Chapter 10: Crafting the Brand Positioning

No company can win if its products and services resemble every other product and  offering. As part of the
strategic brand management process, each offering must represent the right kinds of things in the minds of the
target market. In this chapter, we outline a process by which marketers can uncover the most powerful brand
positioning

Developing a Brand Positioning: Product positioning starts with target customers. The needs of target customers
—the benefits they seek in usage and the prices they are willing to pay—should drive product positioning.
Product positioning also includes developing a brand name that communicates a desired brand image and
marketing communications that correspond to target customer message and media preferences.
Understanding Positioning and Value Propositions
Positioning is the act of designing a company’s offering and image to occupy a distinctive place in the minds of the target
market.
“The act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.”
The first is the development of a positioning strategy based on target customers’ needs. To do this, the company must answer
two questions: “Who is our target customer?” and “How do we offer superior value for target customers?”

Value proposition— A brand’s value proposition is the set of benefits or values it promises to deliver to consumers to satisfy
their needs. the full mix of benefits on which a brand is differentiated and positioned. It is the answer to the customer’s
question “Why should I buy your brand?”
Company and Product Target Customers Key Benefits Price Value Proposition
Perdue (chicken) Quality-conscious Tenderness 10% premium More tender golden chicken at a moderate
consumers of chicken premium price

PRODUCT POSITIONING STRATEGIES : 1. Differentiation and Product Positioning 2. Branding and Brand Management Strategies 3.
Brand and Product Line Strategies.

Positioning requires
(1) choosing a frame of reference by identifying the target market and relevant competition,
(2) identifying the optimal points-of-parity and points of-difference brand associations given that frame of reference,
(3) creating a brand mantra summarizing the positioning and essence of the brand.
Choosing a Competitive Frame of Reference
Linked to target market decisions , to determine category membership — products or sets of products with which a brand
competes and which function as close substitutes.

Identifying Competitors : Broader set of actual and potential competitors , Direct & Indirect competitors.
The range of a company’s actual and potential competitors, however, can be much broader than the obvious. To
enter new markets, a brand with growth intentions may need a broader or maybe even a more aspirational
competitive frame. And it may be more likely to be hurt by emerging competitors or new technologies than by
current competitors.
Analyzing Competitors : Survey: Customers’ Ratings of Competitors on KSF, Conduct competitive SWOT analysis & theirs
Strategies.

Once a company has identified its main competitors and their strategies, it must ask: What is each competitor
seeking in the marketplace? What drives each competitor’s behavior? Many factors shape a competitor’s
objectives, including size, history, current management, and financial situation. If the competitor is a division
of a larger company, it’s important to know whether the parent company is running it for growth or for
profits, or milking it.
Finally, based on all this analysis, marketers must formally define the competitive frame of reference to guide
positioning.

Once marketers have fixed the competitive frame of reference for positioning by defining the customer  target
market and the nature of the competition, they can define the appropriate points-of-difference and points
of-parity associations.

To build a strong brand and avoid the commodity trap, marketers must start with the belief that you can differentiate anything.
Michael Porter urged companies to build a sustainable competitive advantage.21 Competitive advantage is a company’s
ability to perform in one or more ways that competitors cannot or will not match. Some companies are finding success.
Pharmaceutical companies are developing biologics, medicines produced using the body’s own cells rather than through
chemical reactions in a lab, because they are difficult for copycat pharmaceutical companies to make a generic version of
when they go off patent. Roche Holding will enjoy an advantage of at least three years with its $7 billion-a-year in sales
biologic rheumatoid arthritis treatment Rituxan before a biosimilar copycat version

A leverageable advantage is one that a company can use as a springboard to new advantages, much as Microsoft has
leveraged its operating system to Microsoft Office and then to networking applications. In general, a company that hopes to
endure must be in the business of continuously inventing new advantages that can serve as the basis of points-of-difference.

