BRAND

POSITIONING
Module 2 Part 2
Meaning
 Brand Positioning is at the heart of the marketing strategy.
 It is the “act of designing a company’s offer and image so that it occupies a distinct and valued place in the target customer’s
minds.”
 According to Aaker, “Brand positioning is a part of brand identity and value proposition that is to be actively communicated to
the target audience, and that demonstrate an advantage over competing brands.”
 Positioning means finding a proper “location” in the minds of a group of consumers or market segment ,so that they think
about a product or service in the “right” or desired way to maximise potential benefit to the firm.
 According to CBBE (Customer Based Brand Equity) model deciding on positioning requires determining a frame of reference
and deciding on the following points:
Marketer needs to know :
(a) Who the target consumer is (b) who the main competitors are (c) how the brand is similar to these competitors (d) how the
brand is different from them.
Components of Brand Positioning

1.The Target Market:

◦ Identifying the consumer target is important because different consumers may have different brand
knowledge structures and thus different perceptions and preferences for the brand. Without this
understanding, it may be difficult for marketers to say which brand associations should be strongly held,
favorable, and unique. 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 require
making trade-offs between costs and benefits. The more finely segmented the market, the more likely that the
firm will be able to implement marketing programs that meet the needs of consumers in any one segment.
2. Nature of Competition: At least implicitly, deciding to target a certain type of consumer often defines
the nature of competition, because other firms have also decided to target that segment in the past or plan
to do so in the future, or because consumers in that segment already may look to other brands in their
purchase decisions. Competition takes place on other bases, of course, such as channels of distribution.
Competitive analysis considers a whole host of factors including the resources, capabilities, and likely
intentions of various other firms in order for marketers to choose markets where consumers can be
profitably served.
3.POPs:
Points-of-Parity (POPs) are associations that are not necessarily unique to the brand but may, in fact, be
shared with other brands. It is driven by the needs of category membership to create category of POPs and
the necessity of negating competitors’ Points of Difference (POD) to create competitive POPs.
In choosing points of difference, two important considerations are that consumers find the POD desirable
and that the firm has the capabilities to deliver on the POD. Points of parity represent the attributes or
benefit a product or service offers that the consumer can satisfy elsewhere.
4.PODs:

