s and can be negatively correlated.

DISCOVERY’S POD’S AND POP’S • SEPARATED THE ATTRIBUTES – VERY DIFFICULT FOR COMPETITORS TO MATCH! – – – – – 7 Fitness Partners 5 Health Partners 6 Rewards Partners 7 Lifestyle Partners Discovery Credit Card .

UPDATING POSITIONING OVER TIME • LADDERING – Deepened meaning of the brand and to trap into core brand associations • EXPLORING UNDERLYING MOTIVATIONS .

Way of understating high level meanings of brand characteristics and meanings.UPDATING POSITIONING OVER TIME • MEANS. Attributes Features of Products • Medical Plans available to suite all needs • Customer Service • Well Established Brand Benefits Consequences Values Stable/ Enduring Personal Goals & Motivations • Vitality • Sponsorship • Health • • • • Lifestyle Peace of Mind Vitality Discounts .END CHAINS.

UPDATING POSITIONING OVER TIME • REACTING – Responding to competitive challenges or threats to existing positioning 1 Do nothing 2 Go on the defensive by strengthening POP’s and POD’s 3 Launching a product extension or a more aggressive approach of repositioning .

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1999) BRAND EQUITY = BRAND AWARENESS + BRAND IMAGE (THE PROCESS IS CONSISTENT) (CANT & BRINK 2005) • .DEFINING & ESTABLISHING BRAND VALUES NB: BRAND MANTRA ALLAN GRAY – SA Investment Management Company • Short three to five word phrases that capture the irrefutable essence or spirit of the brand positioning (Keller.

DEFINING & ESTABLISHING BRAND VALUES MENTAL MAP OF BRAND CORE BRAND VALUES BRAND MANTRA Top of mind brand associations Grouped brand associations according to related categories Brand essence • • • • • Client focused Performance driven Long-term oriented Independent minded Individually accountable Build wealth and trust “Intelligent Investing” .

DESIGNING A BRAND MANTRA BRAND FUNCTIONS OR BENEFITS ALLAN GRAY What brand provides the customer with? DESCRIPTIVE MODIFIER EMOTIONAL MODIFIER Nature of the brand function? How does the brand provide benefits? Security Investment Reliability Credibility Trust .

captures POD INTERNAL BRANDING • “ Our purpose is to help our investors build wealth over the long term and we seek to earn the trust of our clients by providing superior longterm investment performance.IMPLEMENTING BRAND MANTRA • BRAND MANTRA FUNCTION . 2011 • SIMPLIFY. INSPIRE AND COMMUNICATE .Collective meaning = Power & usefulness. outstanding client service and holding ourselves to the highest ethical standards” – Allan Gray.

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2011 . A brand must resonate with the customer and form a relationship that is consistent” – Professor Frikkie Herbst.BRAND AUDITS • A brand audit explores the history.IMC BRAND INVENTORY (SUPPLY) • Brand elements employed and how? • Nature of supporting marketing programmes • Profile of competitive brands • POP’s and PODS • Brand mantra • BRAND EXPLORATORY (DEMAND) • EXTERNAL ANALYSIS – Company archives to uncover insight • INTERNAL ANALYSIS – Internal personally belief about customer perception • Qualitative or Quantitative consumer behaviour studies “At the end of the day. origins.IMC Marketing audit (COMPANY SWOT) . associations. products. services and communications (BRAND SWOT) .

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This is my position – POD/POP! Communicated loud and clear  Mantra/Promise  Desirability criteria  Deliverability criteria  Established POD’s and POP’s .

Value Resonance Differentiation Time to  reposition!!! Brand Relationships .

CRITERIA AND EXAMPLES. D. POSITIONING YOUR PRODUCT. 2000.DISCOVERY. “ THREE QUESTIONS YOU NEED TO ASK YOURSELF ABOUT YOUR BRAND. & MULLINS. WWW. WWW. 57. (15).G..C. HARVARD BUSINESS SCHOOL PRESS.. R00I04.ZA WWW. 80-89. WORKING PAPER. NUMBER 3 KELLER. 1999. J. NEW YORK. O. CAROL SCOTT. BRAND MANTRAS: RATIONALE. BRAND WARRIORS: CORPORATE LEADERS SHARE THEIR WINNING STRATEGIES. M. CONSUMER LOYALTY. KEVIN LANE KELLER. MARKETING. REPORT NO.CO. 2000.REFERENCES • KEVIN LANE KELLER. MCGRAW-HILL. POSITIONING THE FIRM AND IT’S PRODUCTS. & STANTON. BRANDING: POSITIONING MUSEUMS IN THE 21ST CENTURY M ARKETING MANAGEMENT VOLUME 2. 43-51.HARPER COLLINS PUBLISHERS. JR.COM GILMORE. RATCLIFFE. 2005. BOSTON.W. B. KEVIN LANE CONCEPTUALIZING. CANT. JAN 1993. CONSUMER BEHAVIOUR. BUILDING CUSTOMER-BASED BRAND EQUITY: A BLUEPRINT FOR CREATING STRONG BRANDS. 2004. BUSINESS HORIZONS KEVIN LANE KELLER. & BRINK. MCGRAW-HILL IRWIN. KEVIN LANE KELLER. 01-107.” HARVARD BUSINESS REVIEW. JOURNAL OF MARKETING MANAGEMENT. S.CO. M. AND MANAGING CUSTOMER-BASED BRAND EQUITY JOURNAL OF MARKETING. MARKETING 14TH EDITION. ETZEL.ZA • • • • • • • • • • • • • • . MEASURING. CADBURY. W. SEPTEMBER. NEW YORK. 1 AAKER. 80 (9). JUTA. AND SHANSBY.A. BRIAN STERNTHAL & ALICE TYBOUT (2002). 2007. F. WALKER. 2001.. CAPE TOWN. M.ALLANGRAY.LONDON. WALKER. MARKETING STRATEGY. HARVARD BUSINESS REVIEW.. 2001. J. 1997. 2011. THE BRAND REPORT CARD.

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