1. CHAPTER 11 Crafting the Brand Positioning

2. In this chapter I will teach you the following parameters 1.Understanding what is meant by brand positioning 2.Understanding Point of Difference and Point of Parity. 3.Understanding Differentiation Strategies. 4.Understanding Brand Mantra 2

3. What is meant by Brand Positioning? Positioning is the act of establishing the brand’s superior value or benefit in the minds of the consumers. In other words, the positioning of a brand provides consumers a compelling reason to make a purchase. 3

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8. Establishing Point of Difference Associations Points of difference (PODs) associations are the attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand. Creating strong, favorable and unique associations is a real challenge, but an essential one for brand positioning. 8

9. Establishing Point of Difference Associations A POD association must possess three characteristics: Desirability to consumer: consumers must see the brand association as personally relevant to them. Deliverability by the company: company should have the internal resources to provide the POD effectively to the consumers. Differentiating from the competitors: consumers must see the brand association as distinctive and superior to the other competitors. 9

10. Establishing Point of Parity Associations Points of Parity (POPs) associations are the attribute or benefit associations that are not necessarily unique to the brand but may in fact be shared with other brands. These type of associations come in two basic forms: Category point of parity: represents the benefits a company or a brand belonging to a category MUST possess. Example 1: a Bank becomes truly a bank only when it provides safety deposit boxes, travelers' checks, online banking and so on. Example 2: Xpel aerosol should be able to kill mosquitoes. Example 3: shampoos in Bangladesh should provide silky hair. Competitive point of parity: are those associations/benefits designed to neutralize competitor’s point of difference. Example? 3G. 10

11. Developing a Positioning Statement A statement that summarizes a company’s or brand’s positioning. To (target segment and need) our (brand) is (concept) that (point of difference). “To consumers belonging to the socio economic class D and E in Bangladesh who need a oral care solution, Magic is a toothpowder which removes bad breathe” 11

12. Differentiation Strategies Employee Differentiation: a company can have better trained employees who provide superior customer service. Example 1: Singapore airlines is well regarded in large part because of its flight attendants. Example 2: Pharmaceutical companies lay great emphasis on training their medical representatives to improve credibility with doctors. 12

13. Differentiation Strategies Channel Differentiation: a company can more effectively and efficiently design their distribution channel’s coverage, expertise and performance better to make buying the product easier. Example 1: PageMark online book shop. Example 2: Tesco distribution coverage in UK. Example 3: Foodpanda’s distribution expertise – speedy and reliable. 13

14. Differentiation Strategies Image Differentiation: Companies can craft powerful emotional and compelling brand images that appeal to consumer’s social and psychological needs. Example: Harley Davidson. 14

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16. Louis Vuitton Image Differentiation 16 Question 1: What is the image differentiation of the brand? How did the brand achieve such a differentiation? Question 2: Do you feel that the brand possesses product differentiation as well? How? Question 3: Do you feel that there is a relationship between image differentiation and price? How?

17. Differentiation Strategies Service Differentiation: A service company can differentiate itself by designing an effective and efficient service system. Furthermore service empathy can also be source of differentiation. Example 1: Lexus after sales service delights consumers and enhances their loyalty. Example 2: Indian visa service system. Example 3: Banks can enhance their service system in Bangladesh. Example of service empathy: Doctors in the UK calling the patient just to see if the patient is feeling okay. 17

18. Differentiation Strategies Product Differentiation: can be achieved through three means which are Product style Product quality Product attributes 18

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20. Differentiation Strategies must be… 20 ImportantDistinctiveSuperior CommunicablePreemptiveAffordable Profitable

21. Possible Value Propositions 21

22. Possible Value Propositions More for more value proposition involves providing the most upscale product or service and charging a higher price to cover the high cost. Example: Rolex watches, BMW. More for the same value proposition involves attacking the competitor’s more for more value proposition by introducing a brand offering comparable quality but at a moderate price. Example: Lexus vs BMW and Mercedez. 22

23. Possible Value Propositions The same for less value proposition involves providing good quality products but at a less price. Companies usually follow the EDLP strategy. Example: Big Bazaar, and Wal Mart. Less for much less value proposition signifies providing less benefits and asking consumers for less money. For example: Easy Jet airlines. More for less value proposition signifies providing a lot of benefits to the consumers but charging low prices. Example: TATA Manza. 23

24. Brand Mantra Brand function (what?) describes the nature of the product/service or the type of experience or benefits the brand provides. descriptive modifier (whom?) clarifies the core target customers. Emotional modifier (how?) how exactly the brand provides the benefits and in what ways? 24

25. Brand Mantra Rolex “Classic design, affluent consumers, Timeless status (watches)”. the brand mantra gives you the direction of new product launches. Kool “quality, young men, get noticed (men’s grooming)”. 25