◦ Points-of-Difference (PODs) are 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. It is a
term used for an outcome of product differentiation. Points of Difference (PODs) describe the individual
factors of differentiation.
◦ The key points of difference of a company are synonymous with its unique Selling Proposition (USP),
and are critical in defining its competitive advantage and branding strategy. They must be attributes or
benefits that consumers strongly, uniquely, and positively associate with the company’s brand; and not
with any competing brand. Once points of difference have been clearly communicated to consumers, the
company and its brand are set apart from its competitors.
Objectives of Brand Positioning
◦ To be Recognized : If the business actually needs to make its services or products to gain the category of
brands, it needs to make them accessible to people in such way that they start recognizing the brand
name by the products or services it offer. It makes the brand to gain popularity and streamline the
processes of sales in a well-defined manner.
◦  To be Rebranded: It can also be taken as refurbishing or re-branding of the product in such a way that
will make it different and uniquely defined than all other products of the same kind. This will really
make the product to get under the exclusiveness category and it is a great thing to make the brand or
product a renowned name in any industry or market.
◦ To Provide Brand Stealth : It will go a long way in helping to measure the real strength of the brand.
This can be considered as a form of stock taking strategy. This mode will help to know how far the
business has gone and where it exactly reach in the competitive market. A proper understanding of
present position of business will go a long way in helping it on the steps to take for moving its products
and brand beyond the present state. It is in an effort to give all the popularity, which it thinks is good as a
choice for making the brand to reach top position.
◦ To Help Brand Judgement : Brand positioning also strives to help the business to sufficiently judge the
way customers judge its product in comparison with other very competitive brands available with the
same products or services. Of course, the business will be accosted with strong competition as there is
rarely any niche that does not require the right means to market and with the proper identification and
implementation of brand positioning, it will be able to keep the brand in a position where it will rarely be
affected by the impending disaster of strong opposition and competition.
Different types of positioning strategies
Value-Based Brand positioning:Value-based positioning has two approaches and both are based are very
much dependent on the quality of the product. They use a psychological approach which exploits the belief
that more expensive something is, the better it is. This increases the value in the minds of the customer and
the product is positioned as expensive and useful and good. An excellent example of a strategy would be
Southwest airlines which are offering affordable flights to people along with free check-in luggage.
Thereby Southwest airlines establish its value in the minds of the customer.
Quality based Brand positioning:Positioning with the help of an important parameter like quality can be
a very challenging positioning strategy. Although it can be combined with other strategies and positioned
easily. Every business in the market nowadays is trying to establish quality and its commitment to maintain
it. This makes them specialized in one feature thereby ensuring proper focus on the quality of that
particular feature. They work only on one parameter significantly rather than working on all parameters
simultaneously.
◦ Competitor based positioning:
Since the competition has increased companies are taking this strategy to demonstrate the superiority
amongst all other available competitors in the market. Right from insurance companies to mobile phones
every company establishes its supremacy by comparing their products or services to other companies or
direct competitors . The messages are usually straight, clear and address the competition directly although
some may- use an indirect reference to their competitors . In 2018, Google launched Pixel 3 with a
premium feature called Night Sight. To promote that feature during the launch event of the phone the
company experts compared of pictures clicked by phone then directly and side by side with a picture
clicked by Google pixel 3 with night sight. This would be an example of direct competitor-based
positioning.
◦ Benefit Positioning : Working with the benefits of attributes and communicating those benefits to the
customer has been an old strategy followed by many brands. The strategy highlights the benefits of the
product or service to the customers and cream that no computer can copy them since their unique to that
particular brand. Sensodyne is an example which uses benefit positioning and today is a premium
toothpaste in the market of oral dentistry and oral hygiene. It has positioned itself as an oral medical
solution provider which customer can use on a day-to-day basis to get rid of oral problems . While other
kinds of toothpaste focus on whitening and reducing the bad breath Sensodyne has focused on medical
aspects of oral hygiene which is a unique benefit in the market and that has helped them to stand out.
◦ Problem and Solution Positioning : Many brands present themselves as a solution provider to the
problems of the customers. The ideology behind such positioning is to demonstrate that this
particular brand can help you solve your problems instantly and efficiently. Banks, Insurances, and
loans have started themselves to a position as a solution provider.
◦ Price Positioning : As much as quality plays an important role in the product success price is an
equally important factor which determines the enormity of success of a particular brand. Why is
there are expensive brand positioning themselves as unique and niche, the appeal to a very limited
segment of customers who can afford to purchase them? There still remains a major bulk order
chunk of customers who are not able to purchase those nice products or services. It is to appeal to
these customers that price positioning is done by many Brands.
◦ Celebrity-Driven Positioning : Using celebrities as a spokesperson to endorse a particular category of
product or services has been a popular way for a long time. The aim of celebrity-driven positioning is to
get the attention of people and increase brand awareness and recognition by associating the product or a
brand with the glamorous personality of the particular celebrity. This is often an expensive affair for the
companies but they knowingly choose this method of splurging because of the fact of familiarity and
popularity of the celebrity . This association of celebrity with the brand inspires many buyers who follow
the celebrity to buy the same brand and make them feel psychologically associated with the celebrity.
Brand Positioning Process
Brand Positioning Process
◦ Competitor’s Identification : This step requires broad thinking. Competitors may not be just those, whose
products and/or brands fall into our product class or with which we compete directly. The marketer must
consider all likely competitors, as well as the various effects of use and situations on the consumers.
◦ Determining how Competitors are Perceived and Evaluated : Once we define the competitors, we must
determine how they are perceived by consumers. Which attributes are important to consumers in evaluating a
product and/or brand? As we might expect, for many products, a wide variety of attributes or product benefits
may be considered – most if not all of which are important. Much of marketing firm’s research is directed at
making such determinations. Consumers are asked to take part in focus groups and/or complete surveys
indicating which attributes are considered important to them in their purchase decisions.
◦ Determining the Competitor’s Position : Having determined the relevant attributes and their relative
importance to consumers. It must be determined how each competitor is positioned with respect to each
attribute. This will also show how the competitors are positioned relative to each other. Consumer
research is required to make this assessment.
◦ Analyzing Customer’s Preferences : Segmentation distinguishes among groups of consumers,
including life styles, purchase motivations, demographic differences, and so on. Each of these segments
may have different purchase motivations and different attribute importance ratings . One way to
determine these differences is to consider the ideal brand or product, defined as the object the consumer
would prefer over all others, including objects that can be imagined but do not exist. Identifying the ideal
product can help the marketer identify different ideals among segments or identify segments with similar
or the same ideal points.
◦ Making the Positioning Decision : After going through the first four steps, the final positioning decision
to be made. Such a decision is not always clear and well defined. However, conducting research may
provide only limited input; in that case, the marketing manager must make some subjective judgment.

