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Brand Positioning & Strategy
What is positioning?
Positioning – the act designing an offer so that it
occupies a distinct and valued place in the minds
of the target customers
(Kotler 1998)
Battle is in consumers’ minds. There is a ladder
inside every consumer’s head for every product
and service. The key was to develop strategies
according to where on the ladder the particular
brand was placed by the consumer.
(Ries & Trout)
Positioning: the importance
 Market segmentation and target marketing are
prerequisites to successful positioning.
 From the research data and the marketing
strategy, it is necessary to formulate a positioning
statement that is in tune with the promotional
objectives.
 The positioning concept is a very important
strategic term.
 This importance of establishing a distinct image of
a brand in people's minds has developed mainly
because of increasingly competitive market
conditions.
Positioning: concepts
 Solves problems
 Provides benefits for customers
 Gets favorable perception of investors
 Self-image enhancement
 Ego identification
 Belongingness and social
meaningfulness
 Affective fulfillment
 Provide sensory stimulation
 Provide cofnitive stimulation
Symbolic
positions
Experiential
positions
Positioning - segmentation
What is your current position?
 What does the "space" look like — what are the most
important dimensions in the category?
 What are the other products in that space and where are
they?
 What are the gaps, unfilled positions or "holes" in the
category?
What position do you want to have?
 Finding an unmet consumer need — or at least one that’s not met now
by competition
 Identifying a product strength that is both unique and important
 Determining how to correct a product weakness and thereby enhance a
product’s appeal.
 Changing consumer usage patterns to include different or additional
uses for the product
 Identifying market segments, which represent the best targets for a
product
New positioning: how?
Creating a new positioning can come from two sources:
 Physical product difference
 Communications — finding a memorable and
meaningful way to describe the product (e.g., calling
7-Up the "Uncola").
As Ries and Trout point out, "Positioning is not what you
do to a product; positioning is what you do to the mind of
the prospect."
Positioning: types
Positioning
Functional
Expressive / Symbolic
Functional and expressive
positioning
 Functionally
positioned brands
stress the features
and benefits.
 This may take the
form of a promotional
device, such as a
lower price or extra
product free.
 Expressive form of
positioning stresses
the emotional or
expressive
associations
Repositioning
Repositioning - changing a brand's status in comparison to
that of the competing brands. Repositioning is effected usually
through changing the marketing mix in response to changes
in the market place, or due to a failure to reach the brand's
marketing objectives.
Repositioning is necessary when the preferences of the
market shift.
For example, a premium brand of shampoo sold at a relatively
high price with advertising that emphasizes its superior
performance may need to be repositioned as consumers
become more price sensitive.
Positioning: successful examples
Virgin Airways positions itself as part of a bigger picture. They were early
adopters of in-flight Internet access and individual movie screens.
They now have plans to introduce space travel! Their founder’s
philanthropy is legendary. Out-of-the-box thinking has positioned the
company as a leading edge, responsible world corporation, rather than
just a British corporation – a position important, especially to young
Americans.
Positioning: successful examples
Michelin has positioned itself as upscale but affordable. A brand should be
more than the product it sells and Michelin is a good example of this.
Michelin Tires are used by racecar drivers, but Michelin achieved its
position primarily by becoming the comprehensive authority on all things
auto travel through its maps and guides, which are the best you can get.
These qualities are extended in the consumers’ minds to Michelin’s tires.
Repositioning: successful
examples
General Electric is a good example of a company repositioning itself. GE
is an international brand. By focusing the public’s attention on the wind
and water turbines they produce, they are aligning themselves with
sustainable energy production.
The company likes to talk about what GE is doing in other areas of energy
production that cause even less environmental impact. In this way, the
company hopes to reposition itself as a good guy.
Repositioning: successful
examples
Old Spice had an outdated image that made young consumers shopping for
deodorant skip right over to the sexy Axe or the sporty Right Guard. As a result,
the Old Spice brand management team set out to give the brand a fresher, more
edgy voice, while honoring its traditional reputation for wordly experience and
masculinity.
The “Smell Like a Man, Man” campaign shows a confident young man praise the
product’s qualities in an edgy and slightly humorous way. The result of this brand
innovation effort was that Old Spice not only became part of young men’s
grooming consideration set, but the brand became the market leader in the
men’s deodorants and antiperspirants category.
