BRAND MANAGEMENT
June 2010
Positioning
Identifying optimal location of a brand and its
competitors in the mind of consumers or a market
segment to maximize potential benefit to the firm
“Location” of the product is such that the
consumers/market segments think about the
product/service in the desired way
Basic Concepts
Death of “one-size-fits-all”
Mass production >> Mass customization
“act of designing the company’s offer and image so
that it occupies a distinct and valued space in the
target customer’s mind
Key steps:
Who is the target customer?
Who are the main competitors?
How is the brand similar to the competition?
How is the brand different from the competition?
Target Market
Market – set of actual and potential buyers – motivation, ability and
opportunity to buy your product
Market segmentation – Dividing into Homogenous consumer groups
Customization vs. Cost tradeoff – is “Mera wala green”
profitable
Segmentation base:
Descriptive – Customer Oriented (who is the customer?)
Behavioral – Product oriented (customer’s product usage)
Segmentation Approaches
Behavioral – most valuable - for e.g. toothpastes and
/or deodorants –
Sensory- seeks flavor & product appearance
Sociables- seek social acceptability –brightness of
teeth, fresh smell.
Worriers – seek decay prevention
Independent – seek low prices
Segmentation Approaches
Baldinger-
Loyals
Rotators
Deal Selectives
Price Driven
Segmentation Approaches
“Market Facts” a research company has developed a
conversion model to measure strength of the
psychological commitment between brands and the
consumers openness to change.
Segmentation Approaches
This model segments users into-
Convertibles – Threshold of change-highly likely to switch
brands
Shallow- Not ready to switch, but may be considering
alternatives
Average – comfortable with their choices, unlikely to switch in
future
Entrenched – staunchly loyal, unlikely to change at all
Criteria for Segmentation
Identifiability
Size
Accessibility
Responsiveness
Profitability- most important
Consumer Segmentation bases
Behavioral Psychographic
User status Values, opinions, attitudes, activities,
Usage rate lifestyle
Usage occasion
Brand loyalty
Benefits sought
Geographic
Demographic International
Income Regional
Age
Gender
Race
Family
B2B Segmentation bases
Nature of Good Demographics
Specification Financials
Kind Number of employees
Where used Size of production
Type of buy Number of establishment
Buying Condition
Purchase location
Who buys
Type of buy
Points of Difference
Strong
Favorable
Unique brand associations
Based on
Attribute
Benefit
Develop a USP & a Sustainable Competitive
Advantage (SCA)
Points of Difference
Attributes – Kraft cheese – more milk
Benefit - Ikea – reasonably priced furniture and home
furnishings for the mass market, TV’s with remote
locators
USP –
Dettol vs.Savlon – does not burn
Iodex vs. Moov – does not leave stains
Crocin vs. Vicks Action 500 – fast relief
Lays chips vs. Bingo chips
Points of Parity
1. Category POP- necessary for a credible offering –
Banks must have different saving options. ATMs, lockers etc.
Creams must moisturize and keep skin soft – gentle,
protective, caring
2. Competitive POP- negate competition’s POD-
CNN – POD- in-depth and up-to-date news channel
POP - adopted varied programming such as interviews &
talk shows like other channels
Positioning Guidelines - Steps
1. Define & communicate a competitive frame of
reference
2. Choose POP and/or POD
3. Establish these POP/POD
4. Update Positioning over time
Step 1
Establish a competitive Frame of reference
Communicate brand category membership
This helps provide consumers with a frame of reference &
avoid confusion in consumers mind
Important when introducing new products – ITC- Wiils-Fiama,
Bingo etc.
Well established brands do not need this – Coke- beverages,
Kellogs, McKinsey etc.
Competitive Frame of reference
Company can straddle 2 or more frames of reference
BMW – luxury & performance
Kellogs – taste & health
Maggi – fast to cook, healthy to eat
Step 2
Choose POP/POD
1. Desirability Criteria
Relevance
Distinct
Believable
2. Deliverability Criteria
Feasible
Communicable
Sustainable
Step 3
Establish POD & POP
Taste vs. low calories
Low price vs. quality
Powerful vs. safe
Family & Fun
Nutritious vs. taste
Establish POD & POP
1. Separate the attributes – Head & Shoulders – 2
attributes – dandruff removal & sleek, shine and
healthy hair
2. Leverage equity of another entity – brand
ambassadors – Sachin Tendulkar & Boost, Reid &
Taylor
3. Redefine relationships – Apple’s Mackintosh –
user friendly & powerful
Step 4
Update Positioning over time
1. Laddering – move from low level needs to higher
level needs - Involves a progression from attributes
to benefits to value creation – (Maslow’s Heirarchy)
• Cream/lotions – moisturizes skin- healthy & glowing
skin- beauty & confidence
2. Reacting –
Do nothing
Defensive
Offensive
Updating brand positioning
Laddering – Product functions >>> core
values
Abstract values
Motivations
Benefits
Attributes
Brand Mantras
Short phrase that captures the spirit of positioning
Provides guidance to all the activities of the brand
Emotional modifier>> descriptive modifier>> Brand
function
Its should
Communicate the category and boundaries
Simplify.. To make brand memorable
Inspire – Should stand out with a higher meaning
Brand Mantras
Expression of “Heart and soul” of brand
Short 3-5 word phrases that capture the essence & spirit of brand
positioning & values
Creates a mental filter to screen out inappropriate marketing activities
Communicate the category and boundaries
Simplify.. To make brand memorable
Inspire – Should stand out with a higher meaning
3 Aspects Emotional Descriptive Function
McDonalds Fun Folks Food
Nike Authentic Athletic Performance
Zee Masti Magic Movies