Brand Positioning

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RIMS, Brand Management

Brand Positioning: What is?

Act of designing the companys offer and image so that it occupies a distinct and valued place in the target customers minds Kotler

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RIMS, Brand Management

Brand Positioning: Pepsi One (1/2)

1998 Pepsi introduces new diet cola Pepsi One Word diet having ve association Millions of $$$$ spent in R&D, Design and Marketing ($100 M)
Key ingredient Acesulfame Potassium (Ace-K), approved by FDA New design Silver Can with emphasis on ONE

Target audience: 20 30 yr old men who didnt like diet cola

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Brand Positioning: Pepsi One (2/2)

After 18 months, 0.8% market share (less than 50% of predicted numbers) Initial advertisement failed to describe exactly what Pepsi One was. How it was different from Diet Pepsi?

Ad campaign changed

Only one has it all True cola taste. One Calorie Tasted more like regular Cola

Revised campaign:
More information about Ace-K Direct comparison with Coca-Cola Classic Ad campaign: Too good to be one calorie but it is!
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Brand Positioning: Approach

Who is the target consumer? Who are the main competitors? How the brand is similar to these competitors? How the brand is different from these competitors?

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Brand Positioning: Who is the target consumer?

Different consumers > Different brand knowledge > Different Perceptions & Preferences Market Segmentation

Distinct group Homogeneous consumers Similar needs and Consumer behavior Requires similar marketing mixes

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RIMS, Brand Management

Brand Positioning:
Who is the target consumer? (Example)

Toothpaste market segmentation:

Sensory: Seeking Flavor & Product Appearance Sociable: Seeking Brightness of Teeth Worrier: Seeking Decay Prevention Independent: Seeking Low Price

Close-Up (1 & 2), Crest (3), Aquafresh (1,2 &3), Colgate Total (Multi-purpose)
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Brand Positioning: Who are the main Competitors?

Other brands/companies have targeted the particular segment in the past or plan to do so in the future Products/Brands most likely to be seen as close substitutes Channels of distribution

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Brand Positioning:
Who are the main Competitors? (Example)

Baskin-Robbins > $100 million face-lift (1990s)

Remodeled stores: New Dcor | Reallocation of space to exhibit growth products (frozen coffee drinks) Competition: Starbucks, other snack chains like McDonalds

Fresca (grapefruit flavored soft drink)

Product Type Level, competes with non-cola flavored soft drinks Product Category Level, competes with all soft drinks Product Class Level, competes with all beverages 2/26/10 RIMS, Brand Management

Brand Positioning: Points of Parity & Difference

Points of Difference (USP): Strong , Favorable & Unique Brand Associations Points of Parity: Brand associations consumers view as being necessary to be legitimate and credible

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Brand Positioning:
Points of Parity and Points of Difference. (Example)

Nivea:
Leader in skin cream Points of difference: Gentle, Protective, Caring New Product Category: Deodorants (Strong enough), Shampoos (produce beautiful hair) & Cosmetics (colorful enough)

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Brand Positioning: Consumers mind

Alto positioned as hottest car in town

Hot didnt click with average family man Alto repositioned as car for youth
Clicked with rising Indian middle class

Anchor toothpaste positioned as the only vegetarian toothpaste Manikchands Oxyrich mineral water positioned among Bisleri, Pepsi, etc. Tata Indica positioned as Indian

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Successful Branding: Rules (1/2)

Easiest way: Simply be the first

Cars? | Carbonated Drinks? | Photo Copiers? | Computers?

Market Leaders Leaders constantly threatened by No 2. brand

Survival in the short term

No. 1 brand stay away from calling itself No. 1

Presents an image of insecurity

React rapidly to changes in the market

Attacking before a new product establishes itself

Enter a new segment with a new brand (multibranding)

Creates distinct position
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Successful Branding: Rules (2/2)

Follower Brands Stay away from
Me-Too tag
Look for market-niche, create new position in consumers mind

Wait-and-Watch
Attack while the situation is still fluid

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Brand Repositioning: Why is it important?

Increasing Market Penetration Increasing Relevance to Customer Making Brand Contemporary Change in Market or Market Conditions

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