RECAP: WHAT DO WE KNOW?

CONSUMER BASED BRAND EQUITY (CBBE)

Consumers perception, recognition & attitude Value of the brand created by the customer

THE POWER OF A BRAND LIES IN WHAT RESIDES IN THE MIND OF THE CONSUME (Keller, 1998)

OUTLINE
1. 2. 3. 4. 5. BASIC CONCEPTS IDENTIFYING & ESTABLISHING BRAND POSITIONING POSITIONING GUIDELINES DEFINE AND ESTABLISHING BRAND MANTRA BRAND AUDITS

IDENTIFYING AND ESTABLISHING BRAND POSITIONING

CBBE MODEL Generalised process to build brand knowledge structures, in order to create brand equity. ULTIMATE GOAL Brand Resonance / Relationship / Loyalty / Toma

HOW?

BRAND POSITIONING

WHAT IS A BRAND POSITION?

The distinct place a firm / product / brand occupies in a consumers mind relative to competing offerings
(Ratcliffe, 2004).

The way a firms product / brand is viewed relative to competition by current and prospective customers
(Etzel, walker & Stanton, 2007).

BRAND POSITIONING (BP)?

Brand positioning is about how we want targeted consumers to think about a brand with respect to competitors, it refers to both the place a brand occupies in the mind of the consumer relative to (1) their needs (2) competing brands, and to the marketers decision making intended to create such a position
(walker & mullins, 2011).

A STRATEGIC ISSUE: BP DETERMINES THE MARKETING MIX ELEMENTS(4PS)

IN ORDER TO POSITION A BRAND MARKETERS NEED TO KNOW

1. 2. 3. 4. WHO IS THE TARGETED CUSTOMER WHO THE MAIN COMPETITORS ARE HOW THE BRAND IS SIMILAR TO COMPETITIONS HOW THE BRAND IS DIFFERENT TO COMPETITIONS

WHO IS THE TARGETED CUSTOMER ?

STP: SEGMENTATION TARGETING - POSITIONING MARKET - Consists of people with needs to satisfy, money to spend and the willingness to spend it
(Etzel et al, 2007).

MARKET SEGMENTATION - A process of dividing the total market for a good or service into smaller groups with similar needs that share distinct characteristics in order for marketers to focus their resources effectively (Cant & Brink, 2005) TARGET MARKET A group of people for whom the firm designs, implements and maintains a marketing mix intended to meet the needs of the group (Cant & Brink, 2005)

BASES OF SEGMENTATION
CONSUMER MARKET SEGMENTATION BASES
Type Description
Behavioural Benefits desired from the product and the rate at which the consumer uses it. User status Usage rate Usage Occasion Brand Loyalty Benefit sought Light VS Heavy Drinkers Demographic Refers to individual differences among consumers. Psychographic Regarding peoples activities, interests, opinions & lifestyle Geographic Location

Theory EG

LSM Category Income Age Family Structure

Values Attitudes Lifestyle Opinions Personality Celebrity, Wealthy Lifestyle

International / Regional Rural/Urban Suburbs / Climate

Practical EG

Children

Cape Town

BEST FOR BRANDING: BENEFIT & LOYALTY SEGMENTATION PRACTICES (Cant & Brink 2005)(Keller 2009)

BENEFIT SEGMENTATION
HEAD AND SHOULDERS SHAMPOO 1. 2. 3. 4. SENSORY Smell (E.g.. Lavender) - 5 senses SOCIABLE Clean hair: - Hygienic WARRIORS Anti-dandruff INDEPENDENT Price

2. WHO ARE THE MAIN COMPETITORS?

Conduct a SWOT analysis of the brand and competing brands Marketers must understand the competitors that exist and how they are perceived by the target market (Cant & Brink, 2005) their positioning... Competitors can use different bases of segmentation, different marketing mixes for the same targeted segment and are likely to have a different set of resources and capabilities.

SOMETIMES ITS NOT IMPORTANT HOW GOOD CUSTOMERS THINK YOU ARE, ITS JUST IMPORTANT THAT THEY BELIEVE YOU ARE BETTER OR AS GOOD AS YOUR COMPETITION (Aaker & Shansby, 1982)

3. HOW IS THE BRAND SIMILAR TO COMPETITORS? POP

POINT OF PARITY - Associations that are not necessarily unique to the brand but may be shared by other brands i.E. Where you can at least match the competitors claimed benefits. ( 2009) CATEGORY POP COMPETITIVE POINTS OF PARITY

4. HOW IS THE BRAND DIFFERENT TO THE COMPETITION ? : POD

POINT OF DIFFERENCE - POINTS WHERE YOU ARE CLAIMING SUPERIORITY OR EXCLUSIVENESS OVER OTHER PRODUCTS IN THE CATEGORY. (KELLER, 1998) UNIQUE SELLING PROPOSITION SUSTAINABLE COMPETITIVE ADVANTAGE

