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Excel Books4– 1 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
C H A P T E R
4
Brand
Positioning
Excel Books4– 2 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
Evolution
Positioning is the last step in the marketing strategy formulation.
Marketing strategy begins with identification of market segmentation and
later choosing a target for the marketing activity.
Marketing enjoys close similarity with a military conflict.
Strategy is a term that has been conventionally used in the context of
military warfare.
Strategy is a blueprint or plan developed to achieve the target by
outmanoeuvering the rival side.
Excel Books4– 3 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
Advertising Persuasion
In the early years, marketers relied upon the powers of communication tools
like advertising to win customers. The belief that dominated this era was
that customers could be sold anything on the basis of persuasive
communication.
Message repetition, indeed bombardment or blitzkrieg, was believed to be
the key to drilling information into customers’ brains and thus influencing
consumer buying.
Accordingly, content took precedence over execution. Advertising came to
acquire an important status in the corporate functions.
Excel Books4– 4 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
Unique Selling Proposition
Once advertising ceased to be as effective as it used to be as a persuader,
marketers turned to product. In order to create a hot button to pull in the
customer, marketers began to look for unique product aspects. The
attention shifted to product attributes and benefits that could become unique
selling propositions.
Rosser Reeves called this entire process of discovering uniqueness in the
product to sell the product as the ‘USP’, or unique selling proposition.
Reeves proposed three guidelines for the use of unique selling proposition:
it must involve a specific product benefit; to make it unique, it must not be
used by competitors; and finally, it must be good enough to sell the product.
Excel Books4– 5 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
Brand Image and Personality
David Ogilvy pioneered the idea of brand image and personality2. He
argued that ‘every advertisement should be thought of as a contribution to
the complex symbol which is a brand image’.
The argument of ‘brand image’ signified a leap forward in the way marketers
communicated with customers and persuaded them to respond favorably to
their products and services.
The marketed products do offer some utility for which they are bought, but
Ogilvy shifted the attention to a non-product area conceptualized as brand
image.
The brand reputation, image, esteem and prestige are crucial in developing
brand pull. This is especially true when we recall that customers in those
days were moving up the social ladder and becoming affluent.
Excel Books4– 6 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4Brand Positioning
Most successful brands occupy distinct position that sets them apart form the
competition and provides the target customer a reason to favor them:
Liril – freshness
Dominos – guaranteed pizza delivery in 30 minutes
Fair & Lovely – fairness cream
Pears – tender skin, like baby’s
Bata – value for money shoes
Woodland – sturdy shoes for adventure sports
Zodiac – fine quality shirts
Allen Solly – casual formal wear
Livon – after bath hair de-tangler
Ujala – easy-to-use liquid fabric whitener
Excel Books4– 7 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
Position And Product Position The word ‘position’ is usually used to signify a location on a physical space,
for instance, in an architect’s drawing of a building or display shelves in a
store layout.
Positioning – in the advertising or marketing sense – is used in the context
of customer perceptions. It is something to do with the prospect’s mind or
perceptual space. A brand’s position is about building an image in the
prospects’ mind.
A product is a physical entity. It belongs to a physical space. A product’s
physical space could be measured in terms of its objective dimensions.
In a product category like cars, offerings of different manufacturers could be
evaluated on functional objective dimensions.
