CH-03-Brand Positioning

Brand Management
Part: 02
Establishing Chapter-03
Brand Positioning
Brand Positioning
Brand Management 1
Brand Positioning
• Differences among brands

• Each brand tells its own story
Brand Management 2
Brand Positioning
Brand Management 3
Brand Question!
What is the difference between

‘Brand Image’ and ‘Brand Positioning’?
Brand Image refers to the brand perceptions

and associations in the minds of consumers,
whereas positioning is the act of designing
that image in the minds of consumers.
Brand Management 4
Brand Positioning
Brand Management Berkowitz, 2000 5

Positioning Your ‘Brand’
People hire your brand

“Job-To-Be-Done Theory”
Video: Clayton Christensen

https://www.youtube.com/watch?v=sfGtw2C95Ms
Brand Management 6
Brand Positioning
Job-To-Be-Done Theory
What job your brand does

to your target consumers
better than competitors?
Hiring a Milkshake Video
Brand Management 7
Brand Positioning Process
◼ According to the CBBE model, deciding on a ‘Brand

Positioning’ requires the following:
i. Identifying the Target Market

ii. Studying Nature of Competition
iii. Establishing Points of Differentiation (PODs)
iv. Establishing Points of Parity (POPs)
Brand Management 8
Identifying the Identifying

Target Market Competitors
Brand Positioning
Points of Parity Points of

(POP) Differentiation (POD)
Brand Management 9
i) Identifying the Target Market
◼ Identifying the target market is important because different

consumers may have different brand knowledge, thus
different perceptions and preferences for the brand.
◼ This step requires Market Segmentation and Targeting.
➢ The next slide shows some possible segmentation bases for

consumer market.
Brand Management 10
Geographic Demographic Psychographic Behavioral
Regional Income Lifestyle User Status
International Age Values, Opinions Usage Rate
Gender Attitudes Usage Occasion
Family Brand Loyalty
Race Benefits Sought
Consumer Segmentation Bases
Brand Management 11
Consumer Profiles
❑ Consumer Profiles handout
Brand Management 12
ii) Identifying Competitors

Brand Positioning

Brand Management 13
❑ Using the market approach, competitors are companies that
satisfy the same customer need or solving the same problem.
◼ This concept reveals a broader set of actual and potential
competitors.
◼ Example: A customer who buys a word-processing package
really wants ‘writing ability’ which can be satisfied by pencils,
pens, or typewriters.
Brand Question: Identify competitors of Coca-Cola?
Brand Management 14
◼ Note: Marketers must overcome ‘marketing myopia’ (short-
sightedness) and stop defining competition in traditional
category terms; like, Coca-Cola focused on its soft-drink
business, missed seeing the market for coffee bars and fresh
fruit juice bars that eventually impinged on its soft-drink
business.
Brand Management 15
◼ A company can focus its attack on one of the following
classes of competitors:
a. Strong versus Weak: Most companies aim their shots at weak
competitors, because this requires fewer resources. Yet the
firm should also compete with stronger competitors to keep
up with the best; as even strong competitors have some
weaknesses.
b. Close versus Distant: Most companies compete with
competitors who resemble them the most; like Chevrolet
competes with Ford, not with Ferrari. Yet companies should
also recognize distant competitors; like Coca-Cola states that
its number-one competitor is tap water or tea, not Pepsi.
Also, US Steel worries more about plastic and aluminium than
about Bethlehem Steel.
Brand Management 16
c. ‘Good’ versus ‘Bad’: Every industry contains ‘good’ and ‘bad’

competitors. A company should support its good competitors
and attack its bad competitors.
◼ Good competitors play by the industry’s rules; they make

realistic assumptions about the industry’s growth potential;
they set prices in reasonable relation to costs; they favour a
healthy industry etc.
◼ Bad competitors take large risks; they invest in overcapacity;

and they upset industrial equilibrium.
Brand Management 17
❑ In most industries, customers have choices and preferences
in terms of the goods and services they can purchase. Thus
when an organization defines the target markets it will serve,
it simultaneously selects a set of competing firms.
❑ Most firms face four basic types of competition.
1. Brand Competitors (Direct)

