Dr.

Mukul Kumar Shrivastava

 Syllabus
Developing a Brand Strategy
•Customer based brand equity

•Identifying and establishing brand positioning

•Positioning guidelines:
• Defining and Communicating the Competitive Frame of Reference
• Choosing Points-of-Difference,
• Establishing Points-of-Parity and Points-of-Difference,
• Updating positioning over time.
Case study- Positioning of Brand-
Real Me (Indian Smart Tv market-A case of Real Me entry)
Dr. Mukul Kumar Shrivastava
Brand equity…. CBBE….
Creating a strong brand

Dr. Mukul Kumar Shrivastava

New Concept of Brand Equity
There is also agreement about - Branding is about
creating differences
• Differences in outcome - arise from ‘added value’
endowed to a product as a result of past marketing
activities for the brand
• This value can be created for a brand in many ways
• Brand value can be exploited to benefit of the firm in
many different ways
• BE provides the common denominator for interpreting
marketing strategies and assessing the value of the
brand

Dr. Mukul Kumar Shrivastava

 Customer Based Brand
Equity
Customer-based brand equity (CBBE) is used to show
how a brand's success can be directly attributed to
customers' attitudes towards that brand.

Customer-based brand equity (CBBE) is used to show

how a brand’s success can be directly attributed to
customers’ attitudes towards that brand.

The best-known CBBE model is the Keller Model,

devised by Professor of Marketing Kevin Lane Keller
AND Aaker Model,
Dr. Mukul Kumar Shrivastava
Keller Model

Dr. Mukul Kumar Shrivastava

 Keller’s Customer Based Brand Equity
Model
Consumer Based Brand Equity is the differential effect that
brand knowledge has on consumer response to the
marketing of that brand.

The CBBE Model looks at building a brand as a sequence of

steps, each of which depends on successfully achieving the
objectives of the previous one.

From the perspective of the CBBE model, brand knowledge

is the key to creating brand equity.

Brand knowledge has two components (Sources of BE):

Brand awareness
Brand image Dr. Mukul Kumar Shrivastava
 Keller Model
• Level 1: Brand identity (who are you?): This is how
customers look at your brand and distinguish it from others.

• Level 2: Brand meaning (what are you?): When customers

become aware of your brand, they’ll want to know more
about it. Brand meaning and is divided into two:
Brand performance: when a brand ‘does what it says’
and performs well over time, it will be loved and trusted
(e.g. Miele, Apple, Microsoft, Virgin)
 Brand imagery: what does the brand appear to be to
customers? Land Rover must appear rugged, but
Kleenex must appear soft, and this messaging must
come out in targeted marketing
Dr. Mukul Kumar Shrivastava
 Keller Model
• Level 3: Brand response (what are the feelings for the
brand?): Once a customer has bought the brand, does it
live up to the hype and expectation for them? If they love
the product, they have feelings for it, and they’ll tell
friends, family and social media to buy one.

• Level 4: Brand resonance (that strong relationship):

When a customer loves a brand so much they would not
consider buying another one, feels a relationship with it
and a connection with other buyers, they are that very
rare and precious thing: a brand advocate.

Dr. Mukul Kumar Shrivastava

 Aaker’s Brand Equity model
• David Aaker defines BRAND EQUITY as the set of brand assets
and liabilities linked to the brand, its name and symbols, that add
value to a product, brand or service.

• Keller brand equity model focuses largely on emotions, Professor

David Aaker says it’s much simpler than that: it’s all about
recognition.