Excel Books4– 8 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
Fiat Palio compared to Other cars in its category
Objective Attributes Comparison: Product Positioning
Features Palio NV Sport Swift Getz
Displacement 1596 cc 1298 cc 1341 cc
Power BHP 100 87 82.9
Torque 137 Nm 113 Nm 118 Nm
Engine DOHC 4 valve DOHC 4 valve SOHC 3 valve
Front leg room 1220mm 1150 mm 1180mm
Rear shoulder room
1350 mm 1280 mm 1330 mm
0-60 KPH 4.5 s 5.2 s 5.6 s
Source: Hindustan Times, HT City, April 19, 2006
Excel Books4– 9 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
Mapping Position of Brands on Objective AttributesThere are many players in the Indian car industry, each offering a number of brands to target different segments. Two important criteria in brand selection are price and quality. Price is objectively measured in rupee terms and quality is measured through surrogate of problems per hundred vehicles. Using these two dimensions, the position of various brands could be mapped as follows:
Model/Prices*: Problems per 100 vehicles**
Maruti Alto Rs 2.70 116
Fiat Palio Rs 3.65 139
Maruti Zen Rs 2.40 176
Maruti Esteem Rs 4.30 129
Ford Ikon Rs 4.50 140
Opel Corsa Rs 5.00 212
Opel Swing Rs 5.85 212
Honda City Rs. 6.55 96
Hyundai Accent Rs 5.05 167
Maruti Baleno Rs 5.65 169
Toyota Corolla Rs 9.60 83
Chevrolet Optra Rs 7.50 119
Skoda Octavia Rs 10.90 198
Tata Sumo Rs 5.00 254
Tata Safari Rs 7.30 259
*Approximate prices; ** industry average 175
Excel Books4– 10 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
Price
The Position Map
Quality
Excel Books4– 11 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Input: Product improvement efforts to
improve a product’s objective performance
characteristics
Input: Communication
efforts directed to influence brand perception
Recipient: actual
Recipient: prospect’s mind
Outcome: improved objective product performance
Outcome: changed brand associations (image) in
prospect’s mind
Efforts Directed to Improve Product or Brand Position
Excel Books4– 12 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
3 Cs of Positioning Brand image is about connecting a brand with a customer relevant and
competitively different idea or proposition. It is important that a brand must
stand for a clear idea. Brand must appropriate a distinct idea.
The search for a successful position must end with an idea becoming
proprietary to a brand such that it achieves valued differentiation in its target
market.
In this process of finding a concept that simultaneously bestows the brand
with value and differentiation, an analysis of three sides to a marketing
exchange is essential:
• The target customer
• The target competition
• The company or brand
Excel Books4– 13 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Positioning—The Search for Valued Differentiation
Customer: the value space: relevance
Competitors: the rival offers: uniqueness
Company (brand): valued differentiation
Excel Books4– 14 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Competitive Positioning : POPs and PODs Many times, people responsible for brand creation focus too much on
accumulating points on which the brand could be differentiated. Successful
brands do need points of differentiation, but how this differentiation is
created is a crucial determinant of brand success.
Keller et al7 argue that managers often pay too much attention to points of
differentiation but pay little attention to two other aspects: Frame of
reference and Brand’s common features with competitors. Effective
competitive positioning does not require only paying attention to points of
differences but also to points of parity. Exclusive focus on creating points of
differences often causes the managers to ignore another important issue.
That is, point of the reference that customers use to see and evaluate the
brand.
Excel Books4– 15 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
Positioning Strategy Positioning strategy is aimed at building brand differentiation within the
value frame of the target market.
The need for competitive positioning is primarily triggered by emergence of
intense competition in most of the product categories.
Positioning is increasingly seen as a device to gain control over markets by
means of customer pulling brand differentiation. A brand can choose from a
number of paths or strategies to position itself against competition.
Sengupta8 suggests that positioning strategies revolve around different
aspects of the brand. Four questions about the brand can draw attention to
possible ways in which a brand could be positioned. The four questions that
can reveal the totality of a brand are: Who am I? What am I? For whom am
I ? Why me?
Excel Books4– 16 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
Who am I?
Through this question, the identity of a person is revealed to the audience. In the
context of branding, answering this question would reveal the origin or pedigree
of the brand: where it belongs, or where it comes from. Identifying family or origin
could give a brand a competitive advantage by allowing it to draw positives or
strengths of the family. Two options exist:
Positioning by corporate identity
Positioning by brand endorsement
Excel Books4– 17 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
What am I ?
