IIM Internship

1. Three Questions
You Need to
Ask About Your
Brand

2. Three major factors affecting brand positioning are-
1)Frame of
reference
2)Points of parity
3)Points of
difference

3. Brand positioning starts with establishing a frame of reference, which signals to
consumers the goal they can expect to achieve by using a brand. In some cases, the
frame of reference is other brands in the
same category.
One variable that may influence the choice of frame of reference is the product’s stage in
the lifecycle.
Have we established a Frame?

4. When flipkart started in india, its frame of reference was the normal retail stores and its points of
difference and points of parity were based on that.
It emphasised on the convenience(time and effort) and the lower prices it offered as compared to
the retail shops to differentiate itself.
Example

5. But now as the online industry has grown so its frame of reference is the online market and its
major competitors are Amazon and Snapdeal instead of the retail stores. So now it emphasises
on the vast variety of products that it has as a point of difference.The recent Advertisement
campaign (Ab har wish hogi puri ) aims to create supremacy on other e commerce companies by
giving a message to its consumers that anything and everything they wish to purchase is
available on flipkart.
Example

6. Are We Leveraging Our Points of Parity?
Points of parity play an important role to make the consumers
perceive your product as a legitimate and credible player within
the chosen frame of reference

7. In 2011, when Micromax was relatively new to the higher end of the smartphone
market, It positioned its ads to compete with one of the leading technology
product makers in the world , Apple. Micromax wanted to position its smartphones
as an affordable option that offered all the features of an i-Phone. They released
the Micromax Superfone A75 ad , designed to mock the exorbitant price tag of the
newly launched iPhone 4S in India while highlighting that the Micromax
smartphone offered the same features(Category and Competitive Points-of-parity)
at a fraction of a cost. The tagline of the ad toyed around the iPhone 4S letters to
make it appear ” i can afford this Phone”
Example

9. Brand Extension
The more the extension
differs from the base
brand,the greater is the
importance of focusing on
the frame of reference.

10. Ponds is a brand that celebrated women's courage and personality.The brand Ponds was
always associated with fragrance and clean skin.So when it launched toothpaste it was unable to
give the right points of parity and points of difference with respect to the toothpaste industry.
Example

11. Managers of established brands also need to reassess points of parity from time to time
because attributes that were once differentiators can become minimum requirements.
Example- When Procter & Gamble developed an ingredient for dishwashing liquid that
cut grease, it wasn’t a
differentiator for long—P&G itself added the ingredient to its other brands.
Established brands

12. Strong, favorable, unique associations that distinguish a brand from
others in the same frame of reference are fundamental to successful
brand positioning.
There are three types of brand differences:
1) brand performance associations
2) brand imagery associations
3) consumer insight associations.
Are the Points of Difference Compelling?

13. Brand performance associations relate to the ways in which a
product or service attempts to meet customers’ functional needs.
Brand performance associations come into play when brands are
assessed on characteristics a buyer can investigate prior to
purchase.
Example-Most of the car brands try to
differentiate products on the basis of
performance
Brand performance association

14. when making choices based on experience—such as where to get a
haircut or eat dinner—consumers use brand imagery associations.
Brand imagery is typically established by depicting who uses the
brand and under what circumstances.
Even after huge investment Coca cola was not able to realize profits
In india .When Coca cola relaunched (in 2003) the brand in India, it
realized its mistake and the company quickly adapted its
communication to ensure proper appeal to Indian consumers. The
company rode on two of the strongest pillars, a brand can use in
Indian advertisement and communication industry to succeed i.e.
Bollywood and Cricket.
Brand Imagery association

15. Consumer insight associations are generally used when a brand’s performance
and imagery don’t differ much from those of the competition. If all other
measures are equal, a brand that can show consumers it has insight into their
problems or goals can then make the case that it is the solution.
Example-The DOVE “Real Women” campaign is a great example of using the
consumer insight that women are turned off by beauty product ads that
consistently feature women that do not look like 95% of us. They understood
that to appeal to women, you had to feature compelling women that looked like
them. This has repositioned the DOVE brand as a brand for today’s woman
(regardless of the age) and one that is supported and beloved by women around
the world.
consumer insight associations

16. Desirability Deliverability
Two main factors for a Point of difference to appeal the consumers

17. To qualify as desirable, a point of difference must be perceived by the brand’s audience as both
relevant and believable.relevant and believable
Example -Fogg liquid perfumes
Fogg’s Point of differentiation is that it lasts longer.Now it is relevant as consumers surely want
that.Fogg makes it believable by highlighting a fact that most of the perfume is wasted in a spray
perfume and as it is liquid it will last long.
Desirability

18. A product’s point of difference needs to meet three deliverability criteria. First, creating
the point of difference must be feasible. Second, positioning on a particular benefit must
be profitable. Finally, the positioning must be preemptive, defensible, and difficult to
attack.
Example-While consumers may find low prices or free delivery attractive as points of
difference, all too often these features compromise profitability and are easily imitated.
Deliverability

19. Market leaders typically market their products on the basis
of the category’s points of parity; they try to create a “We
are the frame of reference” message.
Example- Coke (its ads suggest) is refreshment.Its
campaign with the tagline “Thanda matlab Coca-Cola” was
able to create the mass appeal for the brand in the market.
Positioning the brand itself as a frame of reference

20. Developing an effective position goes beyond determining the frame of reference, points of parity,
and points of difference. It also requires that these elements be internally consistent at any point in
time and over time.
Putting it all together

21. One of the reasons of failure of Tata Nano was customers were
not convinced that the extreme cheap price(point of differentiation)
and Comfort and power of a car (point of Parity) can be delivered
simultaneously.

22. While micromax succeed because its initial marketing campaigns
were aimed at making people believe that it has all the features
of a good smartphone(by comparing it with Iphone) and
highlighting its cheap cost( point of differentiation) simultaneously

23. Frames of reference, points of parity, and points of
difference are moving targets. Maytag
isn’t the only dependable brand of appliance, Tide
isn’t the only detergent with whitening
power, BMWs aren’t the only cars on the road with
superior handling. The key questions you
need to ask about your brand—Have we established
a frame? Are we leveraging our points of
parity? Are the points of difference compelling?—
may not change, but their context certainly will.
Asking these questions will help ensure the right
brand positioning, but don’t think any
of these variables stays static for long. The savviest
brand positioners are also the most
vigilant.

24. Thank You

25. Disclaimer
Created by Rishabh Salgia,IIT
Bombay,during an internship by
Prof.Sameer Mathur,IIM Lucknow