POPS CAN BE GOOD ENOUGH, BUT PODS SHOULD BE SUPERIOR. (Perkins, 2003)

MORE, than normal or possible expectations Cadbury, 2011

POSITIONING EXAMPLE?
WHO IS THE TARGET MARKET? Psychographic & behavioural : anyone who likes chocolate ( attitude), wants energy, endorphins (benefit). WHO IS THE COMPETITION? - Nestle, beacon, lindt, woolworths: any other chocolate alternative. WHAT ARE THE POINTS OF PARITY? - Contemporary wrappers, up-to-date with the chocolate industry, communication, prices and distribution, sizes and range/assortment. WHAT ARE THE POINTS OF DIFFERENCE? - Slogan: glass and a half full of... Joy (exceeding possibility) fun, family, warmth packaging, products, website, promotions. Essential and distinctive taste profile, age-old recipe & method Established, respected, classic ( since 1824)

= RECOGNITION & RECALL ( AWARENESS) + BRAND IMAGE = BE/CBBE

Cadbury.flv

POSITIONING GUIDELINES

DISCOVERY OVERVIEW

LARGEST PRIVATE HEALTHCARE FUNDER WITH OVER 2 MILLION MEMBERS MARKET SHARE OF 40% ESTABLISHED BY ADRIAN GORE IN 1992 GROWTH ENTIRELY ORGANIC RECOGNISED AS THE MOST FINANCIALLY SOUND SCHEME IN INDUSTRY

2 STEPS TO POSITIONING THE BRAND

1. DEFINE AND COMMUNICATE THE COMPETITIVE FRAME OF REFERENCE

2. CHOOSING AND ESTABLISHING POINTS OF PARITY (POP) AND POINTS OF DIFFERENCE (POD)

DEFINING AND COMMUNICATING THE COMPETITIVE FRAME OF REFERENCE

DETERMINE CATEGORY MEMBERSHIP Which products / set of products does Discovery compete with?

CATEGORY MEMBERSHIP TELLS CONSUMERS ABOUT THE GOALS THEY MIGHT ACHIEVE BY USING THE PRODUCT/ SERVICE Healthcare Insurance Life Insurance Financial services Wellness

DEFINING AND COMMUNICATING THE COMPETITIVE FRAME OF REFERENCE

3 WAYS TO COMMUNICATE CATEGORY MEMBERSHIP Communicating category benefits - Category POPs Compare to exemplars -well-known brands in product category Relying on product descriptor -brand name category origin

CHOOSING POINTS OF DIFFERENCE

1. DESIRABILITY CRITERIA FROM THE CONSUMERS POINT OF VIEW Personally relevant and important RELEVANCE Discovery provides products that empower consumers to take control of their health

CHOOSING POINTS OF DIFFERENCE

Distinctive and superior DISTINCTIVENESS Integrated product range

CHOOSING POINTS OF DIFFERENCE

Believable and credible - BELIEVABILITY Discovery provides cover to over 2 million lives

CHOOSING POINTS OF DIFFERENCE

DELIVERABILITY CRITERIA COMPANIES ABILITY TO DELIVER Can the firm create the point of difference FEASIBILITY Discovery have extensive product offerings to accommodate all types of consumers with affordable packages. THERE IS SOMETHING FOR EVERYONE!

CHOOSING POINTS OF DIFFERENCE

Is the positioning capable of enduring over time - SUSTAINABILITY Discovery has grown organically since 1992 and the founder Adrian Gore is still the CEO today and actively involved in the company.

CHOOSING POINTS OF DIFFERENCE

Consumers perception and awareness of the brand and brand associations - COMMUNICABILITY Discovery is heavily engaged in various sponsorship initiatives to extend their brand vision of making people healthier. Their wide range of sponsorship allows them to constantly communicate the brand.

DISCOVERYS DIFFERENTIATION RELATIVE TO COMPETITORS

A wide spectrum of plan options to meet different needs Affordable Extensive medical cover and support Control of day-to day medical spend Wellness programme Constantly evolving

ESTABLISHING PODS AND POPS

Many attributes or benefits determine POP/PODs and can be negatively correlated.

DISCOVERYS PODS AND POPS

SEPARATED THE ATTRIBUTES VERY DIFFICULT FOR COMPETITORS TO MATCH!
7 Fitness Partners 5 Health Partners 6 Rewards Partners 7 Lifestyle Partners Discovery Credit Card

UPDATING POSITIONING OVER TIME

LADDERING Deepened meaning of the brand and to trap into core brand associations EXPLORING UNDERLYING MOTIVATIONS

UPDATING POSITIONING OVER TIME

MEANS- END CHAINS- Way of understating high level meanings of brand characteristics and meanings.

