Brand management and positioningPresentation Transcript
CORE TEXT: “STRATEGIC BRAND MANAGEMENT” BY KEVIN LANE KELLER (3rd EDITION) SUPPLEMENTARY TEXT: “POSITIONING” BY AL RIES AND JACK TROUT (20th EDITION)“BRAND POSITIONING” BY SUBROTO SENGUPTA (2nd EDITION) PRESENTED BY: INDRANSH GUPTA
What is a Brand? Definition: “A brand is a product that adds other dimensions that differentiates it in some way from other products designed to satisfy the same need.”
Why Do Brands Matter?CONSUMERS: Identification of Source Search cost Reducer of Product Promise, Bond, or Pact Assignment of with Maker of Product Responsibility to Product Symbolic Device Maker Signal of Quality Risk Reducer
Why Do Brands Matter? (Cont)MANUFACTURERS : Means of Endowing Means of Identification Products with Unique to Simplify Handling or Associations Tracing Source of Competitive Means of Legally Advantage Protecting Unique Source of Financial Features Returns Signal of Quality Level to Satisfied Customers
What Can Be Branded? Physical Goods People and Services Organizations Retailers and Sports, Art and Distributors Entertainment Online Products Geographic and Services Locations Ideas and Causes
Branding Challenges And Opportunities Savvy Customers Brand Proliferation Media Fragmentation Increased Competition Increased Costs Greater Accountability
The Brand Equity ConceptBasic Principles of Branding and Brand Equity: Differences in outcomes arise from the “added value” endowed to a product as a result of past marketing activity for the brand. This value for a brand can be created in many different ways. Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand. There are many different ways in which the value of a brand can be manifested or exploited to benefit the firm.
Strategic BrandManagement Process Identifying and Establishing Brand Positioning and Values Planning and Implementing Brand Marketing Programs Measuring and Interpreting Brand Performance Growing and Sustaining Brand Equity
Sources Of Brand EquityBrand Awareness Brand Image Consequences of Brand Strength of Brand Awareness Associations Learning advantages Favorability of Brand Consideration advantages Associations Choice Advantages Uniqueness of Brand Establishing Brand Associations Awareness
Building A Strong Brand The Four Steps of Brand Building1.Identity (Who are you?)2.Meaning (What are you?)3.Response (What about you?)4.Relationship (What about you & me?)
Customer-based Brand Equity Pyramid(Cont) Brand Salience: This Brand Judgments: The relates to aspects of customers’ personal awareness of the brand opinions and evaluations Brand Performance: This with regard to the brand relates to ways in which Brand Feelings: The product/ service meets customers’ emotional customers’ needs responses and reactions Brand Imagery: It’s how with respect to the brand customers visualize a Brand Resonance: The brand abstractly, with no ultimate relationship & relevance to what the level of identification that brand actually does the customer has with the brand
What… Positioning is owning a piece of consumer’s mind Positioning is not what you do to a product It’s what you do to the mind of the prospect You position the product in the prospect’s mind ‘It’s incorrect to call it Product Positioning’ – Ries & Trout Source: Al Ries and Jack Trout, Positioning: The Battle for Your Mind.
Examples Colgate is Protection Lux is Glamour Pond’s is Confidence Axe is Sexual Attraction Gillette is Quality
One-way Positioning (Ries and Trout) Be #1 in some important attribute; you will be the most remembered and preferred. #1 should not line-extend; it will lose its focus. If you are the second to enter the market, don’t call yourself #2. Call yourself #1 on a different important attribute.Source: Al Ries and Jack Trout, Positioning: The Battle for Your Mind.
Three-Way Positioning A company needs to position itself in relation to three value disciplines: Product leadership, operational excellence, customer intimacy. Four rules for success: Become best at one of the three value disciplines. Achieve an adequate performance level in the other two disciplines. Keep improving one’s superior position in the chosen discipline so as not to lose out to a competitor. Keep becoming more adequate in the other two disciplines, because competitors keep raising customers’ expectations about what is adequate.
Five-way Positioning A company needs to position itself along five attributes: Product, price, ease of access, value-added service, and customer experience. A great company will dominate on one of these, perform above average (differentiate) along a second, and be at industry par with respect to the remaining three. Assign a number from 1 to 5 to each attribute: 5 (dominant), 4 (differentiated), 3 (on par with industry), 2 (below par), and 1 (poor).Source: Fred Crawford and Ryan Mathews, The Myth of Excellence: Why Great Companies Never Try to Be the Best at Everything (New York: Crown Business, 2001).
Five-way Positioning (Contd) A great company will exhibit the pattern 5, 4, 3, 3, 3. Anything less than a 3 on any attribute is not sustainable. To be dominant or differentiated on more than one attribute is excessive and reduces profitability. Being on par requires a company to match its industry’s average performance; a company must not let its standing drop below 3.
