POSITIONINGThe Battle for your Mind

WHATS YOUR FAVORITE BRAND? WHY?

A concept so simple,people have difficulty in understandinghow powerful it is!

Geographic Psychographic Behavioural By Benefits Mass Marketing Differentiated Marketing Concentrated Marketing Niche MarketingThe Battle for your Mind

POSITIONING is the act of owning a piece of consumers mind = CREATE IMAGE

POSITIONING is not what you do to your product or service its what you do to the mind of your target market/consumer = CREATE DIFFERENTIATION

DEFINITIONThe Battle for your Mind

ExamplesAffordable Trendy FashionProtectionInexpensive Alternative Sexual AttractionSports BeverageLux SafetyFun, Family, Entertainment

A reason to be

The brand has to be distinctive, relevant and appealing to its target audience.

The Battle for your Mind

The assault on our mind The media explosion The product explosion The advertising explosion

Consumers only accept what is consistent with prior knowledge or experience

Very difficult to change the perception once formed

WHY IS POSITIONING REQUIRED? The Battle for your Mind

Frame of ReferencePoints of Difference / ParityBrand MantraIdentify Target MarketIdentify Relevant CompetitionPOD: Unique Brand ValuesPOP: Shared Brand ValuesHeart and Soul of the BrandBuilding the RIGHT Relationship with the RIGHT People

Brand Identity

Her beauty is our passion. From products that delight with results to a meaningful experience, Mary Kay knows how to make women feel beautiful, confident & connected.

ACT l Skin Care That WORKS

ACT llCaptivating Color

ACT l : Skin Care That WORKSDestination TOP 5 IN COSMETICS INDUSTRY!

LOVE YOUR SKIN FOR LIFE

Botanical Effects Skin Care

Step 1:FRAMES OF REFERENCE

Do you know women who want...Consumers & Competition3.] Women are becoming more aware of chemicals and ingredients in their skin care products and are seeking products with minimal and recognizable ingredients.2.] Women are increasingly living busy lives and are seeking quality products and regimens that are simple, customizable and hassle-free. 1.] Women want products that will give them healthy, balanced skin at a good value. Consumer needs are evolving: Consumers & Competition

Markets are dominated by mass price PHILIPPINES = 90%

Consumers are looking for quality skin care at a great value. Hence, their skin care regimen is simple with only 2 steps (Cleanse & Moisturize) and occasionally with additional supplements (Freshener and/or Mask).How Botanical Effects Meets Consumer Needs

Botanical Effects not only benefits the skin it benefits the planet! With packaging that is recyclable (bottle), made from recycled content (tubes and cartons), and overall environmentally conscious ( including light-weight caps), this is a line any consumer can feel good about!Botanical Effects meets the needs of women looking for simple, uncomplicated, basic skin care and formulas that are targeted to her skin type. This product line is perfect for women starting a formal skin care regimen and looking for products that will help her obtain and maintain healthy skin.How Botanical Effects Meets Consumer Needs

Who is the Botanical Effects Consumer?

Who is the Botanical Consumer? Demographically: 1.] 20-40 2.] May have limited income

Who is the Botanical Effects Consumer?

Psychographically: 1.] Looks for simple, uncomplicated, basic skin care 2.] Looks for basic skin care over anti-aging formulas 3.] Seeks formulas that are targeted to her skin type

5.] Has a practical approach to skin care and seeks quality skin care products at a good value6.] Is starting a formal skin care regimen and looking for products that will help her obtain and maintain healthy skin.

