Chapter 8: Brand positioning

Contents

• Concept of brand positioning• Brand values• Brand positioning statement• Crafting the positioning strategy• Guiding principles for positioning• Repositioning

Introduction• Organizations can communicate all the good things about a brand

but how the consumers perceive the brand depends upon a number of variables including the customers own experience with the brand.

• The unique place the brand occupies in the minds of the customers is positioning.

• A brand cannot be successful if it is not well positioned in the mind of the consumers.

• Positioning a product is therefore integral to the success of a brand. • The brand perceptions impact the business customer relationships

in the long term and are therefore of strategic importance.

Definition

“Arranging for a product to occupy a clear, distinctive, and desirable place in the market, and in the minds of the target consumers”.

Kotler (1984)• This definition thus specifies that

– first the brand needs to be distinguished or distinct from other brands in the market and

– second that it is a desirable place in the minds of the consumers. That is the brand is as good as what the customers think about it.

Importance of Positioning• Positioning is how the brand is unique and relevant for

consumers• It is how the brand is different from the other brands in the

product category. • It gives a raison d'être to the customers to buy the product. • For services organizations, positioning also helps to

overcome the concept of intangibility. • Further how the firm positions products also acts as a

guiding hand in the development of the marketing mixes.

Brand values

• A brand has to compete at various levels in a given market. The task is to develop a distinctive image that leads to competitive advantage for the brand.

• The characteristics of the brand that are highlighted (by the organization while positioning) leads the consumer to develop various attributes specific to a particular brand.

• Over a period of time as the brands evolve and expand across categories the core brand values help to define the five to ten most important elements of the brand and what the brand stands for.

• The core brand values for a brand can be mapped by asking the customers for ‘their top-of-mind brand associations’.

• These are then grouped into categories and each category description then acts as a core brand value

Positioning statement

Positioning statement is ‘the message that communicates brand image to consumers… it conveys to consumers how one firm’s offering are differentiated from a competitors’ and signals how the firm wishes to be seen or perceived. A strong and consistent positioning statement is necessary to stand out against competitors and should help sharpen and strengthen the brand identity’

• The template of choice of the positioning statement was authored by Geoffrey Moore (cited in The Beaupre Buzz, 2003) and is as follows: – For (target customers)– Who (have the following problem)– Our product is a (describe the product or solution) – That provides (cite the breakthrough capability) – Unlike (reference competition),– Our product/solution (describe the key point of competitive differentiation)

• Nirula’s positioning statement “Nirula's is warm, contemporary, accessible, eating place for families including children and young adults, serving the widest variety of Indian and International food, beverages and desserts, at affordable prices. “

Positioning statement (contd.)

Segmentation•Consumer basedBuying situation based

TARGETING•Evaluate market segmentSelect Market segment

Identification of brand benefits

CHANGING CONSUMER TRENDS

SITUATIONAL ANALYSIS•Internal corporate analysisCurrent positioning (if repositioning)External market analysis

Analysis for differentiation possibilities of the brand image

•POP•POD

Selecting the strategy

COMPETITOR ANALYSIS

PositioningStrategy

Guiding principles for positioning

• Product– On basis of tangible attributes

• Product form, product ingredients, product attributes, product characteristics and customer benefits, product use, product class

– On basis of intangible attributes• Price quality• Symbols• Competition• Personnel

– Employees– Product user– Demographics

Guiding principles for positioning

• Channel• Image• Customer care and service• Corporate identity• Positioning by brand endorsement• Positioning related to specific category of customers• Usage occasion and time• Corporate social responsibility

Repositioning strategies

Changing demographic trends and lifestyles• The young Indian consumer• Rising household income• Spending habits and brand behaviour• Rise of the Indian women as a consumer• Changing consumer expectations• Changing lifestyle• Regional differences

Repositioning strategies

PRODUCTSame Different

TARGET MARKET

Same

Different

Image repositioning

Intangible repositioning

Productrepositioning

Tangible repositioning

Quick Recapitulation

• Concept of brand positioning• Brand values• Brand positioning statement• Crafting the positioning strategy• Guiding principles for positioning• Repositioning

Questions?