SEGMENTING, TARGETING, AND BRAND POSITIONING

: Brand Management

Overview: Segmentation, Targeting & Positioning

Market – Driven Segmentation

“Market segmentation is the process of placing the buyers in a product –

market into sub – groups so that the members of each segment display

similar responsiveness to a particular positioning strategy.”

Loyalty Status Segmentation

Switchers

Shifting loyals

Split loyals

Hard-core

Targeting Segments - Overview

Brand Positioning

The place a product occupies in consumers’ minds relative to competing products.

Identifying and establishing points of parity and points of difference to establish the right brand identity and brand image.

Defining Associations

Points of parity: associations that are not unique to the brand but may be shared with other brands.

Points of difference: attributes or benefits that consumers strongly associate with a brand and they believe that they could not find from a competitive brand (Mercedeez Benz – Quality & Prestige)

Principles of Positioning

Positioning is the act of designing the company’s offering and image so that they

occupy a meaningful and distinct competitive position in the target customers’ minds (Kotler, 1997)

Some of the well-positioned brands are: Raymonds: The Complete Man Fair and lovely: Fairness Dettol: Antiseptic

Key Components of a Positioning Strategy

A competitive frame of reference in terms of the target market and nature of competition

Points-of-difference in terms of strong, favorable, and unique brand associations

Points-of-parity in terms of brand associations that negate any existing or potential points-of-difference by competitors

Brand mantra that summarizes the essence of the brand and key points-of-difference

Brand Positioning Statement

For women aged 25-55, Loreal Revitalift Anti-wrinkle and firming cream reduces facial wrinkles and firms your skin.

Positioning Example

eBay’s positioning: No matter what “it” is, you can find “it” on eBay!

Principles of Effective Positioning

Relevance: Positioning of brand must focus on benefits that are important to people or reflect the character of the product.

Clarity: Brand should be positioned in such a way that it is easy to communicate and quick to comprehend.

Distinctiveness: In current market situation there are reasonably good number of players vying for a share in the market, forcing them to compete on the basis of price or promotion.

Coherence: A brand should speak with one voice through all the elements of the marketing mix.

Principles of Effective Positioning

Commitment: Management should be committed to the position it has adopted. Once a position is adopted, it takes commitment to see it through.

Patience: Patience plays an important role in the success of brand as branding is not a one-day wonder – it takes years to position a brand in consumers’ mind.

Courage: Adopting a strong brand position requires courage as it is much easier to defend an appeal rather than generate sales pitch.

Positioning Strategies

Leveraging on Existing Brands' Strategy - leverage on the names of the firm's existing and established brands for extending the product line or venturing into another product category

Corporate Brand Positioning Strategy - uses his company name/identity for brand extensions.

Positioning Strategies

Product Features and Benefits Positioning Strategy - Differentiating the brand on the basis of its features and benefits offered (USP).

Examples: Ariel offers a specific benefit of cleaning even the

dirtiest of clothes because of the micro cleaning system in the product.

Colgate offers benefits of preventing cavity and fresh breath.

Maruti Suzuki offers benefits of maximum fuel efficiency and safety over its competitors.

Price-Quality Positioning Strategy

The product is positioned in a way that the super quality of the product justifies its high price (quality).

Positioning is done by focusing on the affordable/low price of the product and its superior quality.

Consumer experiences a feel good factor since he's obtaining a quality product at an economical price (price).

Positioning Strategies

Competitive Positioning Strategy - Effective offensive strategy where the marketer seeks to persuade the consumer that his brand is superior or at par with an established competitor.

Example: Fedex

Positioning Strategies

Product Category Positioning Strategy: Existing product category is too congested and the new brand is positioned as belonging to another product category.

Example – Cadbury Dairy Milk

Positioning Strategies

User Positioning Strategy: Products can be positioned according to their user bases (Nesvita)

Positioning Errors

Under positioning: Failing to present a strong central benefit or reason to buy the product.

Over positioning: This happens when a brand is positioned at a very narrow customer base that most of the potential customers will overlook the brand.

Confused Positioning: By claiming two are more benefits that contradict each other.

Doubtful Positioning: Claiming a benefit that customers will doubt that the brand can actually deliver.