Week5 – Brand Positioning &Product strategy
• Brand essence
• Laddering
• Brand positioning – ch 10
• Product strategy – ch 14
• Case studies – P& G , Tea market
• Project – part 1

A successful brand is an identifiable product, service, person or place, augmented in such a way that the buyer or user perceives relevant, unique [sustainable] added values which match their needs most closely.

• Consumers select products / services with greatest percieved value to them
• Competitive Advantage is gained when a brand offers superior value to the target market or by providing equivalent benefits at lower prices
• Strong positions are based upon delivering better quality / value
• Positioning begins with differentiating the brand offer

Product
Service
Personnel
Image
COMPETITIVE
ADVANTAGE

• Product
 performance eg cars, cleas better

Features eg safer
 Style

Consistency eg always on time

Reliability eg starts every time

• Service

Delivery- eg Domino‘s Pizza

Speed- eg. Delivery in 24 hours DHL
 Security. Eg : Amex card repacement
• Personnel / staff

Advantage through better staff

More helpful / knowlegable/ fun/ repectful
 Examples ; Singapore Airlines, Virgin , Disney,Club
18-30



Iced Tea market- segmentation
•
Not enough to write a list , you must give examples to show that you understand !
• Demographic

Income , low price tetrapaks, premium glass bottles

Age eg. teenagers, impulse packs . Housewives 2l PET
•
Psychographic.. Yes lifestyle, but which ones ?

Trend setter, buying premium glass bottle ( Snapple ) in convenience stores
• Behavioural

Occasions eg after sport segment with extra minerals, mixer with spirts ?

Benefit segmentation, extra calcium added for kids

Iced Tea market- forecasting
• Historical data- but is any available ?
• Analogy- eg In Japan reached 30 % of
CSD literage after 5 years, will the market demand curve follow the same line in other markets ?
• Market surveys/ tests – research on willingness to buy at a certain price
• Market forecast using model

Market Forecast –Soft drinks/ Iced Tea. Following factors will influence per capita consumption in a market
• Income
• Relative price v. other beverages
• Availability
• Climate
• Advertising expenditure in total market
• Cultural factors ( water, wine , beer !)

•
How do brand owners make their brand stand out against the message clutter ? You are bombarded with messages, many of which you filter out
•
Positioning is what you do to the mind of the consumer
•
Positioning focuses on the functional aspects of the brand
•
Brandowners need to
1.
Ensure that the brand meets consumers needs by occupying a distinct, meaningful and valued place in the consumers mind
2.
Ensure that consumers believe that the brand will meet these needs better than competitors ( so consumers have to know which category the brand is in )

• Positioning ( Rossiter & Percy) has 3 elements
1.
To... ( Target audience)
2.
X is the brand of.. ( Category )
3.
That offers ( benefit )
Diet Coke
To weight conscious adults ( target ) Diet Coke is the brand of diet cola ( category ) that tastes best
( benefit )

IMPORTANT
DISTINCTIVE
SUPERIOR
COMMUNICABLE
PREEMPTIVE
AFFORDABLE
PROFITABLE

• Product
• Benefits
• Usage
• Users
• Activities
• Personalities
• Origin
• Competitors
• Product class

Product class
Product attributes
Benefits
Not competition Usage
Against competition
Brands
POSITIONING STRATEGIES
Activities
Users
Origin Personalities

• Write for

Mannerschnitten

Bounty

Flake

Kit Kat

• A brand is a cluster of functional & emotional benefits
• Functional benefits can be copied
• Competitive advantage in brands often comes from their emotional benefits& values
• Brand positioning focusses on what a brand can
DO for the consumer( functional benefits )
• Brand personality focusses on what the brand
SAYs about a consumer & how they FEEL about it

• Brand personality represents a shorthand device , because through seeing a person associated with a brand consumers can quickly recognise the values it represents
• BP also acts as a motivation to purchase because consumers prefer brands whose values they respect
• BP is important for publically consumed brands ( cars, fashion, eating out, hotels, beer) ,because consumers can give non- verbal signals to their peer group about their values
• Examples

Personality
Values Trust
Emotional
Rewards
Safe
Feeling
Benefits Long
Lasting
Attributes Good
Material
Agassi
Fashion
Oriented
Feel
Comfortable
Looking good
Popular
Design
Self Belief
Identify
Recognized
Brand
Position

Personality
Nike
Michael Jordan/Tiger Woods/Dutch
Soccer Team
Peace Loyalty Status Values
Emotional
Rewards
Benefits
Relaxed
Durability Comfort
Attributes Stretch
Self-confident Image
Quality fit
Dynamic
Cutting edge fashion

Personality
Pringles
Miss Bucket
(Keeping up Appearances)
Values Organization Freedom of choice
Structure cleanliness
Satisfaction Tidiness Emotional
Rewards
Benefits Storing
Attributes Can
Choice
Flavours
No Crums
Whole

Personality
Value
Emotional
Rewards
Benefits
Attributes
Social
Young
People
Able to
Differentiate
Fashion
Oriented
Easy to share Hmmmm Fashionable
Whole Chips Pick your
Taste
Can Choice of
Flavor
Hip
Style

Pringles
Personality
Values Fun
Eddie Murphy
Confident Versatile
Emotional Rewards Pleasure to play with Consistency Fits my mood
Benefits
Attributes
Stackability Protection Suits many consumers
Round even shape Packed in tubes Range of flavours

Personality
Values
Emotional
Rewards
Benefits
Self-
Confidence
Image
Trendy
Attributes Design
Nokia
Bill Gates
Flexibility Personalizati on
Fulfillment of needs
Recognition
Adaptability Sound preference
Functions Ring tone

Personality
Value
Emotional rewards
Benefits
Attributes
Businessmen
Reliance Self Believe Relaxed
Secure
Always
Working
High
Quality
Willingness to Show
Looking
Good
Design
No Worries
Ease of Use
Practical

• Product component model
• Line extensions

• A hotel eg . Holiday Inn
• Sony camcorder

• Analyse situation in terms of market attrctiveness model
• What risks do they face in entering this sector ?