127035 633656197831783750

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127035 633656197831783750

  1. 1. Brand Positioning & Values
  2. 2. Positioning <ul><li>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 </li></ul><ul><li>“Location” of the product is such that the consumers/market segments think about the product/service in the desired way </li></ul>
  3. 3. Basic Concepts <ul><li>Death of “one-size-fits-all” </li></ul><ul><li>Mass production >> Mass customization </li></ul><ul><li>“ act of designing the company’s offer and image so that it occupies a distinct and valued space in the target customer’s mind </li></ul><ul><li>Key steps: </li></ul><ul><ul><li>Who is the target customer? </li></ul></ul><ul><ul><li>Who are the main competitors? </li></ul></ul><ul><ul><li>How is the brand similar to the competition? </li></ul></ul><ul><ul><li>How is the brand different from the competition? </li></ul></ul>
  4. 4. Target Market <ul><li>Market – set of actual and potential buyers – motivation, ability and opportunity to buy your product </li></ul><ul><li>Market segmentation – Dividing into Homogenous consumer groups </li></ul><ul><li>Customization vs. Cost tradeoff – is “ Mera wala green” profitable </li></ul><ul><li>Segmentation base: </li></ul><ul><ul><li>Descriptive – Customer Oriented (who is the customer?) </li></ul></ul><ul><ul><li>Behavioral – Product oriented (customer’s product usage) </li></ul></ul>
  5. 5. Segmentation Approaches <ul><li>Behavioral – most valuable - for e.g. toothpastes and /or deodorants – </li></ul><ul><li>Sensory - seeks flavor & product appearance </li></ul><ul><li>Sociables - seek social acceptability –brightness of teeth, fresh smell. </li></ul><ul><li>Worriers – seek decay prevention </li></ul><ul><li>Independent – seek low prices </li></ul>
  6. 6. Segmentation Approaches <ul><li>Baldinger- </li></ul><ul><li>Loyals </li></ul><ul><li>Rotators </li></ul><ul><li>Deal Selectives </li></ul><ul><li>Price Driven </li></ul>
  7. 7. Segmentation Approaches <ul><li>“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. </li></ul>
  8. 8. Segmentation Approaches <ul><li>This model segments users into- </li></ul><ul><li>Convertibles – Threshold of change-highly likely to switch brands </li></ul><ul><li>Shallow - Not ready to switch, but may be considering alternatives </li></ul><ul><li>Average – comfortable with their choices, unlikely to switch in future </li></ul><ul><li>Entrenched – staunchly loyal, unlikely to change at all </li></ul>
  9. 9. Criteria for Segmentation <ul><li>Identifiability </li></ul><ul><li>Size </li></ul><ul><li>Accessibility </li></ul><ul><li>Responsiveness </li></ul><ul><li>Profitability- most important </li></ul>
  10. 10. Consumer Segmentation bases <ul><li>Behavioral </li></ul><ul><ul><li>User status </li></ul></ul><ul><ul><li>Usage rate </li></ul></ul><ul><ul><li>Usage occasion </li></ul></ul><ul><ul><li>Brand loyalty </li></ul></ul><ul><ul><li>Benefits sought </li></ul></ul><ul><li>Demographic </li></ul><ul><ul><li>Income </li></ul></ul><ul><ul><li>Age </li></ul></ul><ul><ul><li>Gender </li></ul></ul><ul><ul><li>Race </li></ul></ul><ul><ul><li>Family </li></ul></ul><ul><li>Psychographic </li></ul><ul><li>Values, opinions, attitudes, activities, lifestyle </li></ul><ul><li>Geographic </li></ul><ul><ul><li>International </li></ul></ul><ul><ul><li>Regional </li></ul></ul>
  11. 11. B2B Segmentation bases <ul><li>Nature of Good </li></ul><ul><ul><li>Specification </li></ul></ul><ul><ul><li>Kind </li></ul></ul><ul><ul><li>Where used </li></ul></ul><ul><ul><li>Type of buy </li></ul></ul><ul><li>Buying Condition </li></ul><ul><ul><li>Purchase location </li></ul></ul><ul><ul><li>Who buys </li></ul></ul><ul><ul><li>Type of buy </li></ul></ul><ul><li>Demographics </li></ul><ul><ul><li>Financials </li></ul></ul><ul><ul><li>Number of employees </li></ul></ul><ul><ul><li>Size of production </li></ul></ul><ul><ul><li>Number of establishment </li></ul></ul>
  12. 12. Points of Difference <ul><li>Strong </li></ul><ul><li>Favorable </li></ul><ul><li>Unique brand associations </li></ul><ul><li>Based on </li></ul><ul><li>Attribute </li></ul><ul><li>Benefit </li></ul><ul><li>Develop a USP & a Sustainable Competitive Advantage (SCA) </li></ul>
  13. 13. Points of Difference <ul><li>Attributes – Kraft cheese – more milk </li></ul><ul><li>Benefit - Ikea – reasonably priced furniture and home furnishings for the mass market, TV’s with remote locators </li></ul><ul><li>USP – </li></ul><ul><li>Dettol vs.Savlon – does not burn </li></ul><ul><li>Iodex vs. Moov – does not leave stains </li></ul><ul><li>Crocin vs. Vicks Action 500 – fast relief </li></ul><ul><li>Lays chips vs. Bingo chips </li></ul>
