Branding &

Brand Positioning
Prepared by: Sanjay kumar khandel
and group
What is a Brand?
A name, term, sign, symbol or
design, or a combination of them,
intended to identify the goods or
services of one seller or group of
sellers and to differentiate them
from those of competitors.
What is Branding?
Providing goods and services
with the power of the brand.
Brand Elements
Brand Element Choice
Criteria How to choose
good elements?
Memorable
Meaningful
Likeable
Transferable
Adaptable
Protectable
Brand Naming
Individualnames
Blanket family names
Separate family names
Corporate name/individual name
combo
Slogans Examples

 Advantages of Strong
Brands
Improved Larger margins
perceptions of More inelastic
product consumer response
performance Greater trade
Greater loyalty
cooperation
Less vulnerability
Increased marketing
to competitive communications
marketing actions effectiveness
Less vulnerability
Possible licensing
to crises opportunities
 Strategic Brand
Management
Identifying & establishing brand
positioning
Planning & implementing brand
marketing
Measuring & interpreting brand
performance
Growing & sustaining brand value
 Positioning Definition

It is to place the brand on

shelf, and making it available
in shops, where the customer
can buy it easily.
 Positioning Definition

Positioning is the art of

designing the companys
offering and image to occupy
a distinctive place in the
target market.
 Positioning

Positioningis not what you do

to your product . It is what
you do to the mind of the
customer.
All products are different to some extent. But not all brand
differences are worthwhile or meaningful. A difference is worth
establishing to the extent that it satisfies any of the following:

Important: the differences is delivered highly valued benefit to a

sufficient number of buyers.
Distinctive: the differences is delivered in a distinctive way.
Superior: the differences is superior to the other ways of obtaining
the benefit.
Preemptive: the differences cant be easily copied by competitors.
Affordable: the buyer could afford to pay for the difference.
Profitable: the company would find it profitable to introduce the
differences
 Principles of Positioning
Some of the Principles of Positioning are:

1. It
is better to be the first to be late.
2.In case it is not the first, Create the new
category by making at least a small
change in the marketing . create a pricing
strategy through replacement market and
got into the mind of the consumer.
3.It is important to understand the position
and strategy of the competitors.
4.Positioning using an easy name is very
important in this context.
 positioning errors
There are various positioning errors, such as-

Under positioning
Over positioning
Confused positioning
Double Positioning
 Under positioning

some companies discover that the buyers

have only a vague idea of the brand..

occurs when customers cannot readily identify the

brand or the brands features. The product must
stand out in the mind of the consumer

Example: solar lamp

 Over positioning

buyers have too narrow an image of the

brand.
It means that buyers believe that the product is
meant for a very select audience because it is
premium priced.

Example: diamond ring

 Confused positioning

Buyers might have a confused image of the brand

resulting from the company making too many
claims or changing the brand positioning too
frequently

Example: NEXT computers

 Doubtful Positioning

Buyers find it hard to believe the claim of the brand

in view of the products features, price, or
manufacture.

Example: hair care products

 Positioning Strategies
The different types of the Positioning Strategies:
Strategies
Attribute Positioning
Benefit Positioning
Use or application positioning
Competitor Based Positioning
Product Category Positioning
Quality or Price Positioning
Positioning in Relation to a Target Market
Attribute Positioning
A company position itself on attribute, such as
seize or number of years in existence
Example: Nestle company

Benefit Positioning
The product is positioned as the leader in a
certain benefits
Example: Nido Production
Use or application positioning
Positioning the product as the best for some
use or application .
Example: Rado watches

Competitor Based Positioning

The product claim to be better in some way
than a named competitor.
Example:
Product Category Positioning
The product is positioned, as the leader in a
certain product category.
Example: Aquafresh

Quality or Price Positioning

The product is positioned, as offering the best
value.
Example: Rolls Royce
 Positioning in Relation to a Target Market

Regardless of which positioning strategy

is used, the needs of the target market
always must be considered.
Example: Nestle products
 How to Position the Brand
Studying the ideal product perception- this involves
studying both tangible and intangible attributes that
a customer looks for while buying a product.
Get the customers to rank these attributes in the
order of importance to them.
Customers knowledge of the competitive brands.
How the competitors brands specify how close or
far they are on each attribute to the ideal product.
Based on the assessment of the competitors brands
on the ideal product map, product managers identify
vacant slots and then build the positioning strategy .
Defining Associations

Both are important!