Thank you!

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Brand positioning & strategy

  • 2. What is positioning? Positioning – the act designing an offer so that it occupies a distinct and valued place in the minds of the target customers (Kotler 1998) Battle is in consumers’ minds. There is a ladder inside every consumer’s head for every product and service. The key was to develop strategies according to where on the ladder the particular brand was placed by the consumer. (Ries & Trout)
  • 3. Positioning: the importance  Market segmentation and target marketing are prerequisites to successful positioning.  From the research data and the marketing strategy, it is necessary to formulate a positioning statement that is in tune with the promotional objectives.  The positioning concept is a very important strategic term.  This importance of establishing a distinct image of a brand in people's minds has developed mainly because of increasingly competitive market conditions.
  • 4. Positioning: concepts  Solves problems  Provides benefits for customers  Gets favorable perception of investors  Self-image enhancement  Ego identification  Belongingness and social meaningfulness  Affective fulfillment  Provide sensory stimulation  Provide cofnitive stimulation Symbolic positions Experiential positions
  • 5. Positioning - segmentation What is your current position?  What does the "space" look like — what are the most important dimensions in the category?  What are the other products in that space and where are they?  What are the gaps, unfilled positions or "holes" in the category? What position do you want to have?  Finding an unmet consumer need — or at least one that’s not met now by competition  Identifying a product strength that is both unique and important  Determining how to correct a product weakness and thereby enhance a product’s appeal.  Changing consumer usage patterns to include different or additional uses for the product  Identifying market segments, which represent the best targets for a product
  • 6. New positioning: how? Creating a new positioning can come from two sources:  Physical product difference  Communications — finding a memorable and meaningful way to describe the product (e.g., calling 7-Up the "Uncola"). As Ries and Trout point out, "Positioning is not what you do to a product; positioning is what you do to the mind of the prospect."
  • 8. Functional and expressive positioning  Functionally positioned brands stress the features and benefits.  This may take the form of a promotional device, such as a lower price or extra product free.  Expressive form of positioning stresses the emotional or expressive associations
  • 9. Repositioning Repositioning - changing a brand's status in comparison to that of the competing brands. Repositioning is effected usually through changing the marketing mix in response to changes in the market place, or due to a failure to reach the brand's marketing objectives. Repositioning is necessary when the preferences of the market shift. For example, a premium brand of shampoo sold at a relatively high price with advertising that emphasizes its superior performance may need to be repositioned as consumers become more price sensitive.
  • 10. Positioning: successful examples Virgin Airways positions itself as part of a bigger picture. They were early adopters of in-flight Internet access and individual movie screens. They now have plans to introduce space travel! Their founder’s philanthropy is legendary. Out-of-the-box thinking has positioned the company as a leading edge, responsible world corporation, rather than just a British corporation – a position important, especially to young Americans.
  • 11. Positioning: successful examples Michelin has positioned itself as upscale but affordable. A brand should be more than the product it sells and Michelin is a good example of this. Michelin Tires are used by racecar drivers, but Michelin achieved its position primarily by becoming the comprehensive authority on all things auto travel through its maps and guides, which are the best you can get. These qualities are extended in the consumers’ minds to Michelin’s tires.
  • 12. Repositioning: successful examples General Electric is a good example of a company repositioning itself. GE is an international brand. By focusing the public’s attention on the wind and water turbines they produce, they are aligning themselves with sustainable energy production. The company likes to talk about what GE is doing in other areas of energy production that cause even less environmental impact. In this way, the company hopes to reposition itself as a good guy.
  • 13. Repositioning: successful examples Old Spice had an outdated image that made young consumers shopping for deodorant skip right over to the sexy Axe or the sporty Right Guard. As a result, the Old Spice brand management team set out to give the brand a fresher, more edgy voice, while honoring its traditional reputation for wordly experience and masculinity. The “Smell Like a Man, Man” campaign shows a confident young man praise the product’s qualities in an edgy and slightly humorous way. The result of this brand innovation effort was that Old Spice not only became part of young men’s grooming consideration set, but the brand became the market leader in the men’s deodorants and antiperspirants category.