You are on page 1of 41

1.

1
Strategic Brand Management
It involves the design and implementation of
marketing 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 and values
2. Planning and implementing brand marketing programs
3. Measuring and interpreting brand performance
4. Growing and sustaining brand equity
Ashesi University
COURSE TITLE : STRATEGIC BRAND
MANAGEMENT
SEMESTER : SECOND, 2011/2012
MODULE 3: Brand Positioning
Lecturer: Ebow Spio


Learning Outcomes
Learn how to establish a positioning for a brand
Identify and establish core brand associations
and a brand mantra looking at examples of
from brands from companies such as Unilever
Learn how to conduct brand audits to help
formulate brand positioning
Write brand positioning statements for
selected brands based on the brand key tool
Develop Your Personal Brand Profile
Steps in Segmentation, targeting
and positioning

Select Customers to Serve

Decide on value
proposition

Segmentation
Divide the total market into
Smaller segments



Differentiation
Differentiate the market
offering to create superior
customer value
Targeting
Selecting the segment or
segments to enter



Positioning
Position the market offering
in the minds of the target
customers
Create value for
target customers
Definition of Key Concepts
Market Segmentation
Dividing a market into smaller groups with distinct needs, characteristics, or
behaviours who might require separate products or marketing mixes

Market Targeting
The process of evaluating each segments attractiveness and selecting one or more
segments to enter
Differentiation
Actually differentiating the market offering to create superior customer value
Positioning
Arranging for a product to occupy a clear, distinctive and desirable place relative to
competing products in the minds of target consumers

3.6
Brand Positioning
Is at the heart of the marketing strategy

. . . the act of designing the companys offer
and image so that it occupies a distinct and
valued place in the target customers minds.
Philip Kotler
The selling concept that motivates purchase, or the
image that marketers desire a brand to have in
the minds of consumers
3.7
Determining a frame of reference
What are the ideal points-of-parity and points-
of-difference brand associations vis--vis the
competition?
Marketers need to know:
Who the target consumer is
Who the main competitors are
How the brand is similar to these competitors
How the brand is different from them
3.8
Target Market
A market is the set of all actual and potential
buyers who have sufficient interest in, income
for, and access to a product.
Market segmentation divides the market into
distinct groups of homogeneous consumers
who have similar needs and consumer
behavior, and who thus require similar
marketing mixes.
Market segmentation requires making
tradeoffs between costs and benefits.
3.9
Example of the toothpaste market
Four main segments:
1. Sensory: Seeking flavor and product appearance
2. Sociables: Seeking brightness of teeth
3. Worriers: Seeking decay prevention
4. Independent: Seeking low price
3.10
Criteria for Segmentation
Identifiability: Can we easily identify the
segment?
Size: Is there adequate sales potential in the
segment?
Accessibility: Are specialized distribution
outlets and communication media available to
reach the segment?
Responsiveness: How favorably will the
segment respond to a tailored marketing
program?
3.11
Nature of Competition
Deciding to target a certain type of consumer
often defines the nature of competition
Do not define competition too narrowly
Ex: a luxury good with a strong hedonic benefit
like stereo equipment may compete as much with
a vacation as with other durable goods like
furniture
3.12
Points-of-Parity
and Points-of-Difference
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.
Points-of-parity associations (POPs), on the
other hand, are not necessarily unique to the
brand but may in fact be shared with other
brands.
3.13
Brand Positioning Guidelines
Two key issues in arriving at the optimal
competitive brand positioning are:
Defining and communicating the competitive frame
of reference
Choosing and establishing points-of-parity and
points-of-difference
3.14
Defining and Communicating the
Competitive Frame of Reference
Defining a competitive frame of reference for
a brand positioning is to determine category
membership.
The preferred approach to positioning is to
inform consumers of a brands membership
before stating its point of difference in
relationship to other category members.
3.15
Choosing POPs & PODs
Desirability criteria (consumer perspective)
Personally relevant
Distinctive and superior
Believable and credible
Deliverability criteria (firm perspective)
Feasible : Can the firm create the POD?
Profitable
Communicable
Sustainable: Pre-emptive, defensible, and difficult
to attack

3.16
Challenges of Establishing PODs and
POPs: Attribute and Benefit Trade-offs
Price and quality
Convenience and quality
Taste and low calories
Efficacy and mildness
Power and safety
Ubiquity and prestige
Comprehensiveness (variety) and simplicity
Strength and refinement

3.17
Strategies to Reconcile
Attribute and Benefit Trade-offs
Establish separate marketing programs
Leverage secondary association (e.g., co-brand)
Re-define the relationship from negative to
positive

3.18
Core Brand Values
Set of abstract concepts or phrases that
characterize the five to ten most important
dimensions of the mental map of a brand
Relate to points-of-parity and points-of-
difference
Mental map Core brand values Brand mantra
3.19
Brand Mantras
An articulation of the heart and soul of the
brand
similar to brand essence or core brand
promise
Short three- to five-word phrases that capture
the irrefutable essence or spirit of the brand
positioning and brand values
Considerations
Communicate
Simplify
Inspire
3.20
Designing the Brand Mantra
The term brand functions describes the nature
of the product or service or the type of
experiences or benefits the brand provides.
The descriptive modifier further clarifies its
nature.
The emotional modifier provides another
qualifierhow exactly does the brand provide
benefits, and in what way?
3.21
Designing the Brand Mantra

