Brand Positioning

Dr. Smita Sharma

 Brand Positioning Is at the heart of the
marketing strategy

“. . . the act of designing the company’s
offer and image so that it occupies a
distinct and valued place in the target
customer’s minds.”

 Philip Kotler
Brand Positioning
 The distinctive position that a brand
adopts in its competitive environment to
ensure that individuals in its target market
can tell the brand apart from others.
 Positioning involves the careful
manipulation of every element of the
marketing mix.
 Determining a frame of
reference
• What are the ideal points-of-parity and
points-of-difference brand associations vis-à-
vis the competition?

 Marketers need to know:

 Who the target consumer is?
 Who the main competitors are?
 How the brand is similar to these
competitors?
 How the brand is different from them?
Strategic Brand Management Process Steps
KEY CONCEPTS
 Identify and Establish Brand Positioning and Values
 Mental maps Competitive frame of reference Points-of-parity and
points-of-difference Core brand values Brand mantra Mixing and matching
of brand elements
 Plan and Implement Brand Marketing Programs
Mixing and matching of brand elements Integrating brand marketing
activities Leveraging of secondary associations
 Measure and Interpret Brand Performance
 Brand Value Chain Brand audits Brand tracking Brand equity management
system
 Grow and Sustain Brand Equity
 Brand-product matrix
 Integrating brand marketing activities
 Leveraging of secondary associations
 Brand portfolios and hierarchies
 Brand expansion strategies Brand reinforcement and revitalization
Positioning
 The famous ‘5 p’s’ of marketing folklore (product,
place, price, promotion & packaging) were fine
tools for implementing packaged goods brand
positionings - and the basic formula still has its
role in FMCG assignments.
 But today we are entering the era of customer
brands where ‘company’ and ‘brand’ are one and
the same. In this scenario the company culture &
values become a crucial factor in the solution:
finding and harnessing what’s there already or
setting out to create values and practices which
support and manifest the positioning.
Why is Defining the Positioning So
Important?
 Running a brand is like conducting an orchestra.
Positioning is the heart of competitive strategy.
The messages transmitted by everything from the
advertising to phone calls with your customer
care department all need to be kept in harmony
and on-brief.
 Without a clear, single-minded definition of what
the brand is about the messages rapidly become
discordant and confusing.
 The positioning statement is therefore a focusing
device which helps brand management to keep
everything sharp and relevant.
Why is Defining the Positioning So
Important?
 Identifying where a specific brand is placed within the
marketplace and its relationship to competitive
brands, brand positioning is determined by defining
the brand’s benefits to the consumer, opportunities
for which the brand is best suited, the brand’s target
audience, and who its main competitors are.
 For any organization to achieve the benefits of brand
positioning, it is necessary to research in-depth the
market position (or lack thereof) of the brand.
 Brand maps and forms are created to profile the
brand positioning, comparing the results with
competitive brands.
Why is Defining the Positioning So
Important?
 In realizing the benefits of brand positioning,
it is important to understand that not all
brands are competitors. A consumer may be
presented with six brands of one product
and only consider three out of the six as a
purchasing choice.
 The consumer may have encountered a
negative experience with a specific brand
and may never consider purchasing it again,
or there may be a brand that simply does
not stand out to the consumer and it is
passed up.
Concept
 The concept of positioning was introduced by Al
Ries and Jack Trout in 1969 and was elaborated
in 1972.
 To understand the concept of positioning we can
consider the human mind as consisting of a
perceptual map with various brands occupying
different positions in it.
Concept
 This concept of perceptual space forms the
theoretical basis for brand positioning. What this
leads to is the perception of the consumer, which
decides the positioning of any brand.
 It is important to note that what a marketer does is
to find a position for its brand in the perceptual
space of the consumer and place it at the most
lucrative point.
 Hence, Positioning is not what you do to the
product, it is what you do to the mind of the
prospect. It is a new approach to communication
and has changed the nature of advertising. It can
be of a product, service, company or oneself.
Concept
 The perception of a consumer is a function
of consumer’s values, beliefs, needs,
experience and environment.
 Thus as per Subroto Sengupta “the core
thought behind brand positioning -the idea
that each brand (if at all noticed) occupies a
particular point or space in the individual’s
mind, a point which is determined by that
consumer’s perception of the brand in
question and in its relation to other brands”.
Concept
 Thus, in the perceptual map, the spatial
distance between the points on which
brands are located reflects the subject’s
perception of similarity or dissimilarity
between products or brands.
Concept
 The basic approach of positioning is not to
create something new and different but to
manipulate what’s already up there in the
mind, to retie the connections that already
exist.
 In communication, as in architecture, less is
more. The only answer to the problems of
an over communicated society is positioning.
 Positioning is an organized system for finding
a window in the mind.
Concept
 The easy way to get into a person’s mind
is to be first in a particular category. If you
are not the first then you have a
positioning problem.
The origin
 The origin of positioning comes from two preceding phases:
The product era: - The product features and customer
benefits were of importance. With technology being easily
available, the product was no longer the Unique Selling
Proposition.
 The image era: - In this phase the reputation and image of
the company became more important than the product. But
the similar companies sprung up and this advantage was no
longer a distinct one.
 The positioning era: - To succeed in today’s over
communicated society a company must create a position in
the prospect’s mind, a position takes into consideration not
only the companies own strengths and weakness, but those
of competitors as well. In the positioning era as stated earlier,
you must be the first to get into the prospect’s mind.
The Origin
 The ladders in the mind: - In a particular
category, people have learned to rank the
products and brands in the minds e.g. In
soft drinks, we generally have Coke
followed by Pepsi followed by Thumsup.
 Thus if a new soft drink is to be
introduced, the company must decide
upon the way it will position itself viz. the
product ladder position…
Positioning a company:-
 You can also apply positioning to an organisation
in general. The companies who have a high
position in the minds of the prospect i.e. the
students mind absorb the cream of the crop from
institutes.
 Similarly companies visit only those campus who
have a high position in the mind of the company
(the company becomes the prospect in this case.)
 The whole concept now boils down to creating a
perception for your brand in the prospect’s mind
so that your brand stands apart from the
competing brands and provides the consumer
with what he wants.
Concept
 Thus speaking comprehensively,
positioning is a function of
 1. Perception it brings about in the mind
of target consumer.
 2. Functional and non-functional benefits
associated with the product.
 3. Perception of the competing brands
held by the target consumer
MAGGI
 Maggi noodles define the strategy, which
clearly shows how far can positioning help
in making a brand a success. The brand
was introduced in Delhi in 1983. The
brand was a big success.
 Annual target for that market was
increased from 50 to 600 tons and it was
no less than a battle for Nestle.
What Did Maggi Do?
 The market results show it found a
vacant, strong position and sat on it as
“good to eat, fast to cook” anytime snack.

