Crafting the Brand Positioning

Kotler Keller, Chapter 11 – Crafting the Brand Positioning , Marketing Management, Pearson, Edition 15

Executive MBA 48 – B

Presented by Group 6:
• Yohanes Pither Partogi (465388)
• Dimas Sigit Krispriaji (465224)
• Thareq Akmal Hibatullah (465366)
• Salmon Solaiman Salmay (465350)
• Muhammad Ridho Perkasa Alam (465302) SUBJECT : Marketing Management
LECTURE : Bp. John Suprihanto, Dr., M.I.M.
 Learning Objective

1. How can a firm develop and establish an effective positioning in

the market?
2. How do marketers identify and analyze competition?
3. How are brands successfully differentiated?
4. How do firms communicate their positioning?
5. What are some alternative approaches to positioning?
6. What are the differences in positioning and branding for a small
business?
Developing a Brand Positioning
Understanding Positioning and Value Propositions
• Positioning
Goal

Benefit
Developing a Brand Positioning
Understanding Positioning and Value Propositions
• Value Prepositions
Identify and Analyze Competition
Competitive frame of reference

• Identifying Competitors • Analyzing Competitors

Differentiated Brand
Identifying Potential Points-of-Difference and Points-of-Parity

• Points-of-Difference
Differentiated Brand
Identifying Potential Points-of-Difference and Points-of-Parity
• Points-of-Difference

3 Criteria to Determine Points-of-Difference Criteria:

Desireable to Deliverable
Consumer by Company

Differentiating from
Competitors
Differentiated Brand
Identifying Potential Points-of-Difference and Points-of-Parity
• Points-of-Parity
Attribute or benefit associations that are not necessarily unique to the brand but may in fact be shared with other brands

3 Basic forms of Points-of-Parity

1. Category points-of-parity
attributes or benefits that consumers view as essential to a legitimate and credible offering within a certain
product or service category. In other words, they represent necessary but not sufficient conditions for brand
choice.

2. Correlational points-of-parity
potentially negative associations that arise from the existence of positive associations for the brand.

3. Competitive points-of-parity
associations designed to overcome perceived weaknesses of the brand in light of competitors’ points-of-
difference.
Differentiated Brand

POP VS POD
• Multiple Frames of Reference
It is not uncommon for a brand to identify more than one actual or potential competitive frame of reference, if
competition widens or the firm plans to expand into new categories.

Difference POP and POD on Starbucks and competitors:

1. Quick-serve restaurants and convenience shops (McDonald’s and Dunkin’ Donuts)

Intended PODs might be quality, image, experience, and variety; intended POPs might be convenience
and value.
2. Home and office consumption (Folgers, NESCAFÉ instant, and Green Mountain Coffee K-Cups)
Intended PODs might be quality, image, experience, variety, and freshness; intended POPs might be
convenience and value.
3. Local cafés
Intended PODs might be convenience and service quality; intended POPs might be product quality,
variety, price, and community.
Differentiated Brand

POP VS POD
• Straddle Positioning
Company will be able to straddle two frames of reference with one set of points-of-difference and points-of-
parity. Straddle positions allow brands to expand their market coverage and potential customer base.

Ex: Subway positioned the brand as the only restaurant that offered healthy and good-tasting sandwich.
Differentiated Brand
POP VS POD

• Choosing Specific POPs and PODs

Marketers typically focus on brand benefits in choosing the points-of-parity and points-of-difference that make up
their brand positioning.

“Because consumers are usually more interested in benefits and what exactly they will get from a product. Multiple attributes
may support a certain benefit, and they may change over time.”

● Competitive advantage
is company’s ability to perform in one or more ways that competitors cannot or will not match
Differentiated Brand

Choosing Specific POPs and PODs

● Means of differentiation
To identify possible means of differentiation,
marketers have to match consumers’ desire for a
benefit with their company’s ability to deliver it.

● Perceptual map
Are visual representations of consumer perceptions
and preferences.