Why…The assault on our mind… The media explosion The product explosion The advertising explosionSo little message gets through that you ignore the sender and concentrate on the receiver
The Mind… Like the memory bank of computer , the mind has slots. But with a difference , computer accepts all things but our mind does not It rejects information which it can not “compute” , it accepts only that new information that matches current state of mind.
An Inadequate Container Humans reject information which does not match their prior knowledge or expectation. According to Harvard psychologist Dr. George A. Miller, the average human mind can not deal with more than 7 digits at a time like 7 wonder of world, seven days etc. If asked to name brands of any category, no one can name more than 7 and that too if its their interest category.
An Inadequate Container(Contd) To cope with complexity , people have learned to simplify everything. People can often remember positioning concepts better than names.
The Product Ladder To cope with product explosion , people rank products and brands in the minds. On each step of a ladder is a brand and each different ladder represent a different category. A competitor who wants to increase share of the business must either dislodge the brand above or somehow relate its brand to the other company’s position.
Those little ladders in your head Today competitor’s position is as important as your own position. “Avis is only no.2 in rent-a-car, so why go with us? We try harder.” People assumed they try harder. Hertz Avis was successful, as it related itself to Hertz. Avis National
Those little ladders in your head (Cont) The “Against” Position Time magazine followed the same lead. Frustrated with competition they adopted “We try damned Harder.” Later, found the word offensive and the accounts executive was fired. If the company is not the first then must occupy second position.
The Uncola Position Conventional Logic – find your concept inside yourself or your product. Not true, must look inside prospect’s mind. 7-Up positioned itself as the uncola drink & sales increased drastically. Mc Cormick Comm. acquired WLKW and positioned it as the unrock radio station & became no.1.
The Oversimplified Message Today the best approach to take, in our over communicated society is to simplified message. “you simplify the message, then simplify it some more if you want to make a long lasting impression.” -Al Ries and Trout11/03/12 31
How… The easy way to get into a person’s mind is to be first Xerox, Kodak, Polaroid, Sun TV, The Hindu, F&L If you didn’t get into the mind of your prospect first, then you have a positioning problem Better to be first than be best In the positioning era, you must, however, be first to get into the prospect’s mind
How… The basic approach is not to create something new or different, but manipulate what’s already in the mind To find a unique position, you must ignore conventional logic Conventional logic says you find concept inside product Not true; look inside prospect’s mind You won’t find an uncola idea inside 7-up; you find it inside cola drinker’s head
Guidelines… Start by looking not at the product but at the position in the market that you wish to occupy, in relation to competition Think about how the brand will answer the main consumer questions What will it do for me that others will not? Why should I believe you? Try to keep it short and make every word count and be as specific as possible Vagueness opens the way to confused executions
Guidelines… Keep the positioning up-do-date Give as careful consideration to change as you did to the original statement Look for a Key Insight! Insight An ‘Accepted Consumer Belief’
What is key insight? Key Insight is ‘seeing below the surface’ / ‘seeing inside the consumer’ Insight expresses the totality of all that we know from seeing inside the consumer An insight is a single aspect of this that we use to gain competitive advantage By identifying a specific way… That the brand can either solve a problem or Create an opportunity for the consumer
Key Insight‘I wish to getmarried to ahandsome prince’
Key Insight‘Fragrance of my current talcdoes not last long and I missopportunities to enjoy life’
The 3C’s of positioning Be Crystal clear Be Consumer-based Be relevant and credible to the consumer Write in consumer language and from consumer’s view point Be Competitive Be distinctive Focus on building brand elements into powerful discriminator Be persuasive Be sustainable
And then… The brand name! The name is the first point of contact between the message and the mind ‘The brand name is a knife that cuts the mind to let the brand message inside’ – Ries & Trout
Guidelines… It’s not the goodness or badness of the name in an aesthetic sense that determines effectiveness It’s the appropriateness of the same Name begins the positioning process, tells the prospect what the product’s major benefit is Fair & Lovely Close Up Krack Head & Shoulders Vaseline Intensive Care Body Lotion
Checklist: Brand name Should be simple Should be acceptable in all key languages Should be appropriate when geographically spread Should be amenable for easy registration
The F.W.M.T.S Trap “Forgot what made them successful” After being sold to ITT, Avis adopted, “Avis is going to be No.1” No frequent increase in revenues and campaign was waste. 7-Up also fell in the trap and adopted. “America’s is turning 7-Up” Sales fell and now Sprite has 50% market share.
Hindustan Petroleum positioned it as the best refill available for LPG cylinder in the country.Brand Positioning – Subrota Sengupta
Forhan was the first to position its toothpaste with, “Like a breadth of fresh air”.Brand Positioning – Subrota Sengupta