BRAND MANAGMENT
LESSON 23:
BRAND POSITIONING STRATEGIES
Topics Covered
Components of positioning, Consumer segmentation,
Perceptual mapping, Brand benefits and attributes, Advertising
and Branding, Repositioning, Role of agencies in Branding,
Differential Advantage and Positioning strategies, Brand
Architecture.
Objectives
The learning objective: after this lecture you should be able to
understand:
a. Brand positioning: Its meaning and scope and importance
b. Brand Positioning Strategies and how it works
After studying Service Brands and Retail Branding let us now
discuss Brand Positioning. I’m sure by now you must be
having some idea about what positioning is. You must have
also studied it in Marketing course. Let us discuss brand
positioning in detail.
Introuction
The famous ‘5 p’s’ of marketing folklore (product, place, price,
promotion & packaging) were fine tools for implementing
packaged goods brand positionings - and the basic formula still
has its role in FMCG assignments. But today we are entering
the era of customer brands where ‘company’ and ‘brand’ are
one and the same. In this scenario the company culture &
values become a crucial factor in the solution: finding and
harnessing what’s there already or setting out to create values
and practices which support and manifest the positioning.
Why is Defining the Positioning So Important?
Running a brand is like conducting an orchestra. Positioning is
the heart of competitive strategy. The messages transmitted by
everything from the advertising to phone calls with your
customer care department all need to be kept in harmony and
on-brief. Without a clear, single-minded definition of what the
brand is about the messages rapidly become discordant and
confusing. The positioning statement is therefore a focusing
device which helps brand management to keep everything sharp
and relevant.
Identifying where a specific brand is placed within the market-
place and its relationship to competitive brands, brand
positioning is determined by defining the brand’s benefits to
the consumer, opportunities for which the brand is best suited,
the brand’s target audience, and who its main competitors are.
or us to achieve the benefits of brand positioning, it is necessary
to research in-depth the market position (or lack thereof) of the
brand. Brand maps and forms are created to profile the brand
positioning, comparing the results with competitive brands.
In realizing the benefits of brand positioning, it is important to
understand that not all brands are competitors. A consumer
may be presented with six brands of one product and only
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consider three out of the six as a purchasing choice. The
consumer may have encountered a negative experience with a
specific brand and may never consider purchasing it again, or
there may be a brand that simply does not stand out to the
consumer and it is passed up.
Position Or Perish!!!
Have you ever thought what makes Kelloggs different from
Maggi. The difference lies in positioning. Let us see how this
magical concept plays a major role in making any brand a success
or God forbid a failure!!!
The concept of positioning was introduced by Al Ries and Jack
Trout in 1969 and was elaborated in 1972.
To understand the concept of positioning we can consider the
human mind as consisting of a perceptual map with various
brands occupying different positions in it. This concept of
perceptual space forms the theoretical basis for brand position-
ing. What this leads to is the perception of the consumer, which
decides the positioning of any brand. It is important to note
that what a marketer does is to find a position for its brand in
the perceptual space of the consumer and place it at the most
lucrative point. Hence, Positioning is not what you do to the
product, it is what you do to the mind of the prospect. It is a
new approach to communication and has changed the nature of
advertising. It can be of a product, service, company or oneself.
The perception of a consumer is a function of consumer’s
values, beliefs, needs, experience and environment. Thus as per
Subroto Sengupta “the core thought behind brand positioning
-the idea that each brand (if at all noticed) occupies a particular
point or space in the individual’s mind, a point which is
determined by that consumer’s perception of the brand in
question and in its relation to other brands”.
Thus, in the perceptual map, the spatial distance between the
points on which brands are located reflects the subject’s
perception of similarity or dissimilarity between products or
brands.
The basic approach of positioning is not to create something
new and different but to manipulate what’s already up there in
the mind, to retie the connections that already exist. In commu-
nication, as in architecture, less is more. The only answer to the
problems of an over communicated society is positioning.
Positioning is an organized system for finding a window in the
mind.
The easy way to get into a person’s mind is to be first in a
particular category. If you are not the first then you have a
positioning problem.
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The origin of positioning comes from two preceding
phases:
The product era: - The product features and customer benefits
were of importance. With technology being easily available, the
product was no longer the Unique Selling Proposition.
The image era: - In this phase the reputation and image of the
company became more important than the product. But the
similar companies sprung up and this advantage was no longer
a distinct one.
The positioning era: - To succeed in today’s over communi-
cated society a company must create a position in the prospect’s
mind, a position takes into consideration not only the compa-
nies own strengths and weakness, but those of competitors as
well. In the positioning era as stated earlier, you must be the
first to get into the prospect’s mind.
The ladders in the mind: - In a particular category, people have
learned to rank the products and brands in the minds e.g. In
soft drinks, we generally have Coke followed by Pepsi followed
by Thumsup. Thus if a new soft drink is to be introduced, the
company must decide upon the way it will position itself viz.
the product ladder position.
