brand positioning 11.5

RECAP: WHAT DO WE KNOW?

• CONSUMER BASED BRAND EQUITY (CBBE)

Consumers perception, recognition & attitude

Value of the brand created by the customer

‘ THE POWER OF A BRAND LIES IN WHAT RESIDES IN THE MIND OF THE CONSUME’ – (Keller, 1998)

OUTLINE

1. BASIC CONCEPTS2. IDENTIFYING & ESTABLISHING BRAND POSITIONING3. POSITIONING GUIDELINES4. DEFINE AND ESTABLISHING BRAND MANTRA5. BRAND AUDITS

IDENTIFYING AND ESTABLISHING BRAND POSITIONING

• CBBE MODEL – Generalised process to build brand knowledge structures, in order to create brand equity.

• ULTIMATE GOAL – Brand Resonance / Relationship / Loyalty / Toma

HOW?

BRAND POSITIONING

WHAT IS A BRAND POSITION?

• The distinct place a firm / product / brand occupies in a consumers mind relative to competing offerings (Ratcliffe, 2004).

• The way a firms product / brand is viewed relative to competition by current and prospective customers (Etzel, walker & Stanton, 2007).

BRAND POSITIONING (BP)?

• Brand positioning is about how we want targeted consumers to think about a brand with respect to competitors, it refers to both the place a brand occupies in the mind of the consumer relative to (1) their needs (2) competing brands, and to the marketers decision making intended to create such a position(walker & mullins, 2011).

A STRATEGIC ISSUE: BP DETERMINES THE MARKETING MIX ELEMENTS(4P’S)

IN ORDER TO POSITION A BRAND MARKETERS NEED TO KNOW

1. WHO IS THE TARGETED CUSTOMER

2. WHO THE MAIN COMPETITORS ARE

3. HOW THE BRAND IS SIMILAR TO COMPETITIONS

4. HOW THE BRAND IS DIFFERENT TO COMPETITIONS

WHO IS THE TARGETED CUSTOMER ?

• MARKET - Consists of people with needs to satisfy, money to spend and the willingness to spend it (Etzel et al, 2007).

• MARKET SEGMENTATION - A process of dividing the total market for a good or service into smaller groups with similar needs that share distinct characteristics in order for marketers to focus their resources effectively (Cant & Brink, 2005)

• TARGET MARKET – A group of people for whom the firm designs, implements and maintains a marketing mix intended to meet the needs of the group (Cant & Brink, 2005)

STP: SEGMENTATION – TARGETING - POSITIONING

BASES OF SEGMENTATION

CONSUMER MARKET SEGMENTATION BASESType Behavioural Demographic Psychographic Geographic

Description Benefits desired from the product and the rate at which the consumer uses it.

Refers to individual differences among consumers.

Regarding peoples activities, interests, opinions & lifestyle

Location

Theory EG User statusUsage rateUsage OccasionBrand LoyaltyBenefit sought

LSM CategoryIncomeAgeFamily Structure

ValuesAttitudesLifestyle OpinionsPersonality

International / RegionalRural/UrbanSuburbs / Climate

Practical EG Light VS Heavy Drinkers

Children Celebrity, Wealthy Lifestyle

Cape Town

(Cant & Brink 2005)(Keller 2009)

BEST FOR BRANDING: BENEFIT & LOYALTY SEGMENTATION PRACTICES

BENEFIT SEGMENTATION

HEAD AND SHOULDERS SHAMPOO

1. SENSORY Smell (E.g.. Lavender) - 5 senses2. SOCIABLE Clean hair: - Hygienic3. WARRIORS Anti-dandruff4. INDEPENDENT Price

2. WHO ARE THE MAIN COMPETITORS?

• Conduct a SWOT analysis of the brand and competing brands

• Marketers must understand the competitors that exist and how they are perceived by the target market (Cant & Brink, 2005) – their positioning...

