CHAPTER - I

INTRODUCTION

1. INTRODUCTION

Brand Positioning can be defined as the positioning strategy of the brand with the
goal to create a unique impression in the minds of the customers and at the marketplace. The
Brand Positioning has to be desirable, specific, clear, and distinctive in nature from the rest of
the competitors in the market.

Effective brand positioning enables a firm’s brand to be readily distinguishable from

competing brands in the marketplace. Distinguishing the brand from other brands can be in
terms of associated brand attributes, benefits to users, and/or market segment emphasis,
among other factors. Effective brand positioning further emphasizes elements of superiority
along one or more distinguishing dimensions which are valued by consumers.

1.1 OBJECTIVES AND BRAND POSITIONING

This IMC plan will focus on reaching and engaging with Experiencers and Believers.
Based on what we learned from researching the Experiencer and Believer groups (detailed in
the target market analysis section), we have identified two marketing objectives for PH:

1. Generate awareness
2. Create personal connections

Our ultimate goal for the recommendations in this report is to raise funds for PH. The
objectives we have identified can be achieved through careful strategizing, which will enable
PH to move forward with their marketing and communications campaign. Additionally, the
strategies and tactics we suggest achieve these objectives and help PH reach their goal of
increasing revenue. We focused on the following aspects of the marketing campaign to
leverage PH’s presence and successfully achieve the identified objectives:

 Brand positioning statement (Who is PH?)

 Unique selling proposition (What sets PH apart?)
 Strategies and tactics (How can PH market themselves?)

1.2 7-STEP BRAND POSITIONING STRATEGY PROCESS

 Determine how your brand is currently positioning itself

 Identify your direct competitors

 Understand how each competitor is positioning their brand

 Compare your positioning to your competitors to identify your uniqueness

  Develop a distinct and value-based positioning idea

 Craft a brand positioning statement (see below)

 Test the efficacy of your brand positioning statement

1.3 STEPS TO CREATE THE BRAND POSITIONING

 Identify the current positioning

 Identify the direct competition

 Understand the positioning of the competitor brands

 Identify the uniqueness of the brand

 Develop the unique selling propositions

 Formulate the messaging statements

1.4 IMPORTANCE OF BRAND POSITIONING

 Market differentiation

 Justifies the pricing strategy

 Competitive advantage

 Makes the brand more creative

1.5 HOW TO CREATE A BRAND POSITIONING STATEMENT

There are four essential elements of a best-in-class positioning statement:

1. Target Customer: What is a concise summary of the attitudinal and demographic

description of the target group of customers your brand is attempting to appeal to and
attract?

2. Market Definition: What category is your brand competing in and in what

context does your brand have relevance to your customers?

3. Brand Promise: What is the most compelling (emotional/rational) benefit to your

target customers that your brand can own relative to your competition?

4. Reason to Believe: What is the most compelling evidence that your brand delivers
on its brand promise?
What is a Brand Positioning Statement?

A positioning statement is a one or two sentence declaration that communicates your

brand’s unique value to your customers in relation to your main competitors.

In Crossing the Chasm, Geoffrey Moore offers one way of formulating a positioning
statement: For (target customer) who (statement of the need or opportunity), the (product
name) is a (product category) that (Statement of key Benefit; also called a compelling reason
to believe).Unlike (Primary competitive alternative), our product (statement of primary
differentiation). However, we provide a more simplified structure for formulating a Brand
Positioning Statement in the following section.

1.6 CHARACTERISTICS OF A GOOD BRAND POSITIONING STRATEGY

a) Relevant

The positioning strategy you decide should be relevant according to the customer. If
he finds the positioning irrelevant while making the purchase decision, you’re at loss.

b) Clear

Your message should be clear and easy to communicate. E.g. Rich taste and aroma
you won’t forget for a coffee product gives out a clear image and can position your coffee
brand differently from competitors.

c) Unique

A strong brand positioning means you have a unique credible and sustainable position
in the customers’ mind. It should be unique or it’s of no use.

d) Desirable

The unique feature should be desirable and should be able to become a factor which
the Customer Evaluate before buying a product.

e) Deliverable

The promise should have the ability to be delivered. False promises lead to negative
brand equity.

f) Points of difference

The customer should be able to tell the difference between your and your competitor’s
brand.
g) Recognizable Feature

The unique feature should be recognizable by the customer. This includes keeping
your positioning simple, and in a language which is understood by the customer.

h) Validated by the Customer

Your positioning strategy isn’t successful until the time it is validated by the
customer. He is the one to decide whether you stand out or not. Hence, try to be in his shoes
while deciding your strategy.

1.7 POSITIONING STRATEGIES

 Positioning by product attributes and benefits

 Positioning by price/quality

 Positioning by use or application

 Positioning by product class

 Positioning by product user

 Positioning by competitor

1.8 TYPES OF POSITIONING

A positioning strategy depends on many factors which include current market

conditions, your product, USP of your product, competitors, their products and the USPs of
their products. Marketers plan of how they want their product to be seen by the customers in
future also plays a vital role in deciding which type of positioning strategy to choose.