Direct SalesMassMary Kay: Botanical EffectsTM Ranges from P850-950 Infused with: silymarin & luo han quoCustomized with:Flaxseed & sea kelp (F.1)Frangipani flower extract & water lily extract (F.2)Kanuka extract & Guava extract (F.3) Avon NaturalsRanges from P80-200Formulated with:Blue Algae & Bamboo (Normal to Dry Skin) Green Tea (Oily)Garnier Essential CareRanges from P100-250 Formulated with :Mango extract & Vitamin E (Cleansing Milk & Lotion) Vitamin E & Almond Oil (Cream)Ponds Face CareRanges from P80-220Formulated with:Activated Carbon (Oil Control Face Wash) Soft pimple-fighting beads (Acne Face Wash) Vital Beauty Oil (Moisturizing Cold Cream)Competitive Industry Snapshot

Step 2:Identify PODs and POPs

POINTS OF PARITY

Product LineTarget AgePositioningSkin types / Skin NeedsBotanical Effects 20-40Basic skin careFormulated with botanical ingredients customized by skin type Helps consumer maintain healthy skinFormulas are free of alcohol, fragrance and synthetic dyes.DryNormalOilyAvon Naturals18 - 25 Basic Daily care Formulated with botanical extracts and Vitamins Simple, Naturals for the skin2 skin types:Normal to Dry OilyGarnier Essential Care18 - 25 Basic skin care 2 SKUs for daily essential care Natural, Fuss-freeOne formula for all skin typesPonds Face Care18 - 25 Basic Face Wash according to needs and 1 moisturizer for all skin types Small sizes available (from 7g to 100g) Gentle to your skin, not like harsh soap2 face wash for specific skin needs:Acne & Pimple Oil-control1 moisturizer for all skin types

POINTS OF DIFFERENCE

Botanical EffectsAvon NaturalsGarnier Essential CarePonds Face CareBenefitsDry Formula

Nourishes and hydrates skinNormal Formula

Maintains skins balanceOily Formula

Helps fight oilHealthy Nourished Skin (For Normal to Dry Skin)Fresh & Oil Free Skin (For Oily Skin)Soft, Supple, and Fresh skin with shininess. Clear & Nourished SkinOil Free & Supple SkinAestheticsCleanserCream cleanser with exfoliants113mlMilky cleanser with exfoliants113mlGel cleanser with exfoliants113ml3-in-1 cleanser milky texture 100ml Scrub Cleanser Gel-like scrub texture100mlCleansing Milk Milky texture 100ml-Cleansing Foam- 10g to 100g Cleansing Foam - 7g to 100g

FreshenerFragrance-free and refreshingly mild150mlFragrance-free and refreshingly mild150mlFragrance-free and refreshingly mild150mlReplenishing toner 100ml Oil Control toner 100ml- -Moisturizercream85gLotion 85gGel-lotion85gCold Cream 50ml- Cream-40gLotion- 75mlCream 100mlMaskCream based with exfoliantsClay based with exfoliantsClay based without exfoliants- Oil Control Clay mask 50ml- -

Value MessageFormulated for your skin type using high-quality ingredients from a brand you trust. All formulas are safe for sensitive skin. Personalized service when and how you need it!

This is the ultimate in value! Can your department store brand beat that?

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NUTRIMETICSCLASSIC CARE

SHISEIDO THE SKINCARE

ARTISTRY ESSENTIALS

GARNIER SKIN NATURALS

AVON

PRICING & POSITIONING: BOTANICAL EFFECTS

TIMEWISE

BOTANICALSEFFECTS

RETAIL/DIRECTMARY KAY

Step 3:Brand Mantra

Botanical Effects is about:Simple skin care: Core regimen is composed of a cleanser and moisturizerConsumer can add the mask/freshener as they wish Provides skin the basic care it needs without complicated ingredientsHealthy skin care: Botanical Effects keeps your skin healthy while being free from alcohol, fragrances and synthetic dyes

Skin care designed to give your skin just what it needs:Botanical Effects is all about:

Simple skin care: Core regimen is composed of a cleanser and moisturizerConsumers can add the mask as they wish Provides skin the basic care it needs without complicated ingredients

Healthy skin care: Botanical Effects keeps your skin healthy while being free from alcohol, fragrances and synthetic dyes

Skin care designed to give your skin just what it needs: Available in Dry, Normal, Oily Formula

Value for Money: Comparative in the MASSTIGE Basic Skin Care CategoryWhy youll love Botanical Effects Skin Care

The goodness of botanicals. A simple regimen that delivers healthy balance.

