Brand Positioning and Values

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Brand Positioning and Values
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Where we have been

• We understand
• Brand equity and the psychology behind it
• A function of awareness, strength, favorability,
  and uniqueness of the nodes and links in memory
• BE is created in a progressive fashion
• Establish proper Brand Identity
• Create Brand meaning
• Elicit positive Brand responses
• Forge strong Brand relationship

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Identifying and establishing Brand Positioning

• The Integrated Brand Model
• Six elements that define a brand
• Unified
• Leverage each other
• Brand Drivers a function of Organization Drivers
• These six elements serve as a roadmap to our
  Brand Equity model
• At every step, we can figure out what to do from
  our Brand and Organization Drivers

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Brand Positioning

• Brand Positioning
• Brand positioning is all about identifying the
  optimal location in our customers minds for our
  Brand and our competitors
• Proper positioning makes it easier to facilitate
  understanding of our Brand
• Taken to its logical conclusion, you might think
  of the Principle as an indicator of a brands
  position

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First Steps

• The first step is to identify and establish Brand
  positioning and brand values (Keller)
• Positioning is the foundation for creating and
  fostering the desired knowledge and perceptions
  of your customers
• remember our 3 types of associations in memory?
• We can really only manage one (positive), can
  respond to a second (negative), and have no
  control over the third (idiosyncratic)

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Proper Positioning

• Proper positioning
• Clarifies what the Brand is all about
• How it is both unique and similar to competitive
  brands
• Why customers should purchase and use the Brand

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Example Pepsi One

• Millions in RD for ingredient Ace-K (artificial
  sweetener)
• 37,000 hours to design the can
• 100 Million Marketing budget
• Original Target Market
• 20-30 yo Males who did not like taste of diet
  colas

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Pepsi One Brand Conveyors Then and now

• Full flavored, healthy alternative to regular
  cola
• Only one has it all
• True cola taste, one calorie
• Tastes like regular cola
• Celeb Tom Green

• Breakthru Sweetener
• Too good to be one calorie, but it is
• Celeb Kim Katrell
• Better for 20-30 yos?

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In order to Position a Brand

• you must decide
• Who the Target Consumer is
• Who your main competitors are
• How the Brand is similar to your competitors
• How the Brand is different from your competitors
• Where do you get this information?
• Your BRAND INVENTORY!!

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Target Market Segmentation

• A market segment should have similar knowledge
  structures and brand knowledge
• Similar knowledge structures might mean similar
  perceptions and beliefs about your Brand
• There are 2 ways to segment
• Descriptive characteristics of the individuals
  in the market
• Behavioral grouped by how individuals in the
  market perceive or use the product

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Toothpaste Segmentation

• Four main segments
• Sensory segment
• Flavor and product appearance
• Sociables
• Brightness of teeth
• Worriers
• Decay Prevention
• Independent
• Low Price

Flavor, Brightness
3 stripes, one for each of the 3 main segments
Decay Prevention
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Target Market Segmentation

• Which works better? Behavioral
• Easier to match perceptions (right/wrong) or
  beliefs (right/wrong) with strategy
  (reinforce/change).
• Many times, behavior and descriptive go hand in
  hand
• Demographics may be basis of targeting, but tend
  to represent some underlying behavioral reason
• In some cases, demographics may mask underlying
  differences

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Advantages of demographic segmentation

• Demographic segmentation is well known, easier to
  buy media on that basis
• However, with the emergence of non-traditional
  media, this advantage is getting smaller
• Web ads can target by demographics traditionally
  difficult to access
• AA, Asian Americans, College students

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Criteria for a Segment

• Identifiability
• Can the segment be easily identified?
• Size
• It is big enough to bother?
• Accessibility
• Are distribution outlets and media available to
  us to reach the segment?
• Responsiveness
• How favorably will the segment respond to a
  tailored marketing program? (this one is tough to
  quantify)

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Segmentation Example

• Mobils 5 types of gasoline buyers
• Price Drivers
• Not brand loyal, driven by price, has been focus
  for years
• Road Warriors
• Upper income, MAMen, 25-50k/year, buy food and
  services with credit card (Premium gas)
• True Blues
• Brand loyal, Mid income, pay with cash
• Generation F3
• Fuel, food, fast half under 25 yo, in and out
  quickly
• Homebodies
• Soccer moms using whatever is on their route

