Brand PositioningBrand Positioning

Rodolfo S. Mendoza, Jr.Rodolfo S. Mendoza, Jr.

Sharon BrocalesSharon Brocales

Jessie EndonelaElmer D. LumabasHersly Jay Taran

PositioningPositioning

Is the act of designing a company’s offering Is the act of designing a company’s offering and image to occupy a distinctive place in the and image to occupy a distinctive place in the minds of the target market minds of the target market

Brand Positioning involves identifying and determining points of similarity and difference to ascertain the right brand identity and to create a proper brand image

A successful brand positioning leads to the A successful brand positioning leads to the successful creation of a customer- focused successful creation of a customer- focused value proposition value proposition ( these are reasons why the ( these are reasons why the target market should buy the product-RTB)*target market should buy the product-RTB)*

Positioning requires that similarities and Positioning requires that similarities and differences between brands be defined and differences between brands be defined and communicated.communicated.

.

Differentiation Takes Place In The Mind

How many Differences to promote?How many Differences to promote?• Single-benefit positioning- Single-benefit positioning- - many marketers advocate promoting only one benefit to the target - many marketers advocate promoting only one benefit to the target

market. Ex. Mercedez Benz promotes its great automotive market. Ex. Mercedez Benz promotes its great automotive engineering.(a company should develop a unique selling proposition engineering.(a company should develop a unique selling proposition for each brand and stick to it; buyers tend to remember the number for each brand and stick to it; buyers tend to remember the number one message esp. in an over communicated societys )one message esp. in an over communicated societys )

• Double –benefit positioning-Double –benefit positioning-

- maybe necessary if two or more firms are claiming to be the best - maybe necessary if two or more firms are claiming to be the best on the same attribute. The intention is to find a special niche within on the same attribute. The intention is to find a special niche within the target market. Ex. Volvo positions its automobiles as safest and the target market. Ex. Volvo positions its automobiles as safest and most durable(fortunately these two benefits are compatible)most durable(fortunately these two benefits are compatible)

• Triple-benefit positioning (multi-benefit)Triple-benefit positioning (multi-benefit)

-brand offers 3 or more benefits. Ex. Aquafresh toothpaste: -brand offers 3 or more benefits. Ex. Aquafresh toothpaste: anticavity protection, better breath, and whiter teeth.anticavity protection, better breath, and whiter teeth.

As companies increase the number of claims for their As companies increase the number of claims for their brand, they risk disbelief and loss their clear brand, they risk disbelief and loss their clear positioning. They must avoid the 4various positioning positioning. They must avoid the 4various positioning errors, such as-errors, such as-• Under positioning-Under positioning- This is a scenario in which the This is a scenario in which the

customer’s have a blurred and unclear idea of the brand. customer’s have a blurred and unclear idea of the brand. Buyers don’t really sense anything special about it.Buyers don’t really sense anything special about it.

• Over positioning-Over positioning- This is a scenario in which the customers This is a scenario in which the customers have too limited awareness of the brand. Ex. Customers for have too limited awareness of the brand. Ex. Customers for Ayala Properties might think that what the company offers Ayala Properties might think that what the company offers are all high end and very expensive condos and properties are all high end and very expensive condos and properties when in fact it may offer affordable and low to medium end when in fact it may offer affordable and low to medium end properties.properties.

Confused positioning-Confused positioning- This is a scenario in which This is a scenario in which the customers have a confused opinion of the brand. the customers have a confused opinion of the brand. Due when brand has too many claims or changing its Due when brand has too many claims or changing its position too frequentlyposition too frequently

Doubtful Positioning-Doubtful Positioning- This is a scenario in which This is a scenario in which customers do not accept the claims of a brand. Buyers customers do not accept the claims of a brand. Buyers may find it hard to believe that brand claims in view may find it hard to believe that brand claims in view of the product features, price, or manufacturer.of the product features, price, or manufacturer.

Seven Options for market positioningSeven Options for market positioning

1.1. Attribute Positioning- Attribute Positioning- ex. Nikon camera maybe touted as the world’s ex. Nikon camera maybe touted as the world’s smallest 35mm auto focus zoom camera (smallness as to smallest 35mm auto focus zoom camera (smallness as to convenience w/o the awkwardness of bulky camera lenses)convenience w/o the awkwardness of bulky camera lenses)

2.2. Benefit Positioning-Benefit Positioning-ex. Nikon’s Lite-Touch camera allows standard ex. Nikon’s Lite-Touch camera allows standard and panoramic pictures on the same roll film(versatility and and panoramic pictures on the same roll film(versatility and convenience)convenience)

3.3. Use/Application Positioning- Use/Application Positioning- ex. Cobra energy drink is positioned as ex. Cobra energy drink is positioned as a health tonic or drink for mental stimulation and energy boostera health tonic or drink for mental stimulation and energy booster

4.4. User Positioning- User Positioning- ex. Sony’s Walkman series has different models ex. Sony’s Walkman series has different models for different users ranging from amateurs to professionals.for different users ranging from amateurs to professionals.