 On the other hand Kelloggs positioned

itself as a nutritional breakfast only. Today
no one even thinks of taking Kelloggs
corn flakes in the evening…
Concept
 7-Up also exhibits the importance of
positioning in the success of a brand.
Originally considered as a mixer for hard
drinks, it was later positioned as an Un-
Cola soft drink.
 The result was that it became the third
largest soft drink after Coke and Pepsi.
 As Trout and Ries say “You will not find an
un-cola idea inside a 7-Up can. You find it
inside the cola drinker’s head.”
AAKER
 Aaker considers positioning so central and critical
that it should be considered at the level of the
mission statement representing the essence of the
business.

 Robin liquid also exhibits the criticality of positioning.

 The brand facing stiff competition from Ujala today
made a comeback after detergent powders took
Blues for a ride with their arrival.
 For the manufacturer what make it special are
attributes such as “flourescence” and “ultramarine”
but for a housewife what matters is that “washing
powders take away the dirt but Robin liquid gives
clothes that extra coat of white”.
Concept
 We plot not only consumer perceptions
but also preferences of a given consumer
segment in a particular category or
product market.
 Consumers express such preferences in
terms of the benefits, whether they are
getting the benefit, if it is important to
what extent, are they missing something.
These are what we call IDEAL POINTS
on a perceptual map.
Concept
 Thus this gives us the idea as to how close we are
to where we should be, that is, the position of
our brand on the perceptual map vis-à-vis the
ideal points.
 The next implication of the mapping is that it
earmarks the vacant spaces on the perceptual
map, which are nothing, but opportunities which
can be exploited for positioning.
 Thus identify the gaps which new or repositioned
products can fill by offering what current
products do not provide. This gives us the
skeleton for making the strategy for future.
Concept
 There are a number of issues that arise in deciding what
should be the essence of a brand and arriving at its
positioning (see Collins and Porras 1994; Keller 1998; Macrae
1996).
 In a nutshell, brand positioning is all about creating the
optimal location in the minds of existing and potential
customers so that they think of the brand in the "right way.“
 Brand positioning requires thoughtful analysis of
competitors and consumers to determine the desired image
for the brand to maximize its chances for success.
 Although a number of different approaches and
methodologies for positioning are possible, they all typically
define the nature of the target market and relevant
competitors and the means by which the brand should be
seen as similar as well as distinct from those competitors.
Crafting The Positioning Strategy
 Direction and scope of an organization
over the long term which achieves
advantage in a changing environment
through its configuration of resources and
competencies with the aim of fulfilling
stakeholder expectations(Johnson,Scholes
and Whittington,2008)
Crafting the positioning strategy
 1. Segmentation-Consumer based,Buying
situation based
 2. Targeting-Evaluate market
segment,Select market segment
 3. Identification of brand benefits
Identification of Brand benefits
 Changing consumer trends
 Competitor Analysis
 Situational Analysis-Internal corporate
analysis, Current positioning, External market
analysis-PESTEL,SWOT