Its what your skin craves.BOTANICAL EFFECTS:

360 Execution BOTANICAL EFFECTSCHANNEL:Look Book feature-VisualsBannersPostersWebsite Feature/ FacebookE-CatalogProduct Trial

CONSUMER PROMOTIONEDUCATION/TRAINING PROGRAMS:-CONSULTANT PROMOTION:

CHANNEL:-Applause Cover/ Feature-General Assembly- Product Display / Banners- Social Sites- Samplers CHANNELS:-Press Release-Press Kits-Nature-Inspired Media Launch -Blogs

CHANNEL: Employee Assembly: Theme-Launch / Actual Trial Product Samplers Prize for Botanical-related quiz BE Pins: Varied Wellness Statements Office DisplaysTactics 1. BE Brochure/Sleever 2. Guests Events/Market Blitz3. Sampling Mall,

ACT lI: Captivating Color

Color Brand SegmentationSPONTANEOUS COLORGen Y and the lower price point customersCUSTOMERAccessible, Impulse, BoldAESTHETICS/MOODESSENTIALSAll women from around the worldEveryday, Approachable, AuthenticSEASONALWomen who follow trends in fashion and makeup, generally a younger consumer than EssentialsTrendy, Mood Depends on the SeasonINNOVATIVE & SOPHISTICATED STYLEMakeup Lover and those Looking for Luxury Innovative, Fashion-Forward, Sophisticated, StylishPRODUCTFocus on eye and lip, multi-functional/dual-purpose, newness offered on a regular basisFocus on key drivers: Foundations, Lashes and Lipstick all balanced by WOW products in smaller segmentsProducts that fit the look of the seasonInnovative, future focused product forms, packaging, etc.

Color Brand Segmentation

Develop products that speak to younger consumers via:

Unique product formsBold shades and color combinationsFun and aspirational look and feelLower price pointsAppealing price/value relationshipOffer these color items at a lower price point to:

Ensure accessibility and affordabilityReach new and/or multiple audiences by tapping into different demographic and/or income groupsAttract via price/value relationshipDoor openers to Mary Kay ColorGENERATION Y(18-25 + generations to come)LOWER PRICE POINTSSPONTANEOUSMASS COLORS(Positioning)

Building the RIGHT Relationship with the RIGHT PeopleREMEMBER THE 3Cs:Be Crystal clear

Be Consumer-basedBe relevant and credible to the consumerWrite in consumer language and from consumers view point

Be CompetitiveBe distinctiveFocus on building brand elements into powerful discriminatorBe persuasiveBe sustainable

Positioning is a perception that happens in the minds of the target market. It is the aggregate perception the market has of a particular company, product or service in relation to their perceptions of the competitors in the same category. It will happen whether or not a company's management is proactive, reactive or passive about the on-going process of evolving a position. But a company can positively influence the perceptions through enlightened strategic actions.*MARKET SEGMENTATION Market Segmentation involves grouping your various customers into segments that have common needs or will respond similarly to a marketing action. Each segment will respond to a different marketing mix strategy, with each offering alternate growth and profit opportunities. Some different ways you can segment your market include the following; Demographics which focuses on the characteristics of the customer. For example age, gender, income bracket, education, job and cultural background. Psychographics which refers to the customer group's lifestyle. For example, their social class, lifestyle, personality, opinions, and attitudes. Behaviour which is based on customer behaviour. For example, online shoppers, shopping centre customers, brand preference and prior purchases. Geographical location such as continent, country, state, province, city or rural that the customer group resides.

TARGETINGAfter segmenting the market based on the different groups and classes, you will need to choose your targets. No one strategy will suit all consumer groups, so being able to develop specific strategies for your target markets is very important.