  14. 14. Points of Parity <ul><li>Category POP- necessary for a credible offering – </li></ul><ul><li>Banks must have different saving options. ATMs, lockers etc. </li></ul><ul><li>Creams must moisturize and keep skin soft – gentle, protective, caring </li></ul><ul><li>Competitive POP- negate competition’s POD- </li></ul><ul><li>CNN – POD- in-depth and up-to-date news channel </li></ul><ul><li>POP - adopted varied programming such as interviews & talk shows like other channels </li></ul>
  15. 15. Positioning Guidelines - Steps <ul><li>Define & communicate a competitive frame of reference </li></ul><ul><li>Choose POP and/or POD </li></ul><ul><li>Establish these POP/POD </li></ul><ul><li>Update Positioning over time </li></ul>
  16. 16. Step 1 <ul><li>Establish a competitive Frame of reference </li></ul><ul><li>Communicate brand category membership </li></ul><ul><li>This helps provide consumers with a frame of reference & avoid confusion in consumers mind </li></ul><ul><li>Important when introducing new products – ITC- Wiils-Fiama, Bingo etc. </li></ul><ul><li>Well established brands do not need this – Coke- beverages, Kellogs, McKinsey etc. </li></ul>
  17. 17. Competitive Frame of reference <ul><li>Company can straddle 2 or more frames of reference – </li></ul><ul><li>BMW – luxury & performance </li></ul><ul><li>Kellogs – taste & health </li></ul><ul><li>Maggi – fast to cook, healthy to eat </li></ul>
  18. 18. Step 2 <ul><li>Choose POP/POD </li></ul><ul><li>Desirability Criteria </li></ul><ul><li>Relevance </li></ul><ul><li>Distinct </li></ul><ul><li>Believable </li></ul><ul><li>Deliverability Criteria </li></ul><ul><li>Feasible </li></ul><ul><li>Communicable </li></ul><ul><li>Sustainable </li></ul>
  19. 19. Step 3 <ul><li>Establish POD & POP </li></ul><ul><li>Taste vs. low calories </li></ul><ul><li>Low price vs. quality </li></ul><ul><li>Powerful vs. safe </li></ul><ul><li>Family & Fun </li></ul><ul><li>Nutritious vs. taste </li></ul>
  20. 20. Establish POD & POP <ul><li>Separate the attributes – Head & Shoulders – 2 attributes – dandruff removal & sleek, shine and healthy hair </li></ul><ul><li>Leverage equity of another entity – brand ambassadors – Sachin Tendulkar & Boost, Reid & Taylor </li></ul><ul><li>Redefine relationships – Apple’s Mackintosh – user friendly & powerful </li></ul>
  21. 21. Step 4 <ul><li>Update Positioning over time </li></ul><ul><li>Laddering – move from low level needs to higher level needs - Involves a progression from attributes to benefits to value creation – (Maslow’s Heirarchy) </li></ul><ul><li>Cream/lotions – moisturizes skin- healthy & glowing skin- beauty & confidence </li></ul><ul><li>Reacting – </li></ul><ul><li>Do nothing </li></ul><ul><li>Defensive </li></ul><ul><li>Offensive </li></ul>
  22. 22. Abstract values Motivations <ul><li>Laddering – Product functions >>> core values </li></ul>Updating brand positioning Benefits Attributes
  23. 23. Brand Mantras <ul><li>Short phrase that captures the spirit of positioning </li></ul><ul><li>Provides guidance to all the activities of the brand </li></ul><ul><li>Emotional modifier>> descriptive modifier>> Brand function </li></ul><ul><li>McD – “Food, folks and Fun </li></ul><ul><li>Nike – “Authentic Athletic Performance” </li></ul><ul><li>Disney – “Fun Family Entertainment” </li></ul><ul><li>Zee Cinema – “Movies Masti Magic” </li></ul><ul><li>Its should </li></ul><ul><ul><li>Communicate the category and boundaries </li></ul></ul><ul><ul><li>Simplify.. To make brand memorable </li></ul></ul><ul><ul><li>Inspire – Should stand out with a higher meaning </li></ul></ul>
  24. 24. Brand Mantras <ul><li>Expression of “Heart and soul” of brand </li></ul><ul><li>Short 3-5 word phrases that capture the essence & spirit of brand positioning & values </li></ul><ul><li>Creates a mental filter to screen out inappropriate marketing activities </li></ul><ul><li>Communicate the category and boundaries </li></ul><ul><li>Simplify.. To make brand memorable </li></ul><ul><li>Inspire – Should stand out with a higher meaning </li></ul><ul><li>3 Aspects – Emotional – Descriptive - Function </li></ul><ul><li>McDonalds – Food - Folks - Fun </li></ul><ul><li>Nike - Quality - Athletic - Performance </li></ul><ul><li>Disney - Fun - Family - Entertainment </li></ul>

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