positioning and branding ajith

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Powerpoint slides on Brand Positioning

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  • **Positioning & Branding

    Presented by

    Ajith Kumar KR

  • **Summary and Learnings Positioning got its attention when in 1972 Jack Trout and Al Ries wrote a series of articles entitled The Positioning Era for the trade paper Advertising Age. Today positioning has become the buzzword of advertising and marketing, all over the world. Positioning starts with a product .A piece of merchandise ,a service ,a company ,an institution or a person. Perhaps yourself. But it is not what you do to a product. Positioning is what you do to the mind of the prospect. that is ,you position the product in the mind of the prospect.

  • **LEARNINGS Even as an individual you need to manage perceptions of others, about yourself how they feel and believe about youso it does not matter in which stream you will be into (Marketing,HR,Finance etc.) you just have to do positioning Shahrukh Khan Romantic,talented,monogamus

  • **Vocabulary Brand PerceptionPositioningMappingBrand value Mind share

  • ** A name, sign or symbol used to identify items or services of the seller(s) and to differentiate them from goods or services of competitors.Brand.

  • **GOOGLE. SEARCH.BMW.DRIVING.INDIA.DIVERCITY.

  • **Positioning When you listen ward Mercedes-BenzThe first ward that comes to your mind is prestige Here Mercedes-Benz is a brand which has been positioned in our minds in such a way that whenever we listen to it, we start thinking of prestige (Naam,Rutva and status) it is called Positioning.

  • **Definition. Positioning is not what you do to a product. Positioning is what you do to the mind of the prospect. Positioning is ,how you differentiate yourself in the mind of your prospect. e.g. Mysore Sandal -Purity and natural fragrance. Margo- Herbal(neem). Lifebuoy-Hygiene.

  • **How these companies positioned themselvesMercedes-Benz prestige.BMW driving.Volvo.. Safety.Starbucks high-end coffee..Rolexhigh-end watches.Google .Search.Red bull energy drink.FedEx overnight (delivery)

  • **FedExSee how FedEx , the American courier has positioned itself as a fastest and most accurate (overnight) courier giant ,which is impossible to be stopped!

  • How PositioningProduct positioning by Brand mapping**

  • Top 10 Auto Brands: Product Positioning MapHigh VolumeLow VolumeDefined Segment / NicheUndefined Segment / Mass

  • Brand Positioning Is Big always Beautiful?The ten top 100 brands fall into two distinct groups:Relatively small volume global brands with < 1.3 million vehicle sales pa (BMW, Ferrari, Porsche, Audi, Mercedes-Benz)These are among the most well-defined and understood automotive brands. They are specialty manufacturers, all in the luxury segment, with relatively clearly defined target customers. The strength of their brand definition makes up for what they lack in volume.Big volume global brands with > 3.5 million vehicle sales pa (Toyota, VW, Hyundai/Kia, Ford and Honda)These mass market brands are not as tightly defined. They market an exhaustive range of vehicles in multiple categories to virtually every customer segment imaginable. These brands have a broad appeal through a broad range of vehicles and customers. What these brands lack in definition they make up for with volume.

  • Both approaches can result in strong, valuable brands, but the vehicle manufacturing industry is continuously under pressure to increase volume, which sometimes (as in the case of Toyota) results in decisions that undermine the credibility of the brand.The desire to increase volume tests the brands elasticity. For example, Volkswagen, having purchased Porsche, wants to increase Porsche sales considerably by expanding the product line to include smaller crossovers and more affordable sports cars. Is there a point at which Porsche is no longer Porsche? The high volume brands have a different set of issues. Constant promotional incentives designed to drive up volume have taught consumers to look for a deal in effect to treat the purchase as a price elastic, commodity type deal. A lack of brand differentiation and increasing recognition that todays vehicles are usually high in quality will inevitably lead to lower margins and lower profits as every volume manufacturer competes on price.

    **

  • **Why positioning?There are two kinds of products commodities and brands. A commodity is a product that is same as those made by every other company. As a result the only way to sell a commodity is by selling it cheaper than your competitor. A brand on the other hand, is (at least perceived in that way!) a product that is unique and different. A customer can buy Tata Indica for a lot less money than a Mercedes Benz, but most Mercedes customer wont buying tata or any other vehicle simply because its not a Mercedes-Benz.

    so, you need unique brands to make money.

  • **Why positioning? The mind rejects much of the information offered to it due to over-communication (Per capita consumption of advertising in America today is about $200 a year) from each side. In general , the mind accepts only that which matches with its prior knowledge or experience. In todays communication jungle out there, the only hope to score big is to be selective, to concentrate on narrow targets, to practice segmentation. In a word positioning

  • **Why positioning? Starbucks narrowed its focus to high-end coffee and became the world's largest coffee chain. Dell Computer narrowed its focus to personal computers "sold direct" and became the world's largest PC manufacturer. BMW narrowed its focus to "driving" and became the largest-selling European luxury car in the U.S. Focus is the key to successful brand building in today's ultra-competitive marketplaceYou narrow the focus

  • **The Oversimplified MessageToday the best approach to take, in our over communicated society is to simplified message. you simplified the message, then simplified it some more if you want to make a long last impression. -Al Ries and Trout

  • ** Volvo owns a single word in the minds.Volvo.Safety.Volvo has successfully simplified and Communicated this message.

  • **You differentiate or dieAdvertising has entered a new era where creativity is no longer the key to success ,today a company must create a position in the prospects mind. A position which is unique and based on companys strengths and on realities.You dont lie you only exaggerate. Camlin (marker)-Permanent.

  • **Heidelberg - the working mans beer.Bud - the athletic beer Bud Lite - the party beerMillers Lite - the fun and great testCoors - the environment beerCoors light - the fastest beer

  • **Marlboro - the rugged maleVirginia slims - the independent female Camel - cool and sophisticatedBenson & hedges - intellectual

  • **So is positioning always beneficial? Xerox first made photo copy machine & sold them world wide, as the time passed Xerox become synonymous to photocopy. When it launched its Xerox data system", fax machine, and PC all were disastrous and Xerox lost billions of dollar since it could not change or reconstructed minds of prospects.Xerox.Photocopy.Same happened with IBM & Dalda

  • **Repositioning :Reconstruction of perceptions.Companies like IBM, Bajaj and Xerox did it.

    CompanyTraditional imageRepositioned imageIBMComputer hardwareServices & hardwareXeroxcopierHardware & software BajajScooters motorcycles

  • **1 Coca-Cola 2 Microsoft 3 IBM 4 GE 5 Nokia 6 Toyota 7 Intel 8 McDonalds 9 Disney 10 Mercedes-Benz

    Positioning makes brands and brands give value to companies

    BRANDVALUE $bilBRANDVALUE $bil65.33255.830.95729.351.529.233.623.5

  • **Top brands of the world

  • **HUMAN TOUCHIn the automobile market where technology and innovations are key to success see how a company trying to differentiate itself from its competitors.In the end, have a..

  • **References BOOKS- Positioning: the battle for your mind by Al Ries & Jack Trout Marketing Management by Philip Kotler and Kevin KellerAnd of course Google.com!You may get this presentation on my blog i.e. brajeshsudarshan.blogspot.com

  • **Recommended readings

    Author Books Al ries 22 immutable laws of branding Jack trout The new positioningMichael porter Good to great C.k.prahalad The fortune at the bottom of the pyramid

  • **THANK You.Question please.