Crafting the Brand Positioning

1
Crafting the Brand Positioning
Chapter 10
2
The Three Major Steps in Target Marketing
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Product Position

• The place the product occupies in consumers
  minds relative to competing products.
• The complex set of perceptions, impressions, and
  feelings that consumers have for the product
  compared with competing products.
• E.g. Mercedes and Cadillac on luxury Porsche
  and BMW on performance Volvo on safety
  Toyota on fuel-efficient.

4
Positioning Maps
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Positioning According to Ries and Trout

• Positioning is what you do to the mind of the
  prospect, NOT what you do to a product.
• Well-known products generally hold a distinctive
  position.
• E.g. Coca-Cola in soft drinks Porsche in sports
  cars.

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Positioning According to Ries and Trout

• Four strategic alternatives
• Strengthen its own current position in the
  consumers mind, e.g. Avis 7-Up.
• Grab an unoccupied position, e.g. Pink Dolphin.
• De-position or re-position the competition in the
  customers mind, e.g. Benz vs. BMW (The ultimate
  sitting machine verses the ultimate driving
  machine).
• The exclusive-club strategy (product ladders),
  e.g. Toyota Honda Nissan.

7
Positioning According to Treacy and Wiersema

• Value Disciplines
• Product leader, e.g. Sony.
• Operationally excellent firm, e.g. McDonalds.
• Customer intimate firm, e.g. 3M.
• A firm can not normally be best in all three
  ways, or even in two ways.

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Positioning According to Treacy and Wiersema

• Four Rules
• Become best at one of the three value
  disciplines.
• Achieve an adequate performance level in the
  other two disciplines.
• Keep improving ones superior position in the
  chosen discipline so as not to lose out to a
  competitor.
• Keep becoming more adequate in the other
  disciplines, because competitors keep raising
  customers expectation.

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Choosing a Positioning Strategy

• Identifying possible competitive advantages
• Choosing the right competitive advantages
• Selecting an overall position strategy

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Differentiation Variables to Gain Competitive
Advantage
Product Services Personnel Channel Image
Form Ordering ease Competence Coverage Symbols
Features Delivery Courtesy Expertise Media
Performance Installation Credibility Performance Atmosphere
Conformance Customer training Reliability Events
Durability Customer consulting Responsive-ness
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Product Differentiation

• Style
• The products look and feel to the buyer.
• E.g. Starbucks, Knorr, and Apple computers.

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Product Differentiation

• Features
• E.g. Oral-Bs blue dye, Sonys long-lasting
  battery, Holiday KTV, and Discover 2GO.
• Determine the features
• Feature bundles or package

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Case ???

• 1980??????????????????
• 1990????????
• ??????????????????????????????

??? ?? ??? ???
?? 6.0?/? 3.33 ?/? 2.25 ?/? 3.25 ?/?
?? 6.6?/? 5.27 ?/? 2.77 ?/? 3.93 ?/?
?? 7.7?/? 6.25 ?/? 3.44 ?/? 4.64 ?/?
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Measuring Customer Effectiveness Value
Company Cost Customer Value Customer Value/Customer Cost
Feature (a) (b) (cb/a)
Rear-window defrosting 100 200 2
Cruise control 600 600 1
Automatic transmission 800 2,400 3
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Product Differentiation

• Performance quality
• E.g. Essilor The Lightness Lenses from the
  Toughest Material.
• There exists a significantly positive correlation
  between relative product quality and ROI.
• Conformance quality
• E.g. Honda in Pakistan, Lexuss secondhand car in
  Singapore, and McDonalds.

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Essilor Airwear
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Case ???

• 2002?,????????????????
• ???????????-?????-???
• ??????????????????
• ??????????????????,????????????????????
• ????????5????????,??????????,????????,???????????
  ????,??????,??????????????,????,????????????,?????
  ?????

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Case ???

• ??????????,???????????????????????????????????????
  ,?????????,?????????????????????,???????????
• ????????????????,??????????
• ????????????????,?????20????????????????????,????
  ????????
• ???????-36???-33???-32?

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Service Differentiation

• Ordering ease, e.g. Optic Point, ezTravel, ???,
  and SKYPE.
• Delivery, e.g. pizza, film, and FedEx.
• Installation, e.g. BQ, ????.
• Maintenance and Repair, e.g. HP e-support,
  ???????,????? ??????????????(??).
• Miscellaneous services, e.g. Canon.

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Channel Differentiation

• Coverage
• E.g. 7-11.
• Expertise
• E.g. Caterpillar, PG.
• Performance
• E.g. Dell, and Avon.

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People Differentiation

• Hiring and training better people than their
  competitors do
• E.g. Disney friendly and upbeat, Singapore
  Airlines graceful flight attendants, IBM
  professional, ????, ????, and SOGO????????, ???.
• Better-trained personnel exhibit six
  characteristics competence, courtesy,
  reliability, responsiveness, and communication.

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Image Differentiation

• Symbols, colors, slogans, special attributes
• Physical plant, e.g. Coca-Colas bottling plant,
  Asahis picnic grounds with football field
  dimensions, Suntorys art museum, and Sapporos
  museum.
• Event and Sponsorship, e.g. Toshiba Samsung.
• Using multiple image-building techniques, e.g.
  Swatch.

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Discussion Question
Many companies build their brand image through
creating or sponsoring various events. Toshiba
and Samsung were major sponsors of the 2002 World
Cup, while Visa is an active Olympics sponsor.
Can you think of other companies
which have sponsored major events
like these to build their
brand image?
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Image Differentiation Event and Sponsorship

• ????? ??????3?3???????????NBA??????????????
• ??? ?????Once?????T-Mobile????????????????(ATB
  Team)???????(MBX)??????????????(??)????,????????

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How Many Ideas to Promote?

• Unique selling proposition (USP)
• E.g. Hitachi quite Sampo disinfectant
  Colgate anticavity protection Benz great
  engineering.
• Double-benefit positioning
• E.g. Volvo safest and most durable.
• Triple-benefit positioning
• E.g. Aquafresh toothpaste anticavity protection,
  better breath, and whiter teeth Lever 2000
  cleansing, deodorizing, and moisturizing.

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Four Major Positioning Errors

• Underpositioning, e.g. Shiseido.
• Overpositioning, e.g. Cartier.
• Confused positioning, e.g. Kmarts upscale
  discounter vs. Wal-Marts Always low prices.
  Always!.
• Doubtful positioning, e.g. ????.

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Value Proposition