What we want to discuss BRAND POSITIONING & COMPETITIVE STRATEGY

Marketing Management 1. 2. 3. 4. Creating & Managing Brand Equity Brand positioning & repositioning Competitive Strategy Product Life Cycle

Top Global Brand

Market Insight

Lessons from global brand

Recognition Well-performing brands enjoy strong awareness among consumers and opinion leaders. Consistency Best brands achieve a high degree of consistency in visual, verbal, auditory, and tactile identity across geographies.

Emotion A brand is not a brand unless it competes along emotional dimensions. It must symbolize a promise that people believe it can deliver and one they desire to be part of. Uniqueness Great brands represent great ideas. These brands express the uniqueness of position to all internal and external audiences.

Adaptability A global brand must respect local needs, wants, and tastes. These brands adapt to the local marketplace while fulfilling a global mission Management The organization's senior leadership must champion the brand, ideally with the CEO leading the initiative. A leader's continual articulation of the brand philosophy and the brand's view of the world is meant to give the business strategy a recognizable face.

Indonesian Case 2000s: Softex

Market Insight
CASE #3

CASE #5

CASE #4

Brand
A name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

Creating Brand Equity

Attributes of Strong Brands

Excels at delivering desired benefits Stays relevant Priced to meet perceptions of value Positioned properly Communicates consistent brand messages Well-designed brand hierarchy Uses multiple marketing activities Understands consumerbrand relationship Supported by organization Monitors sources of brand equity

The Role of Brands

Identify the maker Simplify product handling Organize accounting Offer legal protection Signify quality Create barriers to entry Serve as a competitive advantage Secure price premium

Branding
Endowing products and services with the power of a brand. Branding is all about creating differences: Who the product is What the product does Why consumers should care

Brand Equity
Brand equity is added value endowed on product and service. It may be reflected in the way consumer think, feel and act with Respect to the brand, as well as in the prices, market share, and profitability the brand commands for the firm.

Brand Associations
Creating brand equity is to develop a brand that is:
Strong: it has best quality, affordable price, wide distribution, good popularity Unique: it is just noticeable different and very difficlut to imitate Favorable: it has many loyal and fanatic customers.

Marketing Advantages of Strong Brands

Improved perceptions of product performance Greater loyalty Less vulnerable to competition Less vulnerable to crises Larger margins Inelastic consumer response to price increases Elastic consumer response to price decreases Greater trade cooperation Increase in effectiveness of IMC Licensing opportunities Brand extension opportunities

Brand Promise

Model: Brand Resonance Pyramid

The marketers vision of what the brand must be and do for Consumers.

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Brand Building Blocks

Brand Resonance
Brand salience Brand performance Brand imagery Brand judgments Brand feeling Brand resonance

RATIONAL ROUTE RATIONAL ROUTE

EMOTIONAL ROUTE

EMOTIONAL ROUTE

Brand Resonance Model

This model views brand building as an ascending series of steps, from bottom to top: 1. IDENTITY = Who are you?
Ensuring identification of the brand with customers and an association of the brand in customers minds with a specific product class or customer need.

2.MEANING = What are you?

Firmly establishing the totality of brand meaning in customer mind by strategically linking a host of tangible and intangible brand association Tangible:
Advertising, Merchandizing Strategy, Packaging, Label, SPG, Event Marketing. Product Quality and Service Quality

Intangible:

3. RESPONSE = What about you?

Eliciting the proper customer responses in terms of brand related judgment and feelings. Giving suggestion or correction when an improper response happens.

4. RELATIONSHIP: What about you and me?

Converting brand response to create an intense, active loyalty relationship between customers and the brand (Learning relationship).

Dimensions of Brand Equity

Brand salience
How often and how easily customers think of the brand under various purchase or consumption situations.

Brand imagery
How well the product or service meets customers psychological and social needs

Brand judgment
Focus on customers own personal opinion and evaluation

Brand performance
How well the product or service meets customers functional needs

Brand feelings
Customers emotional responses and reactions with respect to the brand.

Brand resonance
The nature of the relationship customers have with the brand and the extent to which they feel the are in sync with it.