Marketers typically focus on brand benefits in choosing the points-of-parity and points-of-difference that
make up their brand positioning. Brand attributes generally play more of a supporting role by providing “reasons to believe” or
“proof points” as to why a brand can credibly claim it offers certain benefits
Identifying Potential Points-of-Difference (PODs) : USP, attribute or benefit, Uniqueness, reasons for strongly associate
with a brand. Example: Energizer as having the longest-lasting battery.
Strong brands often have multiple points-of-difference : Nike (performance, innovative technology, and winning)
Three criteria determine point-of-difference: Desirability, Deliverability, and Differentiability.
 Desirable to consumer : relevancy to them, actually want, Able to satisfy need.
Example: NIVEA Wrinkle Control Crème with Q10 co-enzyme.
 Deliverable by the company: a promise brand can actually deliver on, resources and commitment of Company.
 Differentiating from competitors: Distinction, brand association as distinctive and superior to relevant competitors.
Example: Red Bull by differentiating itself on its innovative 16-ounce can
Points-of-Parity : Driven by the needs of category membership, Essentially Industry standard attributes or benefit
association with Brand.
• Category points-of-parity : Essential to a legitimate and credible offering within a certain product or service category,
may change over time due to technological advances, legal developments, or consumer trends.
• Correlational points-of-parity : Potentially negative associations that arise from existence of positive associations for
the brand.
Correlational points-of-parity are potentially negative associations that arise from the
existence of positive associations for the brand. ... For an offering to achieve a point-of-
 parity on a particular attribute or benefit, a sufficient number of consumers must believe the
brand is “good enough” on that dimension.
• Competitive points-of-parity : overcome the perceived weakness of the brand or negate competitors' perceived point-of-
difference.
Example : IOS
iOS is perhaps the most innovative and unique operating system designed by Apple for its mobile phones. It was an entirely
different that form compared to the majority users Android and is exclusively available only on iPhones.
That not be any user iterations in the iOS which is not the case with Android. Android offers user customization but Apple’s
iOS does not and the security levels of apple’s iOS are far more strong than the security of Android.
So far in terms of user interface iOS is performing much better as compared to Android and combined with the flagship
products of iPhone they give an extensive smoothness and user-friendly features.
Choosing Specific POPs and PODs
Means of Differentiation : Marketers have to match consumers’ desire for a benefit with their company’s ability to deliver it,
benefit that is sufficiently desirable, deliverable, and differentiating can serve as a point-of-difference.
Example: Pepsico natural and organic product lemon-lime soft drink:
Perceptual Maps: Quantitative visual representations/ correspondence analysis of consumer perceptions and preferences on
different products, services, and brands for measure the way products are positioned in the minds of consumers.

For choosing specific benefits as POPs and PODs to position a brand, perceptual maps may be useful. Perceptual
maps are visual representations of consumer perceptions and preferences. They provide quantitative pictures of
market situations and the way consumers view different products, services, and brands along various dimensions.
By overlaying consumer preferences with brand perceptions, marketers can reveal “holes” or “openings” that
suggest unmet consumer needs and marketing opportunities.

For example, shows a hypothetical perceptual map for a beverage category.

The four brands—A, B, C, and D—vary in terms of how consumers view their taste profile (light versus strong)
and personality and imagery (contemporary versus modern).
Also displayed on the map are ideal point “configurations” for three market segments (1, 2, and 3). The ideal
points represent each segment’s most preferred (“ideal”) combination of taste and imagery.
Consumers in Segment 3 prefer beverages with a strong taste and traditional imagery. Brand D is well
positioned for this segment because the market strongly associates it with both these benefits. Given that
 none of the competitors is seen as anywhere close, we would expect Brand D to attract many of the Segment
3
customers.