• Aaker identifies five brand equity components (assets):

(1) brand loyalty,
(2) brand awareness,
(3) perceived quality,
(4) brand associations and
(5) Other proprietary assets.
Dr. Mukul Kumar Shrivastava
Aaker Model

Dr. Mukul Kumar Shrivastava

 Aaker Model
Aaker says that there are five components of controlling brand
equity:

•Brand awareness: how known is the brand to the public? Like the Keller
model, this is the starting point of building brand equity.
•Brand loyalty: how loyal are people to the brand? Loyalty is hard for
competitors to copy, so it gives a brand time to respond to competition.
•Perceived quality: is the brand known or expected to deliver good quality
products? Quality above features will give a product the edge with consumers –
for a while, until they begin to demand the features.
•Brand associations: what do people feel when they see the brand? The
cognitive, split-second reaction to seeing the brand on adverts, during the
buying process, the ‘feel-good factor’, the number of available brand extensions
and differentiations.
•Patents, IP and trading partners: brands with higher accumulated
Dr. Mukul Kumar Shrivastava
 Strategic Brand Management

• Strategic brand management involves the

design and implementation of programs and activities to
build, measure, and manage brand equity.

• The Strategic brand management process is

defined as involving four main steps:
1) Identifying and establishing brand positioning
2) Planning and implementing brand marketing
programs to
build brand equity – Brand elements, integrate mktg actions
3) Measuring and interpreting brand performance –
Brand audits, Brand tracking
4) Growing and sustaining brand equity – Brand
expansion, Brand re-inforcement, Revitalisation.

Dr. Mukul Kumar Shrivastava

 BRAND
POSITIONING
Brand positioning refers to the unique value that a brand
presents to its customer.

It is a marketing strategy brands create to establish their brand

identity while conveying their value proposition, which is the
reason why a customer would prefer their brand over others.
Dr. Mukul Kumar Shrivastava
 BRAND
POSITIONING

Dr. Mukul Kumar Shrivastava

Identifying and establishing brand positioning

As per Kotler,
Brand Positioning is the Act of designing the
company’s offer and image so that it occupies a
distinct and valued place in the target customer’s mind
such that the potential benefit of the firm is maximized.

Brand positioning is at the heart of marketing strategy.

Deciding on the positioning requires

1. Defining the competitive frame of reference by identifying the
target market and nature of competition, and

2. Choosing and Establishing appropriate Points of Parity (PoP)

and Points of Differences(PoD).

Dr. Mukul Kumar Shrivastava

Identifying and establishing brand positioning

In other words, marketers need to know:

a) Who the target customer is?

b) Who the main competitors are?

c) How the brand is similar to these competitors?

d) How the brand is different from them?

Dr. Mukul Kumar Shrivastava

 Competitive Frame of Reference
The competitive frame of reference is a way of describing
the market in which you choose to compete and position
your brand.
•The competitive frame of reference provides the context for positioning.

•If you run a furniture store, your competitive frame of reference would
probably be the furniture market……. Not with Beauty parlours
•Products are often organized in a hierarchy, meaning that marketers can
define competition at different product levels.

So the target and the competitive frame of reference chosen

will dictate the breadth of brand awareness and brand
associations.
Dr. Mukul Kumar Shrivastava
 Starbucks - Competitive Frame of
Reference
• What market do you think Starbucks is in? The coffee market? …In
the coffee market, Starbucks competes with some fast food
restaurants and other coffee shops

NO………Not simply coffee shops…

• In addition to competing in the coffee market, Starbucks is

competing to be your “third place.” The third place is the other
place you want to hang out besides your first place (your home)
and your second place (your work).

Dr. Mukul Kumar Shrivastava

 Points-of-Parity and Points-of-
Difference
Once marketers have fixed the appropriate competitive frame of
reference for positioning by defining the target customers and
nature of competition, they can define the basis of the positioning
itself.

•Points-of-parity (POPs): PoP are not necessarily unique to the brand but
may in fact be shared with other brands.

•Points-of-difference (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.

Dr. Mukul Kumar Shrivastava

 Choosing POD’s
• Desirability criteria (consumer perspective)
• Personally relevant
• Distinctive and superior
• Believable and credible – Mountain Dew argue its more energising
than others…..Supports claim as it has higher caffiene.