• Competitors can use different bases of segmentation, different marketing mixes for the same targeted segment and are likely to have a different set of resources and capabilities.

“SOMETIMES IT’S NOT IMPORTANT HOW GOOD CUSTOMERS THINK YOU ARE, IT’S JUST IMPORTANT THAT THEY BELIEVE YOU ARE BETTER OR AS GOOD AS YOUR COMPETITION” (Aaker & Shansby, 1982)

3. HOW IS THE BRAND SIMILAR TO COMPETITORS? POP

• POINT OF PARITY - Associations that are not necessarily unique to the brand but may be shared by other brands i.E. Where you can at least match the competitors claimed benefits. (

2009)• CATEGORY POP

• COMPETITIVE POINTS OF PARITY

4. HOW IS THE BRAND DIFFERENT TO THE COMPETITION ? : POD• POINT OF DIFFERENCE - POINTS WHERE YOU ARE

CLAIMING SUPERIORITY OR EXCLUSIVENESS OVER OTHER PRODUCTS IN THE CATEGORY. (KELLER, 1998)

• UNIQUE SELLING PROPOSITION

• SUSTAINABLE COMPETITIVE ADVANTAGE

POPS CAN BE “GOOD ENOUGH”, BUT PODS SHOULD BE “SUPERIOR. (Perkins, 2003)

MORE, than normal or possible expectations – Cadbury, 2011

POSITIONING EXAMPLE?

• WHO IS THE TARGET MARKET? – Psychographic & behavioural : anyone who likes chocolate ( attitude), wants energy, endorphins (benefit).

• WHO IS THE COMPETITION? - Nestle, beacon, lindt, woolworths: any other chocolate alternative.

• WHAT ARE THE POINTS OF PARITY? - Contemporary wrappers, up-to-date with the chocolate industry, communication, prices and distribution, sizes and range/assortment.

• WHAT ARE THE POINTS OF DIFFERENCE? - Slogan: glass and a half full of... Joy (exceeding possibility) – fun, family, warmth – packaging, products, website, promotions.

• Essential and distinctive taste profile, age-old recipe & method• Established, respected, classic ( since 1824)

= RECOGNITION & RECALL ( AWARENESS) + BRAND IMAGE = BE/CBBE

Cadbury.flv

POSITIONING GUIDELINES

DISCOVERY OVERVIEW

• LARGEST PRIVATE HEALTHCARE FUNDER WITH OVER 2 MILLION MEMBERS

• MARKET SHARE OF 40%

• ESTABLISHED BY ADRIAN GORE IN 1992

• GROWTH ENTIRELY ORGANIC

• RECOGNISED AS THE MOST FINANCIALLY SOUND SCHEME IN INDUSTRY

2 STEPS TO POSITIONING THE BRAND

1. DEFINE AND COMMUNICATE THE COMPETITIVE FRAME OF REFERENCE

2. CHOOSING AND ESTABLISHING POINTS OF PARITY (POP) AND POINTS OF DIFFERENCE (POD)

DEFINING AND COMMUNICATING THE COMPETITIVE FRAME OF REFERENCE

• DETERMINE CATEGORY MEMBERSHIP – Which products / set of products does Discovery compete with?

• CATEGORY MEMBERSHIP TELLS CONSUMERS ABOUT THE GOALS THEY MIGHT ACHIEVE BY USING THE PRODUCT/ SERVICE – Healthcare Insurance– Life Insurance– Financial services– Wellness

DEFINING AND COMMUNICATING THE COMPETITIVE FRAME OF REFERENCE

• 3 WAYS TO COMMUNICATE CATEGORY MEMBERSHIP– Communicating category benefits - Category POP’s– Compare to exemplars -well-known brands in product category– Relying on product descriptor -brand name category origin