In this category of strategies, a brand’s functional capabilities are used for
positioning purposes. Within this group, four options exist:
Category Positioning
Benefit Positioning
Usage and Use Time Positioning
Price-quality Positioning
Excel Books4– 18 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
For whom am I ?
This category of positioning strategies looks at the target market for
positioning the brand. A market consists of various segments.
There are many ways of segmenting the market. Depending upon the
segmentation scheme used to divide the market, a brand can focus on a
specific customer group for positioning purposes.
The market can be broken down into the following types of groups:
i. Demographic Groups
ii. Behavioral
iii. Psychographic
Excel Books4– 19 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Why me?
This group involves positioning the brand on the basis of a unique reason or
clincher. Finding out a unique reason or argument to offer to prospects is key in
this category of positioning strategy.
Unique Attribute
‘Why me’ Positioning
Excel Books4– 20 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
Positioning StrategiesA product or organization may exist in the perception of customer in the form of an association set. This is what creates overall impression. Positioning a brand or a company involves deciding about both what associations are to be created and emphasized, and what associations are to be removed and de-emphasized. In positioning, the reference point is competition. Broadly, there are six positioning approaches:
Attribute positioning
Here, the brand is associated with a product attribute, feature or benefit. Examples include Colgate’s Active Salt positioned as a brand that contains salt for effective teeth cleaning and gum protection. HLL’s Pears soap for long used the position as original glycerin soap. Annapurna salt of HLL positions itself as an iodized salt with protective benefits. Philips has been trying to position its CFL bulb range as small enough to easily fit in the lampshade. The lemon drink Limca was positioned as a thirst quenching drink because it contains isotonic salts.
Excel Books4– 21 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
Price/ quality positioning
A brand can be positioned as ‘high price, high quality’ while others may take
the low price and low quality position. The first category appeals to quality
conscious customers and the latter may appeal to value conscious
customers. For instance, the Parker Beta and Vector take VFM position while
Waterman range takes the top end quality positioning. The Big Bazaar chain of
markets have been positioned as a value-for-money shopping destination (‘Isse
sasta aur accha kahin nahin’) and Life Style departmental stores are
positioned towards the higher end of the price quality spectrum. HLL’s
Wheel detergent brand is positioned as VFM and Surf Excel is positioned as a
premium brand.
Excel Books4– 22 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4 Use or application positioning Positioning by use involves building clear connections between the product
or brand and the use it is to be put to. Maggi Noodles for long promoted itself as a quick meal for kids when they return from school. Titan brand promoted its watches as a ‘gift’ for special occasions. Pidilite brand Mr Fixit is positioned as a paste to be used to solve the problem of leaking pipes. Vicks Vaporub brand used use positioning by promoting the product as a balm to be applied on a child’s chest for quick relief (‘touch therapy’).
User positioningUser positioning involves developing connections between the brand and the user or user class. For instance, there is no ambiguity about the user of the Johnson & Johnson soap, body oil and talc. The brand is positioned for kids and infants. Mountain Dew clearly signals the user class. Creative Line brand of woolens is positioned ‘sweaters for women’. Amul lean milk is positioned as the milk for young, figure conscious women. The Energic 31 brand is positioned as health supplement tablets for middle-aged men who experience fatigue. Cont….
Excel Books4– 23 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
Product class positioning
Some marketers position their brand with respect to a product class by
developing class related associations. Nescafé is positioned as instant
coffee (product class) whereas Bru brand is related with filter coffee
(product class). Perk Brand of Cadbury’s chocolate-coated wafers
attempted positioning itself not as a chocolate but as a quick snack.
Suryansh diamond brand is positioned as a good investment option (product
class).
Excel Books4– 24 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Positioning with respect to competition
This strategy involves making direct or indirect reference of competition.
This allows the brand to exploit the competitor’s image. By making
reference to competition, the brand gains ground as something that is good
enough to be compared (if not as good) with an established brand. One
often cited example is that of Avis rent-a-car which was a distant second to
the market leader, Hertz. By claiming ‘We are number two…’ the brand
exploited the competitor’s position. Currently, the Indica Xeta brand is being
positioned as a better alternative to Maruti Alto, in print ads.
