Chapter 10 (Crafting Brand Positioning)

Chapter 10
Crafting the Brand Positioning
Copyright © 2010 Pearson Education, Inc.

Chapter 4-1
3- slide 1
Publishing as Prentice Hall
Crafting the Brand Positioning
Topics to be covered
 Developing a Brand Positioning
 Understanding Positioning and Value Propositions
 Choosing a Competitive Frame of Reference
 Establish Brand Category Membership
 Establishing a Brand Positioning
 Identifying Potential Points-of-Difference and Points-of-Parity
 Choosing Specific POPs and PODs
 Brand Mantras
 Differentiation Strategies (types)
 Product Life Cycle

Chapter 3- slide 2
Understanding Positioning
Positioning
 Positioning is the act of designing a company’s offering and image to
occupy a distinctive place in the minds of the target market.
A good brand positioning helps guide a marketing strategy by clarifying :

 What brand is all about,
 How unique and how similar it is to competitive brands,
 Why consumers should purchase and use the brand
https://www.youtube.com/watch?v=Y10EwaGeI3I
https://www.youtube.com/watch?v=BvETUf7694M
https://www.youtube.com/watch?v=LBEM1NrR-2w
https://www.youtube.com/watch?v=6PZAlb_iWVI
Positioning Map or Perceptual Maps

 Positioning maps show where existing products and services are
positioned in the market so that the FIRM can decide where they
would like to place (position) their product

Chapter 3- slide 3
Positioning Map

Chapter 3- slide 4
Positioning Map

Chapter 3- slide 5
Examples
– Mercedes-Benz
– Fair & Lovely
– Rolex watch
– Colgate
– Lux
– Lifebuoy
– Pond’s
– Gillette
– Pampers
– Domino pizza

Chapter 3- slide 6
Examples
 Fair & Lovely  Lifebuoy
 Fairness Health Protection
 Mercedes-Benz  Pond’s
Confidence
 Prestige
 Gillette
 Rolex watch Quality
 Prestige
 Pampers
Dryness (Baby comfort)
 Colgate
 Protection  Dominos–
guaranteed pizza delivery in 30
 Lux minutes
 Glamour

Chapter 3- slide 7
In order to Position a Brand…

Marketers must decide
Who the target Consumers are (Targeting)
Who your main competitors are (Nature of competition)
How the brand is similar to your competitors (POP)
How the brand is different from your competitors (POD)

Chapter 3- slide 8
1. Target Market
 Market Target Market
 Market is the set of all Target Market consists of a set of
actual and potential buyers buyers who share common needs or
who have sufficient characteristics that the company
interest in, income for, decides to serve.
and access to a product.

Chapter 3- slide 9
2. Identify competitors or nature of competition
 Nature of Competition
 Deciding to target a certain type of consumer
often defines the nature of competition.
 Example:
• Suppose you are good at producing healthy
cooking oil
• That means you suppose to target
 Health conscious people
 So how many competitors/brands are already targeting
health conscious people in Pakistan?
Direct Competition

Chapter 3- slide 10
2. Identify competitors or Nature of competition
 Nature of Competition
 One lesson stressed by many strategist is not to
define competition too narrowly
 Indirect Competition
 Who are the indirect Competitors of TULLO and
HABIB?

Chapter 3- slide 11
3. Points-of-Differences (POD)
 PODs
 PODs are attributes or benefits that consumers strongly associate
with a brand, positively evaluate, and believe that they could not
find to the same extent with a competitive brand.
 Two types of PODs

• Attribute Based
• Functional, performance related differences
– Oppo Mobile, Habib Cooking Oil, Tullo Cooking Oil
• Image Based
• Affective, experiential, brand image related differences
– IPhone, Mezan Cooking Oil, Dalda Cooking Oil

Chapter 3- slide 12
3. Points-of-Differences (POD)
 Examples
Guaranteed overnight delivery
Strong global presence (even in sanctioned  Overnight shipping within a country

countries)  2-3 day deliveries outside the country
Examples in the automobile market:

Volvo Car
Safety

Chapter 3- slide 13
4. Points-of-parity (POP)
 POPs
 POPs on the other hand,
are associations that are
NOT necessarily unique to
the brand but may in fact
be shared with other
brands.
 Examples

Chapter 3- slide 14
Brand Positioning Guidelines
How do marketers begin to position their Brand?
Deciding a positioning requires:
 A frame of reference
 Define and communicate the competitive frame of reference
 Identifying the optimal POP and POD.