1.A Building Brand Equity

Building Brand Equity

Choosing Brand Elements Designing Holistic Marketing Activities Leveraging Secondary Association

1. Choosing Brand Element

BRAND ELEMENTS Brand names Slogans Characters URLs (Web & OSM) Logos Symbols CRITERIA Memorable Meaningful Likeability Transferable Adaptable Protectible

Slogans
Like a good neighbor, State Farm is there Just do it Nothing runs like a Deere Help is just around the corner Save 15% or more in 15 minutes or less We try harder Well pick you up Nextel Done Zoom Zoom Im lovin it Innovation at work This Buds for you Always low prices

2. Designing Holistic Marketing Activities

1. Personalization 2. Integration 3. Internalization

INTEGRATION
Solution = Product Information = Promotion Value = Price Access = Distribution

PERSONALIZATION

INTERNALIZATION

3. Leveraging Secondary Association

1. People
Employee, Endorser, Customer

2. Things
Events, Causes, Third Party Endorsement

3. Place
Country-of-origin, Channels

4. Other brand
Alliances, Ingredients, Company, Extension

PEOPLE

PEOPLE

THINGS

PLACE

1.b. Managing Brand Equity

OTHER BRANDS

Managing Brand Equity

1. Brand reinforcement 2. Brand revitalization

BRAND REINFORCEMENT

BRAND REVITALIZATION

BRAND CRISIS

Positioning
2. Brand Positioning
Act of designing the companys offering and image to occupy a distinctive place in the mind of the target market.

Identity and Image

Positioning Errors
UNDER Positioning
An image of the brand is vague, buyers do not really sense anything special about it.

Identity: The way a company aims to identify or position itself

Image: The way the public perceives the company or its products

OVER Positioning
An image of the brand is too narrow.

CONFUSED Positioning
An confusing image is caused by too many claims or changing the image too frequently

DOUBTFUL Positioning
An image of the brand is hard to believe regarding its price, features, or manufacturer.

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UNDER POSITIONING

OVER POSITIONING

CONFUSED POSITIONING

DOUBTFUL POSITIONING

Defining Associations
Points-of-difference Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand Points-of-parity Associations that are not necessarily unique to the brand but may be shared with other brands

Point-of-Difference Criteria
Desirable Deliverable Differentiating

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POD
Desirability Criteria
Relevance Distinctiveness Believability

Points-of-Parities
Dissatisfaction Factor Herzberg Theory Common product definition

Deliverability Criteria
Feasibility Communicability Sustainability

Points-of-Difference
Satisfaction Factor Herzberg Theory Just-noticeable-different Unsatisfied Neutral Satisfied

Differentiating

POP

POD

Positioning Strategies
(Crawford)

1. ATTRIBUTE / INFORMATIONAL PST If benefit may be proven by referring to attribute that cause the benefit
Feature Function Benefits (Direct/Follow On)

2. SUROGATE / TRANSFORMATIONAL POSITIONING. If benefits may be related to consumers need and values concerning with their imagery, symbolism, and life style.
NONPAREIL The best in the product categories PARENTAGE Brand or company or person who produces and markets the product - OPERATION Manufacturing process involved, ingredients used, and design applied to the product.

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 TARGET Targeted segment of the product ENDORSEMENT Reference group EXPERIENCE Common product for certain activities COMPETITOR Compared to competitor PREDECESSOR Replacing the old product /technologies

FEATURE
ATTRIBUTE POSITIONING

FUNCTION
ATTRIBUTE POSITIONING

DIRECT BENEFIT
ATTRIBUTE POSITIONING

FOLLOW ON BENEFIT
ATTRIBUTE POSITIONING

TARGET
SUROGATE POSITIONING

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ENDORSEMENT
SUROGATE POSITIONING

EXPERIENCE
SUROGATE POSITIONING

Repositioning (Temporal, 2000)

Most positioning activity is, in fact, repositioning! Unless a company or product is new, people have already formed judgments about it.

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Reason to reposition
(Temporal, 2000)

COMPETITION HAS MOVED CLOSE OR TAKEN OVER BRAND POSITION

Companies have to be prepared to constantly innovate with existing products and bring out new products to surround their category space.

BRAND HAS A NEGATIVE IMAGE

Negative image occurs from company faults, competitor campaign, and sabotage action.