 Analysis for differentiation possibilities of the

brand image-PODs POPs-Category and
competitive POP
 Selecting the strategy
Current positioning
 Bank of Baroda
 Logo designed by Maharaja Sayajirao
Gaikwad III. Blue in colour Akshayyam te
Bhavishyati…
 New logo of the rising sun
Brand Associations
 A closely related - but distinct - concept is
core brand associations. Core brand
associations are those consumer-derived
associations that reflect the brand
positioning.
 In other words, core brand associations are
those brand associations in the minds of
consumers that are created or reinforced as
a result of the firms' marketing activity to
convey the desired positioning.
Brand Associations
 The effectiveness of the marketing
programme will be the extent to which
strong, favourable, and unique brand
associations are created as a result of
consumer experiences with the marketing
programme that reflect the intended
positioning.
 In other words, if asked for their
associations to the brand, consumers should
not be expected to state associations that
are literally consistent with the brand
positioning.
Brand Associations
 Rather, they should be expected to elicit
associations that implicitly capture that
meaning. For example, consumers are
unlikely to state "authentic athletic
performance" when asked about Nike, but
they would be expected to state associations
that are consistent with this brand mantra
and the corresponding positioning, e.g., "top
athletes," "Michael Jordan," "innovative
technology," "Air cushioning," "competition,"
etc.
Brand Associations
 Core brand associations may be tangible or
intangible attributes or benefits, experiences,
images - anything that can be stored in
memory and linked to the brand that
reflects its brand positioning.
 Core brand associations are important to
define so that efforts to measure brand
equity, e;g.,through brand tracking, are
pointed in the right direction and able to tap
into consumer brand meaning in a relevant
way.
Brand Associations
 Core brand associations may also help to
suggest the proper language and phrasing to
be used for the brand internally within the
organization.
 Regardless of which particular positioning is
adopted or which core brand associations
are defined, a number of steps must be taken
to ensure that marketing activities and the
marketing programme that is developed
accurately reflect the intent of the
positioning.
Brand Association
 The positioning decision is typically made
by only a handful or subset of the many
different people within the organization
whose words and actions could
potentially impact the destiny of brands in
a noticeable or even appreciable fashion.
Brand Mantras
 Brand mantras are short three to five word
phrases that capture the irrefutable essence or
spirit of the brand positioning.
 Their purpose is to ensure that all employees
within the organization as well as external
marketing partners understand what the brand
most fundamentally is to represent with
consumers so that they can adjust their actions
accordingly.
 Brand mantras can provide guidance as to what
products to introduce under the brand, what ad
campaigns to consumer, where and how the
brand should be sold, and so on…
Brand mantras
 The influence of brand mantras, however, can
extend beyond these tactical concerns.
Brand mantras may even guide the most
seemingly unrelated or mundane decisions
such as the look of a reception area, the way
phones are answered, and so on.
 In effect, brand mantras are designed to
create a mental filter to screen out "brand
inappropriate" marketing activities or actions
of any type that may have a bearing on
customers' impressions of a brand.
Brand mantras
 Brand mantras are important for a number of
reasons. First any time a consumer or customer
encounters a brand - in any way, shape, or form -
their knowledge about that brand may change,
and as a result the equity of the brand is
impacted.
 Given that a vast number of employees, either
directly or indirectly, come into contact with
consumers in a way that may affect consumer
knowledge about the brand, it is important that
their words and actions consistently reinforce and
support the brand meaning.
Brand mantras
 Many employees or marketing partners (e.g., ad
agency members) who potentially could help or
hurt brand equity may be far removed from the
marketing strategy formulation and may not even
recognize their role in impacting equity.
 The existence and communication of a brand
mantra signals the importance to the organization
of the brand and an understanding of its meaning
as well as the crucial role of employees and
marketing partners in its management It also
provides memorable short-hand as to what are
the crucial considerations of the brand that
should be kept most salient and top-of-mind.
Brand Mantras
 Examples of Brand Mantras What makes
for a good brand mantra? Two high profile
and successful examples of brand mantras
come from two powerful brands, Nike
