Brand management and positioning
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Transcript of Brand management and positioning
CORE TEXT:“STRATEGIC BRAND MANAGEMENT”
BY KEVIN LANE KELLER (3rd EDITION)
SUPPLEMENTARY TEXT: “POSITIONING” BY AL RIES AND JACK TROUT (20th EDITION)
“BRAND POSITIONING” BY SUBROTO SENGUPTA (2nd EDITION)
PRESENTED BY:
INDRANSH GUPTA
What is a Brand?Definition: “A brand is a product that adds other
dimensions that differentiates it in some way from
other products designed to satisfy the same need.”
Why Do Brands Matter?
CONSUMERS: Identification of Source
of Product Assignment of
Responsibility to Product Maker
Risk Reducer
Search cost Reducer Promise, Bond, or Pact
with Maker of Product Symbolic Device Signal of Quality
Why Do Brands Matter? (Cont)MANUFACTURERS
: Means of Identification
to Simplify Handling or Tracing
Means of Legally Protecting Unique Features
Signal of Quality Level to Satisfied Customers
Means of Endowing Products with Unique Associations
Source of Competitive Advantage
Source of Financial Returns
What Can Be Branded? Physical Goods Services Retailers and
Distributors Online Products
and Services
People and Organizations
Sports, Art and Entertainment
Geographic Locations
Ideas and Causes
Branding Challenges And Opportunities Savvy Customers Brand Proliferation Media Fragmentation Increased Competition Increased Costs Greater Accountability
The Brand Equity ConceptBasic Principles of Branding and Brand Equity: Differences in outcomes arise from the “added value”
endowed to a product as a result of past marketing activity for the brand.
This value for a brand can be created in many different ways.
Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand.
There are many different ways in which the value of a brand can be manifested or exploited to benefit the firm.
Strategic Brand Management Process
Identifying and Establishing Brand Positioning and Values
Planning and Implementing Brand Marketing Programs
Measuring and Interpreting Brand Performance Growing and Sustaining Brand Equity
Sources Of Brand EquityBrand Awareness Consequences of Brand
AwarenessLearning advantagesConsideration advantagesChoice Advantages
Establishing Brand Awareness
Brand Image Strength of Brand
Associations Favorability of Brand
Associations Uniqueness of Brand
Associations
Building A Strong BrandThe Four Steps of Brand Building
1.Identity (Who are you?)
2.Meaning (What are you?)
3.Response (What about you?)
4.Relationship (What about you & me?)
Resonance
Judgments Feelings
Performance Imagery
SalienceIdentity
Meaning
Response
Relationship
Customer-based Brand Equity Pyramid
(Cont) Brand Salience: This
relates to aspects of awareness of the brand
Brand Performance: This relates to ways in which product/ service meets customers’ needs
Brand Imagery: It’s how customers visualize a brand abstractly, with no relevance to what the brand actually does
Brand Judgments: The customers’ personal opinions and evaluations with regard to the brand
Brand Feelings: The customers’ emotional responses and reactions with respect to the brand
Brand Resonance: The ultimate relationship & level of identification that the customer has with the brand
Brand Positioning
What…
Positioning is owning a piece of consumer’s mind
Positioning is not what you do to a productIt’s what you do to the mind of the prospect
You position the product in the prospect’s mind ‘It’s incorrect to call it Product Positioning’ – Ries & Trout
Source: Al Ries and Jack Trout, Positioning: The Battle for Your Mind.
Examples
ColgateColgate is ProtectionProtection
LuxLux is GlamourGlamour
Pond’s Pond’s isConfidenceConfidence
AxeAxe is Sexual Sexual AttractionAttraction
GilletteGillette is QualityQuality
One-way Positioning (Ries and Trout)
Be #1 in some important attribute; you will be
the most remembered and preferred.
#1 should not line-extend; it will lose its focus.
If you are the second to enter the market, don’t
call yourself #2. Call yourself #1 on a different
important attribute.
Source: Al Ries and Jack Trout, Positioning: The Battle for Your Mind.
Three-Way Positioning A company needs to position itself in relation to three value
disciplines: Product leadership, operational excellence, customer intimacy.
Four rules for success: Become best at one of the three value disciplines. Achieve an adequate performance level in the other two
disciplines. Keep improving one’s superior position in the chosen discipline
so as not to lose out to a competitor. Keep becoming more adequate in the other two disciplines,
because competitors keep raising customers’ expectations about what is adequate.
• Source: Michael Treacy and Fred Wiersema, The Discipline of Market Leaders (Reading, MA: Addison-Wesley, 1994)
Five-way Positioning
A company needs to position itself along five attributes:
Product, price, ease of access, value-added service, and
customer experience.
A great company will dominate on one of these, perform
above average (differentiate) along a second, and be at
industry par with respect to the remaining three.
Assign a number from 1 to 5 to each attribute: 5 (dominant),
4 (differentiated), 3 (on par with industry), 2 (below par),
and 1 (poor).
Source: Fred Crawford and Ryan Mathews, The Myth of Excellence: Why Great Companies Never Try to Be the Best at Everything (New York: Crown Business, 2001).
Five-way Positioning (Contd)
A great company will exhibit the pattern 5, 4, 3, 3, 3.
Anything less than a 3 on any attribute is not sustainable.
To be dominant or differentiated on more than one
attribute is excessive and reduces profitability.