BRAND HAS A BLURRED OR FUZZY IMAGE

People do not feel strongly about the image or have mixed perceptions about it.

NEW STRATEGIC DIRECTION

Business, Product or Market Development

NEW BRAND PERSONALITY

New features, new style, new level of quality
THE HISTORY OF MARLBORO

NEW TARGET MARKET

Market Insight

Marlboro as the female cigarette

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Marlboro as the unisex cigarette

Marlboro as the male cigarette

3. Competitive Strategy

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Porters Five Forces Determining Segment Structural Attractiveness Potential entrants Suppliers Buyers Industry competitors Substitutes

Industry Concept of Competition

Number of sellers and degree of differentiation Entry, mobility, and exit barriers Cost structure Degree of vertical integration Degree of globalization

Industry Concept of Competition

Pure monopoly Oligopoly Monopolistic competition Pure competition

Analyzing Competitors
Share of market Share of mind Share of heart

Expanding the Total Market

New customers More usage Increasing frequency of use

Market Leader Strategies

Defender Flank Preemptive Counteroffensive Mobile Contraction

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FLANKING

Fortification
Market fortification involves erecting barriers to entry or copy around the company and its market offering to shut out competition.
Differentiation Brand reputation Maintaining product-service quality, promotion & advertising programs

ATTACKER

FORTIFICATION DEFENDER

MOBILE

Flanking Defense
A suitable rejoinder to a flanking attack, it requires the company to strengthen the flanks.

Pre-emptive Defense
Striking at the potential aggressor before it can mount their attack. Business scenarios:
Actual attack on competitor Signaling an intention to fight on a particular front.

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Counter Offensive
Where deterrence of a potential attack before it occurs may be the ideal defense, a rapid counter attack to the aggressor can be equally effective.

Mobile Defense
It involves creating a flexible response capability to enable the defender to shift the ground which is being defended in response to environmental or competitive threat and opportunities. Business scenario:
A willingness continuously to update and improve the company offerings to the marketplace.

Case: Samsung

Contraction Defense
A contraction defense or strategic withdrawal, requires giving up untenable ground to reduce overstretching and allow concentration on the core business which can be defended against attack. It is necessary when the company has diversified too far away from the core skill and distinctive competences.

Market Challenger Strategies

Frontal attack Flank attack Encirclement attack Bypass attack Guerrilla warfare

BY PASS

FLANKING GUERRILLA

ATTACKER

FRONTAL

DEFFENDER

ENCIRCLEMENT

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Frontal Attack
An all-out attack on the opponents territory The outcome of the confrontation will depend on strength and endurance In business scenarios, frontal attack requires sufficient resources, a strength advantage over the competitor, and that losses can be both predicted and sustained. Case: Pepsi vs. Cocacola

Flanking Attack
Concentrating the aggressors strength against the competitors weakness. Business scenarios:
attacking geographic regions where the defender is under represented attacking underserved competitor segment.

Encirclement (Sapit Urang) Attack

Enveloping the enemy, cutting him off from routes of supply to force capitulation. Business scenarios:
Attempting to isolate the competitor from the supply of raw materials. Offering all-round better product (cheaper but having with the same quality)

Case: Nokia

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By Pass Strategy
Changing the battleground to avoid competitor strongholds. Business scenarios:
Technological leap-frogging

Guerilla Tactics
Where conventional warfare fails, guerilla tactics often take over. Business scenarios:
Spoiling activities to weaken the competitor
Selective price-cuts to respond competitors new product launch Depositioning advertising Executive raids

Case: Casio vs. Swiss watches

Market Follower Strategies

Counterfeiter Cloner Imitator Adaptor

Market Nicher Strategies

Choosing the battleground Focusing effort

Figure 11.4 Sales and Profit Life Cycles 4. Product Life Cycle

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Figure 11.5a Common PLC Patterns: Growth-Slump-Maturity

Figure 11.5b Common PLC Patterns: Cycle-Recycle

Copyright 2012 Pearson Education

Copyright 2012 Pearson Education

Figure 11.5c Common PLC Patterns: Scalloped

Figure 11.6 Style, Fashion, and Fad Life Cycles

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Copyright 2012 Pearson Education

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