PODs Success Criteria

Consumer Desirability Criteria

Deliverability Criteria
Examples of Negatively
Correlated Attributes and
Benefits
Low-price vs. High quality
Taste vs. Low calories
Nutritious vs. Good tasting
Powerful vs. Safe
Ubiquitous vs. Exclusive
Varied vs. Simple
Differentiation Strategies
Product
Distribution Channel
Personnel
Image
Product Differentiation
Product form Style
Features Design
Performance Ordering ease
Conformance Delivery
Durability Installation
Reliability Customer training
Reparability Customer
consulting
Maintenance
Distribution Channel
Differentiation
Coverage
Expertise
Performance
Personnel Differentiation
Better-trained staff
Competent (skill and knowledge)
Trustworthy
Friendly and respectful
Reliable (perform consistently &
accurately)
Responsive
Good communicators (understand
customer and communicate clearly)
Image Differentiation
Establish character and value
proposition
Convey in a distinctive way
Deliver emotional power

 M a r ke t
p p i n g
Market SegmentMa
s, Market Mapping
and Gaps in the
Market
Firstly, Conduct Market Research to
gather qualitative and quantitative
data

Analysing Customers
 Analysing Customers

then analyse the data to

decide exactly what customers
MARKET SEGMENTS

You can then divide customers into

different MARKET SEGMENTS
MARKET SEGMENT

You can then divide the market into

groupsofofcustomers
group customers with
with similar
similar buying
buying habits
 MARKET SEGMENT Young Professional
women men
Teenage
Young boys girls

Little girls

group of customers with similar buying habits

Age
Gender
How is the Barbie market divided?
Ethnicity
Income
Which Market Segment?
Which Market Segment?
Which Market Segment?
Market Map illustrates the position
of a product in a market
based upon two features
that are important to
customers

Features such as:

Which features?
Which features?
Simple Market High Price
Map for Cars

Rolls Royce

Low High Quality

Quality

Smart Car

Low Price
Reliant Robin
 High
Example Market Quali
Map for Chocolate ty

Low High
Price Price

Low
Thanks to: www.tutor2u.net
Quali
Gap in the Market

when no businesses
are servings the needs
of customers for a
particular product
 Is there a gap High
in the fast Quality
food market?

Gap
Low Price ? High Price

Low
Quality
WORKSHEET

Thanks to: www.businessstudiesonline.co.uk

Market Mapping Exercise
Create a market map for businesses that
sell coffee .
Either on paper or PowerPoint, using this
slide and the next slide, cut and paste
these images to create your own market
map. Indicate a possible a gap in the
market.
 High Price

Low Quality High Quality

Low Price
 High Price
ORGANIC

CAFE

Low Quality High Quality

Gap
?

Low Price
 Create a Market Map for Clothing Stores
Continuing on from your
Understanding Customer Needs
Market Report, create a simple
questionnaire that asks teenagers their
opinion of 2 different features of a range
of clothing stores e.g. you might
compare Fashionable/Not Fashionable
with High Price/LowHigh
Price
Fashion

Use the data you gather to Narrow Wide

create a Market Map. Assortment Assortment

See if you can identify a

Gap in the Market

Casual Wear
Co-Branding
 Co-Branding

Two companies join to create a new

product carrying both their brands.
Intent of Co-
Branding
Market share

Brand extension

Global branding
 Types of Co-Branding:
1. Ingredient Co-Branding
e.g.- Dell computer with Intel processor
2.Same Company Co-Branding
e.g.- Kraft lunchables & Oscar Mayer meat
3. Composite Co-Branding
a)Joint Venture Co-Branding
e.g.- British Airways & Citibank
b)Multiple Sponsor Co-Branding
e.g.-Citibank, American Airline & Visa
Credit card partnership
Need For Strategic Fit
Economic Model of Co-Branding:
 SWOT Analysis for Co-
Branding:
Strengths: Weakness:
Ability to adopt change Long term association
Building of two in with poor performer or
house brands weaker brand
Benefit by association Dropping of standards
Markets because of the
inability of the poor
franchisees
Opportunity: Threats:
Increase the market Changing consumer
penetration New entrants from
Improve consumer overseas or different
trust market sector
Learn new trade Consumer confusion
 Benefits of Co-Branding:

To create financial benefits

To provide customer with greater values
To strengthen the competitive position
Greater customer trust on product
Wide scope due to joint advertising
Risk sharing
Greater product image by association with
renowned brand
Limitations

Entirely different market & product

Different vision & mission of two companies

Adverse effect of partner brand.

