Customer-Based Brand Equity Model Consumer- Brand Resonance Brand Salience Consumer Judgments Consumer Feelings Brand Performance Brand Imagery INTENSE, ACTIVE LOYALTY RATIONAL & EMOTIONAL REACTIONS POINTS-OF- PARITY & POINTS-OF- DIFFERENCE DEEP, BROAD BRAND AWARENESS

Sub-Dimensions of CBBE Pyramid LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT QUALITY CREDIBILITY CONSIDERATION SUPERIORITY WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT CATEGORY IDENTIFICATION NEEDS SATISFIED PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS, EFFICIENCY & EMPATHY STYLE AND DESIGN PRICE USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY, HERITAGE & EXPERIENCES

Ashesi University COURSE TITLE : STRATEGIC BRAND MANAGEMENT SEMESTER : SPRING 2016 MODULE 3: Brand Positioning Lecturer: Ebow Spio

Learning Outcomes Learn how to establish a positioning for a brand Identify and establish core brand associations and a brand mantra looking at examples of from brands from companies such as Unilever Write brand positioning statements for selected brands based on the brand key tool Gain the technique of crafting your personal brand profile Learn how to conduct brand audits to help formulate brand positioning

3.5 Brand Positioning Is at the heart of the marketing strategy “... the act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds.” Philip Kotler

Four Principles of Positioning Must establish position for firm or product in minds of customers Position should be distinctive, providing one simple, consistent message Position must set firm/product apart from competitors A company cannot be all things to all people— must focus its efforts

3.7 Determining a frame of reference What are the ideal points-of-parity and points- of-difference brand associations vis-à-vis the competition? Marketers need to know: – Who the target consumer is – Who the main competitors are – How the brand is similar to these competitors – How the brand is different from them

3.8 Target Market 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 requires making tradeoffs between costs and benefits.

3.9 Example of the toothpaste market Four main segments: 1.Sensory: Seeking flavor and product appearance 2.Sociables: Seeking brightness of teeth 3.Worriers: Seeking decay prevention 4.Independent: Seeking low price

3.10 Criteria for Segmentation Identifiability: Can we easily identify the segment? Size: Is there adequate sales potential in the segment? Accessibility: Are specialized distribution outlets and communication media available to reach the segment? Responsiveness: How favorably will the segment respond to a tailored marketing program?

3.11 Nature of Competition Deciding to target a certain type of consumer often defines the nature of competition Do not define competition too narrowly – Ex: a luxury good with a strong hedonic benefit like stereo equipment may compete as much with a vacation as with other durable goods like furniture

3.12 Points-of-Parity and Points-of-Difference Points-of-difference (PODs) are attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand. (Performance Associations, Imagery Associations & Consumer Insight associations) Points-of-parity associations (POPs), on the other hand, are not necessarily unique to the brand but may in fact be shared with other brands.

3.13 Brand Positioning Guidelines Two key issues in arriving at the optimal competitive brand positioning are: – Defining and communicating the competitive frame of reference – Choosing and establishing points-of-parity and points-of-difference

3.14 Defining and Communicating the Competitive Frame of Reference Defining a competitive frame of reference for a brand positioning is to determine category membership. The preferred approach to positioning is to inform consumers of a brand’s membership before stating its point of difference in relationship to other category members.

3.15 Choosing POP ’ s & POD ’ s Desirability criteria (consumer perspective) – Personally relevant – Distinctive and superior – Believable and credible Deliverability criteria (firm perspective) – Feasible : Can the firm create the POD? – Profitable – Communicable – Sustainable: Pre-emptive, defensible, and difficult to attack

3.16 Challenges of Establishing PODs and POPs: Attribute and Benefit Trade-offs Price and quality Convenience and quality Taste and low calories Efficacy and mildness Power and safety Ubiquity and prestige Comprehensiveness (variety) and simplicity Strength and refinement

3.17 Strategies to Reconcile Attribute and Benefit Trade-offs Establish separate marketing programs Leverage secondary association (e.g., co-brand) Re-define the relationship from negative to positive

3.18 Core Brand Values Set of abstract concepts or phrases that characterize the five to ten most important dimensions of the mental map of a brand Relate to points-of-parity and points-of- difference Mental map  Core brand values  Brand mantra

3.19 Brand Mantras An articulation of the “heart and soul” of the brand similar to “brand essence” or “core brand promise” Short three- to five-word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values Considerations – Communicate – Simplify – Inspire

3.20 Designing the Brand Mantra The term brand functions describes the nature of the product or service or the type of experiences or benefits the brand provides. The descriptive modifier further clarifies its nature. The emotional modifier provides another qualifier — how exactly does the brand provide benefits, and in what way?

3.21 Designing the Brand MantraEmotionalModifierDescriptiveModifierBrandFunctions NikeAuthenticAthleticPerformance DisneyFunFamilyEntertainment FunFolksFood

Positioning Statement Positioning Statement : A written description of the position that a company wishes itself, its product or its brand to occupy in the minds of a defined target audience. It states the product’s membership in a category and then shows its point-of-difference from other members of the category. Positioning Statement “Only Beacon Books inspires and equips me to discover and exploit the gem in my life” 16-22

Brand Positioning Tool: Brand Key Vision Brand Key Vision articulates the positioning of the brand and is an important tool for managing a brand over time Focus One global BrandKey Vision for each brand Strategic Intent What we intend to build the brand towards in 3-5 years Simplicity Simple inspiring language Brevity, focus, clarity