 Choosing and establishing points-of-parity and points-of-difference)
 A brand mantra

Chapter 3- slide 15
How do marketers begin to position their Brand?
1. Defining and communicating the competitive

frame of reference
 The competitive frame of reference is all about
 The products or set of products with which a brand competes OR
 Who are my competitors?
 This will help determine
 which brands should be the focus of analysis and study.
First step of defining a competitive frame of reference for a brand

positioning is to determine CATEGORY MEMBERSHIP.
– For example
• Coco-Cola is leading brand of soft drink.
• LUX is a brand of beauty soap
• Brite is leading brand of Laundry Detergent

Chapter 3- slide 16
1. Defining and communicating the competitive frame of reference
Product Category Membership

 Product Category Membership tells consumers about the
goals they might achieve by using a product or service.
 What is the goal of using following brands?

– Kenwood air conditioner
– Colgate toothpaste
– F&L
– Garnier Anti Aging Cream
– Head & Shoulders

Chapter 3- slide 17
1. Defining and communicating the competitive frame of
reference
CATEGORY MEMBERSHIP
 Sometimes consumers know a brand’s category membership but may not
be convinced the brand is true, valid member of the category.
– For example
• Consumers may be aware that Sony produces computers, but they may not be certain
whether Sony Vaio computers are in the same “class” as Dell, HP, and Lenovo.
• Similarly, Dada Bhoy is a well known cement brand
• But majority of people don’t know whether Dada Bhoy Educational Institute is in the same
class as Sukkur IBA University and LUMS.
Therefore, the Rule is

 The preferred approach to positioning is to inform consumers of a brand’s membership
before stating its point of difference in relationship to other category members.

Chapter 3- slide 18
reference
How to establish Product Category Membership?

 There are THREE ways to communicate and/or establish a
product category membership.
1. Communicating or Announcing category benefits
2. Comparing to exemplars
3. Relying on the Product descriptors

Chapter 3- slide 19
reference
How to establish Product Category Membership?

1. Communicating or Announcing category benefits
 You need reassure consumers that a brand will deliver on the
fundamental reason for using a category.
 Example: Bank
– Opens accounts, cheque service, ATM etc
 Baker
– Might attain membership in the cake category by claiming the benefit
of great taste and might support this benefit claim by possessing
high-quality ingredients or by showing users delighting in its
consumption.

Chapter 3- slide 20
reference
How to establish Product Category
Membership? Which name is good?
2. Comparing to exemplars
 Well-known, noteworthy brands in a category can
also be used as exemplars to specify a brand’s
category membership.
3. Rely on product descriptor

 e.g., US Air Changed its name from US Air to US
Airways
 Because the major airlines had the word airlines or

airways rather than air, which was felt to be typically
associated with smaller, regional carriers.

Chapter 3- slide 21
2. Choosing and Establishing Points-of-Difference
(PODs) for Brand Positioning
 In choosing PODs, marketers need to consider the
following important points
– Brand positioning must be seen as
1. Desirable
2. Deliverable and
3. Differentiating
– Desirability is determined from the consumer’s point of view,
– Deliverability is based on a company’s inherent capabilities, and
– Differentiation is determined relative to the competitors.

