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3 questions you need to ask about your brand

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3 questions you need to ask about your brand

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3 questions you need to ask about your brand

  1. 1. 3 Questions you need to ask about your brand HBR Magazine Article By Kevin Lane Keller Brian Sternthal , Alice Tybout
  2. 2. Effective brand positioning requires careful consideration of a brand’s points of difference, points of parity with other products.
  3. 3. Brand positioning focusing only on a point of difference leaves out important issues.
  4. 4. Like Subway’s Its ad agency recommended that Subway presents itself as the healthy fast-food brand. Financed the production of a television spot. Subway’s executives were concerned about the brand’s competitive frame of reference and the attendant points of parity……..
  5. 5. Fast-food consumers often perceive good taste and healthfulness to be at odds. Subway began running the agency’s advertisements nationwide. But recently it has been simultaneously running another campaign promoting new products on the basis of taste.
  6. 6. First question Have We Established a Frame?
  7. 7. Brand positioning starts with establishing a frame of reference , which signals to consumers the goal they can expect to achieve by using a brand. Eg. Coca-Cola soft drink. Competitors Pepsi-Cola , RC in same category competitors Gatorade(sport drink) in somewhat Snapple(Iced Tea) different category
  8. 8. One factor that influences the choice of frame of reference is the product’s stage in the life cycle.
  9. 9. see Fedex When Federal Express launched its service , it offered a clear point of difference from traditional mail delivery via the U.S. Postal Service: overnight delivery. As other providers of overnight delivery services appeared, FedEx positioned itself based on speed and dependability. Now it competes with other forms of document transmission like fax or e- mail. ‘Speed Delivery ‘ can no longer be the
  10. 10. Second question Are We Leveraging Our Points of parity?
  11. 11. Certain points of parity must be met if consumers are to perceive your product as a legitimate and credible player within that frame. A bank may not truly be considered a “bank” unless it offers checking and savings plans , safe-deposit boxes etc. !!.
  12. 12. The more innovative the product, the greater the difficulty of fitting it into an established frame. Motorola’s Envoy, a personal digital assistant Was too large to be called a pager, Lacked keyboard , so it couldn’t be called a laptop Was too expensive to called a calendar. Ended up in failure
  13. 13. When extending a brand , it’s easy– and dangerous–to short-change points of parity . The more an extension differs from a base brand, the greater the importance of focusing on the of focusing on the frame of reference. Managers of established brands also need to reassess points of parity from time to time, because attributes that were once differentiators can become minimum requirements. requirements.
  14. 14. A brand can also “break even” in an area where competitors are trying to break away. And then achieve a point of difference in some other area. See the example of American Express and Visa Mastercard
  15. 15. Visa’s point of difference is that it can be used in many places. American Express’ is the prestige associated with use of its card. Having established these points of difference , Visa and American Express now compete by attempting to blunt each other’s advantage. Visa offers gold and platinum cards to enhance the prestige of its cards; American Express has increased the number of vendors that accept its cards.
  16. 16. Third question Are the Points of Difference Compelling?
  17. 17. Strong, favourable , unique associations that distinguish a brand from others in the same frame of reference are fundamental to successful brand positioning. Careful analysis shows that there are three types of brand differences: brand performance associations brand imagery associations and consumer insight associations
  18. 18. Brand performance associations come into play when brands are assessed on characteristics a buyer can investigate prior to purchase.
  19. 19. Brand Performance associations include Brand’s performance on the benefits that prompt consumption. Relationship with a brand’s reliability , durability , and serviceability. Service effectiveness, efficiency, and empathy. Style and design . Associations to value and price.
  20. 20. Brand Performance associations come into play when you want to buy a computer, a car, a book an item of clothing i.e. products with concrete qualities
  21. 21. But when making choices based on experience such as where to get a haircut or eat dinner, consumers use brand imagery associations. Brand imagery is established by depicting who uses the brand and under what circumstances.
  22. 22. If all other measures are equal, a brand that can show consumers it has insight into their problems or goals . This is called consumer insight association.
  23. 23. For example, ads for Lee Jeans show women’s tribulations in the search for jeans that fit well as the basis for positioning. Lee positions itself as the brand that offers superior fit.
  24. 24. There are three questions through which to run your brand’s points-of-difference benefits: Are they desirable to customers? Can you deliver them? Is it differentiable from competitor?