2. Product Competitors (Indirect)
3. Generic Competitors (Indirect)
4. Total Budget Competitors (Indirect)
❑ See examples on next slide for the need of thirst.
Brand Management 18
❑ Direct and Indirect Competitors of Coca-Cola:
1. Brand Competitors: That market products that are similar in
features and benefits to the same customers at similar prices.
Like Pepsi.
2. Product Competitors: That compete in the same product class
but with products that are different in features, benefits, and
price. Like Iced Tea, Orange Juice, and Bottled Water.
3. Generic Competitors: That market very different products that
solve the same problem or satisfy the same basic customer
need. Like Tap Water.
4. Total Budget Competitors: That compete for the limited
financial resources of the same customers. Like Candy, Gum,
and Potato Chips.
Brand Management 19
Coca-Cola Identifies Tea as a Competitor
Brand Management 20
➢ Though all types of competition are important, brand
competitors rightfully receive the greatest attention because
consumers typically see the different brands as direct
substitutes for each other.
Brand Management 21
◼ The companies can play the following roles in the target market
on the basis of market share they possess.
1. Market Leader
2. Market Challenger
3. Market Follower
4. Market Nicher
Brand Management 22
1. Market Leader (Many industries contain one firm that is the
acknowledged market leader. This firm has the largest market
share in the relevant product market; e.g., 40% share)
2. Market Challenger (The firm with the second highest market

share holder after the market leader, e.g., 30% share)
3. Market Follower (The firm with the third highest market share,
e.g., 20% share)
4. Market Nicher (Firms that serve small market segments not

being served by the larger firms; they possess a small market
share, e.g., 10% share)
Brand Management 23
10% 20% 30% 40%

Market Market Market Market
Nicher Follower Challenger Leader
Hypothetical Market Structure
Brand Management 24
Jazz Telenor
Market Leader Market Challenger
Brand Management 25
iii) Points of Differentiation (POD) Associations

Brand Positioning

Brand Management 26
◼ Once marketers have defined the target market and the

nature of competition, arriving the proper positioning requires
establishing the correct Points of Difference (POD) and Points
of Parity (POP) associations.
◼ PODs are attributes or benefits that consumers strongly

associate with a brand, positively evaluate, and believe that
they could not find to the same extent with a competitive
brand.
Brand Management 27
◼ According to CBBE Model, we can classify brand associations

as either functional/performance related or imagery related
considerations.
◼ The concept of POD is closely related to USP (Unique Selling
Proposition) and SCA (Sustainable Competitive Advantage). It
maintains that a brand must have some strong, favourable,
and unique associations to differentiate itself from other
brands.
Brand Management 28
Swedish retailer ‘IKEA’ took

a luxury product, and
made a reasonably priced
alternative for the mass
market.
Another POD of IKEA is its

most innovative designs at
the lowest cost.
IKEA supports its low

prices by DIY products.
http://www.youtube.com/watch
?v=Kyan0ZdN3Ow
Brand Management 29
iv) Points of Parity (POP) Associations

Brand Positioning

Brand Management 30
◼ POP associations are shared with other brands.

◼ There are two types.
POP Associations
Category POP Competitive POP
At the generic/basic product level To negate competitors’ PODs

For example, the banks have saving accounts For example, digital banking to match
credit/debit cards, loan offers etc. your competitors.
Brand Management 31
MyABL in response to Konnect by HBL

A Competitive POP for Allied Bank
Brand Management 32
PODs versus POPs
Question: Which of them is easier to achieve, POD or POP

associations?
➢ POPs are easier to achieve than PODs where the brand must
demonstrate clear superiority.
Brand Management 33
Challenge of Establishing PODs and POPs
◼ One challenge for establishing PODs and POPs is that many of

the attributes or benefits that make up the PODs or POPs are
negatively correlated.
◼ For example, it might be difficult to position a brand as
‘inexpensive’ and at the same time ‘of the highest quality’.
◼ The next slide shows some examples of negatively correlated
attributes and benefits.
Brand Management 34
Some Negatively Correlated Attributes and Benefits