● Emotional branding
brand positioning should have both rational and
emotional components. In other words, it should
contain points-of-difference and points-of-parity that
appeal to both the head and the heart. Fig1. Hypothetical Beverage Perceptual
Map: Current Perceptions
Differentiated Brand
POP VS POD
• Brand Matra
Its purpose is to ensure that all employees within the
organization and all external marketing partners
understand what the brand is most fundamentally to
represent with consumers so they can adjust their
actions accordingly.
Role of Brand Matra is to provide guidance about what
products to introduce under the brand, what ad campaigns to
run, and where and how to sell the brand.
Ex: McDonalds, Nike and Disney
Differentiated Brand
POP VS POD
• Brand Matra
3 Criteria of Brand Matra:
1. Communicate
2. Simplify
3. Inspire
“For brands anticipating rapid growth, it is helpful to define the
product or benefit space in which the brand
would like to compete”
Establishing a Brand Positioning
Communicating Category Membership
• There are three main ways to convey a brand’s
category membership:
1. Announcing category benefits

2. Comparing to exemplars

3. Relying on the product descriptor

Establishing a Brand Positioning
Construct a Brand Positioning Bulls’ Eye
Communication of Companys’ Positioning
Communicating POPs and PODs
• Negatively correlated attributes/benefits
⮚ Low price vs. high quality ⮚ Strong vs Refined
⮚ Taste vs. low calories ⮚ Nutritious vs Good Tasting
⮚ Powerful vs. Safe ⮚ Efficiacious vs Mild
⮚ Ubiquitous vs. Exclusive ⮚ Varied vs. simple
Communication of Companys’ Positioning
Communicating POPs and PODs
• Monitoring Competition
Three high-level variable in assessing potential threats
from competitors
• Share of market
• Share of mind
• Share of heart
Alternative Approach to Positioning
Brand narratives and storytelling
Framework for a brand story
⮚ Setting
⮚ Cast
⮚ Narrative arc
⮚ Language

Cultural Branding
Experts who see consumers actively cocreating brand meaning
and positioning even refer to this as “Brand Wikification,” given
that wikis are written by contributors from all walks of life and
points of view.
Differences In Positioning And Branding For A Small
Business
Positioning/Branding for A Small Business
✔ Find compelling product ✔ Create buzz and a loyal brand
performance advantage community
✔ Focus on building one or two ✔ Employ a well-integrated set of
strong brands based on one or two brand elements
key associations ✔ Leverage as many secondary
✔ Encourage product trial in any way associations as possible
possible ✔ Creatively conduct low-cost
✔ Develop cohesive digital strategy marketing research
to make the brand “bigger and
better”
CRAFTING THE BRAND POSITIONING
Case Study: NESPRESSO
COMPANY PROFILE
❑ Nespresso was created in 1986 as a subsdiary of the Swiss
group Nestlé.

❑ It was initially supplier of the coffee machine market but it was

only after its repositioning to the high-end segment of the
consumer market that Nespresso became a global success

❑ Today, the Nespresso turnover totals close to $3 billion. As of

2014, the brand has more than 300 boutiques in 60 countries
across the world.
QUESTIONS
1. Why has Nespresso’s repositioning on the consumer market led to
the success of the brand?

POSITIONING
• Because of Nespresso high-end and unique
positioning, the company reaches
profitability levels that are only recorded in
the luxury industry.

• While all its competitors sell in retail store, Nespresso

distributes its products only from a distance – through the
Internet and mobile device, or in one-of-a-king boutiques.

• Nespresso also associates itself with well-established restaurants to focus

on authenticity and quality.
 POSITIONING

Fundamental Criteria in
Nespresso system

High-quality coffee Strong and original Excellent service

Practically designed
coffee machine communication
COMPETITIVE FRAME OF REFERENCES

• Identifying competitor Coffee

• Analyzing competitor
Market
BRAND MANTRA

• Nespresso works with the advertising agency • Customers who buy Nespresso machines
Mccann World and create “ultimate coffee automatically become members of the brand club.
experience” in all its dimensions of As of now, more than 8 million people belong to this
communication. club. Nespresso cultivates a sense of belonging to a
privileged community that reinforces that brand’s
positioning.
QUESTIONS
2. Will the unique positioning of Nespresso enable it to resist new
competition from Jacobs Douwe Egberts?
Yes, they will because:
• Segmented and exclusivity of customers
• Excelent customer relations
• Widespread market include Asia

“In Asian countries, the communication focuses on the

fact that Nespresso symbolizes the perfect cup of coffee
at home or high-end restaurants.”
THANK YOU !