Brand Positioning (A&BM 21 Dec 2020)

Brand Positioning

 

Brand positioning refers to “target consumer’s” reason to buy your brand in preference to others. It is ensuring that all brand activity has a common aim; is guided, directed and delivered by the brand’s benefits/reasons to buy; and it focusses at all points of contact with the consumer.

Brand positioning must make sure that:

·                  Is it unique/distinctive vs. competitors ?

·                  Is it significant and encouraging to the niche market ?

·                  Is it appropriate to all major geographic markets and businesses ?

·                  Is the proposition validated with unique, appropriate and original products ?

·                  Is it sustainable - can it be delivered constantly across all points of contact with the consumer ?

·                  Is it helpful for organization to achieve its financial goals ?

·                  Is it able to support and boost up the organization ?

 

Positioning a brand means emphasizing the distinctive characteristics that make it different from its competitors and appealing to the consumers. Brand positioning is the result of finding suitable answers to the following questions :

 

1. A brand for what? This refers to the brand promise and the consumer benefit aspect. MARUTI 800 is low priced and economical to run. CEASEFIRE ensures safety against fire.

 

2. A brand for whom ? This refers to the target aspect of the brand. MERCEDES is a car for the chairmen and managing directors of large corporations. RUF N TUF jeans are for the young.

 

3. A brand for when ? This refers to the occasion aspect of the brand. CHAMPAIGNE is uncorked when you want to celebrate. As it was done in 1983, when Indian cricket team won the World Cup in London.

 

4. A brand against whom ? This question defines the main competitor brands. COKE pitted against PEPSI.

 

“Positioning is an outcome of our perceptions about the brand relative to the competing brands. Philip Kotler has defined positioning as “the act of designing the company's offer so that it occupies a distinct and valued place in the mind of the target customers." Bovee et. al. define positioning as “the process of prompting buyers to form a particular mental impression of our product relative to our competitors.” Aaker considers brand potion a “part of brand identity and value proposition that is to be actively communicated to the target audience, and that demonstrates an advantage over competing brands."

 

A few examples of positioning statements developed by various companies and ad agencies :

 

1. BPL EXCELL Alkaline batteries. They are ‘ the longest lasting alkaline battery in the world '. It is an application-oriented positioning. It is, however, more USP-oriented.

 

2. COMPLAN is the complete food for growing children. This positioning is targeted to a specific segment.

 

3. VICKS VAPORUB is a rub for colds for children. By eliminating adults, it strengthens its use for children, a substantial segment. Extensions are possible to cover other segments.

 

4. DABUR CHYAVANPRASH was first positioned as a tried and tested natural health tonic for the family. Later, the position has been changed to 'make it a tonic to develop and strengthen the body's immune systems which helps the body fight infections/diseases.' The specific benefit now emphasized is that “it toughens you up from deep within.”

 

5. DOVE is soap with 1/4th moisturizer. It distinguishes Dove from other soaps. It is a functional value proposition.

 

6. HDFC sanctions the housing loan prior to property selection, and reduces the anxiety and helps you plan for your dream house. The loan is targeted at first time buyers, who are apprehensive of the whole process.

 

7. OMEGA water-proof watch takes to water like a fish. We can ‘swim with it and go out in the rain.’ Functionally, it is ‘water resistant to a depth of 12 meters, deeper than the deepest swimming water.'

 

In order to create a distinctive place in the market, a niche market has to be carefully chosen and a differential advantage must be created in their mind. Brand positioning is a medium through which an organization can portray it’s customers what it wants to achieve for them and what it wants to mean to them. Brand positioning forms customer’s views and opinions.

Brand Positioning can be defined as an activity of creating a brand offer in such a manner that it occupies a distinctive place and value in the target customer’s mind. For instance-Kotak Mahindra positions itself in the customer’s mind as one entity- “Kotak”- which can provide customized and one-stop solution for all their financial services needs. It has an unaided top of mind recall. It intends to stay with the proposition of “Think Investments, Think Kotak”. The positioning you choose for your brand will be influenced by the competitive stance you want to adopt.

