Brand Positioning

Brand Positioning
• Brand Positioning can be defined as an activity of creating a brand offer in such a
manner that it occupies a distinctive place and value in the target customer’s mind.
• For instance-Kotak Mahindra positions itself in the customer’s mind as one entity-
“Kotak ”- which can provide customized and one-stop solution for all their financial
services needs.
• It has an unaided top of mind recall. It intends to stay with the proposition of “Think
Investments, Think Kotak”.
• The positioning you choose for your brand will be influenced by the competitive stance
you want to adopt
 Brand Positioning
Brand positioning is defined as the conceptual place you want to own in the target consumer’s
mind — the benefits you want them to think of when they think of your brand

In defining a brand’s positioning, it’s useful to think of the following four key components of a
positioning statement:

• Category frame of reference: What is the competitive context? With which product category
should the brand be associated?

• Definition of target market(s): Who is the brand being built for (i.e. the center of the
targeting bulls-eye.)

• Statement of the key point of difference: What benefits should the brand stand for and
deliver on? (Brand Mantra)

• Reason(s) to believe: What proof points need to be demonstrated?

 Category frame of reference

• The competitive frame of reference defines which other brands a brand competes with and therefore
which brands should be the focus of competitive analysis. A good starting point in defining a
competitive frame of reference for brand positioning is to determine category membership—the
products or sets of products with which a brand competes and which function as close substitutes

• A business/product could have many competitive frames of references. For Eg, Mcdonalds
competition could another fast food chain when consumers look at it as a provider of fast food. But
Mcdonalds competition could also be starbucks when consumers think of Mcdonalds as a place
where they could sit and meet friends.
 Conveying Category Membership

• There are three main ways to convey a brand’s category membership:

• 1. Announcing category benefits. To reassure consumers that a brand will deliver on the
fundamental reason for using a category, marketers frequently use benefits to announce category
membership.
• 2. Comparing to exemplars. Well-known, noteworthy brands in a category can also help a brand
specify its category membership.
• 3. Relying on the product descriptor. The product descriptor that follows the brand name is often
a concise means of conveying category origin.
 Defining Associations
Points-of-difference (PODs)

• are attributes or benefits that consumers strongly associate with a brand, positively evaluate, and
believe they could not find to the same extent with a competitive brand.

• Associations that make up points-of-difference may be based on virtually any type of attribute or
benefit. Strong brands may have multiple points-of-difference.

Points-of-parity (POPs)

• on the other hand, are attribute or benefit associations that are not necessarily unique to the brand
but may in fact be shared with other brands.

• These types of associations come in two basic forms: category and competitive. Category points-of-
parity are attributes or benefits that consumers view as essential to a legitimate and credible offering
within a certain product or service category.

• Competitive points-of-parity are associations designed to overcome perceived weaknesses of the

brand. A competitive point-of-parity may be required to either (1) negate competitors’ perceived
points-of-difference or (2) negate a perceived vulnerability of the brand as a result of its own points-
of-difference.
 Attributes
• One common difficulty in creating a strong, competitive brand positioning is that many of the
attributes or benefits that make up the points-of-parity and points-of-difference are negatively
correlated.
• Examples of Negatively correlated attributes

• Low-price vs. High quality • Powerful vs. Safe

• Taste vs. Low calories • Strong vs. Refined
• Nutritious vs. Good tasting • Ubiquitous vs. Exclusive
• Efficacious vs. Mild • Varied vs. Simple
Constructing Brand Positioning Bull’s Eye
 Constructing Brand Positioning Bull’s Eye

• A brand bull’s-eye provides content and context to improve everyone’s understanding of the
positioning of a brand in the organization.
• Here we describe the components of a brand bull’s-eye, illustrating with a hypothetical Starbucks
example. In the inner two circles is the heart of the bull’s-eye—key points-of-parity and points-of-
difference, as well as the brand mantra.
• In the next circle out are the substantiators or reasons-to-believe (RTB)—attributes or benefits that
provide factual or demonstrable support for the points-of-parity and points-of-difference.
• Finally, the outer circle contains two other useful branding concepts: (1) the brand values,
personality, or character—intangible associations that help to establish the tone for the words and
actions for the brand; and (2) executional properties and visual identity—more tangible
components of the brand that affect how it is seen. Three boxes outside the bull’s-eye provide
useful context and interpretation.
 Brand Mantra
• A brand mantra is an articulation of the heart and soul of the brand and is closely related to other branding
concepts like “brand essence” and “core brand promise.”

• Brand mantras are short, three- to five-word phrases that capture the irrefutable essence or spirit of the brand
positioning. Their purpose is to ensure that all employees within the organization and all external marketing
partners understand what the brand is most fundamentally to represent with consumers so they can adjust their
actions accordingly.

• Internally, Nike marketers adopted the three-word brand mantra, “authentic athletic performance,” to guide
their marketing efforts. Thus, in Nike’s eyes, its entire marketing program—its products and how they are
sold—must reflect those key brand values.
 Value Proposition
• A value proposition is a statement that answers the ‘why’ someone should do business
with you. It should convince a potential customer why your service or product will be of
more value to them than similar offerings from your competition.

• Domino’s
• A good hot pizza, delivered to your door within 30 minutes of ordering, at a
moderate price
 Differentiation Strategies
• To build a strong brand and avoid the commodity trap, marketers must start with the belief that
you can differentiate anything. Competitive advantage is a company’s ability to perform in one
or more ways that competitors cannot or will not match.
• Few competitive advantages are sustainable. At best, they may be leverageable. A leverageable
advantage is one that a company can use as a springboard to new advantages
• Progressive gained a competitive advantage in the mid-1990s when it became one of the first
auto insurance companies to sell direct to consumers via the Internet.
• The company’s early adoption of technology enabled it to offer a unique service: In addition to
providing free online quotes for its own policies, Progressive also provided quotes from up to
three competitors.
 Differentiation
• In competitive markets, however, firms may need to consider dimensions they can use to
differentiate market offerings.
• Companies can have better-trained employees who provide superior customer service.
Companies can more effectively and efficiently design their distribution channels’ coverage,
expertise, and performance to make buying the product easier and more enjoyable and rewarding.

• Companies can craft powerful, compelling images that appeal to consumers’ social and
psychological needs. A service company can differentiate itself by designing a better and faster
delivery system that provides more effective and efficient solutions to consumers.
• There are three levels of differentiation. The first is reliability: Some suppliers are more reliable in
their on-time delivery, order completeness, and order-cycle time. The second is resilience: Some
suppliers are better at handling emergencies, product recalls, and inquiries. The third is
innovativeness: Some suppliers create better information systems, introduce bar coding and mixed
pallets, and in other ways help the customer.
 Positioning Errors
There are various positioning errors, such as-
• Under positioning- This is a scenario in which the customer’s
have a blurred and unclear idea of the brand.
• Over positioning- This is a scenario in which the customers have
too limited a awareness of the brand.
• Confused positioning- This is a scenario in which the customers
have a confused opinion of the brand.
• Double Positioning- This is a scenario in which customers do
not accept the claims of a brand.
Thank You