◼ Low price versus high quality
◼ Taste versus low calories
◼ Nutritious versus good tasting
◼ Powerful versus safe
◼ Ubiquitous versus exclusive
◼ Varied versus simple
Brand Management 35
◼ The best approach clearly is to develop a product or service

that performs well on both dimensions.
BMW ‘s positioning image of both

luxury and performance car was
due in large part due to its design
and the fact that the car was
considered both luxurious and high
performance.
BMW Slogan
Ultimate Driving Machine
Brand Management 36
Identifying and Establishing Brand Positioning
Positioning Statement: Output# 1
Positioning Statement:
◼ A strategic document that communicates the unique value the

brand would offer to a particular target market segment.
“For [target market], Brand X is the only brand among all

[competitive set] that [unique value claim] because
[reasons to believe]”
Brand Management 37
Ethos Water is a brand of bottled water with a social mission of

“helping children get clean water”.
Brand Management 38
Positioning Statement:
“For [target market], Brand X is the only brand among all

[competitive set] that [unique value claim] because
[reasons to believe]”
For [millennial consumers who are socially conscious], Ethos 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].
Brand Management 39
Positioning or Perceptual Map: Output# 2
A two-dimensional or multidimensional
graphical representation of how consumers perceive
the brands in a product category
Brand Management 40
Positioning or Perceptual Map
Brand Management 41
Positioning Strategies
Horizontal vs. Vertical vs. Bundle Positioning
➢ Horizontal Positioning: New attributes to attract customers.

For example, Whole Foods Market sells only organic
groceries.
Brand Management 42
Dove’s Horizontal Positioning
Brand Management 43
➢ Vertical Positioning: Shared attributes with other brand, but

stresses superiority, i.e., faster, cheaper, smaller, etc.
Brand Management 44
PEL’s Vertical Positioning
Brand Management 45
➢ Bundle Positioning: Combining two or more existing

attributes of other brands into one.
Brand Management 46
Apple’s Positioning Strategy for iPhone

Horizontal, Vertical, or Bundle?
Brand Management 47
Oppo’s Bundle Positioning
Brand Management 48
Positioning Errors
➢ Under-Positioning: In this case, marketers do not position a
brand strongly. They do not associate the brand with a clear
benefit or POD so that consumers know what exactly sets it
apart from other competitors. Therefore, consumers may not
have a strong connection with a brand.
➢ For example, the Flip video camera was discontinued

because they did not establish a good positioning strategy
against mobile video cameras that were easier to use.
Consumers were not willing to buy an extra device when
they already had one on their mobile phone.
Brand Management 49
Positioning Errors
Flip Video Camera’s Under-Positioning
Brand Management 50
Positioning Errors
➢ Over-Positioning: It can happen when there is too much

focus on position, ultimately giving the audience a too
narrow depiction of the product. This mistake can ultimately
alienate consumers from the product, creating a narrow
group of customers that can actually identify with it. If the
target audience is too small it limits potential consumers of
the product.
Brand Management 51
Positioning Errors
➢ Confused Positioning: Positioning error that leaves

consumers with a confused image of a company, its
products, or brands. It may happen by claiming two or more
benefits that contradict each other or company is focusing on
too many benefits which confuses consumers.
Brand Management 52
Positioning Errors
Dentonic Toothpaste’s Confused-Positioning?
Brand Management 53
Employee-Based Brand Equity
Internal Branding
◼ Much of the branding literature has taken an ‘external’
perspective focusing on strategies and tactics that firms
should take to build and manage brand equity with
customers.
◼ Equally important is positioning the brand ‘internally’.
◼ ‘Internal Branding’ makes sure that members of the

organization are properly aligned with the brand and what it
represents.
Brand Management 54
Employee-Based Brand Equity
Internal Branding
◼ For service companies especially, its critical that all
employees have an up-to-date and deep understanding of
the brand.
◼ Recently, a number of companies have put forth initiatives
to improve their ‘Internal Branding’ to motivate their
employees.
Brand Management 55
Internal Branding
How to establish ‘Internal Branding’?
Nordstrom sets new benchmark for customer service
Brand Management 56
Internal Branding
◼ Companies need to engage in continual open dialogue with

their employees. It means branding should be perceived as
‘participatory’.
◼ Some firms, like Disney and Ford, have adopted B2E