Positioning a company:- You can also apply Positioning to an
organisation in general. The companies who have a high
position in the minds of the prospect i.e. the students mind
absorb the cream of the crop from institutes. Similarly compa-
nies visit only those campus who have a high position in the
mind of the company (the company becomes the prospect in
this case.)
The whole concept now boils down to creating a perception for
your brand in the prospect’s mind so that your brand stands
apart from the competing brands and provides the consumer
with what he wants.
Thus speaking comprehensively, positioning is a function of
1. Perception it brings about in the mind of target consumer.
2. Functional and non-functional benefits associated with the
product.
3. Perception of the competing brands held by the target
consumer.
Now let us see an example of how company studies the market
left, right and centre before introducing a brand. Maggi noodles
define the strategy, which clearly shows how far can positioning
help in making a brand a success. The brand was introduced in
Delhi in 1983. The brand was a big success. Annual target for
that market was increased from 50 to 600 tons and it was no
less than a battle for Nestle.
What Did Maggi Do?
The market results show it found a
vacant, strong position and sat on it as
“good to eat, fast to cook” anytime
snack. On the other hand Kelloggs
positioned itself as a nutritional
breakfast only. Today no one even
thinks of taking Kelloggs corn flakes in
the evening.
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7-Up also exhibits the importance of positioning in the success
BRAND MANAGMENT
of a brand. Originally considered as a mixer for hard drinks, it
was later positioned as an Un-Cola soft drink. The result was
that it became the third largest soft drink after Coke and Pepsi.
As Trout and Ries say
“You will not find an un-cola idea inside a 7-Up can. You find it
inside the cola drinker’s head.”
Aaker considers positioning so central and critical that it should
be considered at the level of the mission statement representing
the essence of the business.
Robin liquid also exhibits the criticality of positioning. The
brand facing stiff competition from Ujala today made a
comeback after detergent powders took Blues for a ride with
their arrival. For the manufacturer what make it special are
attributes such as “flourescer” and “ultramarine” but for a
housewife what matters is that “washing powders take away the
dirt but Robin liquid gives clothes that extra coat of white”.
So this is how we get going-
We plot not only consumer perceptions but also preferences of
a given consumer segment in a particular category or product
market. Consumers express such preferences in terms of the
benefits, whether they are getting the benefit, if it is important-
to what extent, are they missing something. These are what we
call IDEAL POINTS on a perceptual map.
Thus this gives us the idea as to how close we are to where we
should be, that is, the position of our brand on the perceptual
map vis-à-vis the ideal points. The next implication of the
mapping is that it earmarks the vacant spaces on the perceptual
map, which are nothing, but opportunities which can be
exploited for positioning. Thus identify the gaps which new or
repositioned products can fill by offering what current products
do not provide. This gives us the skeleton for making the
strategy for future.
Thus positioning is both difficult as well as simple because as
Al Ries and Jack Trout say” Most positioning programs are
nothing more or less than a search for the obvious”.
So position well —IT CAN CROWN OR DROWN YOUR
BRAND
Source: By Amar T and Vikram J of JBIMS
Prospecting for Positionings
In marketing the consumer is king - but the idea that consumers alone should
dictate brand positioning has always been
an over-simplification! Customer feedback via research is vital - but to this has to
be added analysis of the company
and its inherent capabilities, plus an sharp understanding of the competitors already
in the market - their strengths and
weak spots
Positioning key points:
Ø It is a strategic, not a tactical, activity
Ø It is aimed at developing a strategic, sustainable competitive advantage
Ø It is concerned with managing perceptions
Ø Brand image and reputation are the result of the positioning process
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What makes a great brand
A Great Brand Invents or Reinvents an Entire Category - The common
goal you find among brands like Disney, Apple, Nike, Taj Mahal Tea, Brooke
Bond Coffee, Pepsodent toothpaste and TVS Victor, is that these companies
made it an explicit goal to be the protagonists for each of thei r entire
categories. Disney is the protagonist for fun family entertainment and family
values. Apple was the protagonist for the individual: anyone could be more
productive, informed, and contemporary. In these cases, the brand transcends
movies or computers. A great brand raises the bar-- it adds a greater sense of
purpose to the product or service experience.
A Great Brand Taps Into Emotion - Everyone wants their product or service
to be the best in its class. But the common ground among companies that have
built great brands is not just performance. They recognize that consumers live
in an emotional world. Emotions drive most, if not all, of our decisions. Not
many people sit around talking about the flow of language in a contract, but
they will sit around and talk about Michael Jordan's winning shot in a playoff
game. That’s what a great brand does. It reaches out with a powerful
connecting experience Case Study
Done right, branding becomes the centerpiece of a strategic
marketing plan. This allows the firm to weave the brand essence
into all facets of a marketing program including internal
communication, external communication, training, technology,
advertising, public relations, responses to proposals and
competitions, and all collateral materials. Let’s face it- branding...
it’s not just for cows anymore!
What makes a great brand
A Great Brand Is a Story That is Not Completely Told - A brand is a story that's
evolving all the time.
Great Brand Has Design Consistency - This, of course, is obvious. That
great design can bring a brand to life goes without saying.