Brand Positioning Tool: Brand Key Vision Root Strength The original product, values and/or benefits that made the brand great and on which we want to build … what made us famous in the first place?” Competitive Environment The market and alternative choices as seen by the consumer and the relative value the brand offers in that market …. who loses when we win? ” Target The person and the situation for which the brand is always the best choice, defined in terms of their attitudes and values, not just demographics … who is our target consumer? Insight The element of all you know about the target consumer and their needs (in this competitive environment) on which the brand is founded … what is the consumer opportunity? ” Benefits The differentiating functional, emotional and sensory benefits that motivate purchase, how brand is solving the problem or improving the life of consumers …... what’s in it for them? ”

Brand Positioning Tool: Brand Key Vision Values, Beliefs and Personality The brand values - what the brand stands for and believes in - and its personality … who are we, truly, at our core? “ Product Philosophy It is based on our brand’s beliefs about product delivery and the explicit principles that underpin the brand’s product development and how we prove those principles through differentiated product and pack delivery. Is about what our product must offer and delivery and how to do it. Reasons to believe The proof we offer to substantiate the benefits/brand experience …. why should they believe us? “ Discriminator The single most compelling and competitive reason for the target consumer to choose the brand … why choose it? Essence The distillation of the brand into a core idea or promise…what is the brand idea and rallying cry?

Values & Personality Ironic Liberal Clinical Intelligent Contemporary Reasons to believe Winter wheat Import from Sweden Distilled 100 times Low iron sand Icon of modern living Benefits Stylish, Subtle Sophisticated Metropolitan Exclusive, Chic Membership Discriminator Absolut is the purest expression of sophistication Insight Every choice that I make either reinforces or undermines other people’s perceptions of who I am Competitive environment Other premium vodkas, Stolichnaya, Finlandia Target Style conscious urban consumers Enjoy going out and want to enjoy, and be seen to enjoy, premium quality products Essence Pure class ABSOLUT BRANDKEY

3.27 Brand Manifesto 1.A manifesto is "a public declaration of principles, policies, or intentions, especially of a political nature." It comes from the Latin word manifestus, which means "clear or evident.” (Jennifer Rice, 2004) 2.Brand Manifesto is a clear declaration of the purpose and intent of a brand to the public. It also includes principles and policies that will help realize the intention. 3.It can inspire customers, employees and other stakeholders to join together to realize the intention Source: Mark Di Somma of Branding Strategy Insider

3.28 Brand Manifesto 4. What is a basis of brand manifesto ?: Through doors of connection between people and brands (Jean-Claude Saade) - Shared values, roots, fights, pursuits, lifestyle aspirations, passions, preference 5. The manifesto must be something not only worth reading, but worth acting on. 6. How to do communicate it to the public:? placard, beautiful story, dream, philosophy, call to action etc. Source: Mark Di Somma of Branding Strategy Insider

Manifesto of Brains on Fire

Brand Manifesto of Innocent

Perceptual Map A perceptual map is a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands relative to its own and then take marketing actions.

Product Positioning using Perceptual Maps

Brand Archetypes

3.37 Internal Branding Members of the organization are properly aligned with the brand and what it represents. Crucial for service companies

3.38 Brand Audit Externally, consumer-focused assessment A comprehensive examination of a brand involving activities to assess the health of the brand, uncover its sources of equity, and suggest ways to improve and leverage that equity It includes brand vision, mission, promise, values, position, personality, and performance

3.39 Importance of Brand Audits Understand sources of brand equity – Firm perspective – Consumer perspective Set strategic direction for the brand Recommend marketing programs to maximize long-term brand equity

3.40 Brand Audit Steps Brand inventory (supply side) Brand exploratory (demand side)

3.41 Brand Inventory A current comprehensive profile of how all the products and services sold by a company are branded and marketed: – Brand elements: names, logos, symbols, characters, packaging, slogans, trademarks – Supporting marketing programs – Profile of competitive brands – POPs and PODs – Brand mantra/Brand Key Vision

3.42 Brand Inventory (Cont.) Suggests the bases for positioning the brand Offers insights to how brand equity may be better managed Assesses consistency in message among activities, brand extensions, and sub-brands in order to avoid redundancies, overlaps, and consumer confusion

3.43 Brand Exploratory Provides detailed information as to how consumers perceive the brand: – Awareness – Favorability – Uniqueness of associations Helps identify sources of customer-based brand equity Uncovers knowledge structures for the core brand as well as its competitors

3.44 Suggested Brand Audit Outline Brand audit objectives, scope, and approach Background about the brand (self-analysis) Background about the industries Consumer analysis (trends, motivation, perceptions, needs, segmentation, behavior) Brand inventory – Elements, current marketing programs, POPs, PODs – Branding strategies (extensions, sub-brands, etc.) – Brand portfolio analysis – Competitors ’ brand inventory – Strengths and weaknesses

3.45 Brand Audit Outline (Cont.) Brand exploratory – Brand associations – Brand positioning analysis – Consumer perceptions analysis (vs. competition) Summary of competitor analysis SWOT analysis Brand equity evaluation Strategic brand management recommendations

3.46 Key Points 1.Through the selection of a positioning strategy, marketers can influence the knowledge structures consumers have for a brand. 2.Positioning a brand involves choice of a target market, a competitive arena, and the sets of features and associations in which a brand is going to be similar to and different from its rivals. 3.Points-of-parity and points-of-difference are important means by which brands can establish unique positioning. 4.Internal branding strategies can be as important and effective as external branding efforts.

3.47 Tutorial 1.Pick a category basically dominated by two or three main brands. Evaluate the positioning of each brand. Who are their target markets? What are their main points of parity and points of difference? Have they defined their positioning correctly? How might it be improved? 2. Develop a brand positioning platform for any brand or city of your choice using Unilever’s Brand Positioning tool or framework. 3.Café Cadbury