Brand Positioning involves identifying and determining points of similarity and difference to ascertain the right brand identity and to create a proper brand image. Brand Positioning is the key of marketing strategy. A strong brand positioning directs marketing strategy by explaining the brand details, the uniqueness of brand and it’s similarity with the competitive brands, as well as the reasons for buying and using that specific brand. Positioning is the base for developing and increasing the required knowledge and perceptions of the customers. It is the single feature that sets your service apart from your competitors. For instance - Kingfisher stands for youth and excitement. It represents brand in full flight.

 

There are various positioning errors, such as-

1. Under positioning- This is a scenario in which the customer’s have a blurred and unclear idea of the brand.

2. Over positioning- This is a scenario in which the customers have too limited a awareness of the brand.

3. Confused positioning- This is a scenario in which the customers have a confused opinion of the brand.

4. Double Positioning- This is a scenario in which customers do not accept the claims of a brand.

Brand Personality (A&BM 19 Dec 2020)

Brand Personality

Brand personality is the way a brand speaks and behaves. It means assigning human personality traits/characteristics to a brand so as to achieve differentiation. These characteristics signify brand behaviour through both individuals representing the brand (i.e. it’s employees) as well as through advertising, packaging, etc. When brand image or brand identity is expressed in terms of human traits, it is called Brand Personality.

For instance –

1. Allen Solley brand speaks the personality and makes the individual who wears it stand apart from the crowd.

2. Infosys represents uniqueness, value, and intellectualism.

 

Brand personality is nothing but personification of brand. A brand is expressed either as a personality who embodies these personality traits

For instance - Shahrukh Khan and Airtel, John Abraham and Castrol.

 

Distinct personality traits

For instance - Dove as honest, feminist and optimist; Hewlett Packard brand represents accomplishment, competency and influence.

 

Brand personality is the result of all the consumer’s experiences with the brand. It is unique and long lasting.

 

Brand personality must be differentiated from brand image, in sense that, while brand image denote the tangible (physical and functional) benefits and attributes of a brand, brand personality indicates emotional associations of the brand. If brand image is comprehensive brand according to consumers’ opinion, brand personality is that aspect of comprehensive brand which generates it’s emotional character and associations in consumers’ mind.

 

Brand personality develops brand equity. It sets the brand attitude. It is a key input into the look and feel of any communication or marketing activity by the brand. It helps in gaining thorough knowledge of customers feelings about the brand. Brand personality differentiates among brands specifically when they are alike in many attributes.

For instance - Sony versus Panasonic.

 

Brand personality is used to make the brand strategy lively, i.e, to implement brand strategy. Brand personality indicates the kind of relationship a customer has with the brand. It is a means by which a customer communicates his own identity.

 

Brand personality and celebrity should supplement each other. Trustworthy celebrity ensures immediate awareness, acceptability and optimism towards the brand. This will influence consumers’ purchase decision and also create brand loyalty.

For instance - Bollywood actress Priyanka Chopra is brand ambassador for J.Hampstead, international line of premium shirts.

 

Brand personality not only includes the personality features/characteristics, but also the demographic features like age, gender or class and psychographic features. Personality traits are what the brand exists for.

Brand Image (A&BM 19 Dec 2020)

Brand Image

 

Brand image is the current view of the customers about a brand. It can be defined as a unique bundle of associations within the minds of target customers. It signifies what the brand presently stands for. It is a set of beliefs held about a specific brand. In short, it is nothing but the consumers’ perception about the product. It is the manner in which a specific brand is positioned in the market. Brand image conveys emotional value and not just a mental image. Brand image is nothing but an organization’s character. It is an accumulation of contact and observation by people external to an organization. It should highlight an organization’s mission and vision to all.

The main elements of positive brand image are –

(a) unique logo reflecting organization’s image,

(b) slogan describing organization’s business in brief and

(c) brand identifier supporting the key values.

 

Brand image is the overall impression in consumers’ mind that is formed from all sources. Consumers develop various associations with the brand. Based on these associations, they form brand image. An image is formed about the brand on the basis of subjective perceptions of associations bundle that the consumers have about the brand.

