Brand Positioning

Brand Positioning

It is act of designing the company’s offer & image so that it

occupies a distinct & valued place in the target customer’s
minds.
 Brand Positioning Guidelines

• Two key issues in arriving at the optimal competitive

brand positioning are:
– Defining and communicating the competitive frame of
reference

– Choosing and establishing points-of-parity and points-of-

difference
Determining a frame of reference

• What are the ideal points-of-parity and points-of-

difference brand associations vis-à-vis the
competition?
• Marketers need to know:
6
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 Points-of-Parity
and Points-of-Difference

• Points-of-difference (PODs) are attributes or benefits

that consumers strongly associate with a brand,
positively evaluate, and believe that they could not
 Differentiation Variables

• Product differentiation
• Services differentiation
 Product differentiation-Basis of
positioning
• Attribute positioning

• Benefit positioning
• Application positioning
• Competitor positioning
• Price/ performance positioning
 Attribute Positioning

The brand has a unique attribute which

must represents a competitive
advantage.
Fastest, oldest, etc.
It is usually a weak positioning as it does
not explain the benefit to the customer.
 Benefit positioning

The brand promises a benefit to

the customer.
This is very strong positioning
only if the brand can deliver
on its promise.
 Application positioning

• Brand promises to be the best

suited for a particular
application.
Competitor Positioning

The brand is positioned to be superior or

Price/Performance positioning

The brand promises a

higher level of benefit
for a given price.
 Services differentiation
• Ordering ease-how ease for the customer to place the order Ola
• Delivery(speed, accuracy by Zomato)
• Installation(work done to make the product operational in its planned location.ex-internet
connection)
• Customer training (training to customers employees to use the vendors equipment properly.
• Customer consulting(refers to data ,information systems & advice services)
• Maintenance and repair (HP-e support,www.hp.com)
• Miscellaneous services (rewards by coupanduniya)
 Personnel differentiation-
• Companies can gain strong competitive advantage through
having better trained people. Ex-Singapore airlines enjoys an
excellent reputation in large part because of its flight attendants).
• Competence (required skill & knowledge-IBM
• Courtesy (friendly, respectful-MCDONALDS
• Credibility (trustworthy
• Reliability (Consistent, accurate..
• Responsiveness (quickly
• Communication (clear communication)
Channel differentiation

• Direct
• Indirect
• Coverage, expertise, performance
 Image differentiation

• Buyers respond to company & brand image

• Identity (the ways that a co. aims to identify or position itself or
its product) & image (way the public perceives the co.)
Updating positioning over time

• Two valid strategies for updating positioning:

1. Laddering
 Laddering
• It is to deepen meaning of brand to tap
abstract considerations of customers.
• It is possible- once target mkt attains basic
undrstnding of the brand. (Maslow’s need
thry)
• Mean-end chains are the tools used:
• Attributes benefits values
• Flavored chips/strong taste eat
less/less calories/better figure
enhanced self esteem
 Reacting
• Competitors try to level POD as POP.
• Goodyear – Run flat tires; Michelin- zero
pressure tire.
• Three options exist:
1. Do Nothing – Brittannia’s competitors
2. Go on defensive- add some
reassurance in the product,
3. Go on offensive - launching product
extensions, junior Horlicks- Bournvita littl
champs
 Repositioning
• It is changing the position of a brand due to various
reasons.
• These reasons can be of 9 types:
1. Increasing relevance to consumer like Visa card did-

Word’s most Visa

Pay the way the power-go
world preferred
card(1993) get
does(1981) it(1995)
2. Increasing occasions for use as did by Monaco-perfect salted
to terrific with toppings.
3. Search for a viable position- like complan earlier was positioned
as
food for sick
Against horlicks
For family
For growing kids
4. Making the brand serious- like Saffola did
Earlier it was “good for heart” repositioned as “heart is not safe
without Saffola”
5. Falling sales: Red label- Piyo to jano-desh ka pyala-100%
strong- jiyo mere laal.
6. Bringing in new customers-J& J baby oil- for babies-babies and
their mothers.
Cadbury’s- sweat treat for kids-adults as well
7. Making the brand contemporary -Keo-Karpin hair oil- hair oil for
styling- non sticky hair oil.
8. Differentiating brands from competitors- Mint-o – adult candy-
all mint no whole.
9. Changed market conditions- milkmaid as whitener for tea-
repositioned as use in desert recipes.