5. Competitor Positioning- ex.Pepsi engages in comparative promotions against Coke.

6. Product Category Positioning- ex. San Marino Corned Tuna position itself as a healthy canned corned tuna with reference not to a competitor in the sardines category but to another product class the Century canned corned tuna.

7. Quality / price Positioning- ex. Champion detergent soap is positioned as an economical brand with good quality.

Positioning Guidelines:Firms should follow Firms should follow somesome positioning positioningguidelines for an effective brandpositioning: guidelines for an effective brandpositioning:

(1.) (1.) defining and Communicating the Competitive defining and Communicating the Competitive Frame of Reference Frame of Reference by identifying the target by identifying the target market and the relevant competitionmarket and the relevant competition

• Competitive Frame of Reference

-defines which other brand(s) a brand competes with thus which brand(s) should be the focus of competitive analysis

• Category Membership

-the product or sets of products w/c a brand competes and w/c functions as a close substitute

(2.) identifying the ideal points of parity and points of difference brand association given that frame of reference

(3.) creating a brand mantra to summarize the essence and positioning of the brand

• Brand Mantras--are short, three to five word phrases that capture the irrefutable essence or spirit of the brand positioning.

ie., Nike’s brand mantra of “authentic athletic performance” guides the types of products it makes and athletes it hires as endorsers.; Jollibee’s Pinoy langhap sarap., is a clear echo of what the brand represents and clearly identify the kind of products it reproduce and sell.; Disney’s “fun, family entertainment”.

(4) Updating Positioning Over Time.(*Product Life Cycle)

Examples of Value PropositionsExamples of Value Propositions

Value Proposition GridValue Proposition Grid

lesslesssamesamemoremore

PRICEPRICE

BE more NEF sameITS less

IndustryIndustry

• Group of Firms offering a Product or Group of Firms offering a Product or Class of Products that are close Class of Products that are close substitutes for one another.substitutes for one another.

Points of DifferencePoints of Difference

• Attributes or benefits consumers Attributes or benefits consumers associate with a brand, positively associate with a brand, positively evaluate and believe they could not evaluate and believe they could not find to the same extent with a find to the same extent with a competing brand competing brand

• points where you are claiming points where you are claiming superiority or exclusiveness over superiority or exclusiveness over other products in the category.other products in the category.

3 Criteria to Function as 3 Criteria to Function as Point of DifferencePoint of Difference

• Desirable to ConsumerDesirable to Consumer

• Deliverable by the CompanyDeliverable by the Company

• Differentiating from CompetitorsDifferentiating from Competitors

Points of ParityPoints of Parity

• Associations that are not necessarily Associations that are not necessarily unique to the brand but may be unique to the brand but may be shared by other brands.shared by other brands.

• Where you can at least match the Where you can at least match the competitors claimed benefits.competitors claimed benefits.

2 Basic Forms of Points of 2 Basic Forms of Points of ParityParity

• Category Points of ParityCategory Points of Parity

• Competitive Points of ParityCompetitive Points of Parity

Straddle PositioningStraddle Positioning

• Allow Brands to expand their Market Allow Brands to expand their Market Coverage & Potential Customer Base.Coverage & Potential Customer Base.

Differentiation StrategiesDifferentiation Strategies

• Competitive advantage-Competitive advantage- company’s ability to perform in one company’s ability to perform in one or more ways that competitors or more ways that competitors cannot or will not match.cannot or will not match.

• Leverageable advantage- Leverageable advantage- is one is one that a company can use as a that a company can use as a springboard to new advantages.springboard to new advantages.

Means of differentiationMeans of differentiation

• Employee differentiation- Employee differentiation- better trained employeesbetter trained employees

• Channel differentiation- Channel differentiation- more effectively and more effectively and efficiently design channels’ coverage, expertise and efficiently design channels’ coverage, expertise and performanceperformance

• Image differentiation- Image differentiation- craft powerful, compelling craft powerful, compelling images that appeal to consumers’ social and images that appeal to consumers’ social and psychological needspsychological needs

• Services differentiation- Services differentiation- designing a better and designing a better and faster delivery system that provides more effective and faster delivery system that provides more effective and efficient solutions to consumers efficient solutions to consumers

Emotional BrandingEmotional Branding

• A good positioning should contain A good positioning should contain point-of –difference and points-of-point-of –difference and points-of-parity that appeal both to the head parity that appeal both to the head and to the heart.and to the heart.