1. Volvo is associated with safety.

2. Toyota is associated with reliability.

 

The idea behind brand image is that the consumer is not purchasing just the product/service but also the image associated with that product/service. Brand images should be positive, unique and instant. Brand images can be strengthened using brand communications like advertising, packaging, word of mouth publicity, other promotional tools, etc.

 

Brand image develops and conveys the product’s character in a unique manner different from its competitor’s image. The brand image consists of various associations in consumers’ mind - benefits and attributes. Brand attributes are the functional and mental connections with the brand that the customers have. They can be specific or conceptual. Benefits are the rationale for the purchase decision.

 

There are three types of benefits:

1. Functional benefits - what do you do better (than others),

2. Emotional benefits - how do you make me feel better (than others), and

3. Rational benefits / support - why do I believe you (more than others).

Brand attributes are consumers overall assessment of a brand.

 

Brand image has not to be created, but is automatically formed. The brand image includes products' appeal, ease of use, functionality, fame, and overall value. Brand image is actually brand content. When the consumers purchase the product, they are also purchasing its image. Brand image is the objective and mental feedback of the consumers when they purchase a product. Positive brand image is exceeding the customer’s expectations. Positive brand image enhances the goodwill and brand value of an organization.

 

So, “Brand image” is the customer’s net extract from the brand.

Brand Equity (A&BM 18 Dec 2020)

Brand Equity

Brand Equity is the value and strength of the Brand that decides its worth. It can also be defined as the differential impact of brand knowledge on consumers response to the Brand Marketing. Brand Equity exists as a function of consumer choice in the market place. The concept of Brand Equity comes into existence when consumer makes a choice of a product or a service. It occurs when the consumer is familiar with the brand and holds some favourable positive strong and distinctive brand associations in the memory.

Brand equity is the total value of the brand as a distinct asset. It can be rendered as the aggregate of assets and liabilities that are associated with the brand name and symbol which brings about the relationship customers tend to create with the brand. Brand equity is reflected in a way as to how consumers see; feel as well as an act towards a particular brand. Additionally, the impact of these intangible assets is quite visible with the books of records in terms of market prices, shares, profitability, and demand.

Components of Brand Equity

Brand equity includes fulfilling the business promise towards its customers along with maintaining the business-customer relationship well. Components of brand equity include:

 

Brand Awareness

The first step of the brand building process is creating awareness of the brand name in the mind of consumers. This means that customers are aware of the brand and able to associate it with a particular category. Building brand awareness can help marketers to increase brand visibility to the target audience through different advertisement campaigns.

 

Brand Association

Brand association is anything that a customer relates to their preferred brand. Getting in interaction with brands allows such associations. Having a good brand association is important as it leads to repetitive sales and provides the business word of mouth marketing. Such associations are leveraging the brand and give a tough time to new entrants into the market.

 

Brand Experience

This is the aggregation of customer experience with the overall brand. When customers have the good brand experience, they will consider the brand as superior and will start preferring it over others. For example, how you feel when eating at McDonald’s? How is the overall inner environment, how the staff behaves and what is the quality of the food? To provide the same experience, the company have to maintain uniform standards all over the outlets in the world.

 

Perceived Quality

Fulfilling brand promise is the key to strong brand equity. Customer tends to assess brands with other similar brands on the basis of various quantitative and qualitative parameters. Quality perception also impacts the pricing decision of a company. If a company produce quality products, it can avail the luxury of premium pricing.

 

Brand Loyalty

Brand loyalty is the preference of a brand by the customer over similar products in the market. This results in repetitive sales and is the best way to spread word of mouth. If a company has a higher brand loyalty, it can help to reduce marketing cost. The company can also introduce new products targeting the same customer base.

 

Brand Preference

This is another component of brand equity and can charge additionally for the same product. However, this requires organizations to assure that customers have good experiences and associations with the brand.

Why is Brand Equity Important

Brand equity is important for not only increase market share along with increasing its valuation in the marketplace.

1. Increases market share: Good brand equity results in loyal customers who prefer one brand over the other and increases its market share.

2. Price premium: Positive brand equity can charge more for its product than the actual market price.

3. Asset: Brand equity is an intangible asset of an organization and like any other asset; this too can be licensed, leased or sold to others.