Attributes Features of Products Medical Plans available to suite all needs Customer Service Well Established Brand

Benefits Consequences

Values Stable/ Enduring Personal Goals & Motivations Vitality Sponsorship Health

Lifestyle Peace of Mind Vitality Discounts

UPDATING POSITIONING OVER TIME

REACTING Responding to competitive challenges or threats to existing positioning 1 Do nothing 2 Go on the defensive by strengthening POPs and PODs 3 Launching a product extension or a more aggressive approach of repositioning

DEFINING & ESTABLISHING BRAND VALUES

NB: BRAND MANTRA ALLAN GRAY SA Investment Management Company Short three to five word phrases that capture the irrefutable essence or spirit of the brand positioning (Keller, 1999) BRAND EQUITY = BRAND AWARENESS + BRAND IMAGE (THE PROCESS IS CONSISTENT)
(CANT & BRINK 2005)

DEFINING & ESTABLISHING BRAND VALUES

MENTAL MAP OF BRAND CORE BRAND VALUES BRAND MANTRA

Top of mind brand associations

Grouped brand associations according to related categories

Brand essence

Client focused Performance driven Long-term oriented Independent minded Individually accountable

Build wealth and trust Intelligent Investing

DESIGNING A BRAND MANTRA

BRAND FUNCTIONS OR BENEFITS ALLAN GRAY
What brand provides the customer with?

DESCRIPTIVE MODIFIER

EMOTIONAL MODIFIER

Nature of the brand function?

How does the brand provide benefits?

Security

Investment

Reliability Credibility Trust

IMPLEMENTING BRAND MANTRA

BRAND MANTRA FUNCTION - Collective meaning = Power & usefulness, captures POD

INTERNAL BRANDING Our purpose is to help our investors build wealth over the long term and we seek to earn the trust of our clients by providing superior longterm investment performance, outstanding client service and holding ourselves to the highest ethical standards Allan Gray, 2011 SIMPLIFY, INSPIRE AND COMMUNICATE

BRAND AUDITS
A brand audit explores the history, origins, associations, products, services and communications (BRAND SWOT) - IMC Marketing audit (COMPANY SWOT) - IMC
BRAND INVENTORY (SUPPLY) Brand elements employed and how? Nature of supporting marketing programmes Profile of competitive brands POPs and PODS Brand mantra

BRAND EXPLORATORY (DEMAND) EXTERNAL ANALYSIS Company archives to uncover insight INTERNAL ANALYSIS Internal personally belief about customer perception Qualitative or Quantitative consumer behaviour studies

At the end of the day, A brand must resonate with the customer and form a relationship that is consistent Professor Frikkie Herbst, 2011

Thisismyposition POD/POP!
Communicatedloudandclear

Mantra/Promise Desirability criteria Deliverability criteria Established PODs and POPs

Value Resonance Differentiation

Timeto reposition!!!

Brand

Relationships

REFERENCES
KEVIN LANE KELLER, BRIAN STERNTHAL & ALICE TYBOUT (2002), THREE QUESTIONS YOU NEED TO ASK YOURSELF ABOUT YOUR BRAND, HARVARD BUSINESS REVIEW, SEPTEMBER, 80 (9), 80-89. CANT, M. & BRINK, M., 2005. CONSUMER LOYALTY. CONSUMER BEHAVIOUR. JUTA, CAPE TOWN. RATCLIFFE, S., 2004. POSITIONING THE FIRM AND ITS PRODUCTS. MARKETING. HARVARD BUSINESS SCHOOL PRESS, BOSTON. WALKER, JR., O.C. & MULLINS, J.W. 2011. MARKETING STRATEGY. MCGRAW-HILL IRWIN, NEW YORK. ETZEL, M. WALKER, B. & STANTON, W. 2007. MARKETING 14TH EDITION. MCGRAW-HILL, NEW YORK. CAROL SCOTT, 2000. BRANDING: POSITIONING MUSEUMS IN THE 21ST CENTURY M ARKETING MANAGEMENT VOLUME 2, NUMBER 3 KELLER, KEVIN LANE CONCEPTUALIZING, MEASURING, AND MANAGING CUSTOMER-BASED BRAND EQUITY JOURNAL OF MARKETING; JAN 1993; 57, 1 AAKER, D.A. AND SHANSBY, J.G. 2001. POSITIONING YOUR PRODUCT. BUSINESS HORIZONS KEVIN LANE KELLER, 2000. THE BRAND REPORT CARD. HARVARD BUSINESS REVIEW. R00I04. KEVIN LANE KELLER, 1999. BRAND MANTRAS: RATIONALE, CRITERIA AND EXAMPLES. JOURNAL OF MARKETING MANAGEMENT, (15), 43-51. KEVIN LANE KELLER, 2001. BUILDING CUSTOMER-BASED BRAND EQUITY: A BLUEPRINT FOR CREATING STRONG BRANDS. WORKING PAPER. REPORT NO. 01-107. WWW. CADBURY.COM GILMORE, F. 1997. BRAND WARRIORS: CORPORATE LEADERS SHARE THEIR WINNING STRATEGIES.HARPER COLLINS PUBLISHERS.,LONDON. WWW.ALLANGRAY.CO.ZA WWW.DISCOVERY.CO.ZA