Brand PositioningLeveraging A Point of Difference
William Baker ConsultingMarketing StrategyCommunication StrategyBrandingAdvertising
Award Winning Author, Professor and Consultant619-402-3990, [email protected]
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What Differentiation?
O Most people can tell you a lot of information about a product category, but…..
O they can tell you very little about what’s different about each brand
in the category.
SUVsBanks
The Goal of PositioningWhen you create a position for a brand your objective is to create one key top of mind association to the brand that refines its identity to make it stand out.
Position
Differentiation
Relative Advantage
Strong Positions Meaningfully Differentiate the Brand which…
O Protects the firm from price competition
O Increases customers willingness to pay a premium price
O Increases customer brand commitment
Paths to Successful PositioningExcel in One Area, Remain Competitive in Others
Superior Quality – Market Leader (Premium Delivery of Core Benefits)
Low Cost(Basic Benefits at Lowest Price)
Differentiation (Offering unique value relative to competitors)
Positioning Strategy #1:Superior Quality [Market Leader]
OIn any product category, the market leader is the standard for the delivery of the core product category benefits.
OThe easiest way to become a leader is to create a new perceptual category.
OOnce a leader is established in the mind of the consumer, it is difficult to change that perception.
Ideal Way to Create a Market Leader
Ideally, you would like your brand to stand out so successfully it creates a new category in which it is takes the market leader position.
O Nyquil
O Red Bull
O Nike Cross Trainers
O IPOD
Note: All of these brands innovated categories to the point of creating new sub-categories….a new branch within a general category.
Positioning Strategy #1:Superior Quality [Market Leader]
The first brand that comes to mind when people think of semi-conductors
The first brand that comes to mind when people think of laundry detergent
The first brand that comes to mind when people think of fast food
Taking the leadership position from an established leader is difficult IF…
O The leader maintains at least parity in innovativeness.
O The leader maintains at least parity in distribution channel power.
O The leader remains price competitive.
O The leader does not stray from its core competency.
Positioning Strategy #2:Low Price
To be successful, the price position requires the firm to have a lower cost structure than its competition.
Objective: Be the first brand that comes to mind when people think of a low price option in a product or service category.
Requirement: Core category benefits delivered, but no frills
Positioning Strategy #2:Low Price
Southwest Airlines Lowest cost no frills air travel
Wal-Mart Lowest cost no frills shopping forEvery day needs
Motel Six Lowest cost no frills lodging
Positioning Strategies
1. Superior Quality [Market Leader]
2. Cost-Structure Based Low Price
3. Differentiation:O Benefit position
O Usage situation position
O Aspirational position
Hard
Soft
Positioning Strategy #3A:Benefit
Action: Explicitly link your brand to ONE key performance benefit.
Objective: Be the first brand that comes to mind whenever this benefit is sought
Most Effective When: The brand has a performance advantage on the benefit in question
Positioning Strategy #3A:Benefit
Company/Brand Position Execution
Build moxy and Be all that you can be
character Army of One
Backyard flavor Grilled, not fried
Clothes Smell Great The Greatest Smell on Earth
Positioning Strategy 3B:Usage Situation
Action: Associate your brand to usage at a specific time, place or circumstance.
Objective: Be the first brand that comes to mind when customers are in the given situation
Most Effective When: A significant portion, but minority of all product category usage is during this
situation.
Positioning Strategy 3B:Usage Situation
Brand Position Execution
Nyquil Nighttime cold medicine The aching, sneezingsniffling, need your restmedicine
Hallmark Celebrate important When you care to send
moments the very best
Snickers Middle of the afternoon Hungry? Grab a Snickers
Positioning Strategy 3C:Aspirational
Action: Link brand to ‘tribal membership’ or ‘lifestyle aspiration’
Objective: Be the brand that is symbolic of an important
underlying motivation or aspiration of the target
market Most Effective When: The product category fulfills an aspirational goal
Positioning Strategy 3C:AspirationalCompany/Brand Position Execution
Marlboro Cigarettes Rugged Masculinity The Marlboro Man
Chevrolet Pride in America The Heartbeat of
America
Avoid Getting “Stuck in the Middle” Consumers generally seek superior performance on one or more dimensions or lower price.
Except in the case of expensive durable goods ‘Value’ brands are dangerous because:
OIf consumers are seeking performance, being perceived as 90% as good as a key competitor will generally lead to rejection.
OIf consumers are seeking low price, being 10% more expensive than a key competitor will generally lead to rejection.
Successful Positions
The position is unique in its product category The position contains one clear thought The position defines what the brand does best, it is just a slogan
and it is not ‘disposable’