◦ Monitoring the Position : Once a position has been established, it is necessary to monitor how well this
position is being maintained in the market place. Tracking studies measure the image of the product or
firm over time. Changes in consumer’s perception can be determined with any slippage immediately
noted and reacted to. At the same time, the impact of competitors can be determined . The company must
not only develop a clear positioning strategy, it must also communicate it effectively. For example,
company chooses the specific user positioning; it must specify the specific user and should also make
endorse the product by the existing user if any or technical person.
3C’s of Brand Positioning
Customer : A good grasp of demographics is critical to successful positioning.
 Competition: Differentiation is critical to successful positioning of a product. It is a good idea to become
familiar with the competitor’s messages in other marketing communication, such as direct marketing
pieces, brochures, press announcements, and tradeshow materials. If there is consistency and continuity,
one can gain a competitive advantage just by recognizing the realities of his competitors.
Company:Through company analysis a firm attempts to identify its strengths and weaknesses to satisfy its
potential target customers’ needs and expectations. The overall evaluation of a firm’s strengths,
weaknesses, opportunities, and threats is called SWOT analysis.
Reasons for brand positioning
Easy Connect with the Consumer: Positioning helps in connecting with the target segment. It clarifies
what the brand is all about to its consumers. Once the consumers know the brand, they can relate with it in
a better way. For example, Moov launched their campaign ‘Aah se aha tak’ to define its effectiveness in
relief from backaches which the customers were able to connect with rather than their previous stand of
knee pain and ankle pain.
Ultimate Differentiator from Competition or Cutting Edge Tool from Competition : Positioning is
used to differentiate from the other brands competing in the same segment. The companies use positioning
to define that their brands are better, more competitive and different from the rest of the products available
in the market. For example, BMW by saying ‘The Ultimate Driving Machine’ conveys that it is the best
among its competitors, a combination of luxury and performance.
It can Highlight Functional Attributes of the Brand : Positioning tells the customer what to expect from the
brand. If the company wants to bank on the product quality and there is conviction about the features, they may
decide to go for highlighting functional attributes in the brand. For example, Ujjala when it was launched in them
market said ‘Chaar Bodoon Wala’, and the advertisement showed 4 drops giving a shirt a bright new look. This is
used when the company tries to capture the market in a short span of time.
Increases TOMA and Creates a Permanent Spot in the Minds of the Customer : Brands fight for TOMA
(Top of the Mind Awareness) as it is related to the sales that the company generates. It is usually seen that the top
brands in recall are the ones which the customer is more likely to buy. Thus, to create a permanent spot in the
consumers mind brands choose their positioning to differentiate and avoid the ‘me- too’ tag. For example,
Bournvita used ‘Tan ki shakti, man ki shakti’ which was a very successful campaign. It also highlighted the
brand’s nutritional value.