CHOOSING POINTS OF DIFFERENCE

1. DESIRABILITY CRITERIA – FROM THE CONSUMERS POINT OF VIEW

• Personally relevant and important – RELEVANCE• Discovery provides products that empower consumers to

take control of their health

CHOOSING POINTS OF DIFFERENCE

• Distinctive and superior – DISTINCTIVENESS• Integrated product range

CHOOSING POINTS OF DIFFERENCE

• Believable and credible - BELIEVABILITY• Discovery provides cover to over 2 million lives

CHOOSING POINTS OF DIFFERENCE

• DELIVERABILITY CRITERIA – COMPANIES ABILITY TO DELIVER• Can the firm create the point of difference – FEASIBILITY

• Discovery have extensive product offerings to accommodate all types of consumers with affordable packages.

THERE IS SOMETHING FOR EVERYONE!

CHOOSING POINTS OF DIFFERENCE

• Is the positioning capable of enduring over time - SUSTAINABILITY• Discovery has grown organically since 1992 and the founder Adrian

Gore is still the CEO today and actively involved in the company.

CHOOSING POINTS OF DIFFERENCE

• Consumers perception and awareness of the brand and brand associations - COMMUNICABILITY

• Discovery is heavily engaged in various sponsorship initiatives to extend their brand vision of making people healthier.

• Their wide range of sponsorship allows them to constantly communicate the brand.

DISCOVERY’S DIFFERENTIATIONRELATIVE TO COMPETITORS

• A wide spectrum of plan options to meet different needs• Affordable• Extensive medical cover and support• Control of day-to day medical spend• Wellness programme• Constantly evolving

ESTABLISHING POD’S AND POP’S

• Many attributes or benefits determine POP/POD’s and can be negatively correlated.

DISCOVERY’S POD’S AND POP’S

• SEPARATED THE ATTRIBUTES – VERY DIFFICULT FOR COMPETITORS TO MATCH!– 7 Fitness Partners– 5 Health Partners– 6 Rewards Partners– 7 Lifestyle Partners– Discovery Credit Card

UPDATING POSITIONING OVER TIME

• LADDERING – Deepened meaning of the brand and to trap into core brand associations• EXPLORING UNDERLYING MOTIVATIONS

• MEANS- END CHAINS- Way of understating high level meanings of brand characteristics and meanings.

Attributes Benefits ValuesFeatures of Products

Consequences Stable/ Enduring Personal Goals & Motivations

• Medical Plans available to suite all needs

• Customer Service• Well Established

Brand

• Lifestyle• Peace of Mind• Vitality• Discounts

• Vitality• Sponsorship• Health

UPDATING POSITIONING OVER TIME

• REACTING – Responding to competitive challenges or threats to existing positioning

1 2 3

Do nothing Go on the defensive by strengthening POP’s and POD’s

Launching a product extension or a more aggressive approach of repositioning

UPDATING POSITIONING OVER TIME

DEFINING & ESTABLISHING BRAND VALUES

NB: BRAND MANTRA

ALLAN GRAY – SA Investment Management Company

• Short three to five word phrases that capture the irrefutable essence or spirit of the brand positioning (Keller, 1999)

• BRAND EQUITY = BRAND AWARENESS + BRAND IMAGE (THE PROCESS IS CONSISTENT) (CANT & BRINK 2005)

DEFINING & ESTABLISHING BRAND VALUES

MENTAL MAP OF BRAND CORE BRAND VALUES BRAND MANTRA

• Client focused

• Performance driven

• Long-term oriented

• Independent minded

• Individually accountable

Build wealth and trust

“Intelligent Investing”

Top of mind brand

associations

Grouped brand associations

according to related categories

Brand essence

DESIGNING A BRAND MANTRA

BRAND FUNCTIONS OR

BENEFITS

DESCRIPTIVE MODIFIER

EMOTIONAL MODIFIER

ALLAN GRAY

What brand provides the customer with?

Nature of the brand function? How does the brand provide benefits?