• Deliverability criteria (firm perspective)

• Feasible – can the firm create the POD.
• Profitable
• Sustainable (Pre-emptive, defensible, and difficult to attack)

Dr. Mukul Kumar Shrivastava

 Selecting differences
Each firm must differentiate it’s offer by building a competitive
advantage that appeal to a substantial customers within the target
segment.

A company can differentiate along the following dimensions (Taken

one or more at a time):
• Product – Features, performance, package form, ingredients, style & design,
• Service–Order processing, installation, maintenance & repair, customer training
• Personnel – Competence, responsiveness, Communicative & understanding,
• Channel – Distribution channel coverage, expertise and performance.
• Image – This differentiation is the outcome of customer experiences – how
people perceive the brand or the company.

Dr. Mukul Kumar Shrivastava

 Selecting differences
A firm must decide on how many differences to promote and which ones to build a
competitive advantage.

How many differences to promote?

It is better to aggressively promote one difference, but more than one difference is
promoted when two or more firms are promoting the same difference

Which differences to promote?

Important to customers – The difference must deliver a highly valued benefit
Distinctive – Competitors do not offer the difference.
Superior – The difference selected is superior to others.
Communicable – The difference is communicable and visible to customers.
Preemptive – Competitors can’t copy the difference easily.
Affordable – Buyers can afford to pay for the difference.
Profitable – The company can introduce the difference profitably.

Dr. Mukul Kumar Shrivastava

 Positioning dimensions

Positioning by
• Product attributes
• User category
• Usage occasions
• Against Competitors
• Against product category

• COMBINATION OF THE ABOVE

Dr. Mukul Kumar Shrivastava

 Positioning Guidelines

Positioning by
• Product attributes
• User category
• Usage occasions
• Against Competitors
• Against product category

• COMBINATION OF THE ABOVE

Dr. Mukul Kumar Shrivastava

 Updating positioning over time
The best positioning statements are those that resonate over time — they don't
have to be changed often, unless the consumer’s perception shifts altogether.

Updating positioning raises two main issues:

1)The first is how to deepen the meaning of the brand to tap into core brand
associations or other, more abstract considerations- LADDERING.
2)The second is how to respond to competitive challenges that threaten an
existing positioning – REACTING.

Laddering : Although identifying PODs to dominate competition on benefits

that are important to consumers provides a sound way to build an initial
position. It is often useful to explore underlying consumer motivations in a
product category to uncover the relevant associations.

REACTING: Reacting says, How to respond to competitive challenges that

threaten an existing positioning.
1) Do nothing
2) Go on the defensive
3) Go on the offensive
Dr. Mukul Kumar Shrivastava
 Updating positioning over time

The previous section described some positioning

guidelines that are especially useful for launching a
new brand. With established brands, competitive
forces often dictate shifts in positioning strategy over
time.
Example : The credit card wars – Visa and American Express
In 1990’s , visa’s POD in the credit card category was that it was the most
widely available card, which underscored the category’s main benefit of
convenience. American Express, on the other hand , had built the equity of
its brand by highlighting the prestige associated with the use of its card .
Having established their POD, Visa and American Express then completed by
attempting to blunt each other’s advantage to create POPs .

Dr. Mukul Kumar Shrivastava

 Updating positioning over time
Marketers have also identified the importance of higher level
needs. For example , means –ends chains have been devised as
a way of understanding higher-level meanings of brand
characteristics. Laddering thus progresses from attributes to
benefits to more abstract values or motivations. In effect ,
laddering repeatedly asks what the implication of an attribute or
benefit is for the consumer. Failure to move up the ladder may
reduce the strategic alternatives available to the brand.

For example, P & G introduced low- scudding Dash Detergent to

attract consumers who used front loading washing machines.
Many years of advertising Dash in this manner made this
position impenetrable by other brands. Dash was so associated
with front-loaders, however , that when this type of machine
went out of fashion, so did Dash despite the fact that it was
among P & G’s most effective detergents, and despite significant
efforts to reposition the brand.
Dr. Mukul Kumar Shrivastava
 Sources of Brand
Equity
Brand awareness - Consumer’s ability to identify the
brand under different conditions.