Chapter 3- slide 22
2. Choosing and Establishing Points-of-Difference (PODs) for
Brand Positioning
 This Westin hotel advertised that it
1. Desirability criteria (consumer perspective) was the world’s tallest hotel,
– Brand positioning must be seen as
But a hotel’s height is not important
 Relevant
 Target consumers must find the POD personally relevant and
to so many tourists.
important

Chapter 3- slide 23
2. Deliverability Criteria (firm perspective)
– Feasible
 Can the firm actually supply the benefit underlying the
POD?
 https://www.youtube.com/watch?v=0ZHXSZvpc6A
 The product and marketing must be designed in a way

to support the desired association.
 Rin Detergent when launched in 1980s, consumer get
confused because of color of soap, start using it as dish
washing instead of fabric washing.
– Communicability
 Marketers must communicate the factual, verifiable evidence or
“proof points to support the claim
 Example: Arial and Harpic
 https://www.youtube.com/watch?v=Yv8WL5CB8I8
 https://www.youtube.com/watch?v=CvXTSvpkDg4
 https://www.youtube.com/watch?v=bkqzP-5y7kM

Chapter 3- slide 24
 Differentiation Criteria (relative to the competitors)
– Is the positioning preemptive, defensible, and difficult to
attack?
– https://www.youtube.com/watch?v=kqLpbWIBk5Y
Dettol:
strong smell,
turning cloudy when poured on water
Savlon:
Sovlon introduced in market without
any properties like Dettol.
 https://www.youtube.com/watch?v=8xSVL35_3pg

Chapter 3- slide 25
Positioning, Repositioning, Depositioning
Positioning
– Arranging for a product to occupy a clear, distinctive, and desirable
place relative to competing products in the minds of target
consumers.
– Example: LUX is beauty
Repositioning
– An attempt to change the view of consumers about a product
relative to its competitors.
– Example:
• Dettol toilet soap was positioned as beauty soap initially.
• It did not work
• Dettol repositioned as a germ-kill soap.
– Example:
• Down News was positioned as English. Later they repositioned it as
Urdu

Chapter 3- slide 26
De-positioning
De-positioning: An attempt to change the
identity of COMPETING products/brands relative
to the identity of your own product in the
collective mind of target market.
Example:
 https://www.youtube.com/watch?v=DuzNg8icK4M
 https://www.youtube.com/watch?v=NUMQdpYCAIU
After legal action

 https://www.youtube.com/watch?v=F0SxQRE8twc
 https://www.mangobaaz.com/molty-foam-ordered-a-notice-
to-diamond-foam-for-using-their-trademark-papa-jaani-phrase

Chapter 3- slide 27
Example 2: De-positioning
Example:
https://www.youtube.com/watch?
v=HAEb2UmA_w8&list=PLhOST5FXUzjOkmbBzDpGcVEAoyeqQGG76&index=1

Chapter 3- slide 28
Example 2: De-positioning
https://www.youtube.com/watch?v=R347lsr23X8

Chapter 3- slide 29
Group Activity
Please make a group of 2 students and identify
the STP of following brands
– Group 1: Brook Bond, Lipton vs. Tapal Danedar, Vital Tea
– Group 2: Everyday, Nido, Millac, and Haleeb
– Group 3: LUX, Palmolive, Dove, Capri soap
– Group 4: Medicam, Colgate, Pepsodent, Sensodyne
– Group 6: Brite, Surf Excel, Express, Bonus, Ariel
– Group 7: Olay, Garnier, Pond’s, Neutrogena

Chapter 3- slide 30
Brand Mantra Vs. Brand Positioning
Brand Mantra is also called brand essence, or brand promise
 Brand mantras are short 3 to 5 word phrases that capture the irrefutable
(convincing) essence or spirit of the brand.
Purpose of Brand Mantra:

 The purpose is to ensure that all employees within organization and
external marketing partners understand what brand most fundamentally is
to represent with customers. So that they can adjust their actions
accordingly.
Example:
 Do you know the Brand Mantra Disney Brand Mantra is
McDonald’s

Chapter 3- slide 31
Designing the Brand Mantra
Brand Mantra can be broken down into three

terms.
 Brand Functions
 The term brand functions describes the nature of the product or service
or
 the type of experiences or benefits the brand provides.
 Descriptive Modifier
 The descriptive modifier further clarifies the nature of the
brand/company.
 Emotional Modifier
 The emotional modifier describes how exactly does the brand provide
benefits, and in what way?

