Brand Positioning

By: Rajat Jhingan

Contents

Positioning statement Perceptual mapping Repositioning

By: Rajat Jhingan

Positioning

By: Rajat Jhingan

Positioning

The place a product, brand, or group of products occupies in consumers minds relative to competing offerings.
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Step 4: Communicating a position

To communicate a co. or brand positioning a mktg plan should include a positioning statement, viz; To (target group and need) our (Brand) is (concept) that (point-of-difference). E.g.

To busy professionals who need to stay organized, Palm Pilot is an electronic organizer that allows you to back-up files on your PC more easily and reliably than competitive products.

By: Rajat Jhingan

Market Positioning
Positioning statement

To young, active soft-drink consumers who have little time for sleep, Mountain Dew is the soft drink that gives you more energy than any other brand because it has the highest level of caffeine. With Mountain Dew, you can stay alert and keep going even when you have not been able to get a good nights sleep.

By: Rajat Jhingan

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Perceptual mapping to establish (product) position

Perceptual mapping is a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers minds.
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Developing perceptual maps

Identify a set of competing brands Identify important attributes That consumers use when choosing between brands using qualitative research Conduct quantitative marketing research where consumers score each brand on all key attributes Plot brands on a two dimensional brands

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Perceptual Mapping Levis

High Price
Slates Vintage Red Line Red Tab Elesco Silver Tab

Classic

Dockers Premium 501 Dockers Classics

Red Tab Dry Goods

Designer

Red Tab Basics

L2

Old product New product

Low Price
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Repositioning
Changing consumers perceptions of a brand in relation to competing brands.
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Why do we need to reposition?

Deficient in achieving the desired position- Alto To penetrate the market To match consumer preferences Margo Crafting the brand as current Change in market or market conditions

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Repositioning

Q: How is repositioning accomplished?

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Repositioning strategies
PRODUCT Same Different

Same

Image repositioning

Product repositioning

TARGET MARKET
Different

Intangible repositioning

Tangible repositioning

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Branding strategy

Branding strategy is critical because it is the means by which the firm can help consumers understand its products and services and organize them in their minds. Two important strategic tools: The brandproduct matrix and the brand hierarchy help to characterize and formulate branding strategies by defining various relationships among brands and products.

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Branding Strategy or Brand Architecture

The branding strategy for a firm reflects the number and nature of common or distinctive brand elements (brand names, logos, symbols etc) applied to the different products sold by the firm.

Which brand elements can be applied to which products and the nature of new and existing brand elements to be applied to new products

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The role of Brand Architecture

Clarify: brand awareness

Improve consumer understanding and communicate similarity and differences between individual products
Maximize transfer of equity from the brand to individual products to improve trial and repeat purchase

Motivate: brand image

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Brand-Product Matrix
1 A Brands B C

Products 2 3

Must define:

Brand-Product relationships (rows)

Line and category extensions Brand portfolio

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Product-Brand relationships (columns)

Important Definitions

Product line

A group of products within a product category that are closely related The set of all product lines and items that a particular seller makes available to buyers

Product mix (product assortment)

Brand mix (brand assortment)

The set of all brand lines that a particular seller makes available to buyers Product breath and Product depth

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Ford Brand Portfolio

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Brand Naming
Corporate brands eg HP, Tata etc

Individual names HUL soap, toothpaste (Close-Up, Pepsodent) washing powder (Surf, Rin, Wheel); Nestle

Separate family names - HUL Brooke bond,

Lakme, Kissan; Nestle (Maggi suace, pickle, soup etc.)