(Business-to-Employee) programs through corporate
intranets and other means.
◼ In some cases, ‘Internal Branding’ can both motivate

employees and attract external customer. Like ‘Intel’.
Brand Management 57
Internal Branding
Intel commercial featuring its employee
Brand Management 58
Brand Mantra
◼ Brand Mantras point out the importance of “Internal
Branding”.
◼ A ‘Brand Mantra’ is an articulation of the “heart and soul” of
the brand.
◼ It is a short, three to five words phrase that captures the
essence and spirit of the brand positioning.
◼ Its purpose is to ensure that all employees and marketing
partners (like ad agencies) understand what the brand most
fundamentally is to represent to consumers., so they can
adjust their actions accordingly.
Brand Management 59
Brand Mantra-Examples
➢ McDonald’s Brand Mantra is “Food, Folks, and Fun”.
➢ Nike’s Brand Mantra is “Authentic, Athletic, Performance”.
➢ Disney’s Brand Mantra is “Fun, Family, Entertainment”.
Brand Management 60

CH-03-Brand Positioning

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Brand Management

• Differences among brands

What is the difference between

Brand Image refers to the brand perceptions

Brand Management Berkowitz, 2000 5

People hire your brand

Video: Clayton Christensen

What job your brand does

Hiring a Milkshake Video

◼ According to the CBBE model, deciding on a ‘Brand

i. Identifying the Target Market

Identifying the Identifying

Points of Parity Points of

◼ Identifying the target market is important because different

◼ This step requires Market Segmentation and Targeting.

➢ The next slide shows some possible segmentation bases for

Regional Income Lifestyle User Status

International Age Values, Opinions Usage Rate

Gender Attitudes Usage Occasion

Family Brand Loyalty

Race Benefits Sought

Consumer Segmentation Bases

❑ Consumer Profiles handout

Identifying the Identifying

Points of Parity Points of

Brand Question: Identify competitors of Coca-Cola?

c. ‘Good’ versus ‘Bad’: Every industry contains ‘good’ and ‘bad’

◼ Good competitors play by the industry’s rules; they make

◼ Bad competitors take large risks; they invest in overcapacity;

❑ Most firms face four basic types of competition.

1. Brand Competitors (Direct)

❑ See examples on next slide for the need of thirst.

Coca-Cola Identifies Tea as a Competitor

2. Market Challenger (The firm with the second highest market

4. Market Nicher (Firms that serve small market segments not

10% 20% 30% 40%

Hypothetical Market Structure

Identifying the Identifying

Points of Parity Points of

◼ Once marketers have defined the target market and the

◼ PODs are attributes or benefits that consumers strongly

◼ According to CBBE Model, we can classify brand associations

Swedish retailer ‘IKEA’ took

Another POD of IKEA is its

IKEA supports its low

Identifying the Identifying

Points of Parity Points of

◼ POP associations are shared with other brands.

Category POP Competitive POP

At the generic/basic product level To negate competitors’ PODs

MyABL in response to Konnect by HBL

Question: Which of them is easier to achieve, POD or POP

◼ One challenge for establishing PODs and POPs is that many of

Some Negatively Correlated Attributes and Benefits

◼ The best approach clearly is to develop a product or service

BMW ‘s positioning image of both

Ultimate Driving Machine

◼ A strategic document that communicates the unique value the

“For [target market], Brand X is the only brand among all

Ethos Water is a brand of bottled water with a social mission of

“For [target market], Brand X is the only brand among all

For [millennial consumers who are socially conscious], Ethos is the

➢ Horizontal Positioning: New attributes to attract customers.

Dove’s Horizontal Positioning