CORE TEXT:

STRATEGIC BRAND MANAGEMENT BY KEVIN LANE KELLER (3rd EDITION)

SUPPLEMENTARY TEXT:
POSITIONING BY AL RIES AND JACK TROUT (20th EDITION) BRAND POSITIONING BY SUBROTO SENGUPTA (2nd EDITION) PRESENTED BY: INDRANSH GUPTA

What is a Brand?
Definition: A brand is a product that adds other dimensions that differentiates it in some way from other products designed to satisfy the same need.

Why Do Brands Matter?

CONSUMERS:
Identification of Source Search cost Reducer Promise, Bond, or Pact

of Product with Maker of Product Assignment of Responsibility to Product Symbolic Device Signal of Quality Maker Risk Reducer

Why Do Brands Matter? (Cont)

MANUFACTURERS :
Means of Identification Means of Endowing

to Simplify Handling or Tracing Means of Legally Protecting Unique Features Signal of Quality Level to Satisfied Customers

Products with Unique Associations Source of Competitive Advantage Source of Financial Returns

What Can Be Branded?

Physical Goods Services Retailers and People and

Distributors Online Products and Services

Organizations Sports, Art and Entertainment Geographic Locations Ideas and Causes

Branding Challenges And Opportunities

Savvy Customers Brand Proliferation Media Fragmentation Increased Competition Increased Costs Greater Accountability

The Brand Equity Concept

Basic Principles of Branding and Brand Equity:
Differences in outcomes arise from the added value

endowed to a product as a result of past marketing activity for the brand. This value for a brand can be created in many different ways. Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand. There are many different ways in which the value of a brand can be manifested or exploited to benefit the firm.

Strategic Brand Management Process

Identifying and Establishing Brand Positioning

and Values Planning and Implementing Brand Marketing Programs Measuring and Interpreting Brand Performance Growing and Sustaining Brand Equity

Sources Of Brand Equity

Brand Awareness
Consequences of Brand

Brand Image
Strength of Brand

Awareness
Learning advantages Consideration advantages Choice Advantages

Establishing Brand

Associations Favorability of Brand Associations Uniqueness of Brand Associations

Awareness

Building A Strong Brand

The Four Steps of Brand Building

1.Identity (Who are you?) 2.Meaning (What are you?) 3.Response (What about you?) 4.Relationship (What about you & me?)

Relationship Resonance Response Judgments Performance Feelings Meaning Imagery Identity

Salience

Customer-based Brand Equity Pyramid (Cont)

Brand Salience: This

relates to aspects of customers personal awareness of the brand opinions and evaluations with regard to the brand Brand Performance: This Brand Feelings: The relates to ways in which product/ service meets customers emotional customers needs responses and reactions with respect to the brand Brand Imagery: Its how Brand Resonance: The customers visualize a brand abstractly, with no ultimate relationship & relevance to what the level of identification that brand actually does the customer has with the brand

Brand Judgments: The

Brand Positioning

What
Positioning is owning a piece of consumers mind Positioning is not what you do to a product
Its what you do to the mind of the prospect

You position the product in the prospects mind

Its incorrect to call it Product Positioning Ries & Trout

Source: Al Ries and Jack Trout, Positioning: The Battle for Your Mind.

Examples
Colgate Lux Ponds Axe Gillette

is

Protection is is is is Glamour Confidence Sexual Attraction Quality

One-way Positioning (Ries and Trout)

Be #1 in some important attribute; you will be

the most remembered and preferred.

#1 should not line-extend; it will lose its focus. If you are the second to enter the market, dont

call yourself #2. Call yourself #1 on a different important attribute.

Source: Al Ries and Jack Trout, Positioning: The Battle for Your Mind.

Three-Way Positioning
A company needs to position itself in relation to three

value disciplines: Product leadership, operational excellence, customer intimacy. Four rules for success: Become best at one of the three value disciplines. Achieve an adequate performance level in the other two disciplines. Keep improving ones superior position in the chosen discipline so as not to lose out to a competitor. Keep becoming more adequate in the other two disciplines, because competitors keep raising customers expectations about what is adequate.

Five-way Positioning
A company needs to position itself along five attributes:

Product, price, ease of access, value-added service, and customer experience.

A great company will dominate on one of these, perform

above average (differentiate) along a second, and be at industry par with respect to the remaining three.
Assign a number from 1 to 5 to each attribute: 5

(dominant), 4 (differentiated), 3 (on par with industry), 2 (below par), and 1 (poor).

Source: Fred Crawford and Ryan Mathews, The Myth of Excellence: Why Great Companies Never Try to Be the Best at Everything (New York: Crown Business, 2001).

Five-way Positioning (Contd)

A great company will exhibit the pattern 5, 4, 3, 3, 3. Anything less than a 3 on any attribute is not sustainable. To be dominant or differentiated on more than one

attribute is excessive and reduces profitability.