Chapter 3- slide 32
Brand Mantra (Examples)

Chapter 3- slide 33
Differentiation Strategies
Differentiation:
Differentiation is the act of designing a set of meaningful differences to distinguish the
company's offerings from that of the competitors.
Why differentiation is important?
Product Differentiation
Service Differentiation
People/Personnel Differentiation
Image Differentiation

Chapter 3- slide 34
Product Differentiation:
Brands can be differentiated on following parameters,
 Product Form (size, the shape, the physical structure of
the product)
Soap (Bar soap, Liquid Soap)
Product Features/Functions,
Attributes of a product (Camera in mobile phone)
Product Performance or
Working of the product
 Product Style and design.
 Product Durability
Product’s expected operated life
 Product Reliability
Indication of the consistency
Example: Apple position its

IOS and aesthetic design
and touch screen.
Example: DIAMOND
FOAM’s differentiation is
based on durability.
Example: HONDA’s
differentiation is based on
performance.
Chapter 3- slide 35
Service Differentiation:
Service:
Service refers to the intangible part in the purchase
process that satisfies the customers' needs and wants
Service brands can be differentiated on
Speedy delivery
Convenient or ordering ease
Customer training
Eye-tracking glasses (Tobii Pro)
Installations
Maintenance and repair or after sale service.
Example: McDonald’s differentiation is based on Convenient or

Ordering ease
Example: Domino’s differentiation is based on speedy

delivery.
Example: Dawlance differentiation is based on after sale service

Chapter 3- slide 36
Service Differentiation Parameters

Chapter 3- slide 37
Personnel Differentiation:
Companies can gain a strong competitive advantage through having
better-trained people.
Better-trained personnel exhibit six characteristics. They are:
Competence: It states whether the employee has the right skills to serve the
customer.
Courtesy: It is the quality of politeness of the employee shown towards the

customer (whether the employee is polite enough).
Credibility: It refers to the trustworthiness of employees.
Reliability: It is the quality of consistency and dependability of the employee.
Responsiveness: The quality of quick service
Communication: This shows whether the employee is able to communicate

the message and information clearly and adequately.

Chapter 3- slide 38
Personnel Differentiation:
Example:
Singapore airline enjoys an excellent
reputation, largely because of the grace of its
flight attendants.
Emirates airline are known for its courteous,

efficient and friendly flight attendants.
Disney people are known to be friendly.

Chapter 3- slide 39
Channel Differentiation:
The channel through which the product or the service that reaches
you. Or
A firm’s initiatives to distinguish itself from its competitors through its

choice of product distribution intermediaries. (Dell Computer).
Example: you want to buy a perfume, and if the perfume is available to

you online versus, you have to go five kilometers to buy the perfume.
So, which perfume you will prefer, or which channel you will prefer?
When the consumers are time-constrained and they're looking at more

convenience,
The channel has turned out to be one of the very significant differentiation
parameter.
Example
Amazon, eBay, Daraz, etc…

Chapter 3- slide 40
Image Differentiation:
The image here, refers to the image of an
offering, as perceived by the consumer.
How to build an image for a brand?

Marketers can use different communication media and
different communication tools to create an image for any
product or service.
Apple products are examples of image-based

differentiation.
What is image of a Apple brands?

High-end technology brands
Premium, customer-friendly,
and ethical brand
User-friendly search engine

Chapter 3- slide 41
Emotional Branding
Emotional Branding
Many marketing experts believe a brand positioning should have both rational
and emotional components.
The brand should contain points-of-difference and points-of-parity that appeal

to both the head and the heart.
Strong brands often seek to build on their performance advantages to strike an

emotional harmony with customers.
https://www.youtube.com/watch?v=gHGDN9-oFJE
https://www.youtube.com/watch?v=J-WcRAnEokk

Chapter 3- slide 42
Product Life Cycle
Product Life Cycle
 After launching the new product, management wants the product to
enjoy a long and happy life.
 Product Life Cycle is the course of a product’s sales and profit over
its lifetime.
 A company’s positioning and differentiation strategies must

change as the product, market and competitors change over the
product lifecycle.

