Brand Positioning

Transcript

1. Brand Positioning
2. Brand/ Company Competition Stakeholders Customers Marketplace BRAND STRATEGY Brand Portfolio and Architecture Brand Identity/Essence Brand Positioning INTEGRATED BRAND EXPERIENCE Brand Design Brand Communication BRAND IMAGE Customer Behaviour BUSINESS RESULTS (Profit and Share) Managing Brands Over Time BRAND EQUITY BRAND VALUATION
3. Classic Definition The process by which a firm markets its product offering to occupy a distinct place in the target consumer’s mind. (Al Ries and Jack Trout, 2001)
4. Value Against Competition
11. Approach to Positioning in growing markets Step 1: Identify your target segment Step 2: Understand your target segment Step 3: Identify your differentiators Step 4: Identify your value proposition (against competition)
12. Mature Markets Tremendous product proliferation Micro-segmentation There is less opportunity to differentiate Customer differentiation becomes subtle Segments become fluid and overlapping Segment behavior tends to become more dependent on psychographics Messy and Confused Markets
13. Alternate Positioning Methods
14. Iconic Positioning Create a fictitious target segment and market to them Insight: Cater to the side of human beings that is either illusionary, extreme persona, or hidden desires that can’t be exercised on a normal day. Customers are attracted to myth/ fantasy. Goal: to create a compelling relationship between consumer and the brand Execution: use iconic target segment to be the magnet for customers. (real customers may not bear any resemblance to the fictitious iconic segment) eg. The mythological biker outlaw- Harley Davidson The American Cowboy: Marlbaro
15. Pushing the target segment for unique positioning Demographic Aspirational Iconic psychographic characteristic is less accessible; the iconic imagery becomes more farfetched/mythological; more suspension of disbelief is required; the marketing of the illusion must be uncontaminated.
16. Mature Markets Basic Produc t Augmented Product Basic Product Augmented Product Time 1 Time 2 Mature Markets
17. Consequences Brands at the top: Keep adding to dimensions of ‘augmented services’. Attract the most attractive and less price-sensitive customers Brands at the bottom: Low-cost, low-margin, high-volume players. Attract the least attractive customer. Customer Satisfaction Treadmill: value propositioning keeps going up, but the satisfaction does not go up.
18. Reverse Positioning Basic Attribute s Augmented Attributes Strip away expected elements of the value proposition Supplement with carefully selected high-end attributes
19. Defies expectations Limited variety Self-service philosophy No delivery, no assembly No promise of durability Exceeds expectations Daycare center Delightful café Housewares Euro-flavored retailtainment
20. Breakaway Positioning Firm breaks away from the organic category by associating its product with a different category. Breakaway from old consumption habit Breakaway from the competition set POPs of organic may become POD in the new category Eg. Swatch, Pull-up Diapers
21. Nebula • A piece of jewelry Sold in jewelry stores Repaired by jewelers Priced like jewelry • Quality defined in a specific way Performance: how accurately it kept time Quality of the materials: precious metals, precious stones Titan Raga • An accessory Product-line management (huge variety, nonrepeating and rotating seasonality) Retail plan (shop-in-shops, monobrand boutiques) Promotional plan (buzz-building tactics) Pricing (variety and design based)
22. Breakaway Positioning Results Change in purchase patterns Change in consumption patterns Change in the composition of the customer base Change in perception of quality Transformation of the category Firm breaks away from category The category “stretches” to include a new subcategory.
23. Conceals or disguises the true nature of a product by affiliating it with another category Tough category to market Works best for breakthrough technologies • Challenges First-generation product tends to be imperfect. Early market feedback is critical. Consumer behavior is unpredictable. Stealth Positioning
24. Sony Cannot solve engineering problem. Realized that first-generation product would be imperfect. Turned engineering problem into a marketing problem. How do you build enthusiastic demand for a crummy product? Disguised robot as pet: AIBO. Limited edition sales 800,000 sold $2,500 to $1,500 It has no functional use For people who don’t want the inconvenience of a real pet
25. Stealth Positioning: Robots Robots Pets Threatening, scary Nonthreatening, friendly Cold, impersonal Warm, affectionate Intimidating, difficult to use, requires expertise Simple; requires no expertise We expect them to be smart. Can be stupid and we love them anyway
26. Stealth Positioning: Robots
28. Conventional Positioning Approach Alternative Positioning Approach Trying to meet the expectations consumers are bringing to the product Trying to influence the expectations consumers bring to the product Positioning within existing category boundaries Positioning outside of category boundaries Trying to achieve competitive advantage through quality superiority within the category Trying to achieve competitive advantage by avoiding the category’s quality standards Copyright: Harvard Business School Brand Positioning, Professor Youngme E. Moon Harvard Business School
29. Value Against Competition- Distinctive, Relevant and Persuasive Conventional Positioning- identify PODs in the organic category based on rules learnt in year 1 Mature Category Positioning- Iconic, Breakaway, Reverse and Stealth KEY LEARNINGS