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The Competition

• Market Segments define competitors
• They are targeting the same segments?
• Dont be too narrow in your definition of
  competitors
• Consider Sprite
• Product Type (non-cola soft drinks)
• Product Category (all soft drinks)
• Product Class (all beverages)

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Baskin-Robbins Competitive analysis

• Original Tagline
• 31 Flavors
• 100 M facelift in late 1990s
• Expanded from Ice cream
• Frozen coffee drinks
• Fruit Smoothies
• Perceived competitors
• Starbucks
• Jamba Juice
• TCBY
• (and still Dairy Queen)

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Part 3 POP and POD

• POD (Point of Difference)
• Strong, favorable, unique brand associations
• May be any kind of attribute or benefit
• Two types of PODs
• Attribute Based
• Functional, performance related differences
• Image Based
• Affective, experiential, brand image related
  differences

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Part 3 POP and POD

• POP (Point of Parity)
• Associations that are shared with other brands
• Two types
• Category attributes that are required to include
  your product as a member of that category
• Competitive POP that negate your competitors
  PODs
• POPs can be good enough, but PODs should be
  superior

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Similar concepts

• Unique Selling Proposition (USP Reeves and
  Bates)
• Advertisers should give a compelling reason to
  buy a product that competitors could not match
• What component of the IBM reflects this?
• Sustainable Competitive Advantage (SCA)
• The advantage of delivering superior value in the
  marketplace for a prolonged period of time
• Further, SCAs can result from any component of
  the firm
• Similar to notion that Principle exists in every
  part of the firm

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POP AND POD BMW over the years
1991
1985
1975
1971

• Affluence, exclusivity
• Fun to drive

• Affluence, exclusivity
• Fun to drive

• Fun to drive
• Economical

• International
• Desirability

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Managerial Issues

• How do I begin to position my Brand?
• Communicate category membership
• This is the frame of reference, where customers
  can activate what they know about the category
  and apply it to your POPs and PODs
• How?
• Communicate category benefits
• Compare your product to exemplars
• Rely on product descriptor

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Sneaky psychology sidebar - Exemplars

• Memory is modeled in a hierarchical was as well
• Exemplars can be real or amalgamated (prototypes)
• Generated from experiences and exposures from the
  environment
• Exemplar example (heh)
• DRAW A PICTURE OF A CHAIR (THE FIRST THING THAT
  COMES TO MIND
• Compare your picture to your other team members
• Is it the same or different

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Ways to convey category membership (cont)
Comparison to Exemplars

• Thus, two strategies
• Created exemplar (not a real product)
• Real exemplar (coke when talking about cola-based
  carbonated beverages)
• NOTE Keller defines exemplars as
• Well known, noteworthy brands in a category
• Pepsi One example (after repositioning)

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Nuts and Bolts

• How do I decide on my PODs and POPs?
• POPs
• Analysis of category
• What attributes do all of my competitors have? I
  probably need to have those, or my competitors
  automatically have a POD
• POPs get you included in category
• PODs are more difficult
• Dont use PODs that are product centric (dominate
  competition) but customer centric (uniquely
  address need of customer)

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Managerial issues

• Criteria for POD
• Desirability
• Must be Relevant
• Must be Distinctive
• Must be Believable
• Deliverability
• Feasibility
• Communicability
• Sustainability

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Establish POP and POD in marketplace

• Difficulty Many attributes that make up POP and
  PODs are negatively opposed
• Low price vs. High quality
• Tastes Great vs. Less filling
• Separate the attributes
• Leverage equity in another entity
• Redefine the relationship

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Defining Values and Principle

• You already know how to do this
• Your values and principle are part of your Org
  and Brand drivers!!!
• Keller calls principle Brand Mantra
• Your Values, Principle, and position all are
  related
• NOTE Keller says that associations are values,
  but we have a stricter definition of associations
  from the IBM

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Principles a la Keller What makes a good
Principle?

• Three components
• Emotional component (Comfortable)
• Descriptive modifier (Casual)
• Brand function (clothing)
• Other Examples
• Nike Authentic, Athletic Performance
• Fun Family Entertainment