While There are numerous position strategies in marketing to choose from. The task for the
marketers is to complement their promise to the product features they have to offer.

a) Lifestyle Positioning

By positioning itself as a lifestyle brand, a brand tries to sell an image and identity
rather than the product. The main focus is to associate the brand with a lifestyle and focus is
more on the aspirational value than the product value. Cigarette, Alcohol, and Tabacco
companies are often seen to use lifestyle positioning while marketing their products.

b) The Problem Solver

Most of the brands focus on positioning their products as a one stop solution for a
specific problem. They pinpoint the pain areas and the challenges the consumers face in their
communication and other marketing strategies and mend it into promoting their product.
c) Parent Brand

This positioning strategy aims at establishing a brand promise and a reputation of the
parent brand. All the products and sub-brands under the parent brand seem to comply to the
established promise.

d) Product Specific

Some brands which caters to different market segments, use product specific
positioning strategies where they position their different products differently than others. This
is usually seen in the automobile industry.

e) Feature Specific

When the competition is huge and the products are similar, companies usually
position their products by focusing more on specific features like price, quality, or other
micro features depending on the product sold. This type of positioning strategy is usually
seen in mobile industry.

1.9 HOW TO CREATE A STRONG BRAND POSITIONING STRATEGY?

Before you decide your brand positioning, ask yourself these three questions.

 What does my customer want?

 Can I promise him to deliver it better and/or differently than my competitors?

 Why will they buy my promise?

1.10 COMPETITIVE ADVANTAGE

 Awareness

 Consistency in the Marketplace

 Customer Loyalty

1.11 COMPETITIVE DISADVANTAGE

 Can Become Commonplace

 Negative Attributes

 Pigeonholes
1.12 BENEFITS OF BRAND POSITIONING

a) Better decision-making: A Positioning is an essential framework for helping you

decide what to do – and what not to do.

b) Efficiency & effectiveness: A proverb states, “He who chases two rabbits will catch
neither.” Positioning focuses your limited resources on a clearly defined goal, enabling these
investments to build upon each other instead of being deployed scattershot.

c) Control: Either position yourself, or your competitors will happily do it for you.
Positioning gives you control over your own brand image, because it defines the space you
can own like no one else.

Marketers can use many dimensions to carve out a brand’s position in the market place. A
brand for each brand position strategy:

 Lifestyle
SWATCH has become successful lifestyle brands. It play an important role in our lives by
allowing us to express our values and define ourselvesto the world. Lifestyle branding
appeals to managers because it offers what appears to be a relatively easy way to sidestep
competition and connect with customers on a more personal level lifestyle brands do not
evade the competition; instead they end up competing for a share of a consumer’s identity.
And as an increasing number of brands turn to lifestyle positioning, the competition among
self-expressive brands intensifies.

 Price leadership
Wal-Mart is a price leader. The brands that are suffering today are those that try to stake out

a position in the middle of the road. They face price competition from the price leader. This
way the company translates its cost advantage into price advantage for its customers and
thereby improves the market share. This is how Wal-Mart captures the markets and
eliminates the competitors and improves revenues and market share. Wal-Mart Stores set the
standard for retailers: They were the most efficient at getting low-priced goods into the hands
of consumers that nobody could beat them on price.

 Attributes
Blackberry mobile phones they position their Brand on the basis of the attributes of their
product. Their products have special features like Blackberry Messenger (BBM) which
makes their product different from others. This strategy relies on providing a superior product
to the customers to have a better positioning.
  Product class
Hindustan Unilever has positioned their various soaps by product class. Like They have dove
and lux etc that is positioned by same class. Positioning by product class can increase a
company’s profits by presenting more items from our product line to consumers who may be
familiar with or loyal to our brand name. This is especially Key when similar products we
position in our product class are one-of-a-kind with no similar offerings by competitors.

 Competitors

Samsung which deals in mobiles phones position their product by keeping in mind its
competitors like HTC, Sony and LG etc. The Positioning by competitor strategy may be
influenced by the market, the features of other products in the market, their pricing,

distribution as well as any other factor which is the strength of the competitor. If Samsung is
fighting against a competitor on the same factors of positioning, it should better be prepared
for a long and hard fight. However, if it want to get to the top, it need to attack the
weaknesses first and thereby permanently take away some of the market share of the
competitor.

 Occasion
COCK brand crackers have done its brand positioning on the basis of occasion. This kind of
positioning stresses when or how your product is used by your target audience. Crackers are
mostly used on some special occasions like Diwali, New Year and marriage etc. So in the
mind of consumer their products are positioned as occasion products.

 Users
VERTU a subsidiary of Nokia mobile phone has positioned their brand on the base of high
class users. Their mobiles are very costly. Vertu creates limited edition luxurious cell
&mobile phones using the finest materials available including gold, titanium etc

 Quality
BMW cars have built its brand image or position their product in mind of consumer through
the quality of their product. Building a Powerful Perception of quality, will Succeed in
Creating a Powerful Brand. The best way to increase perception of quality is to narrow the
company’s Focus.