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

of Product Assignment of

Responsibility to Product Maker

Risk Reducer

Search cost Reducer Promise, Bond, or Pact

with Maker of Product Symbolic Device Signal of Quality

Why Do Brands Matter? (Cont)MANUFACTURERS

: Means of Identification

to Simplify Handling or Tracing

Means of Legally Protecting Unique Features

Signal of Quality Level to Satisfied Customers

Means of Endowing Products with Unique Associations

Source of Competitive Advantage

Source of Financial Returns

What Can Be Branded? Physical Goods Services Retailers and

Distributors Online Products

and Services

People and 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 ConceptBasic 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 EquityBrand Awareness Consequences of Brand

AwarenessLearning advantagesConsideration advantagesChoice Advantages

Establishing Brand Awareness

Brand Image Strength of Brand

Associations Favorability of Brand

Associations Uniqueness of Brand

Associations

Building A Strong BrandThe 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?)

Resonance

Judgments Feelings

Performance Imagery

SalienceIdentity

Meaning

Response

Relationship

Customer-based Brand Equity Pyramid

(Cont) Brand Salience: This

relates to aspects of awareness of the brand

Brand Performance: This relates to ways in which product/ service meets customers’ needs

Brand Imagery: It’s how customers visualize a brand abstractly, with no relevance to what the brand actually does

Brand Judgments: The customers’ personal opinions and evaluations with regard to the brand

Brand Feelings: The customers’ emotional responses and reactions with respect to the brand

Brand Resonance: The ultimate relationship & level of identification that the customer has with the brand

Brand Positioning

What…

Positioning is owning a piece of consumer’s mind

Positioning is not what you do to a productIt’s what you do to the mind of the prospect

You position the product in the prospect’s mind ‘It’s incorrect to call it Product Positioning’ – Ries & Trout

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

Examples

ColgateColgate is ProtectionProtection

LuxLux is GlamourGlamour

Pond’s Pond’s isConfidenceConfidence

AxeAxe is Sexual Sexual AttractionAttraction

GilletteGillette is QualityQuality

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, don’t

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 one’s 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.

• Source: Michael Treacy and Fred Wiersema, The Discipline of Market Leaders (Reading, MA: Addison-Wesley, 1994)

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 industry’s

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 company’s position.

Today competitor’s 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

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.

Those little ladders in your head (Cont)

Conventional Logic – find your concept inside yourself or your product.

Not true, must look inside prospect’s 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 Uncola Position

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

04/11/23 31

How… The easy way to get into a person’s mind is to be

firstXerox, Kodak, Polaroid, Sun TV, The Hindu, F&L

If you didn’t get into the mind of your prospect first, then you have a positioning problemBetter to be first than be best

In the positioning era, you must, however, be first to get into the prospect’s mind

How… The basic approach is not to create something new

or different, but manipulate what’s already in the mind

To find a unique position, you must ignore conventional logic

Conventional logic says you find concept inside productNot true; look inside prospect’s mind

You won’t find an uncola idea inside 7-up; you find it inside cola drinker’s 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 questionsWhat 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 possibleVagueness 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 InsightKey Insight!

An ‘Accepted Consumer Belief’‘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

An insight is a single aspect of this that we use to gain competitive advantage

By identifying a specific way…That the brand can either solve a problem orCreate an opportunity for the consumer

Key InsightKey Insight

‘‘I wish to get I wish to get married to a married to a handsome prince’handsome prince’

Key InsightKey Insight

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

Key InsightKey Insight

‘‘Soap leaves my Soap leaves my skin feeling dry skin feeling dry and tight’and tight’

The 3C’s of positioning Be Crystal clear

Be Consumer-based Be relevant and credible to the consumer Write in consumer language and from consumer’s 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 The brand name is a knife that cuts the mind to let the brand message inside’brand message inside’

– Ries & TroutRies & Trout

Guidelines… It’s not the goodness or badness of the name in an

aesthetic sense that determines effectivenessIt’s the appropriateness of the same

Name begins the positioning process, tells the prospect what the product’s major benefit isFair & LovelyClose UpKrackHead & ShouldersVaseline 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

“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.

“America’s is turning 7-Up”

Sales fell and now Sprite has 50% market share.

The F.W.M.T.S Trap

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