• Should have both rational and Should have both rational and emotional componentsemotional components

3 variables when analyzing 3 variables when analyzing potential threats posed by potential threats posed by competitors:competitors:• Share of market- Share of market- competitor’s share of competitor’s share of

the target market.the target market.• Share of mind- Share of mind- percentage of customers percentage of customers

who named the competitor in responding who named the competitor in responding to statement, “Name the first company to statement, “Name the first company that comes to mind in this industry.”that comes to mind in this industry.”

• Share of heart- Share of heart- percentage of percentage of customers who named the competitor in customers who named the competitor in responding to the statement, “Name the responding to the statement, “Name the company from which you would prefer to company from which you would prefer to buy the product.”buy the product.”

• Table 10.3 Market Share, Mind Share, Table 10.3 Market Share, Mind Share, and Heart Shareand Heart Share

Market Share Mind Share Heart Share

2011

2012

2013

2011 2012

2013

2011 2012

2013

Competitor A 50% 47%

44%

60% 58%

54%

45% 42%

39%

Competitor B 30 34 37 30 31 35 44 47 53

Competitor C 20 19 19 10 11 11 11 11 8

Alternative Approach to Alternative Approach to PositioningPositioning• Brand Narratives and Storytelling-Brand Narratives and Storytelling-

Framework for a brand story:Framework for a brand story:SettingSetting--timetime, place and context, place and contextCast-Cast- brand as a character, its role in the life of audience, brand as a character, its role in the life of audience, relationships and responsibilities and its historyrelationships and responsibilities and its historyNarrativeNarrative arc- arc- the way the narrative logic unfolds over the way the narrative logic unfolds over time, defining events, and the moment of epiphanytime, defining events, and the moment of epiphanyLanguage-Language- authenticating voice, metaphors, symbols, authenticating voice, metaphors, symbols, themes, and leitmotifsthemes, and leitmotifs

• Brand Journalism- Brand Journalism-

• Cultural Branding-Cultural Branding-

Product Life Cycles Marketing Product Life Cycles Marketing StrategiesStrategiesA company’s positioning and differentiation strategy A company’s positioning and differentiation strategy

must change as the product market and must change as the product market and competitors change over the product life cycle competitors change over the product life cycle (PLC). To say that a product has a life cycle is to (PLC). To say that a product has a life cycle is to assert four things:assert four things:

1.1. Products have a limited lifeProducts have a limited life2.2. Product sales past through distinct stages, each Product sales past through distinct stages, each

posing different challenges, opportunities, posing different challenges, opportunities, problems to the seller.problems to the seller.

3.3. Profit rise and fall at different stages of the Profit rise and fall at different stages of the product life cycle.product life cycle.

4.4. Products require different marketing, financial, Products require different marketing, financial, manufacturing, purchasing, and human resource manufacturing, purchasing, and human resource strategies in each life cycle stage.strategies in each life cycle stage.

Product Life CyclesProduct Life Cycles

Most product life-cycle curves are Most product life-cycle curves are portrayed as bell-shaped. This portrayed as bell-shaped. This curve typically divided into four curve typically divided into four stages: stages:

1.1. IntroductionIntroduction

2.2. Growth Growth

3.3. MaturityMaturity

4.4. DeclineDecline

3 Special Categories of 3 Special Categories of Product Life CyclesProduct Life Cycles

• StyleStyle-is a basic and distinctive mode of -is a basic and distinctive mode of expression appearing in a field of human expression appearing in a field of human endeavor.endeavor.

• FashionFashion-is a currently accepted or -is a currently accepted or popular style in a given field.popular style in a given field.

• FadsFads-are fashion that comes quickly into -are fashion that comes quickly into public views; are adopted with great public views; are adopted with great zeal, pearly, and declined very fast.zeal, pearly, and declined very fast.

Marketing Strategies: Introduction Marketing Strategies: Introduction StageStage

• A period of slow sales growth as the A period of slow sales growth as the product is introduced in the market.product is introduced in the market.

• Profits are nonexistent because of Profits are nonexistent because of the heavy expenses of product the heavy expenses of product introduction.introduction.

Marketing Strategies: Growth Marketing Strategies: Growth StageStage

A period of rapid market acceptance A period of rapid market acceptance and substantial profit improvement.and substantial profit improvement.

Maturity stageMaturity stage

• This stage lasts longer than the This stage lasts longer than the previous stagesprevious stages and poses big and poses big challenges to the marketing challenges to the marketing management. Most products are in management. Most products are in the maturity stage of the life cyclethe maturity stage of the life cycle..

Three Phases of MaturityThree Phases of Maturity

• GrowthGrowth

• StableStable

• MaturityMaturity

Decline StageDecline Stage

• In this stage, demand for the product In this stage, demand for the product will begin to decrease .will begin to decrease .