4. Extension of product line: Having positive brand equity, it is easier to introduce new product lines. For example, Apple started with Mac operating systems and easily converted its equity with iPhones.

Building and Managing Brand Equity

Building and managing brand equity comprises of the following three stages:

1. Introduction: Introducing of a high-quality product and use as a strategic platform from which future products can be launched. Making a positive evaluation from the customer point of view is very important.

2. Elaboration: This requires making the brand to develop repetitive usage by making it easy to remember. The brand attitude should be accessible which means that the customer should easily remember their positive evaluation with that particular product.

3. Fortification: Brands should carry a consistent image so as to reinforce its image in the customer’s mindset. Additionally, brand extensions can also fortify the brand but only through relative products that enjoy a perceived fit within the minds of customers.

Examples of Positive Brand Equity

Brand equity refers to the value added to the same product under a particular brand. This makes one product preferable over others. This is brand equity which makes a brand superior or inferior to that of others.

Apple: Apple is the best example of brand equity. Although all product of this brand has similar features, the loyalty, demand and price premium are higher than other similar brands.

Facebook: Many other social networking websites came and gone; however, Facebook is quite consistent. Facebook has managed to attain brand loyal customers that most of its users do not even look at other social media platforms.

Maggi: Though there was a long ban over the flagship noodle product of Maggi in India, the product had huge demand even after its re-launching in the market. This positive example is the best to represent that how strong brand equity can help an organization cope with different market situations.

Examples of Negative Brand Equity

Goldman Sachs an investment bank and financial service company lost its brand value when people realized its role in the 2008 financial crisis and took 10 year to recover its reputation.

From 2009 to 2011 Toyota recalled almost 9 million cars due to unintended acceleration and anti-lock brake software issues.

Oil and gas brand Shell oil spilled in the Nigeria delta damaged its brand equity.

 

When a company attain positive brand equity, it is the half of overall brand management. The other half is to manage the brand consistently for a lifetime.  Brand with negative equity have short life but successful brand work hard, address the issues and live on.

Brand Creation (A&BM 17 Dec 2020)

Brand Creation

Brand creation is about really understanding your business by ascertaining who you are, what you do, how you do it and, most importantly, why you do it. Creating a brand is about creating an emotional connection between you and your customer.

The definition of brand building is to generate awareness about your business using strategies and campaigns with the goal of creating a unique and lasting image in the marketplace.

Positive image + standing out = brand success.

 

Branding can be broken down into three phases:

1. Brand Strategy

2. Brand Identity

3. Brand Marketing

 

1. Brand Strategy will map out how you are different, trustworthy, memorable and likable by your ideal customer. It will convey your purpose, promises, and how you solve problems for people.

You can think of brand strategy as the blueprint for how you want the world to see your business.

Brand strategy is a critical and foundational piece for building a successful brand. It’s one of the areas that most businesses overlook because they jump right into the design and marketing.

 

2. Brand Identity is the way that you convey this to the public with visuals, messaging, and experience. Your brand strategy will influence how you present your identity and align it with your purpose for the most impact.

Your elements of brand identity should be applied across all channels consistently. It’s the way that your business becomes recognizable. This includes your logo, colors and fonts, website design, content, advertising, print or packaging, and more.

 

3. Brand Marketing is the way that businesses or organizations highlight and bring awareness to products or services by connecting values and voice to the right audience through strategic communication.

In 2020, the amplification of your brand image can be done effectively through various digital marketing activities:

·                  User Experience (i.e. your website)

·                  SEO & Content Marketing

·                  Social Media Marketing

·                  Email Marketing

·                  Paid Advertising (PPC)

 

How to Build a Brand People Love

 

1. Discover the purpose behind your brand.

Every successful brand has a powerful purpose behind it.

There are four questions you should ask yourself when defining a brand purpose:

·                  Why do you exist?

·                  What differentiates you?

·                  What problem do you solve?

·                  Why should people care?

You’ll use these ideas to inform the foundation of your branding, through a tagline, slogans, voice, messaging, stories, visuals and more.

The Golden Circle concept can help in identifying the purpose behind anything in business or life, really.