- It consists of Brand recognition and Brand recall

Brand image – Consumer’s perceptions about a brand

reflected by the brand associations held in a consumer
memory.

Dr. Mukul Kumar Shrivastava

 Four Steps Of Brand
Building
CBBE Model looks at building a brand as a sequence of steps
1) Ensure identification of the brand with customers and an
association of the brand in customers’ minds with a specific
product class or customer need. (IDENTITY - WHO R U?)

2) Firmly establish the totality of brand meaning in the minds of

customers by strategically linking a host of tangible and
intangible brand associations with certain properties. (MEANING
- WHAT R U?)

3) Elicit the proper customer responses to this brand identification

and brand meaning. (RESPONSE - WHAT ABOUT?)

4) Convert brand response to create an intense, active loyalty

relationship between customers and the brand. (RELATIONSHIPS
- WHAT ABOUT U & ME?) Dr. Mukul Kumar Shrivastava
Miscellaneous Reading
Material

Dr. Mukul Kumar Shrivastava

 Brand salience
Brand awareness in terms of How often & how easily, customers think
of the brand under various purchase or consumption situations.

How likely it is for a brand element to come to mind, and the ease
with which it does so.

The range of purchase and usage situations in which the brand

element comes to customer’s mind.
•Examples
• Tropicana-Orange juice
• Coca cola

Dr. Mukul Kumar Shrivastava

 Brand Performance
• Brand performance Describes how well the product or service satisfies
customer’s functional needs.
It is at the heart of Brand equity.

• The Attributes & benefits that underlie brand performance are:

• Primary ingredients & supplementary features - Complan
• Product reliability, durability & serviceability – Woodland shoes
• Service effectiveness, efficiency & empathy
• Style & design
• Price
• Example
• Volkswagen: German engineering

Dr. Mukul Kumar Shrivastava

 Brand Imagery
The way customers think of about a brand abstractly rather than what
they think the brand actually does.
It is the intangible aspects of the brand and is formed directly from
their own experience or indirectly through advertising or by some other
source of information.

Many types of intangibles can be linked to a brand:

 User profiles – Bata shoes are for old person, Saffola oil – For
heart patient
 Purchase and usage situation – Purchase time (Chawan
Prash –Winter), location (Agra pethha), context of purchase
(Cadbury – Happy moments)
 Personality – Sincerity (Infosys), Fun/Excitement, Ruggedness
(Thums Up), Mountain Dew (Adventurous personality)
 History, heritage and experiences
•BMW: Affluent, Dove: Feminine, Pepsi: Youth
•Mountain Dew: Adventure
Dr. Mukul Kumar Shrivastava
 Brand judgment
• Brand judgments are Customer’s personal opinion about the brand,
formed on the basis of brand performance & imagery
• Main types of brand judgments are
• Judgments about Quality – Value, Satisfaction (e.g. Oberoi hotels)
• Judgments about Trust/Credibility (e.g. Wall street journal)
• Judgments about Relevance/Consideration (e.g. Motorola ‘iridium’)
• Judgments about Superiority/Differentiation (e.g. Intel, google etc.)

Dr. Mukul Kumar Shrivastava

 Brand Feelings
Brand Feelings are customer’s emotional responses
and reactions to the brand.

Six important types of brand building feelings are:

Security (LIC)
Social approval (Mercedes)
Self-respect (Tide laundry detergent)
Excitement (MTV roadies)
Warmth (Hall mark)
Fun (Disney)
Dr. Mukul Kumar Shrivastava
 Case Study
Positioning of Brand- RealMe

(Indian Smart Tv market-

A case of RealMe entry)
Dr. Mukul Kumar Shrivastava
Dr. Mukul Kumar Shrivastava