2 Contents Concept of brand positioning Brand values Brand positioning statementCrafting the positioning strategyGuiding principles for positioningRepositioning
3 IntroductionOrganizations 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.
4 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 thatfirst the brand needs to be distinguished or distinct from other brands in the market andsecond 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.
5 Importance of Positioning Positioning is how the brand is unique and relevant for consumersIt 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.
6 Brand valuesA 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
7 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’
8 Positioning statement (contd.) 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. “
9 Positioning Strategy Selecting the strategy SITUATIONAL ANALYSIS SegmentationConsumer basedBuying situation basedTARGETINGEvaluate market segmentSelect Market segmentPositioningStrategyIdentification of brand benefitsCHANGING CONSUMER TRENDSSITUATIONAL ANALYSISInternal corporate analysisCurrent positioning (if repositioning)External market analysisCOMPETITOR ANALYSISAnalysis for differentiation possibilities of the brand imagePOPPODSelecting the strategy
10 Guiding principles for positioning ProductOn basis of tangible attributesProduct form, product ingredients, product attributes, product characteristics and customer benefits, product use, product classOn basis of intangible attributesPrice qualitySymbolsCompetitionPersonnelEmployeesProduct userDemographics
11 Guiding principles for positioning ChannelImageCustomer care and serviceCorporate identityPositioning by brand endorsementPositioning related to specific category of customersUsage occasion and timeCorporate social responsibility
12 Repositioning strategies Changing demographic trends and lifestylesThe young Indian consumerRising household incomeSpending habits and brand behaviourRise of the Indian women as a consumerChanging consumer expectationsChanging lifestyleRegional differences