Security Investment ReliabilityCredibility

Trust

IMPLEMENTING BRAND MANTRA

• BRAND MANTRA FUNCTION - Collective meaning = Power & usefulness, captures POD

INTERNAL BRANDING• “ Our purpose is to help our investors build wealth over the long term

and we seek to earn the trust of our clients by providing superior long-term investment performance, outstanding client service and holding ourselves to the highest ethical standards” – Allan Gray, 2011

• SIMPLIFY, INSPIRE AND COMMUNICATE

BRAND AUDITS

• A brand audit explores the history, origins, associations, products, services and communications (BRAND SWOT) - IMC

• Marketing audit (COMPANY SWOT) - IMC

BRAND EXPLORATORY (DEMAND) BRAND INVENTORY (SUPPLY)

• EXTERNAL ANALYSIS – Company archives to uncover insight

• INTERNAL ANALYSIS – Internal personally belief about customer perception

• Qualitative or Quantitative consumer behaviour studies

• Brand elements employed and how?• Nature of supporting marketing

programmes• Profile of competitive brands• POP’s and PODS• Brand mantra

“At the end of the day, A brand must resonate with the customer and form a relationship that is consistent” – Professor Frikkie Herbst, 2011

This is my position – POD/POP!Communicated loud and clear

Mantra/Promise Desirability

criteria Deliverability

criteria Established

POD’s and POP’s

ResonanceDifferentiation

BrandRelationships

ValueTime to 

reposition!!!

REFERENCES

• KEVIN LANE KELLER, BRIAN STERNTHAL & ALICE TYBOUT (2002), “ THREE QUESTIONS YOU NEED TO ASK YOURSELF ABOUT YOUR BRAND,” HARVARD BUSINESS REVIEW, SEPTEMBER, 80 (9), 80-89.

• CANT, M. & BRINK, M., 2005. CONSUMER LOYALTY. CONSUMER BEHAVIOUR. JUTA, CAPE TOWN.

• RATCLIFFE, S., 2004. POSITIONING THE FIRM AND IT’S PRODUCTS. MARKETING. HARVARD BUSINESS SCHOOL PRESS, BOSTON.

• WALKER, JR., O.C. & MULLINS, J.W. 2011. MARKETING STRATEGY. MCGRAW-HILL IRWIN, NEW YORK.

• ETZEL, M. WALKER, B. & STANTON, W. 2007. MARKETING 14TH EDITION. MCGRAW-HILL, NEW YORK.

• CAROL SCOTT, 2000. BRANDING: POSITIONING MUSEUMS IN THE 21ST CENTURY M ARKETING MANAGEMENT VOLUME 2, NUMBER 3

• KELLER, KEVIN LANE CONCEPTUALIZING, MEASURING, AND MANAGING CUSTOMER-BASED BRAND EQUITY JOURNAL OF MARKETING; JAN 1993; 57, 1

• AAKER, D.A. AND SHANSBY, J.G. 2001. POSITIONING YOUR PRODUCT. BUSINESS HORIZONS

• KEVIN LANE KELLER, 2000. THE BRAND REPORT CARD. HARVARD BUSINESS REVIEW. R00I04.

• KEVIN LANE KELLER, 1999. BRAND MANTRAS: RATIONALE, CRITERIA AND EXAMPLES. JOURNAL OF MARKETING MANAGEMENT, (15), 43-51.

• KEVIN LANE KELLER, 2001. BUILDING CUSTOMER-BASED BRAND EQUITY: A BLUEPRINT FOR CREATING STRONG BRANDS. WORKING PAPER. REPORT NO. 01-107.

• WWW. CADBURY.COM

• GILMORE, F. 1997. BRAND WARRIORS: CORPORATE LEADERS SHARE THEIR WINNING STRATEGIES.HARPER COLLINS PUBLISHERS.,LONDON.

• WWW.ALLANGRAY.CO.ZA

• WWW.DISCOVERY.CO.ZA