Brand A, on the other hand, is seen as more balanced in terms of both taste and imagery. Unfortunately, no
market segment seems to really desire this balance. Brands B and C are better positioned with respect to
Segments 2 and 3, respectively.
• By making its image more contemporary, Brand A could move to A’ to target consumers in Segment 1 and achieve a point-
of-parity on imagery and maintain its point-of-difference on taste profile with respect to Brand B.
• By changing its taste profile to make it lighter, Brand A could move to A’’ to target consumers in Segment 2 and achieve a
point-of-parity on taste profile and maintain its point-of-difference on imagery with respect to
Brand C.
Deciding which repositioning is most promising, A’ or A’’, would require detailed consumer and competitive
analysis on a host of factors—including the resources, capabilities, and likely intentions of competing firms—to
identify the markets where consumers can profitably be served.
Emotional Branding : The art of convincing, emotional bond, long-lasting, emotional connection between customers and a
brand achieved by evoking strong feelings to ensure the brand stays in customers’ minds.
Brands such as Hershey’s, Kraft, Crayola, Kellogg’s, and Johnson & Johnson that are seen as authentic and
genuine can evoke trust, affection, and strong loyalty.
Brand Mantras : Neither A Tagline Nor A SLOGAN! Its “brand essence” and “core brand promise.” , Internal
manifestation, Driving message, 2-5 words articulation of the heart and soul of the brand encapsulating brand’s vision,
outlook, and emotion.
Example : Nike’s Brand Mantra= Authentic Athletic Performance Whereas, Nike’s Tagline = Just Do It.
 Nike: Authentic Athletic Performance.
 Disney: Fun Family Entertainment.
 Ritz-Carlton: Ladies & Gentlemen Serving Ladies & Gentlemen.
 BMW: Ultimate Driving Machine.
A Brand Mantra (also Brand Essence or Brand Promise; but not) is a short (3-5 words) summary of your brand positioning.
Role of Brand Mantras : By highlighting points-of-difference, provide guidance about what products to introduce under the
brand, what ad campaign to run, and where and how to sell the brand.
Designing a Brand Mantra : Three key criteria
 Brand functions : Describes the nature of the product or service or type of experiences or benefits the brand provides.
 Descriptive modifier : further clarifies its nature.
 Emotional modifier: Another qualifier—how exactly does the brand provide benefits and in what ways?

Implementing a Brand Mantra

• Communicate: Set the brand boundaries and clarify what is unique about the brand.
• Simplify: Memorable. short, crisp, and vivid.
• Inspire : Personally meaningful and relevant to employees. Ability to inspire, if the brand values tap into higher-level
meaning with employees as well as consumers.
Establishing & Communicating Brand Positioning:
Brand-positioning bull’s-eye. “Marketing Memo: Constructing a Brand Positioning Bull’s-eye” outlines one way
marketers can formally express brand positioning without skipping any steps. Often a good positioning will have
several PODs and POPs.
Constructing a Brand Positioning Bull’s-eye
Communicating Category Membership: Three main ways to convey a brand’s category membership:
1. Announcing category benefits : Assure consumers that brand will deliver on fundamental reason for using a category,
Thus, industrial tools might claim to have durability, and antacids might announce their efficacy. A brownie mix
might attain membership in the baked desserts category by claiming the benefit of great taste and support this
claim by including high-quality ingredients (performance) or by showing users delighting in its consumption
(imagery)
2. Comparing to exemplars—Well-known, noteworthy brands.
When Tommy Hilfiger was an unknown, advertising announced his status as a great U.S. designer by associating
him with Geoffrey Beene, Stanley Blacker, Calvin Klein, and Perry Ellis, recognized members of that category.

3. Relying on the product descriptor—Concise means of conveying category origin.

Ford Motor Co. invested more than $1 billion in a radical new 2004 model called the X-Trainer, which combined
the attributes of an SUV, a minivan, and a station wagon. To communicate its unique position—and to avoid
association with its Explorer and Country Squire models— the vehicle, eventually called Freestyle, was
designated a “sports wagon
Communicating POPs and
PODs
Negatively correlated
attributes/benefits
• Low price vs. high quality
• Taste vs. low calories
• Powerful vs. safe
• Ubiquitous vs. exclusive
• Varied vs. simple
Communicating POPs and PODs : Negatively correlated attributes/benefits • Low price vs. high quality • Taste vs. low
calories • Powerful vs. safe • Ubiquitous vs. exclusive • Varied vs. simple.
Monitoring Competition : Assessing potential threats from competitors, three high-level variables are useful: 1. Share of
market—The competitor’s share of the target market.
2. Share of mind—The percentage of customers who named the competitor in responding to the statement “Name the first
company that comes to mind in this industry.”
3. Share of heart—The percentage of customers who named the competitor in responding to the statement “Name the
company from which you would prefer to buy the product.”