Chapter 3- slide 43
Product Life Cycle
Introduction Stage:
 Also called product launch
 The product life cycle stage in which the new product

is first distributed and made available for purchase.
Characteristics Strategies

Chapter 3- slide 44
Product Life Cycle
Growth Stage:
 The product life cycle stage in
which a product sales start
climbing quickly.
Characteristics Marketing Strategies

Chapter 3- slide 45
Product Life Cycle
Maturity Stage: Maturity Stage Modifying
 The product life cycle stage in which sales Strategies
growth slows or level off (stay the same Market modifying
over a time). Product modifying
Marketing mix modifying

Chapter 3- slide 46
Product Life Cycle
Marketing Strategies for Maturity Stage:
 Market Modification
 Converting nonusers
 Entering new market segments
 Market Penetration
 Convince current users to increase usage by:
Using the product on more occasions
Using more of the product on each occasion
Using the product in new ways
 Product Modification

Chapter 3- slide 47
Product Life Cycle
Decline Stage:
 The product life cycle stage in which a product’s sales decline.
 Sales decline for many reasons including
 Technological advancement
 Shifts in consumer tastes, and
 Increased competition

Chapter 3- slide 48
Product Life Cycle
Marketing Strategies for Decline Stage
Carrying a weak product can be very costly to a firm. Therefore,

management has to decide whether
 Maintain the product

 Harvest the product (extract maximum profit from any remaining sales)
 Drop the product

Chapter 3- slide 49
Product Life-Cycle Strategies

Chapter 3- slide 50

Chapter 3- slide 51

Chapter 3- slide 52

Chapter 10 (Crafting Brand Positioning)

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What is positioning and how does it help guide marketing strategy?

What is positioning and how does it help guide marketing strategy?

What are some examples of how companies position their brands?

What are some examples of how companies position their brands?

Chapter 10

Crafting the Brand Positioning

Copyright © 2010 Pearson Education, Inc.

 Developing a Brand Positioning

 Understanding Positioning and Value Propositions

 Choosing a Competitive Frame of Reference

 Establish Brand Category Membership

 Establishing a Brand Positioning

 Identifying Potential Points-of-Difference and Points-of-Parity

 Choosing Specific POPs and PODs

 Differentiation Strategies (types)

 Product Life Cycle

Copyright © 2010 Pearson Education, Inc.

A good brand positioning helps guide a marketing strategy by clarifying :

Positioning Map or Perceptual Maps

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

– Fair & Lovely

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

In order to Position a Brand…

Who your main competitors are (Nature of competition)

How the brand is similar to your competitors (POP)

How the brand is different from your competitors (POD)

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

 Two types of PODs

Copyright © 2010 Pearson Education, Inc.

Guaranteed overnight delivery

Strong global presence (even in sanctioned  Overnight shipping within a country

Examples in the automobile market:

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

 Identifying the optimal POP and POD.

Copyright © 2010 Pearson Education, Inc.

1. Defining and communicating the competitive

First step of defining a competitive frame of reference for a brand

• LUX is a brand of beauty soap

• Brite is leading brand of Laundry Detergent

Copyright © 2010 Pearson Education, Inc.

Product Category Membership

 What is the goal of using following brands?

– Garnier Anti Aging Cream

– Head & Shoulders

Copyright © 2010 Pearson Education, Inc.

• Similarly, Dada Bhoy is a well known cement brand

Therefore, the Rule is

Copyright © 2010 Pearson Education, Inc.

How to establish Product Category Membership?

1. Communicating or Announcing category benefits

3. Relying on the Product descriptors

Copyright © 2010 Pearson Education, Inc.