Being on par requires a company to match its industry’s
average performance; a company must not let its standing
drop below 3.
Why…The assault on our mind… The media explosion The product explosion The advertising explosion
So little message gets through that you ignore the sender and concentrate on the receiver
The Mind… Like the memory bank of computer , the mind
has slots. But with a difference , computer accepts all
things but our mind does not It rejects information which it can not
“compute” , it accepts only that new information that matches current state of mind.
An Inadequate Container
Humans reject information which does not match their prior knowledge or expectation.
According to Harvard psychologist Dr. George A. Miller, the average human mind can not deal with more than 7 digits at a time like 7 wonder of world, seven days etc.
If asked to name brands of any category, no one can name more than 7 and that too if its their interest category.
An Inadequate Container(Contd)
To cope with complexity , people have learned to simplify everything.
People can often remember positioning concepts better than names.
The Product Ladder To cope with product explosion , people rank
products and brands in the minds. On each step of a ladder is a brand and each
different ladder represent a different category. A competitor who wants to increase share of the
business must either dislodge the brand above or somehow relate its brand to the other company’s position.
Today competitor’s position is as important as your own position.
“Avis is only no.2 in rent-a-car, so why go with us? We try harder.”
People assumed they try harder.
Avis was successful, as it related itself to Hertz.
Hertz
Avis
National
Those little ladders in your head
The “Against” Position
Time magazine followed the same lead.
Frustrated with competition they adopted
“We try damned Harder.” Later, found the word offensive and the accounts
executive was fired. If the company is not the first then must occupy
second position.
Those little ladders in your head (Cont)
Conventional Logic – find your concept inside yourself or your product.
Not true, must look inside prospect’s mind. 7-Up positioned itself as the uncola drink &
sales increased drastically. Mc Cormick Comm. acquired WLKW and
positioned it as the unrock radio station & became no.1.
The Uncola Position
The Oversimplified Message
Today the best approach to take, in our over communicated society is to simplified message.
“you simplify the message, then simplify it some more if you want to make a long lasting impression.”
-Al Ries and Trout
04/11/23 31
How… The easy way to get into a person’s mind is to be
firstXerox, Kodak, Polaroid, Sun TV, The Hindu, F&L
If you didn’t get into the mind of your prospect first, then you have a positioning problemBetter to be first than be best
In the positioning era, you must, however, be first to get into the prospect’s mind
How… The basic approach is not to create something new
or different, but manipulate what’s already in the mind
To find a unique position, you must ignore conventional logic
Conventional logic says you find concept inside productNot true; look inside prospect’s mind
You won’t find an uncola idea inside 7-up; you find it inside cola drinker’s head
Guidelines… Start by looking not at the product but at the
position in the market that you wish to occupy, in relation to competition
Think about how the brand will answer the main consumer questionsWhat will it do for me that others will not? Why should I believe you?
Try to keep it short and make every word count and be as specific as possibleVagueness opens the way to confused executions
Guidelines…
Keep the positioning up-do-date
Give as careful consideration to change as you did to the
original statement
Look for a Key InsightKey Insight!
An ‘Accepted Consumer Belief’‘Accepted Consumer Belief’
What is key insight? Key Insight is ‘seeing below the surface’ / ‘seeing
inside the consumer’
Insight expresses the totality of all that we know from seeing inside the consumer
An insight is a single aspect of this that we use to gain competitive advantage
By identifying a specific way…That the brand can either solve a problem orCreate an opportunity for the consumer
Key InsightKey Insight
‘‘I wish to get I wish to get married to a married to a handsome prince’handsome prince’
Key InsightKey Insight
‘‘Fragrance of my current talc Fragrance of my current talc does not last long and I miss does not last long and I miss opportunities to enjoy life’opportunities to enjoy life’
Key InsightKey Insight
‘‘Soap leaves my Soap leaves my skin feeling dry skin feeling dry and tight’and tight’
The 3C’s of positioning Be Crystal clear
Be Consumer-based Be relevant and credible to the consumer Write in consumer language and from consumer’s view point
Be Competitive Be distinctive Focus on building brand elements into powerful discriminator Be persuasive Be sustainable
And then… The brand name!
The name is the first point of contact between the message and the mind
‘‘The brand name is a knife that cuts the mind to let the The brand name is a knife that cuts the mind to let the brand message inside’brand message inside’
– Ries & TroutRies & Trout
Guidelines… It’s not the goodness or badness of the name in an
aesthetic sense that determines effectivenessIt’s the appropriateness of the same
Name begins the positioning process, tells the prospect what the product’s major benefit isFair & LovelyClose UpKrackHead & ShouldersVaseline Intensive Care Body Lotion
Checklist: Brand name Should be simple
Should be acceptable in all key languages
Should be appropriate when geographically spread
Should be amenable for easy registration
“Forgot what made them successful”
After being sold to ITT, Avis adopted,
“Avis is going to be No.1” No frequent increase in revenues and campaign was
waste.
7-Up also fell in the trap and adopted.
“America’s is turning 7-Up”
Sales fell and now Sprite has 50% market share.
The F.W.M.T.S Trap
Hindustan Petroleum positioned it as the best refill available for LPG cylinder in the country.
Brand Positioning – Subrota Sengupta
Forhan was the first to position its toothpaste with, “Like a breadth of fresh air”.
Brand Positioning – Subrota Sengupta
Thank You