Adapted from: David A. Aaker and J. Gary Shansby, ‘Positioning your
product’, Business Horizon, May-June 1982.
Excel Books4– 25 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
Brand Success
What first comes to mind when one thinks of the following brands?
Rasna
Moov
Krack
Ujala
Anchor White
Lijjat
MDH
Action
Shehnaz Hussain
Tortoise
The chances are that these brands would lead to primacy of concepts like: drink
concentrate; remedy for backache; cream for cracked heels; liquid fabric
whitener; ‘vegetarian’ toothpaste; papad; quality spices; durable economy sports
shoes; herbal cosmetics; and mosquito repellent coils.
Excel Books4– 26 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
Core Benefit Identification
What benefits would the brand promise to customers? Benefits pull the
customers to the brand. The manager must decide on what benefits the brand
should be associated with. For instance, in the context of a toothpaste brand, the
benefits sought may be numerous, like the following:
Teeth whitening
Decay prevention
Economy
Herbal properties
Fresh breath
Being vegetarian
Flavour
Lasting effect
Gum protection
Sensitive teeth
Excel Books4– 27 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
Own Key Words
Once the benefit set is
chosen for building a brand’s
core association, the next
issue focuses on the choice
of the word that represents
that benefit. Words represent
the brands in the memory or
perceptual space. Words are
short signatures of the
brands. Words signify what
the brands in question are all
about.
The following are some of the brands in the Indian
marketing space. These brands owe their success to the
words they own in consumer’s mind:
Rooh afza - refreshing drink
Roopa - comfortable innerwear
Nataraj - long lasting pencil
Bisleri - bottled water
Hajmola - tasty digestive tablets
Symphony - coolers
MDH - quality spices
Usha - sewing machines
Action - inexpensive sports shoes
Servo - engine oil
The following are some of the brands in the Indian
marketing space. These brands owe their success to the
words they own in consumer’s mind:
Rooh afza - refreshing drink
Roopa - comfortable innerwear
Nataraj - long lasting pencil
Bisleri - bottled water
Hajmola - tasty digestive tablets
Symphony - coolers
MDH - quality spices
Usha - sewing machines
Action - inexpensive sports shoes
Servo - engine oil
Brands and the ‘Owned Words’
Excel Books4– 28 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
Connect the Word with Means–end Element
Customers believe that Pepsodent toothpaste remains effective even after
brushing because it contains an attribute called ‘germi-check’.
In the initial years of communication, the Close Up advertisements showed
mouthwash flowing from a bottle to the past to lend credibility to its claim
that it is a freshness toothpaste.
The means–end hierarchy connects the product with the customer’s end
states of existence through attribute to benefits to values (end states of
existence).
Excel Books4– 29 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Cont….
Reinforce Hold on Core Benefits
The brands positioning must evolve in tune with changing times.
Evolution implies that brand must maintain its hold on the core benefits that
form its essence or core selling proposition. Brands operate in a competitive
environment.
Accordingly, competitors cannot be physically prevented from launching
attacks. Unless core benefits are reinforced, the brand faces the risk of
being attacked by competitors in two ways:
i. ‘More is better’ strategy
ii. ‘Multiple situation’ strategy.
Excel Books4– 30 Brand Management Text and Cases (Ed-2) Harsh V Verma
Copyright © 2002, Harsh V Verma
Brand PositioningC-4 4
Add More Benefits
There is more about creating a successful brand than simply owning a word.
Owning a word overly simplifies the process.
Besides the key word associated with the brand, a network of association
must be formed to develop linkages in a more complete fashion. A brand’s
key word cannot stand in isolation.
Accordingly, the brand associations should be extended to build a complete
picture. The first association concerns the core benefits that are defined as
a part of positioning. These are further linked with means–end elements to
form the positional benefits. And finally, the brand develops a value
proposition.