Alternative Approaches to Positioning : less structured & qualitative approaches

Brand Narratives and Storytelling
• Setting: The time, place, and context • Cast: The brand as a character, including its role in the life of the audience, its
relationships and responsibilities, and its history or creation myth • Narrative arc: The way the narrative logic
unfolds over time, including actions, desired experiences, defining events, and the moment of epiphany
• Language: The authenticating voice, metaphors, symbols, themes, and leitmotifs.
Cultural branding : Douglas Holt believes that to build iconic, leadership brands, must assemble cultural knowledge,
strategize according to cultural branding principles through hire and train cultural experts.
Positioning and Branding for A Small Business :

Challenges for small business

• Limited resources and • Budgets. numerous success stories exist of entrepreneurs.
Critical Success factors : Focus and consistency & Creativity.
Branding Guidelines:
Find compelling product performance advantage
• Focus on building one or two strong brands based on one or two key associations
• Encourage product trial in any way possible
• Develop cohesive digital strategy to make the brand “bigger and better”
• Create buzz and a loyal brand community
• Employ a well-integrated set of brand elements
• Leverage as many secondary associations as possible
• Creatively conduct low-cost marketing research
• Find compelling product performance advantage • Focus on building one or two strong brands based on one or two key
associations • Encourage product trial in any way possible • Develop cohesive digital strategy to make the brand “bigger
and better” • Create buzz and a loyal brand community • Employ a well-integrated set of brand elements • Leverage as
many secondary associations as possible • Creatively conduct low-cost marketing research.

 Identify the target audience for your business. 

 Find your direct competition in the industry
 Check out what your competitors are doing for branding.
 Find market gaps in what your competitors are offering. 
 Review your budget to plan your marketing campaign.
 Developing Your Brand
 Name your business to reflect your brand
 Write out a short positioning statement.
 Think of a short slogan to communicate your position
 Create eye-catching logos and visuals
 Set a price consistent with your business image
 Communicating with Customers

1. Introduction

According to Alison et al. (2021), brand audit helps to determine customer perspective and
interaction with the business, it also extracts insights comprised of strength and weakness to
unleash brand potential and opportunities.

2.1.a. Brand Hierarchy

The packaging of brand Coke was changed for the first time and the trademark was registered
to launch its first ever advertisement on 1945 (Britannica, 2018). In the year 1982, the company
first time introduced a new line under the brand coke which was “Diet Coke”- originally named
as Diet Coca Cola (Britannica, 2018). Later on, the company kept it strategies as a House of
Brands but transformed all the brands into branded house. Coca Cola itself became the highest
contributing branded house with strong distributing network and local standardized approach.
In order to achieve so, they started forming Bottling Investment Group (BIG) in every country
and started adopting local tastes under brand hierarchy.
2.1.b. Brand Relationship Strategy

Coca Cola is considered as the master brand of the “branded house” approach for this
particular brand as it is serving as the anchoring point and all other brands e.g. Coke Zero, Diet
Coke, Flavored Coke are based on this (Earl, 2012). Because of the other beverages e.g. Fanta,
Sprite the company also possesses “house of brands” approach. Therefore, as a whole the
company is having a hybrid brand relationship approach whereas the brand “Coca Cola” clearly
has ‘branded house’ approach. Hence, it has number of pros and cons in terms of relationship
strategy are shared below.
2.2 Global Brand Positioning 

2.2.a. Brand Positioning

For building and showcasing any brand in their respective target market, companies require a
well-defined positioning plan (Hooley, 2016). Companies have to spot distinctions to gain a
competitive advantage, and they are supposed to understand their consumer needs before
providing a value to them which is their unique proposition (Kotler, 2016). Coca-Cola as a
brand stands as thirst-quenching and refreshing (Edrawsoft, n.d.). The brand's main goal is to
satisfy the target market. Coca-Cola is also associated with enjoying daily chores with family
and friends (Edrawsoft, n.d.).