A Great Brand is Relevant - A brand is not trendy. Trendy things fail over time.
The larger idea for a brand is to be relevant. It meets what people want; it performs
the way people want it to. For law firms, that means being in touch with clients and
constantly understanding their changing needs
Every firm that decides to move ahead with a branding process wi ll find the
process that works best for it. Different marketing folks will h ave different
methods. Great brands have several characteristics in common.
Scott Bedbury, best known for creating Nikes' "Just Do It" campaign and now
a Senior VP at Starbucks, has identified eight characteristics of a great brand.
If your firm is considering creating its brand, these characteristics can serve as
a guide. Because whether your brand is sneakers or coffee, your unique
essence makes it happen
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What makes a great brand
A Great Brand Is In It For the Long Haul - In an age of enormous choice
for both retail and commercial consumers of goods and services and growing
clutter in the business marketplace, a great brand is a necessit y, not a luxury. If
you take the long-term approach, a great brand can travel worldwide,
transcend cultural barriers, speak to multiple client segments simultaneously,
and let you operate at the higher end of the positioning spectrum-- where you
can earn solid margins over the long term.
A Great Brand Knows Itself - Anyone who wants to build a great brand has
to first understand who they are. The starting point is identifying the unique
essence of the product, the company. Then that essence should be tested
against how the consuming public for that product or service perceives it, what
they like or dislike about the brand, and what they associate as the very core of
the brand concept.
Discussion Questions
1. Apply the categorization model to a product category other
than beverages. How do consumers make decisions
regarding whether or not to buy the product and how do
they arrive at their final brand decision? What are the
implications for brand equity management for the brands in
the category? How does it affect positioning for example?
The financial services category is another good category to
examine. Banks and brokerage firms offer consumers
similar services within their respective categories, but they
differ on many levels, including price, level of service,
comprehensiveness, special features, and incentives. It is
important for all financial services brands to provide trust,
dependability, and income generation as points-of-parity;
points-of-difference may be customer service, ease of use,
location, or Internet accessibility.
2. Pick a brand. Describe its breadth and depth of awareness.
Answers may vary.
3. Pick a category basically dominated by two main brands.
Evaluate the positioning of each brand. Who are their
target markets? What are their main points-of-parity and
points-of-difference? Have they defined their positioning
correctly? How might it be improved?
Some two-brand dominated categories include ready-to-
drink orange juice (Tropicana and Real), batteries (Eveready/
Energizer and Duracell), ketchup (Heinz and Kissan), and
light bulbs (Suryaand Philips).
4. Can you think of any other negatively correlated attributes
and benefits? Can you think of any other strategies to deal
with negatively correlated attributes and benefits?
Other negatively correlated attributes might include
advanced technology vs. ease of use; sophisticated vs.
generally available; elegance vs. utility; ease of maintainence
vs. complexity; stylish vs. common.
5. Think of one of your favorite brands. Can you come up
with a brand mantra to capture its positioning?
Answers may vary.
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Brand Positioning Brand Positioning

Brand Positioning
Liberty Shoes shifts positioning from ‘family brand’ to ‘fashion
brand’
December 20, 03, Jasmeen Dugal
In the Rs 1,200-crore organized footwear market in India, the
previously unassuming Rs. 300-cr Liberty Shoes is fast becom-
ing a trendsetter. Releasing over 115 designs encompassing the
latest trends in the international markets, supported by a high
decibel advertising campaign, Liberty has kick-started an
aggressive promotional campaign. The company’s sponsorship
of fashion-related activities and tie-ups with fashion institutes,
reflect Liberty’s change in positioning from a ‘family brand’ to a
‘fashion brand.’
After signing on as Associate Sponsor for LIFW 2003, Liberty is
now collaborating with Pearl Academy of Fashion for a design
talent promotion and Continuum’03 – the 10th anniversary
celebrations of the institute.

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 Is this a focused initiative to position Liberty as an umbrella
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brand that has become more fashionable in tune with the

evolving market needs? Replies Anupam Bansal, Director
(Branding & Retailing), Liberty Shoes, “Liberty has an entirely
new spectrum of products that the new generation likes to be
seen in. To help make it happen are a young and enterprising set
of designers from leading fashion institutes like Pearl Academy
who have become a part of Liberty to ensure that the focus
remains on changing lifestyles, attitudes and developments in
global fashion.”
This weekend, Pearl Academy and Liberty Shoes have organized
‘Continuum 03’ – a three-day celebration to commemorate the
10th anniversary of the fashion institute. The Continuum
features seminars on ‘Retail and Branding’ and ‘Costume
Designing for films and theatre’ respectively, and a showing of
graduating students’ collections. Additionally, Liberty Shoes has
instituted a rolling trophy at Pearl Academy to recognize the
institute’s design talent every academic year. Comments A. K. G.
Nair, Executive Director, Pearl Academy of Fashion, “Compa-
nies such as Liberty Shoes are a role model for appreciating and
utilizing the talent of the current generation of designers
produced by the Pearl Academy of Fashion.”
Notes

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