Strategic Brand Management It involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity. The Strategic Brand Management Process is defined as involving four main steps: 1. Identifying and establishing brand positioning and values 2. Planning and implementing brand marketing programs 3. Measuring and interpreting brand performance 4. Growing and sustaining brand equity

COURSE TITLE : STRATEGIC BRAND MANAGEMENT MODULE 3: Brand Positioning Ashesi University COURSE TITLE : STRATEGIC BRAND MANAGEMENT SEMESTER : SECOND, 2011/2012 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 Learn how to conduct brand audits to help formulate brand positioning Write brand positioning statements for selected brands based on the brand key tool Develop Your Personal Brand Profile

Steps in Segmentation, targeting and positioning Select Customers to Serve Decide on value proposition Segmentation Divide the total market into Smaller segments Differentiation Differentiate the market offering to create superior customer value Targeting Selecting the segment or segments to enter Positioning Position the market offering in the minds of the target customers Create value for target customers Market is the set of all actual and potential buyers who have sufficient interest in, income for, and access to product.

Definition of Key Concepts Market Segmentation Dividing a market into smaller groups with distinct needs, characteristics, or behaviours who might require separate products or marketing mixes Market Targeting The process of evaluating each segment’s attractiveness and selecting one or more segments to enter Differentiation Actually differentiating the market offering to create superior customer value Positioning Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers

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 “The selling concept that motivates purchase, or the image that marketers desire a brand to have in the minds of consumers”

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

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.

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

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?

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

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. 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. Points-of-difference are characteristics unique to the brand that help distinguish it from the competition, while points-of-parity may be shared by other brands in a given category. Points-of-Difference may come from performance attributes or performance benefits associations or imagery associations. o Points of Parity are of 2 types namely category points of parity and competitive. Category points of parity is a necessary condition of choice but not sufficient. Category points of parity may change over time due to technological advancement, legal developments, consumer trends. Competitive points of parity are those associations designed to negate competitors’ points of difference.

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

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. There are three main ways to convey a brand’s category membership: communicating category benefits, comparing to exemplars, and relying on products descriptor. Performance and imagery associations can provide supporting evidence for communicating the category benefits. Exemplars are well known, noteworthy brands in a category- can also be used to specify a brand’s category membership. The product descriptor that follows the brand is often a very compact means of conveying category origin.

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 A sound positioning strategy requires marketers to specify not only the category but also how the brand dominates other members of its category. The two most important considerations in choosing PODs are that consumers find the POD desirable and that they believe the firm has the capabilities to deliver on it.

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 One challenge for marketers is that many of the attributes or benefits that make up the POPs and PODs are negatively correlated.

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

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 The core brand values are the five or ten most important attributes or benefits of the brand that appear on the mental map. A mental map portrays in detail al salient brand associations and responses for a particular target market. This can be done by getting or asking consumers to tell “ What comes to mind when they think of the brand” A brand mantra can capture the core brand values and provide the essence of the brand in a short phrase.

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 The purpose of brand mantra is to ensure that all employees and external marketing partners understand what the brand most fundamentally is to represent to consumers so they can adjust their actions accordingly.

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?

Designing the Brand Mantra Emotional Modifier Descriptive Brand Functions Nike Authentic Athletic Performance Disney Fun Family Entertainment Folks Food Brand Mantras derive their power and usefulness from their collective meaning. For it to be effective no other brand singularly excel on all dimensions. Brand Mantras typically are designed to capture the brand’s points of difference, i.e. what is unique about the brand.

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 …. 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? ” 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?

ABSOLUT BRANDKEY Essence Pure class 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 25-35. Enjoy going out and want to enjoy, and be seen to enjoy, premium quality products ABSOLUT BRANDKEY

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

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 Marketing Audit : is a “comprehensive, systematic, independent, and periodic examination of a company’s or business unit’s- marketing environment, objectives, strategies, and activities with a view of determining problem areas and opportunities and recommending a plan of action to improve the company’s marketing performance. Brand Audit : An important informational and diagnostic tool to help marketers determine the overall state and health of the brand as well as its source of brand equity. Knowledge of consumers knowledge about the brand is important to make informed strategic positioning decisions about the brand. 20

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 20

Brand Audit Steps Brand inventory (supply side) Brand exploratory (demand side) 20

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 20

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 20

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 20

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 20

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 20

Key Points Through the selection of a positioning strategy, marketers can influence the knowledge structures consumers have for a brand. 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. Points-of-parity and points-of-difference are important means by which brands can establish unique positioning. Internal branding strategies can be as important and effective as external branding efforts.   20

Tutorial 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? Develop a brand positioning for Ashesi University using the brand key vision positioning tool 20

Brand Archetypes Archetypes are the forms, images and beliefs shared by all people and cultures worldwide; every culture in the world instinctively understands the Hero archetype and the Outlaw archetype. The book, The Hero and the Outlaw, by Margaret Mark and Carol S. Pearson, discovered the 12 archetypes that are most easily used and applied to companies, organizations, products, and causes.

Brand Archetypes

Brand Archetypes

Brand Archetypes