Brand Positioning

g
Session 5
Subhadip Roy

Definition
" p
positioning
g is not what yyou do to a p
product.
Positioning is what you do to the mind of the
prospect. That is, you position the product in the
mind of the prospect.
prospect "
- Al Ries and Jack Trout
Positioning is the act of designing the
"Positioning
companys offer and image so that it occupies a
distinct and valued place in the target customers
mind
i d
- Kotler and Keller

Segmenting Consumer Markets

Geographic
Demographic
Psychographic
y
g p
((Lifestyle,
y , Personality,
y,
Values)
Behavioural (Occasion,
(Occasion User Status
Status,
Usage Rate)

Effective Segmentation
Only when the segment is:
Measurable
Substantial
Accessible
Differentiable
Actionable

Brand Positioning
Define competitive frame of reference
Target market
Nature of competition

Define desired brand knowledge

structures
Points-of-parity
necessary
competitive

Points-of-difference
strong,
t
ffavorable,
bl and
d unique
i
brand
b d associations
i ti

Points of Parity and Difference

Potential Brand Differences

Wants and Needs

Consumers

Our

B
Brand
d

PODs

POPs

Their
PODs

Points of Parity (Category

Benefits)

C
Competition

Competitive Brand
Differences

The purpose of a PODs

analysis is to identify what ideas
from our brand and competitive
brands are most meaningful and
potentially differentiating.
The purpose of a POPs
POP s
analysis is to identify which
category benefits are critical for
establishing credibility.

Defining Associations
Points of parity
Points-of-parity
Points-of-difference
(PODs)
(POPs)
Attributes or benefits
Associations that are
consumers strongly
not necessarily
associate with a brand,
unique
q to the brand
positively evaluate,
but may be shared
and believe they could
with other brands
nott find
fi d to
t the
th same
extent with a
competitive brand

POP and POD

POD also known as
Unique Selling Proposition (USP)
Sustainable Competitive Advantage (SCA)

POP could be
Category
Competitive

POP AND POD: BMW over the

years
1991
1985
1975
1971
Affluence, exclusivity
Fun to drive
Affluence, exclusivity
Fun to drive
Fun to drive
Economical
International
Desirability

Headline: Makes other cars look like couch potatoes.

Issues in Implementing
Brand
d Positioning

Define Competitive Frame of Reference

E t bli hi Category
Establishing
C t
Membership
M b hi
Identifying & Choosing POPs & PODs
Communicating & Establishing POPs &
PODs
Sustaining & Evolving PODs & POPs

Establishing Category Membership

Communicate Category
Membership
Exemplar Comparison
Product Descriptor

Identifying & Choosing POPs & PODs

Desirability criteria
(consumer perspective)
Personally relevant
Distinctive
i i i & superior
i
Believable & credible

Deliverability criteria
(firm perspective)

Feasible
Communicable
C
i bl
Sustainable: Pre-emptive,
defensible & difficult to
attack
tt k

Communicating & Establishing

POPs
& PODs

Create POP
POPs
s and POD
PODs
s in the face of
attribute & benefit trade-offs

Price & quality

Convenience & quality
Taste & low calories
Efficacy & mildness
Power & safety
Ubiquity & prestige
Comprehensiveness (variety) & simplicity
St
Strength
th & refinement
fi
t

Volvo: Safety and Class

Establishing POP
POPss & PODs
POD s
Establish separate marketing programs
Leverage secondary association (e.g., cobrand,, Subwayy testimonials))
Re-define the relationship from negative to
positive (New Fair and Lovely ad
ad.))

Sustaining POPs & PODs Over

Time
Update over time
Laddering (Attribute
(Attribute-Benefit-Value)
Benefit Value)
Reacting
Do Nothing
Defend
Offend

Major
j Challenges
g in Positioning
g
Find compelling & impactful pointsof-difference
of
difference (MacMillan & McGrath,
McGrath
HBR, 97)
How do p
people
p become aware of their need for your
y
product and service?
How do consumers find your offering?
How do consumers make their final selection?
How do consumers order and purchase your product
or service?
What happens when your product or service is
delivered?
How is your product installed?
How is your product or service paid for?

Major Challenges in Positioning

Find compelling
p
g & impactful
p
p
pointsof-difference (cont.)

How is your product stored?

How is your product moved around?
What is the consumer really using your product for?
What do consumers need help with when they use
your product?
What about returns or exchanges?
How is your product repaired or serviced?
What happens
pp
when your
y
product
p
is disposed
p
of or no
longer used?

Thank You, Class