Brand Positioning

Session 9
Subhadip Roy
 Marketing Strategy

Segmentation

Targeting

Positioning
 Definition
• "… positioning is not what you do to a product.
Positioning is what you do to the mind of the
prospect. That is, you position the product in the
mind of the prospect."
- Al Ries and Jack Trout
• "Positioning is the attempt to control the public's
perception of a product or service as it relates to
competitive products."
- Mississippi University State Extension
Service
 Choosing a Positioning Strategy
Step 1. Identifying
Possible
Competitive
Advantages Step 2. Selecting
the Right
Competitive
Advantage
Step 3.
Communicating and
Delivering the
Chosen Position
 Defining Associations
Points-of-difference Points-of-parity
(PODs) (POPs)
• Attributes or benefits • Associations that are
consumers strongly not necessarily
associate with a brand, unique to the brand
positively evaluate, but may be shared
and believe they could with other brands
not find to the same
extent with a
competitive brand
 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
Establishing Category Membership

• Communicate Category Membership

• Exemplar Comparison
• Product Descriptor
 Identifying & Choosing
POP’s & POD’s
• Desirability criteria
(consumer perspective)
– Personally relevant
– Distinctive & superior
– Believable & credible
• Deliverability criteria
(firm perspective)
– Feasible
– Profitable
– Pre-emptive, defensible &
difficult to attack
 Developing and Communicating a
Positioning Strategy
• Positioning: Ries and
Trout
– Strengthen own current
position
– Grab an unoccupied position
– De-position
– Re-position
– Product ladders
• Positioning: Treacy and
Wiersema
– Value disciplines
• Product leader
• Operationally excellent firm
• Customer intimate firm
 Developing and Communicating a
Positioning Strategy
• Positioning: How many
ideas to promote?
• Unique selling
proposition
– Four major positioning
errors
1. Underpositioning
2. Overpositioning
3. Confused positioning
4. Doubtful positioning
 Positioning Possibilities
• Attribute
• Use or
application
• User
• Competitor
• Product
category
• Quality or price
Differentiation Strategies

Product Personnel

Channel Image
 Bad Differentiators…
• Quality and Customer Orientation
– It is a GIVEN!
• Price
– How low can you go?
– Competitors can get around it unless it is high price
(Rolex)
• Creativity
– The Creatives are also human beings (Fevicol)
• Breadth of Line
– Category killers can get too big
 Good Differentiators…
• Being First
– Most firsts stay first (Coke, Xerox)
– Becomes the “generic advantage”
– Not a guarantee of success & can be bad idea
(herbal cigarettes)
• Attribute ownership
– Own what is most important to customer (Colgate)
• Leadership
– Let everyone know it (Hero Honda)
• Heritage
– Based on time, location, family, character (Dabur,
MDH)
 Good Differentiators…
• Market specialty
– Be the expert (Shehnaz Hussain)
• Preference
– Can be legitimate, ethical, emulation (fit)
• How the product is made
– Technology, special ingredient, packaging
(Nokia)
• Being the latest
– Intel (makes itself obsolete), Roland.
• Hotness
– Tastes, trends (YSL, CK)
 Identity and Image

Identity: Image:
The way a The way the
company aims to public perceives
identify or the company or its
position itself products
 Major Challenges in
Positioning
• Find compelling & impactful
points-of-difference (MacMillan
& McGrath, HBR, ‘97)
– How do people become aware of their need for
your 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 & impactful
points-of-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 when your product is disposed
of or no longer used?
Some Examples of
Positioning
and
Differentiation
• Subhead:
First class
airline
comfort for
weekend
voyagers.
• Tata Safari, Subhead: Pick Your Jungle.
• Baseline: The simplest car to drive.
• Baseline:
The Future
of the
Automobile
Headline: The shoulders. Accentuated.
Bodycopy: New muscular front apron, with larger double-slatted air intakes. New 7-spoke,
R16 alloy wheels. Fuller wheel arches creating a wider-looking stance. Enhanced
appearance with haematite-coloured trim strips on the waistline. And the unmatched
technological features that every Mercedes-Benz is renowned for. The new Mercedes-
Benz C-Class. A cut above.
• Subhead:
Celebrate
fun
weekends.
• Headline: Less
seats. More
Luxury.
Basically the
same principle
as club class.
Headline: Makes other cars look like couch potatoes.
• Headline:
New wave
CRDe
technology
for Scorpio.
Other cars
out at sea.
• Headline:
Some cars
have great
ads. This
ad has a
great car.
• The Volvo S80 V8
Executive AWD has a 4.4L
engine, 315 Hp and 440 Nm
torque. The S80 D5 does
400 Nm torque and the S80
3.2 delivers 320 Nm torque.
And now, two optional
features - Satellite
Navigation System and Park
Assist Camera. All this is
backed by 2 years cash-
less service and 2 years
unlimited mileage warranty.
• Headline: "Audi is
done with being
understated. The
new A6 is so hip, it
hurts."
BBC Top Gear, UK
"The new Audi A6.
Better is not
possible."
www.autobild.de,
Germany
That’s It, Class!
Thank You