Brand positioning


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Brand positioning, Brand stretch and Brand extension

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Brand positioning

  1. 1. Shiv Shankar Tripathi August 23rd, 2010 Hyderabad
  2. 2. “The least of things with a meaning is worth more in life than the greatest of things without it” – Carl Gustav Jung
  3. 3. Building a Brand: Factors to be considered Source: David Jobber
  4. 4. Why Brand Positioning  As consumers, we are all influenced by the effects of a powerful brand positioning-"brainwashed," so to speak-to have preference for one versus another. But today there are so many choices for consumers that this term has a secondary derivation-"whitewashing."  The brand choices are so varied and the differentiation so minimal in terms of product functionality that we're faced with a sea of indiscernible offerings. This is why it is critical for a brand to be well positioned and uniquely differentiated.
  5. 5. Brand Positioning defined  Positioning means owning a credible and profitable “position” in the consumer’s mind, either by getting there first, or by adopting a position relative to competition, or by repositioning the competition. - Al Ries and Jack Trout in “Positioning: The battle for your mind”  Examples: Cinni fans, Tata, Exide, Lifebuoy, Colgate.
  6. 6. Brand positioning: Perceptual Map  Brands can be positioned against competing brands on a perceptual map.  A perceptual map defines the market in terms of the way buyers perceive key characteristics of competing products.  The basic perceptual map that buyers use maps products in terms of their price and quality, as illustrated on the next slide:
  7. 7. The Brand Building Perceptual Map
  8. 8. The Brand Positioning Process Understanding all stakeholder needs and desires Brand Architecture Opportunity Modelling Brand Platform Brand Identity Continuous evaluation and development
  9. 9. 1. Understanding all stakeholder needs and desires  Consumer’s needs  Corporate Need  Shareholders/Investors needs  Channel Partners need  Example: P&G - Tide and Ariel Mahindra, Jaguar or Land Rover Volkswagen - Beatle
  10. 10. 2. Opportunity Modelling for Positioning  Relevance  Differentiation  Credibility  Stretch
  11. 11. Successful Brand Stretch of Dove Source: ‘Brand Stretch’ by David Taylor
  12. 12. 3. Brand Platform: Taking up a position in the market
  13. 13. 4. Brand Identity: Reflecting Brand positioning in the name  Descriptive: Kingfisher Airlines, IBM  Associative: Bajaj Pulsar, TVS Scooty, Outlander  Abstract: Kodak, Accenture, Lemon Mobiles
  14. 14. 5. Brand Architecture: Organise to deliver value  Brand architecture creates value through clarifying all levels of branding based on:  The needs and priorities of target audiences  Expressing the depth and breadth of the offering  Generating economic efficiencies  Extending and transferring brand equity between corporate and product and sub-brands  Making brand strategy credible
  15. 15. Brand Architecture Structures 1. Freestanding Brand Standalone brands, little or no connection with parents. E.g. Garnier 2. Endorsed Brand Parent (Source) brand provides credibility, personal relevance of the brand may not be clear. E.g. Maruti cars 3. Overbrand Individual business units or brands operate under a strong parent, dual communication with unique positioning by leveraging the credibility of the source. E.g. Hyundai i10, i20, i30, SUVs like Tata Safari, Mahindra Scorpio, Mitsubishi Outlander, Ford Fortuner. 4. Masterbrand A single brand spans a set of offerings that operate only with descriptive offerings, continual product innovation, new releases and so on. E.g. Taj Hotels, Kingfisher Airlines, Kerala Tourism.
  16. 16. 6. Continuous Evaluation and Development  Take decisions regarding improving upon the POPs (Points of Parity) and PODs (Points of Difference).  Brand extensions – Line/Category extensions  Category memberships – Loyalty Programs
  17. 17. Case I: Walt Disney  Few brands are better defined than Disney. The company's success is measured by no less than a 610 percent growth in the last decade, according to its most recent annual report. Nearly half of that growth came from new business areas, some that bear the Disney name and some that do not. Here is a company that not only understands its vision and meaning but clearly understands its parameters of relevance. What is the Disney story?  Walt Disney was a visionary. And his vision for the Disney Company was not to crank out cartoons or build theme parks, but "to make people happy." I think I can safely say that virtually everyone in the developed nations of the world is crystal clear about what the Disney brand stands for: imagination, wholesomeness, fun. Whether we picture in our minds a theme park for children, adventure and learning vacations for the whole family (Disney Institute), a movie or a co-branding effort, the Disney promise is aligned with our expectations. Its branding decisions make sense.
  18. 18. Case II: Microsoft  Microsoft, a company that was started in a hotel room by a couple of college dropouts with one compelling vision: a computer on every desk and in every home. It may have been a brazen idea 20 years ago, but it has guided Microsoft ever since, giving it uncontested dominance in the desktop software market and making Bill Gates a very rich man.  Microsoft today is hardly what we would call a simple company. It employs more than 30,000 people and designs and sells a vast array of software programs in 60 countries; having a net income of more than $2 billion. But as much as it has grown, it has never lost sight of its original vision. Everything about Microsoft-its products, its marketing and, most important, its brand positioning-is still driven by the idea of a computer on every desk and in every home.
  19. 19. Baseline Our ground work takes you sky high Headline: Helping another Indian chart the global skies
  20. 20. Brand Extension and Brand Stretching  Marketers have long recognised that strong brand names that deliver higher sales and profits (i.e. those that have brand equity) have the potential to work their magic on other products.  The two options for doing this are usually called “brand extension” and “brand stretching”. Brand extension  Brand extension refers to the use of a successful brand name to launch a new or modified product in a same broad market.  A successful brand helps a company enter new product categories more easily. Brand stretching  Brand stretching refers to the use of an established brand name for products in unrelated markets.
  21. 21. Brand Extension and Brand Stretching When done successfully, brand extension can have several advantages:  Distributors may perceive there is less risk with a new product if it carries a familiar brand name. If a new food product carries the KISSAN brand, it is likely that customers will buy it  Customers will associate the quality of the established brand name with the new product. They will be more likely to trust the new product.  The new product will attract quicker customer awareness and willingness to trial or sample the product  Promotional launch costs (particularly advertising) are likely to be substantially lower.
  22. 22. Conclusion To conclude:  Companies who build their corporate names or any of its products a successful brand never lose their original vision.  They keep on innovating continuously so that their brand stays relevant, desirable and consistently provides value to the customers besides creating brand equity for the company.  The brand becomes mature when not the company but customers start taking ownership of the brand and drive the company.
  23. 23. Further Reading/References  Batey, Mark, “Brand Meaning”, Routledge, New York.  Clifton, Rita Et al., “Brands and branding”, Economist books.  Taylor, David, “Brand Stretch”, John Wiley & Sons.  D’Allasandro, David F, “Brand Warfare – 10 Rules for building a killer brand”, McGraw Hill Publications.  Knapp, Duan E, “Brand Promise”, McGraw Hill Publications.  SuperBrands India  Images Retail magazine.
  24. 24. Thank You.