Our choice which approach to take should generally depend on several factors. First, how well are existing segments served by other manufacturers? It will be more difficult to appeal to a segment that is already well served than to one whose needs are not currently being served well. Secondly, how large is the segment, and how can we expect it to grow? (Note that a downside to a large, rapidly growing segment is that it tends to attract competition). Thirdly, do we have strengths as a company that will help us appeal particularly to one group of consumers? Firms may already have an established reputation. While McDonalds has a great reputation for fast, consistent quality, family friendly food, it would be difficult to convince consumers that McDonalds now offers gourmet food. Thus, McDs would probably be better off targeting families in search of consistent quality food in nice, clean restaurants.

Positioning Positioning is developing a product and brand image in the minds of consumers. It can also include improving a customer's perception about the experience they will have if they choose to purchase your product or service. The business can positively influence the perceptions of its chosen customer base through strategic promotional activities and by carefully defining your business' marketing mix. POSITIONINGEffective positioning involves a good understanding of competing products and the benefits that are sought by your target market. It also requires you to identify a differential advantage with which it will deliver the required benefits to the market effectively against the competition. Business should aim to define themselves in the eyes of their customers in regards to their competition.

*Previously "Positioning" is a game people play in todays me-too market place" in his publication Industrial Marketing, in which the case is made that the typical consumer is overwhelmed with unwanted advertising, and has a natural tendency to discard all information that does not immediately find a comfortable (and empty) slot in the consumers mind. It was then expanded into their ground-breaking first book, "Positioning: The Battle for Your Mind," in which they define Positioning as "an organized system for finding a window in the mind. It is based on the concept that communication can only take place at the right time and under the right circumstances***COMPONENTS OF A COMPETITIVE BRAND POSITIONINGCompetitive Frames of ReferenceIdentify Target MarketIdentify Relevant Competition (Direct and Indirect)Points-of-Difference (PODs)Desirable to consumerDeliverable by the brandDifferentiating from competitorsTwo Types: (1) Attribute-based: Functional, Performance-related differences (2) Image-based: affective, experiential, brand image-related diff.Points-of-Parity (POPs)Associations that are shared with other brandsTwo Types: (1) Category: Attributes that are required to include in your product as a member of that category (2) Competitive: POP that negate your competitors PODsBrand Mantra - A brand mantra is an articulation of the heart and soul of the brand- A short 3 to 5 five word phrase that captures the essence of the brand positioning- Its similar to brand essence or core brand promise and its purpose is to ensure that employees and partners understand how to represent the brand to external customers- Brand mantra helps brands present consistent images- Communicate, Simplify, Inspire*Talk about the MISSION and VISION**CAMPAIGN: Love your Skin for Life Easy, Expert skin care for every unique need with Mary Kay Skin CareSKIN CARE MATCHES MADE EASY. No matter your age, skin care type or need, Mary Kay makes it easy to find the perfect skin care thats customized just for you. Skin care fulfilment begins by finding your perfect skin care match.*****POP: attribute or benefit associations that are not necessarily unique to the brand but may in fact be shared with other brands. These include category POP that are essential to a legitimate and credible offering within a certain product or service category and competitive POP that are associations designed to overcome perceived weaknesses of the brand. POD: attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand. These attribute or benefit should be sufficiently desirable, deliverable, and differentiating.

Often, the key to positioning is not so much achieving a POD as achieving POD. The brand does not literally need to be seen as equal to competitors, but consumers must feel it does well enough on that particular attribute or benefit. A light beer presumably would never taste as good as a full-strength beer, but it would need to taste close enough to be able to effectively compete.

*How do I decide on my POPs and POPs?POPs = Analysis of categoryWhat attributes do all of my competitors have?

PODs are more difficult

Dont use PODs that are product centric (dominate competition) but customer centric (uniquely address need of customer)

*Proper positioning

Clarifies what the Brand is all about

How it is both unique and similar to competitive brands

Why customers should purchase and use the Brand

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