Corporate name-individual name combo - Kelloggs corn flakes, Kelloggs crispies;

Dhara's Sunflower Oil, Dhara Groundnut Oil, Dhara Mustard Oil, Dhara Rapeseed Oil, etc

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J&Js Clean and Clear

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Brand Portfolio
It is the set of all brands and brand lines a particular firm offers for sale to buyers in a particular category. Different brands may be designed and marketed to appeal to different market segments.
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Designing a Brand Portfolio

Basic principles:

Maximize market coverage so that no potential customers are being ignored Minimize brand overlap so that brands arent competing among themselves to gain the same customers approval

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Brand Roles in a Brand Portfolio

Flankers Fighter brands Low-end Entry-level

Cash Cows Eg Sunlight by HUL High-end Prestige

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Brand Hierarchy

A means of summarizing the branding strategy by displaying the number and nature of common and distinctive brand elements across the firms products, revealing the explicit ordering of brand elements A useful means of graphically portraying a firms branding strategy

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Brand Hierarchy Levels

Corporate Brand (General Motors)

Family Brand (Buick)

Individual Brand (Park Avenue)

Modifier: Item or Model (Ultra)

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Brand Hierarchy Tree: Toyota

Toyota Corporation
Toyota (Trucks) Toyota (SUV/vans) Toyota (Cars) Toyota Financial Services Lexus

Corolla
CE S LE

Camry
SE LE XLE

Avalon
Platinum Edition XL XLS

Celica
SE SLE

ECHO

Matrix

MR2 Spyder

Prius

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Corporate Brand Equity

Occurs when relevant constituents hold strong, favorable, and unique associations about the corporate brand in memory Encompasses a much wider range of associations than a product brand

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Family Brands

Brands applied across a range of product categories An efficient means to link common associations to multiple but distinct products

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Individual Brands

Restricted to essentially one product category There may be multiple product types offered on the basis of different models, package sizes, flavors, etc.

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Modifiers

Signals refinements or differences in the brand related to factors such as quality levels, attributes, functions, etc. Plays an important organizing role in communicating how different products within a category that share the same brand name are

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Corporate Image Dimensions

Corporate product attributes, benefits or attitudes

Quality Innovativeness Customer orientation

People and relationships

Values and programs

Concern with the environment Social responsibility

Expertise Trustworthiness Likability
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Corporate credibility

Brand Hierarchy Decisions

The number of levels of the hierarchy to use in general How brand elements from different levels of the hierarchy are combined, if at all, for any one particular product How any one brand element is linked, if at all, to multiple products Desired brand awareness and image at each level
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Number of Hierarchy Levels

Principle of simplicity

Employ as few levels as possible Logic and relationship of all brand elements employed must be obvious and transparent

Principle of clarity

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Levels of Awareness and Associations

Principle of relevance

Create global associations that are relevant across as many individual items as possible Differentiate individual items and brands

Principle of differentiation

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Linking Brands at Different Levels

Principle of prominence

The relative prominence of brand elements affects perceptions of product distance and the type of image created for new products Single entity Brand dominance Equal dominance- Chevrolet aveo, yuva Mixed dominance Corporate dominance
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Linking Brands Across Products

Principle of commonality

The more common elements shared by products, the stronger the linkages

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Brand Architecture Guidelines

Adopt a strong customer focus Avoid over-branding Establish rules and conventions and be disciplined Create broad, robust brand platforms Selectively employ sub-brands as means of complementing and strengthening brands Selectively extend brands to establish new brand equity and enhance existing brand equity
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Corporate Brand Campaign

Different objectives are possible:

Build awareness of the company and the nature of its business Create favorable attitudes and perceptions of company credibility Link beliefs that can be leveraged by product-specific marketing Make a favorable impression on the financial community Motivate present employees and attract better recruits Influence public opinion on issues
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Using Cause Marketing to Build Brand Equity

The process of formulating and implementing marketing activities that are characterized by an offer from the firm to contribute a specified amount to a designated cause when customers engage in revenue-providing exchanges that satisfy organizational and individual objectives

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Advantages of Cause Marketing

Building brand awareness Enhancing brand image Establishing brand credibility Evoking brand feelings Creating a sense of brand community Eliciting brand engagement

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Green Marketing

A special case of cause marketing that is particularly concerned with the environment Explosion of environmentally friendly products and marketing programs

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Crisis Marketing Guidelines

The two keys to effectively managing a crisis are that the firms response should be swift and that it should be sincere.

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