Being on par requires a company to match its industrys

average performance; a company must not let its standing drop below 3.

Why
The assault on our mind The media explosion The product explosion The advertising explosion So little message gets through that you ignore the sender and concentrate on the receiver

The Mind
Like the memory bank of computer , the mind

has slots. But with a difference , computer accepts all things but our mind does not It rejects information which it can not compute , it accepts only that new information that matches current state of mind.

An Inadequate Container
Humans reject information which does not match

their prior knowledge or expectation. According to Harvard psychologist Dr. George A. Miller, the average human mind can not deal with more than 7 digits at a time like 7 wonder of world, seven days etc. If asked to name brands of any category, no one can name more than 7 and that too if its their interest category.

An Inadequate Container(Contd)
To cope with complexity , people have

learned to simplify everything. People can often remember positioning concepts better than names.

The Product Ladder

To cope with product explosion , people rank

products and brands in the minds. On each step of a ladder is a brand and each different ladder represent a different category. A competitor who wants to increase share of the business must either dislodge the brand above or somehow relate its brand to the other companys position.

Those little ladders in your head

Today competitors position is as important as your own

position. Avis is only no.2 in rent-a-car, so why go with us? We try harder.
People assumed they try harder. Avis was successful, as it related itself to Hertz.

Hertz Avis National

Those little ladders in your head (Cont)

The Against Position
Time magazine followed the same lead. Frustrated with competition they adopted

We try damned Harder.

Later, found the word offensive and the accounts

executive was fired. If the company is not the first then must occupy second position.

The Uncola Position

Conventional Logic find your concept

inside yourself or your product.

Not true, must look inside prospects mind. 7-Up positioned itself as the uncola drink &

sales increased drastically. Mc Cormick Comm. acquired WLKW and positioned it as the unrock radio station & became no.1.

The Oversimplified Message

Today the best approach to take, in our over

communicated society is to simplified message. you simplify the message, then simplify it some more if you want to make a long lasting impression. -Al Ries and Trout

07/15/13

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How
The easy way to get into a persons mind is to be

first
Xerox, Kodak, Polaroid, Sun TV, The Hindu, F&L

If you didnt get into the mind of your prospect

first, then you have a positioning problem

Better to be first than be best

In the positioning era, you must, however, be

first to get into the prospects mind

How
The basic approach is not to create something new

or different, but manipulate whats already in the mind conventional logic product

To find a unique position, you must ignore Conventional logic says you find concept inside
Not true; look inside prospects mind

You wont find an uncola idea inside 7-up; you

find it inside cola drinkers head

Guidelines
Start by looking not at the product but at the

position in the market that you wish to occupy, in relation to competition Think about how the brand will answer the main consumer questions
What will it do for me that others will not? Why should I believe you?

Try to keep it short and make every word count

and be as specific as possible

Vagueness opens the way to confused executions

Guidelines

Keep the positioning up-do-date

Give as careful consideration to change as you did to the

original statement

Look for a Key Insight!

An Accepted Consumer Belief

What is key insight?

Key Insight is seeing below the surface / seeing

inside the consumer

Insight expresses the totality of all that we know

from seeing inside the consumer gain competitive advantage

An insight is a single aspect of this that we use to By identifying a specific way

That the brand can either solve a problem or Create an opportunity for the consumer

Key Insight I wish to get married to a handsome prince

Key Insight Fragrance of my current talc does not last long and I miss opportunities to enjoy life

Key Insight Soap leaves my skin feeling dry and tight

The 3Cs of positioning

Be

Crystal clear

Be Consumer-based
Be relevant and credible to the consumer Write in consumer language and from consumers view point

Be Competitive
Be distinctive Focus on building brand elements into powerful discriminator Be persuasive Be sustainable

And then
The brand name! The name is the first point of contact between the

message and the mind

The brand name is a knife that cuts the mind to let the

brand message inside Ries & Trout

Guidelines
Its not the goodness or badness of the name in an

aesthetic sense that determines effectiveness

Its the appropriateness of the same

Name begins the positioning process, tells the

prospect what the products major benefit is

Fair & Lovely Close Up Krack Head & Shoulders Vaseline Intensive Care Body Lotion

Checklist: Brand name

Should be simple Should be acceptable in all key languages Should be appropriate when geographically spread Should be amenable for easy registration

The F.W.M.T.S Trap

Forgot what made them successful
After being sold to ITT, Avis adopted,

Avis is going to be No.1

No frequent increase in revenues and campaign was

waste.
7-Up also fell in the trap and adopted.

Americas is turning 7-Up

Sales fell and now Sprite has 50% market share.

Hindustan Petroleum positioned it as the best refill available for LPG cylinder in the country.

Brand Positioning Subrota Sengupta

Forhan was the first to position its toothpaste with, Like a breadth of fresh air.

Brand Positioning Subrota Sengupta

Thank You