The 3 Parts to The Golden Circle:

·                  What – the products or services you offer to your customers

·                  How – the things that differentiate you from the competition

·                  Why – the reason you are passionate and why you exist

 

2. Research competitor brands within your industry.

We should never imitate exactly what the big brands are doing in your industry.

But you should be aware of what they do well (or where they fail).

The goal is to differentiate from the competition. Convince a customer to purchase from you over them!

We’re always thinking about how to make a brand stand out from what’s out there already. Don’t skip this step in the brand building process.

Research your main competitors or benchmark brands. For instance, study how well they have gone about building a brand name.

For a brand name to be effective, it needs to be easy for consumers to recognize and remember.

 

3. Determine your brand’s target audience.

The foundation for building your brand is to determine the target audience that you’ll be focusing on.

When brand building, keep in mind who exactly you are trying to reach. You’ll tailor your mission and message to meet their exact needs.

examples.

·                  Instead of “all Moms”, you could narrow down the niche to hone in on “single Moms who work full-time from home”.

·                  “Techy people” is too broad. But “tech-savvy early adopters who manage a large team” can narrow the focus in.

·                  If you are targeting “college kids”, there is definitely room to get more specific. An example could be: “college students studying abroad in Europe during the summer”.

·                  “Anyone who needs a job” is certainly not a niche target market. However, “retirees looking to return to the workforce in an executive position” can be!

 

4. Establish a brand mission statement.

The mission statement basically defines a purpose for existing. It will inform every other aspect of your brand building strategies.

Everything from your logo to your tagline, voice, message, and personality should reflect that mission.

When people ask you what you do: answer them with your brand mission statement.

Examples: Nike

tagline: Just Do It.

Nike’s mission is: “To bring inspiration and innovation to every athlete in the world“.

 

5. Outline the key qualities & benefits your brand offers.

Focus on the qualities and benefits that make your company branding unique.

Example: Apple

Apple is obviously not just another computer company. One of their key qualities is a clean design, and a key benefit is ease of use.

From unique packaging to their announcement events, Apple always reminds customers that its products can be used right out of the box.

 

6. Form your unique brand voice.

Your voice is dependent on your company’s mission, audience, and industry.

It’s how you communicate with your customers, and how they respond to you.

A brand voice could be:

·                  Professional

·                  Friendly

·                  Service-oriented

·                  Authoritative

·                  Technical

·                  Promotional

·                  Conversational

·                  Informative

There are endless adjectives and possibilities that can build a brand voice behind your messaging.

 

7. Let your brand personality shine.

Be consistent with this brand personality across all points of contact.

It can be as simple as:

·                  A conversational voice in communication (using “I”, and “you”)

·                  Sharing behind-the-scenes content

·                  Telling stories about real experiences

·                  Describing your products/services in a quirky manner

8. Build a brand story and messaging.

When building a brand, tell customers succinctly who you are.

Use the business voice you have chosen for your brand.

Your messaging should be intricately associated with your brand and conveyed consistently.

This part of the brand development process goes beyond your logo and tagline to define the key aspects of:

·                  Who you are

·                  What you offer

·                  Why people should care

A brand story is an opportunity to communicate on a human level, making a direct emotional connection with your consumers.

 

9. Create a brand logo & tagline.

The most exciting (and arguably the most important piece) of the brand building process, is to create a brand logo and tagline for your company.

This logo will appear on everything that relates to your business. It will become your identity, calling card, and the visual recognition of your promise.

 

10. Integrate your brand into every aspect of your business.

The brand building process never stops.

Your brand should be visible and reflected in everything that your customer can see, read, and hear.

Anything tangible–from business cards to advertisements, to packaging and product–needs the stamp of your logo.

On any digital platform, ensure that your brand looks the same everywhere. Use your brand style guide to create consistency with visuals such as color and logo use, fonts, photography, etc.

Your website is the most important tool for marketing your brand. When you design your website: incorporate your voice, message, and personality into the content.

Profile pages for social media networks should be branded visually, and with your chosen voice for engagement.

 

11. Stay true to your brand building.

Once you establish a brand voice, use it for every piece of content you create.

Don’t constantly change your branding. The inconsistency will confuse your customers, and make long-term brand building more difficult.