Three Questions You Need toAsk About Your Brand

Three major factors affecting brand positioning are-

1)Frame of reference

2)Points of parity

3)Points of difference

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?

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

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

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

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

Brand Extension

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

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

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

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?

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

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

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

Desirability Deliverability

Two main factors for a Point of difference to appeal the consumers

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

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

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

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

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.

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

Frames of reference, points of parity, and points of difference are moving targets. Maytagisn’t the only dependable brand of appliance, Tide isn’t the only detergent with whiteningpower, BMWs aren’t the only cars on the road with superior handling. The key questions youneed to ask about your brand—Have we established a frame? Are we leveraging our points ofparity? 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 anyof these variables stays static for long. The savviest brand positioners are also the mostvigilant.

Thank You

DisclaimerCreated by Rishabh Salgia,IIT Bombay,during an internship by Prof.Sameer Mathur,IIM Lucknow