BRAND POSITIONING

Brand Positioning : is the act of designing the companys offer and image so that it occupies a distinct and valued position in the target customers mind. Good brand positioning helps to guide marketing strategy by clarifying what a brand is all about, how it is unique, and why customers should buy it.

 What the marketers need to know to decide on the positioning ? According to the CBBE model, deciding on the positioning requires determining the frame of reference and the points of parity and points of difference of brand associations. In other words, marketers need to know the following :

 1. Who the target customer is? 2. Who the main competitors are? 3. How the brand is similar to those competitors? 4. How the brand is different from the competitors?

 Target Market : Identifying the consumer market is important because different consumers may have different perceptions and preferences for the brand. In order to identify the target market, the total market is divided into meaningful segments. The segmentation is done on different basis.

Segmentation Basis : Behavioral - user status - user rate - usage occasion - brand loyalty - benefits sought

Demographic : - income - age - sex - race - family

Psychographic : - values, opinions and attitudes - Activities and Life style Geographic : - International - Regional Nature of Goods : - Kind - Where used - type of Buy

Buying Condition : -Purchase Location -Who buys - Type of buy

 Criteria for Choosing a segment : In order that the segment chosen is effective and useful to the marketer, the following criteria have been offered : 1. Identifiability : Can we easily identify the segment 2. Size : is there adequate sales potential in the segment? 3. Accessibility : are distribution outlets and communication media available to reach the segment? 4. Responsiveness : How favorably will the segment respond to a tailored marketing program?

 Nature of Competition : An organization needs to do a competitor analysis to identify the positioning bases of the competitors. This helps the organization in making an informed decision. The objective is to create a unique positioning in the minds of consumers and be different from other players in the category.

 Marketers can define competition at a number of different levels. For example, Tropicana fruit juice. At the product type level, it competes with all non cola soft drinks; at the product category level it competes with all soft drinks and at the product class level, it competes with all the beverages.

 Points of Parity and Points of Difference : Arriving at the proper positioning requires establishing the correct points of parity and points of difference associations. Points of difference associations : Points of Difference are attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand.

 The concept of POD is similar to the concept of USP ( unique selling proposition ) The product can be differentiated on the basis of the 4 Ps of marketing. But the Product provides the maximum number of variables for differentiating the brand. The product can be differentiated on the basis of Tangible attributes : - Product Form : Eg. Doy Soap for children came in various animal shapes, Calcium Sandoz comes in different shaped containers.

 - Product Ingredient : Vicco Vajradanti is differentiated from its competitors on the basis of its ingredients. - Product Attributes : Dove uses the moisturizing attribute of the soap to position itself. Colgate Total toothpaste uses 12 hour protection from germs. - Product Functional Features : This means providing differentiation on the basis of the various functions that the product can perform. For Eg. Different models of Nokia handsets.

 - Product Characteristics and Customer Benefits : Product characteristics and the benefits it offers to the customers can also be used to differentiate a product. For example Bajaj Discover Motorcycles are available in 100cc, 125cc, 135cc etc. - Product Use : The manner of use of a product can also be used to position a product. For example, Mamy Poko Pants diapers for babies can be worn like a pant.

 - Product Class : Organizations use the product class to classify themselves and then give their point of differentiation. For example, Amul Prolife Probiotic Dahi . It is claimed that the probiotic ( point of difference ) dhai (product class) contains good bacteria that helps in digestion.

 Intangible Attributes : Intangible attributes like prestige, status, sentiments and beliefs can be used to create brand differentiations. - Price Quality : it is based on providing quality products at low prices. For Example : Big Bazaar is se sasta aur kuch nahin

 - Symbols : are also used to position a brand in the market, for example the Star of Mercedes, and the multicolored apple of Apple. - Competition : Organizations can also position their products against competition in the market. This is effective since the image of the competitor in the market can be used as a reference point. Most comparative advertisements are done with this in mind. For example Sprite bujhaye pyaas, baki sab bakwas

 - Personnel : People can also be used to differentiate the brand in the market place. For example Singapore Airlines uses the flight attendants to differentiate themselves. - Product User : The product user can also be used to differentiate a brand in the market. For example Femina has always positioned itself as the complete and wholesome magazine for women.

 - Demographics : demographic variables such age, sex, family life cycle can also be used to position brands. For example Titan Raga collection watches for women.

 Points of Parity Associations : Unlike POD, Points of parity associations are not necessarily unique to the brand, but in fact, are shared with other brands. There are two types : Category points of parity Competitive points of parity.

 Category Points of Parity represent the necessary but not necessarily sufficient conditions for brand choices. They exist minimally at the generic product level and are most likely at the expected product level. For example, customers might not consider a bank truly a bank unless it offered savings account, FD, Lockers, Loan facilities etc.

 Competitive points of parity : These are those associations designed to negate competitors points of difference. They try to get even where the competitors are trying to find an advantage and then establish advantage in some other areas. For example when Hero Honda was trying to establish points of difference in terms of mileage, Yamaha tried to counter it by saying that the real thrill of biking is in the power.

Positioning Guidelines
The concepts of points of parity and points of difference act as guide for positioning a brand. The two key things to do for arriving at the optimal competitive brand positioning are : 1. Defining and communicating the Competitive Frame of Reference. 2. Choosing and establishing points of parity and points of difference.

 Defining and communicating the Competitive Frame of Reference : It is important to establish with which products or sets of products the brand is competing. That the category membership of the product needs to be established. For example, Amul has to decide whether it wants to position Amul Cool as a member of cold drinks or health drinks.

 The products category membership tells the customers about the goals they might achieve by using the product. Sometimes the customers know the category membership of a product but may not be convinced that the brand is a true and valid member of the category. In such a situation, it might be useful to reinforce category mambership.

 The preferred approach to positioning is to inform the brands membership before stating its point of difference in relation to other category members. Choosing points of Difference : The most important things when choosing points of difference is that the consumers find the POD desirable and that they believe that the company can deliver on it.

 Deisrability Criteria : There are three key desirability criteria for PODs Relevance : Target customers must find the POD personally relevant and important. Distinctiveness : Target customers must find the POD distinctive and superior. Believability : A brand must offer a compelling and credible reason for choosing it over the other options.

 Deliverability Criteria : there are three main criteria for PODs. Feasibility : Whether it is possible for the firm to actually create the POD. Communicability : The POD created must be verifiable by factual proof and this proof must be communicable to the potential customers. Sustainability : The POD created must be defensible and difficult to attack.

Core Brand Associations

Brand associations are spontaneous signals that help the marketer to associate their brands with the psyche of the consumers. Keller (1998) defines brand associations as informational nodes linked to the brand node in memory that contain the meaning of the brand for consumers.

 Marketers use brand associations to differentiate, position, and extend brands, to create positive attitudes and feelings toward brands, and to suggest attributes or benefits of purchasing or using a specific brand. Consumers use brand associations to help process, organize, and retrieve information in memory and to aid them in making purchase decisions

 Benefits of Brand Associations : 1. Brand Associations provide an aura around the brand apart from providing the differentiation. 2. They provide a brand property which cannot be imitated by the competitor. 3. They provide a specific target segment linkage which may result in higher frequency of purchase of the brand.

 4. They also provide a positive word of mouth. 5. They provide a very effective proposition in case of brand extension to a new related category. 6. They provide a strong emotional platform in product categories where there is narrow or little differentiation across brands.

 Strategies for formulating brand associations : Brand Associations can be formulated on the following contexts. 1. Benefits or Attributes :