Brand PositioningLeveraging A Point of Difference

William Baker ConsultingMarketing StrategyCommunication StrategyBrandingAdvertising

Award Winning Author, Professor and Consultant619-402-3990, wbaker@uakron.edu

Google Scholar Page: https://scholar.google.com/citations?hl=en&user=If0w9hoAAAAJ

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’