  25. 25. To qualify as desirable, a point of difference must be perceived by the brand’s audience as both relevant and believable. The simplest approach to believability is to point to a unique, provable attribute of the product. In the early 1990s, for example, a number of brands (colas, dishwashing soaps) introduced “clear”–colourless and in some cases transparent–versions of their products to better differentiate themselves from competitors
  26. 26. A product’s point of difference needs to meet three deliverability criteria . Creating the point of difference must be feasible positioning on a particular benefit must be profitable. the positioning must be preemptive, defensible, and difficult to attack
  27. 27. Market leaders typically market their products on the basis of the category’s points of parity; They try to create a “We are the frame of reference” message. Coke (its ads suggest) is refreshment. McDonald’s equals great taste.
  28. 28. Consumers must see the brand position as distinctive And superior to Relevant competitors eg. Reliance 3g mobile telephone Services is differentiating itself in terms of superior clarity and download speed
  29. 29. Putting it all together..
  30. 30. Developing an effective position goes beyond determining the frame of reference , points of parity, and points of difference...
  31. 31. It also requires that these elements be internally consistent at any point in time and over time.
  32. 32. From a consumer’s perspective, the fact that a brand possesses a given benefit can imply that it will not possess another benefit. It might be difficult to position a brand as “inexpensive” and at the same time assert that it is“of the highest quality.”
  33. 33. But, apparent contradictions can be transcended. There are three good ways to go about it. Making the case that contradictions are rather complements. First, sequencing. Establish a brand’s (Miller Lite)“great taste” before you move on to “less filling.” leveraging some other unconnected attribute. Miller Lite addressed the negative correlation between great taste and low calories by presenting well-known and well-liked celebrities to lend credibility to the taste benefit.
  34. 34. And making it last..
  35. 35. As a brand ages , the challenge is to make sure it stays up- to-date and in touch with consumers’ shifting needs.
  36. 36. Sometimes the brand’s position is sufficiently rich that exactly the same position can be sustained over time.
  37. 37. Sometimes it has to be demonstrated how the brand relates to consumers’ goals. The brand is then positioned in such a way that its point of difference becomes its essence and implies goal attainment . This is called laddering up
  38. 38. Another approach to sustaining a brand position is to entail identifying a differentiating benefit that is important to consumers and presenting, over time, a variety of attributes that imply the benefit.
  39. 39. Advertising for Green Giant The setting of green Giant ads is always is the valley , so consumers know that Green Giant is around. The reliable use of this context , and the fact that the benefit is always superior quality, link the individual executions as a campaign . By varying , over time , the attributes that imply this benefit, Green Giant provides new information to sustain consumer interest.
  40. 40. Successive generations of ads have informed consumers that Green Giant vegetables are vacuum-packed, fresh frozen, and packed in butter sauce to imply superior quality and taste
  41. 41. Asking these questions will help ensure the right brand positioning , but don’t think any of these variables stays static for long . The savviest brand positioners are also the most vigilant!!
  42. 42. Take a look at few more examples..
  43. 43. Moov Moov is a pain relieving ointment from Paras Pharmaceuticals . It is the one of the largest selling rubefacient Brands in India. Consistently featured in the ‘ 100 most trusted brands ‘ Brand equity Survey The Economic Times. But what makes it great?
  44. 44. Lets first look at its competitors
  45. 45. Volini Product by Ranbaxy Laboratories Won numerous awards like Pharma Brand 2010, Sun Brand 2011. Positions itself as an expert care, doctor’s favoured , fast and long lasting relief spray/ointment.
  46. 46. Take a look at its ad.
  47. 47. Himani Fast Relief Product by Emami Ltd. The ointment’s core target is young adults who leads an active lifestyle and seek instant relief (according to their website) The brand has been endorsed by Gautam Gambhir, Boxer Vijender Singh, Saina Nehwal, Wrestler Mr. Sushil Kumar along with Amitabh Bachchan. Take a look at its ad.
  48. 48. Take a look at its ad.
  49. 49. Now take a look at Move’s ad.
  50. 50. Moov Moov succeeded in a market dominated by established brands promising relief from headache , body ache and sprains. It did this by positioning itself as the backache specialist. However , it started with old people as the target segment. Now, it is also available as an aerosol spray.
  51. 51. Sensodyne toothpaste Product by GalxoSmithKline Consumer Healthcare India. Earned profitable share through focused positioning strategy in a market dominated by Colgate-Palmolive And HUL. Identified the position gap for a toothpaste appropriate for sensitive teeth., a need more pronounced in adult population.
  52. 52. Thank you for watching!!
  53. 53. UPLOADED BY SHREYANS DAGA, MNIT JAIPUR DURING AN INTERNSHIP BY PROF. SAMEER MATHUR,IIM LUCKNOW Visit www.iiminternship.com Disclaimer

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