Professor Myungwoo Nam
Session #6
Foundation of Marketing
Positioning
Positioning
POSITIONING: The Value(s) to be delivered to the target
segment via the marketing mix (4Ps).
ANALYZING VALUE CREATION: WHAT VALUE TO OFFER?
1. Value =
Functional Benefits + Emotional Benefits
Price + Time
2. Positioning Map
3. Positioning Statement
4. Positioning Triangle
1
Positioning Map
Luxurious
Lancome
Plenitude
Natural
Hi-Tech
Nivea
Ponds
Functional
Positioning Statement
To (Target Customers),
Brand X is the brand of (Frame of Reference (FOR) –
service/product category, or what the service/
product does from the customer’s point of view),
that is (Point of Difference (POD) – why the brand fits
into the customer’s Frame of Reference better than
competitive alternatives),
because (Evidence – service/product feature(s) that make
the FOR and POD believable).
This means (hook to the Emotional Customer Goal (ECG) –
how the brand fits into the customer’s life and fulfills
their real goal).
2
Brand Positioning Statements
• Palm Pilot: To busy professionals who need to stay organized, Palm
Pilot is an electronic organizer that lets you carry your address book,
schedule, and notepad in your pocket. It is superior to other
organizers because only Palm Pilot allows you to backup your files
and synchronize with your PC at the touch of a button, saving time and
ensuring availability of a back-up copy of important information.
• BIC Disposable Razor: To men and women who lead active lives that
sometimes result in shaving away from home, the BIC disposable
razor offers you greater convenience than other razors because it is
inexpensive and widely available. With BIC disposable razor, you can
focus on the things you want to do and not on keeping track of your
razor.
• Mountain Dew: To young, active soft-drink consumers who have little
time for sleep, Mountain Dew is the soft drink that gives you more
energy than any other brand because it has the highest level of
caffeine. With Mountain Dew, you can stay alert and keep going even
when you haven’t been able to get a good night’s sleep.
3Ds of Positioning:
The Positioning Triangle
Define Frame of Reference
Brand A
Differentiate
Brand B
Deepen
ECG
3
3Ds of Positioning:
The Positioning Triangle
Define Frame of Reference
Evidence
Points of Parity
Brand A
Differentiate
Brand B
Deepen
ECG
Positioning Palm Pilot
• Palm Pilot positioning statement
• To busy professionals who need to stay organized,
Palm Pilot is an electronic organizer that lets you carry
your address book, schedule, and notepad in your
pocket. It is superior to other organizers because
only Palm Pilot allows you to backup your files and
synchronize with your PC at the touch of a button,
saving time and ensuring availability of a back-up
copy of important information.
4
Positioning Palm Pilot
• Motorola Envoy
•
•
•
•
•
•
• Palm Pilot
Address book
Calendar
Wireless Email
Mobile Phone
Beeper
Handheld PC
• Electronic organizer
• Synchronized with
PC
Gizmondo!
• Gizmondo (“the ultimate gaming device”)
• High-performance gaming
• 400-MHz microprocessor
• 64-bit graphics
• Bluetooth
• MP3 player
• Digital movie player
• Camera
• SMS
• GPS
• $300 (versus $150 of Game Boy SP)
• Nintendo: Game Boy (168m sold since 1989)
• Sony: PSP
5
Positioning Decision #1: Define
• Define the Frame of Reference (FOR)
• Category as perceived by target customer
• Why is FOR important?
• Establish New Product category (Palm Pilot)
• Respond to (new) competition (Britannica)
• Spurt growth (7UP)
• How to establish FOR?
• Highlight Points of Parity (POP)
• NOTE: This is counterintuitive, but critical!!