and Disney
Nike
 A brand with a keen sense of what it represents
to consumers is Nike. Nike has a rich set of
associations with consumers, revolving around
such considerations as their innovative product
designs, their sponsorships of top athletes, their
award-winning advertising, their competitive drive,
and their irreverent attitude.
 Internally, Nike marketers adopted a three-word
brand mantra of "authentic athletic performance"
to guide their marketing efforts. Thus, in Nike's
eyes, their entire marketing programme - their
products and how they are sold - must reflect
those key brand values conveyed by the brand
mantra.
Nike
 Nike's brand mantra has had profound
implications for their marketing. In the
words of ex-Nike marketing gums Scott
Bedbury and Jerome Conlon who believe
that brand mantras provide the intellectual
"guard rails" to keep the brand moving in the
right direction and to make sure it does not
get off track somehow.
 From a product development standpoint
Nike's brand mantra has affected where they
have taken the brand.
Nike
 Over the years, Nike has expanded its brand
meaning from "moving shoes" to "athletic shoes"
to "athletic shoes and apparel" to "all things
associated with athletics (including equipment)."
Each step of the way, however, they have been
guided by their "authentic athletic performance"
brand mantra.
 For example, as Nike rolled out their successful
apparel line, one important hurdle for the
products was that they could be made innovative
enough to timly benefit top athletes. At the same
time, they have been careful to avoid using the
Nike name to brand products that do not fit with
their brand mantra (e.g.,casual shoes).
NIKE
 When Nike has experienced problems with their
marketing programme, it has often been a result
of their failure to figure out how to translate
their brand mantra to the marketing challenge at
hand.
 For example, in going to Europe, Nike
experienced several false starts until realizing that
"authentic athletic performance" has a different
meaning over there and, in particular, has to
involve soccer in a major way, among other things.
Similarly, Nike stumbled in developing their All
Conditions Gear (ACG) outdoors shoes and
clothing subbrand in translating their brand
mantra into a less competitive arena.
Brand Mantras
 Brand mantras must economically
communicate what the brand is and what
the brand is not
 The Nike and Disney examples show the
power and utility of having a well-
designed brand mantra. They also help to
suggest what might characterize a good
brand mantra. Both examples are
essentially structured the same way with
three words as follows:
Brand Mantras
 These brand mantras can be broken down
into three terms.
 The Brand Functions - describes the nature
of the product or service and/or type of
experiences or benefits that the brand
provides. This may range from very concrete,
where the term just reflects the product
category itself, to more abstract notions, as
with Nike and Disney, where the term
relates to higher order experiences or
benefits that may be delivered by a variety of
different products.
Brand Mantras
 The Descriptive Modifier is a way to
circumscribe the business functions term to
further clarify its nature. Thus, Nike's
performance is not just any kind (e.g., not
artistic performance) but only athletic
performance; Disney's entertainment is not
just any kind (e.g., not musical
entertainment) but only family
entertainment Combined, the business
activity and descriptive modifier help to
delineate the brand boundaries.
Brand Mantras
 Finally, the Emotional Modifier provides
another qualifier in terms of how the
brand delivers these benefits. In other
words, what is the qualitative nature of
what the brand does? How exactly does
it provide benefits and in what way? This
term provides further delineation and
clarification.
Brand mantras
Several additional points about brand
mantras are worth noting. First brand
mantras derive their power and
usefulness in their collective meaning.
 Other brands may be strong on one, or
perhaps even a few of the brand
associations making up the brand mantra
For the brand mantra to be effective, no
other brand should singularly excel on all
three dimensions.
Brand Mantras
 That is, part of the key to both Nike and
Disney's success is that for years, no other
competitor could really deliver on the
promise suggested by their brand mantra as
well as those brands.
 Second, brand mantras typically are designed
to capture the brand's points-of difference,
i.e., what is unique about the brand. Other
aspects of the brand positioning - especially
the brand's points-of-parity - may also be
important and may need to be reinforced in
other ways
Conclusion
 Thus positioning is both difficult as well as
simple because as Al Ries and Jack Trout
say” Most positioning programs are
nothing more or less than a search for
the obvious”.
 So position well —IT CAN CROWN OR
DROWN YOUR BRAND