Brand Positioning &

Values
Positioning
 Identifying optimal location of a brand and
its competitors in the mind of consumers
or a market segment to maximize potential
benefit to the firm
 “Location” of the product is such that the
consumers/market segments think about
the product/service in the desired way
Basic Concepts
 Death of “one-size-fits-all”
 Mass production >> Mass customization
 “act of designing the company’s offer and
image so that it occupies a distinct and valued
space in the target customer’s mind
 Key steps:
 Who is the target customer?
 Who are the main competitors?
 How is the brand similar to the competition?
 How is the brand different from the competition?
Target Market
 Market – set of actual and potential buyers – motivation, ability
and opportunity to buy your product
 Market segmentation – Dividing into Homogenous consumer
groups
 Customization vs. Cost tradeoff – is “Mera wala green”
profitable
 Segmentation base:
 Descriptive – Customer Oriented (who is the customer?)
 Behavioral – Product oriented (customer’s product usage)
Segmentation Approaches
Behavioral – most valuable - for e.g. toothpastes
and /or deodorants –
 Sensory- seeks flavor & product appearance
 Sociables- seek social acceptability –brightness
of teeth, fresh smell.
 Worriers – seek decay prevention
 Independent – seek low prices
Segmentation Approaches

Baldinger-
 Loyals
 Rotators
 Deal Selectives
 Price Driven
Segmentation Approaches
“Market Facts” a research company has
developed a conversion model to measure
strength of the psychological commitment
between brands and the consumers
openness to change.
Segmentation Approaches
This model segments users into-

 Convertibles – Threshold of change-highly likely to

switch brands
 Shallow- Not ready to switch, but may be considering
alternatives
 Average – comfortable with their choices, unlikely to
switch in future
 Entrenched – staunchly loyal, unlikely to change at all
Criteria for Segmentation
 Identifiability
 Size
 Accessibility
 Responsiveness
 Profitability- most important
Consumer Segmentation bases

 Behavioral  Psychographic
 User status Values, opinions, attitudes,
 Usage rate activities, lifestyle
 Usage occasion
 Brand loyalty
 Benefits sought
 Geographic
 Demographic
 International
 Regional
 Income
 Age
 Gender
 Race
 Family
B2B Segmentation bases

 Nature of Good  Demographics

 Specification  Financials
 Kind  Number of employees
 Where used  Size of production
 Type of buy  Number of establishment

 Buying Condition
 Purchase location
 Who buys
 Type of buy
Points of Difference
 Strong
 Favorable
 Unique brand associations
Based on
 Attribute
 Benefit
 Develop a USP & a Sustainable Competitive
Advantage (SCA)
Points of Difference
 Attributes – Kraft cheese – more milk
 Benefit - Ikea – reasonably priced furniture and
home furnishings for the mass market, TV’s with
remote locators
 USP –
 Dettol vs.Savlon – does not burn
 Iodex vs. Moov – does not leave stains
 Crocin vs. Vicks Action 500 – fast relief
 Lays chips vs. Bingo chips
Points of Parity
1. Category POP- necessary for a credible offering –
 Banks must have different saving options. ATMs,
lockers etc.
 Creams must moisturize and keep skin soft – gentle,
protective, caring
2. Competitive POP- negate competition’s POD-
 CNN – POD- in-depth and up-to-date news channel
 POP - adopted varied programming such as interviews
& talk shows like other channels
Positioning Guidelines - Steps
1. Define & communicate a competitive
frame of reference
2. Choose POP and/or POD
3. Establish these POP/POD
4. Update Positioning over time
Step 1
Establish a competitive Frame of reference

 Communicate brand category membership

 This helps provide consumers with a frame of reference
& avoid confusion in consumers mind
 Important when introducing new products – ITC- Wiils-
Fiama, Bingo etc.
 Well established brands do not need this – Coke-
beverages, Kellogs, McKinsey etc.
Competitive Frame of reference
Company can straddle 2 or more frames of
reference –
 BMW – luxury & performance
 Kellogs – taste & health
 Maggi – fast to cook, healthy to eat
Step 2
Choose POP/POD

1. Desirability Criteria
 Relevance
 Distinct
 Believable
2. Deliverability Criteria
 Feasible
 Communicable
 Sustainable
Step 3
Establish POD & POP
 Taste vs. low calories
 Low price vs. quality
 Powerful vs. safe
 Family & Fun
 Nutritious vs. taste
Establish POD & POP
1. Separate the attributes – Head &
Shoulders – 2 attributes – dandruff
removal & sleek, shine and healthy hair
2. Leverage equity of another entity – brand
ambassadors – Sachin Tendulkar &
Boost, Reid & Taylor
3. Redefine relationships – Apple’s
Mackintosh – user friendly & powerful
 Step 4
Update Positioning over time
1. Laddering – move from low level needs to
higher level needs - Involves a progression
from attributes to benefits to value creation –
(Maslow’s Heirarchy)
• Cream/lotions – moisturizes skin- healthy &
glowing skin- beauty & confidence
2. Reacting –
 Do nothing
 Defensive
 Offensive
Updating brand positioning
 Laddering – Product functions >>> core
values

Abstract values
Motivations

Benefits

Attributes
Brand Mantras
 Short phrase that captures the spirit of positioning
 Provides guidance to all the activities of the brand
 Emotional modifier>> descriptive modifier>> Brand function
 McD – “Food, folks and Fun
 Nike – “Authentic Athletic Performance”
 Disney – “Fun Family Entertainment”
 Zee Cinema – “Movies Masti Magic”
 Its should
 Communicate the category and boundaries
 Simplify.. To make brand memorable
 Inspire – Should stand out with a higher meaning
Brand Mantras
 Expression of “Heart and soul” of brand
 Short 3-5 word phrases that capture the essence & spirit of brand
positioning & values
 Creates a mental filter to screen out inappropriate marketing
activities
 Communicate the category and boundaries
 Simplify.. To make brand memorable
 Inspire – Should stand out with a higher meaning

3 Aspects – Emotional – Descriptive - Function

 McDonalds – Food -Folks - Fun
 Nike -Quality -Athletic - Performance
 Disney -Fun -Family - Entertainment