7UP
SITUATION IN 1967
‹
‹
7UP THIRD IN SOFT-DRINK SALES BEHIND COKE
AND PEPSI
7UP FACES COMPETITIVE THREAT
‹
Since 1965, Several New Lemon-Lime Brands Launched to
Compete with 7UP:
• SPRITE by Coca-Cola
• TEEM by Pepsi
• UPPER 10 by Royal Crown
• FRESCA by Coca-Cola
• WINK by Canada Dry
6
7UP
SALES (% CHANGE)
14%
13%
12%
11%
10%
8%
8%
6%
6%
4%
3%
2%
0%
0%
1965
1966
1967
INDUSTRY
7UP
7UP
AWARENESS
ƒ Top-of-Mind (Soft-drink Category) – Top five brands were
colas
ƒ Aided Awareness – 7UP is a Soft-drink
7
7UP
BRAND PROFILES
% OF CONSUMERS
WHO PERCIEVE BRAND
POSSESSES ATTRIBUTE
ATTRIBUTE
7UP
COKE
PEPSI
• Good for Snacks
• Good for Meals
• For Active, Vital People
• A Drink My Friends Like
39
32
38
30
62
47
60
55
61
44
66
53
• For Mixing
• Good for Digestion
66
60
18
17
4
8
• A Good Buy
• A Big Bottle
• Thirst Quenching
28
16
60
38
39
30
50
58
28
• Good Tasting
58
62
59
7UP: circa 1969
Soft-drinks
Evidence
“(un)COLA”
With Food
With People
7UP
Fanta, Sprite,…
Colour
Taste
Evidence
8
7UP
SALES (% CHANGE)
24%
25%
20%
20%
18%
17%
15%
12%
11%
10%
5%
0%
1968
INDUSTRY
7UP
1969
1970
Achieved with no increase in marketing expenditures
3Ds of Positioning:
The Positioning Triangle
Define Frame of Reference
Brand A
Differentiate
Brand B
Deepen
Customer Goal
9
Positioning Decision #2: Differentiate
• Differentiate with Point of Difference (POD)
• Different compared to what?
• Category Leader versus Followers (Miller vs. Bud)
Miller Lite: Positioning Statement
Miller Lite is a beer that appeals to young
working class consumers because it offers
the opportunity to drink beer without
getting filled up, because it is light and has
fewer calories.
10
Bud Light: Positioning Statement
Budweiser Light is the light beer that
appeals to 25-44 year old upscale
consumers because it has the taste that is
synonymous with the heritage of Budweiser.
BRAND POSITIONING
18.3
BEER MARKET SHARES
15.0
11
10
9.8
6
4
1982
7.5
6.4
4
1987
1990
2000
2002
Miller Lite
Bud Light
11
Positioning Decision #2: Differentiate
• Differentiate with Point of Difference (POD)
• Different compared to what?
• Category Leader versus Followers (Miller vs. Bud)
• Be Different (and Stick with it!)
• Energizer versus Duracell (example of “Me-too” positioning)
• Be Choice Determining (i.e., important)
• Analgesics (“no water needed”)
• Evolve Differentiation as the Market Evolves
• FedEx
• Be Difficult to copy
• Benefits versus Features
• Deepen the positioning
Ineffective Differentiation:
Energizer Vs Duracell
DURACELL
49%
47
45
43
Market
Share
41
39
Bunny
spot
37
ENERGIZER
35
1988
1989
1991
1994
1998
12
Positioning Decision #2: Differentiate
• Differentiate with Point of Difference (POD)
• Different compared to what?
• Category Leader versus Followers (Miller vs. Bud)
• Be Different (and Stick with it!)
• Energizer versus Duracell (example of “Me-too” positioning)
• Be Choice Determining (i.e., important)
• Analgesics (“no water needed”)
• Evolve Differentiation as the Market Evolves
• FedEx
• Be Difficult to copy
• Benefits versus Features
• Deepen the positioning
3Ds of Positioning:
The Positioning Triangle
Define Frame of Reference
Brand A
Differentiate
Brand B
Deepen
Customer Goal
13
Positioning Decision #3: Deepen
• Think of it as laying a bridge
• Brand specific Emotional
connection to Consumer Goal
(ECG)
• Two options
• Brand Essence
• Category Essence
Positioning Summary
• THE POSITIONING TRIANGLE
• FRAME OF REFERENCE – Product Category
• Highlight Points-of-Parity to convey FOR
• POINT OF DIFFERENCE – Key Product Benefit
• Best to have One key benefit
• Best to have an Abstract benefit
• Best to have a Choice Determining benefit
• Deepening the positioning – The hook with Target
Customers’ Emotional Goal
14