2.2.b. Positioning Map

2.2.c. Points of Parity (POP) and Points of Difference (POD)

Points of Parity is the attribute of a brand which is associated with competition in the market
and can justify themselves to the customer that, they are no less than the competition (Quey,
2021). On the other hand, Points of Difference is the unique proposition a brand communicates
to customers to prove themselves better than the competition in the market (Quey, 2021). The
key competition across the globe for Coca Cola brand is Pepsi. However, as a brand Coke
being branded house holds the highest market share in the market worth USD 87.6 billion
(Statista, 2021). The POP and POD strategies has made this possible are discussed below in a
table format.

2.3 Brand Elements 

2.3.a. Brand Identity

The above picture states that, Coca-Cola is highly adaptive and up-to-dated in terms of
visualizing their brand identity towards customer. Hence, they keep changing their, logo, brand
slogan and marketing campaign strategy which has brought them success throughout last 135
years.

2.3.b. Target Audience

Target and Segmentation for the brand Coca-Cola varies from country to country as the
brand’s core positioning strategy is “glocal”. However, bird’s eye view of global target
marketing seems like below.

1. Gender: All (Men, Women, Trans)

2. Age: Primarily 10-25, Secondary market is 25-40 (Edrawsoft, n.d.)
3. Status: All (irrespective of income and socioeconomic class)
4. Lifestyle: More mobile and busier lifestyle
5. Positioning: Emotionally connect them with friends and family and communicating to share
Coca-Cola to celebrate happy moment and begin real magic (Coca Cola targeting and
positioning, n.d.).

3. Brand Exploratory

3.1 Brand Salience

Coke being one of the oldest brands of the world is highly reputed and mostly penetrated
household brand (The Coca-Cola Company, 2022). The brand is present across 200+ countries
since last 135 years which reassures its awareness towards customers. According to Interbrand-
the most prestigious brand awards across globe, Coca-Cola is the 6th most popular and
reliable brand (B&T Magazine, 2021).

3.2 Brand Imagery

All throughout last 135 years Coca-Cola always established the brand image for mass people. It
has established its stance as a partner of happiness, bringing joyful moments, being social and
having a lot of fun. Apart from that, it has always connected sports all across the globe basis
customers demand by nationality. In order to do so, it has always been an integral part of
biggest sports events like, Football World Cup, UEFA Euro, Champions League, Cricket World
Cup etc. In addition to that, USA being the country of origin, it started its steps there from local
market targeting customers and selling it at nearby stores has expanded its channel to 200+
countries adopting “Glocal- globally local” strategy. Below are the few excerpts of the
campaigns and advertisements run by Coke throughout last 135 years.

3.3 Brand Judgements

It's always been more difficult to keep clients happy and loyal enough to buy only one brand
on a regular basis in today's market. However, as the brand becomes more attractive as a
collection, customers are now increasing their loyalty (Cocacolabranding, 2016). For the
customers, credibility is another important bet of judgements which includes innovation,
trustworthiness and likability. Hence, Coca-Cola always positioned themselves as no longer just
a simple drink, rather they make every moment more special and memorable. For instances,
their campaign “taste the feeling” made customers to celebrate with friends and family which
ultimately churns out to create strong emotional bonding with proper self-respect. Thus, Coke
has finally become the most penetrated household brand and placed a strong position on
customers top of mind.

3.4 Brand Resonance

Emotional branding aims to be a long-term tool for integrating connections and deeply
touching customers who view the value of their brand as their personality. The way a corporate
brand reflects emotions not only influences the purchase decisions and awareness of
customers, but it also affects the way the corporate brand reflects actual information about
product quality (Cocacolabranding, 2016). In addition, the brand message must be consistent
and harmonious across all communication channels so that it is aligned with the company's
core values and allows customers to grow into those who want to be unique
(Cocacolabranding, 2016). With these strong brand communication strategies, Coca-Cola is
able to hold a strong customer base which has helped them to become 6th most popular
brand (vs Pepsi 29th) across the world (B&T Magazine, 2021). This proves that, how strong
resonance Coke has as a brand. In order make it clearer and more precise, I am sharing a
customer-based brand equity model of Coca-Cola below.

4. References