Emotional
Modifier

Descriptive
Modifier

Brand
Functions

Nike

Authentic

Athletic

Performance

Disney

Fun

Family

Entertainment

Fun

Folks

Food
Brand Positioning Tool: Brand Key
Vision
Brand Key Vision articulates the positioning of the
brand and is an important tool for managing a brand
over time

Focus
One global BrandKey Vision for each brand
Strategic Intent
What we intend to build the brand towards in 3-5 years
Simplicity
Simple inspiring language
Brevity, focus, clarity
Brand Positioning Tool: Brand Key
Vision
Root Strength
The original product, values and/or benefits that made the brand great and on
which we want to build what made us famous in the first place?
Competitive Environment
The market and alternative choices as seen by the consumer and the relative value
the brand offers in that market . who loses when we win?

Target
The person and the situation for which the brand is always the best choice, defined
in terms of their attitudes and values, not just demographics who is our target
consumer?
Insight
The element of all you know about the target consumer and their needs (in this
competitive environment) on which the brand is founded what is the consumer
opportunity?
Benefits
The differentiating functional, emotional and sensory benefits that motivate
purchase . whats in it for them?

Brand Positioning Tool: Brand Key
Vision
Values, Beliefs and Personality
The brand values - what the brand stands for and believes in - and its personality
who are we, truly, at our core?
Reasons to believe
The proof we offer to substantiate the benefits/brand experience . why should
they believe us?

Discriminator
The single most compelling and competitive reason for the target consumer to
choose the brand why choose it
Essence
The distillation of the brand into a core idea or promisewhat is the brand idea and
rallying cry?
Values
& Personality
Ironic
Liberal
Clinical
Intelligent
Contemporary
Reasons
to believe
Winter wheat
Import from Sweden
Distilled 100 times
Low iron sand
Icon of modern living

Benefits
Stylish, Subtle
Sophisticated
Metropolitan
Exclusive, Chic
Membership
Discriminator
Absolut is
the purest
expression of
sophistication
Insight
Every choice that I make either
reinforces or undermines other peoples
perceptions of who I am
Competitive
environment
Other premium
vodkas,
Stolichnaya,
Finlandia
Target
Style conscious
urban consumers
25-35. Enjoy going
out and want to
enjoy, and be seen
to enjoy, premium
quality products
Essence
Pure
class
ABSOLUT BRANDKEY
3.26
Internal Branding
Members of the organization are properly
aligned with the brand and what it represents.
Crucial for service companies
3.27
Brand Audit
Externally, consumer-focused assessment
A comprehensive examination of a brand
involving activities to assess the health of the
brand, uncover its sources of equity, and
suggest ways to improve and leverage that
equity
It includes brand vision, mission, promise,
values, position, personality, and performance



3.28
Importance of Brand Audits
Understand sources of brand equity
Firm perspective
Consumer perspective
Set strategic direction for the brand
Recommend marketing programs to maximize
long-term brand equity

3.29
Brand Audit Steps
Brand inventory (supply side)

Brand exploratory (demand side)
3.30
Brand Inventory
A current comprehensive profile of how all the
products and services sold by a company are
branded and marketed:
Brand elements: names, logos, symbols, characters,
packaging, slogans, trademarks
Supporting marketing programs
Profile of competitive brands
POPs and PODs
Brand mantra/Brand Key Vision
3.31
Brand Inventory (Cont.)
Suggests the bases for positioning the brand
Offers insights to how brand equity may be
better managed
Assesses consistency in message among
activities, brand extensions, and sub-brands in
order to avoid redundancies, overlaps, and
consumer confusion
3.32
Brand Exploratory
Provides detailed information as to how
consumers perceive the brand:
Awareness
Favorability
Uniqueness of associations
Helps identify sources of customer-based brand
equity
Uncovers knowledge structures for the core
brand as well as its competitors
3.33
Suggested Brand Audit Outline
Brand audit objectives, scope, and approach
Background about the brand (self-analysis)
Background about the industries
Consumer analysis (trends, motivation, perceptions,
needs, segmentation, behavior)
Brand inventory
Elements, current marketing programs, POPs, PODs
Branding strategies (extensions, sub-brands, etc.)
Brand portfolio analysis
Competitors brand inventory
Strengths and weaknesses
3.34
Brand Audit Outline (Cont.)
Brand exploratory
Brand associations
Brand positioning analysis
Consumer perceptions analysis (vs. competition)
Summary of competitor analysis
SWOT analysis
Brand equity evaluation
Strategic brand management recommendations

3.35
Key Points
1. Through the selection of a positioning strategy, marketers can
influence the knowledge structures consumers have for a brand.
2. Positioning a brand involves choice of a target market, a
competitive arena, and the sets of features and associations in
which a brand is going to be similar to and different from its
rivals.
3. Points-of-parity and points-of-difference are important means
by which brands can establish unique positioning.
4. Internal branding strategies can be as important and effective as
external branding efforts.


3.36
Tutorial

1. Pick a category basically dominated by two or
three 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?

2. Develop a brand positioning for Ashesi
University using the brand key vision positioning
tool
Brand Archetypes
Brand Archetypes
Brand Archetypes
Brand Archetypes

You might also like