 Example of Co-Branding:

Master Card- Virgin

Virgin teamed up with Master Card to devlop a prepaid
card targeted at who dont have bank account or a low
credit score
Apple-Nike
Nike and Apple Brought music and exercise together
when they develop the sport kit, a wireless system that
allows shoes to talk to an iPod
Brand licensing,
Celebrity Endorsement
Brand Licensing
Definition
The leasing of a brand name to a company
other than the owner of that particular brand.
As an example, a beer company located in
Europe could lease its brand name to an
American brewer.
Read more: http://www.businessdictionary.com/definition/brand-licensing.html#ixzz3LQ5LSUMa

The process of creating and managing

contracts between the owner of a brand and a
company or individual who wants to use the
brand in association with a product, for an
agreed period of time, within an agreed
territory.
Read At Law Dictionary
Example
After Apple launched the iPod a number of
years ago it created an immediate need for
accessories; Apple could have chosen to
manufacture and distribute these
themselves, but decided they were not core
to the business and therefore, chose to
satisfy the need through licensing.
Licensing the iPod brand enabled many
companies to produce all kinds of terrific
products to make the iPod more user-
friendly and enhance the listening
experience. Examples include the Bose
Sound System with iPod docking station,
other products that enable an iPod to be
heard through a vehicle's built-in stereo
and iPod holding devices that allow users
to take their music with them when they
go running. All these accessories are sold
by licensees.
History
Brand licensing is a well-established
business, both in the area of patents and
trademarks. Trademark licensing has a rich
history in American business, largely
beginning with the rise of mass
entertainment such as the movies, comics
and later television. Mickey Mouse's
popularity in the 1930s and 1940s resulted
in an explosion of toys, books, and
consumer products with the lovable
rodent's likeness on them, none of which
were manufactured by the Walt Disney
Company.
History
The rise of brand licensing did not begin
until much later, when corporations found that
consumers would actually pay money for
products with the logos of their favorite
brands on them. McDonalds play food, Burger
King T-shirts and even ghastly Good Humor
Halloween costumes became commonplace.
 History
Brand extensions later made the brand licensing
marketplace much more lucrative, as companies
realized they could make real dollars renting out their
equity to manufacturers. Instead of spending untold
millions to create a new brand, companies were
willing to pay a royalty on net sales of their products
to rent the product of an established brand name.
Armor All auto vacuums, Breyers yogurt, TGI Friday's
frozen appetizers, and Lucite nail polish are only a
handful of the products carrying well-known brand
names which are made under license by companies
unrelated to the companies who own the brand.
 Licensing includes:
Itgrants the licensee permission to use the property
Limitations are normally established on how partners can
make use of the brand name, and for how long they retain the
right of usage. This protects the brand owner in a couple of
ways. The time limit allows the owner to consider terminating
the agreement and going with a different partner if the
relationship does not prove to be as beneficial as originally
anticipated. In addition, placing limits on how the brand name
can be used in labeling and marketing products helps to
prevent the brand from being identified with products that are
unrelated to the main brand or are perhaps of lower quality
The licensor receives financial remuneration normally in the
form of a guaranteed fee and/or royalty on a percentage of
sales in exchange of usage of his property
This approach often makes it possible for the brand owner to
receive a portion of the revenue generated by these ancillary
products, without having to incur the expense necessary to
actually manufacture those goods or services. Assuming that
the products manufactured and sold by the entity leasing the
brand name are of high quality and meet the standards set by
the brand owner.
 Licensed product process
steps:
Licensor chooses the product
categories to be licensed
Licensor finds and negotiates a license
with the best licensees
Licensees develop concepts,
prototypes and final production
samples and submit for approval
Licensor approves licensed products
for sale
Licensees sell licensed products to
authorized retailers
 The Benefit of Licensing
The for Licensors
key benefit for a licensor is the ability to
exploit and enhance its brand or property.
Licensing can do this by:
increasing its brand presence at retail or
distribution outlet
creating further brand awareness to support its
core products or services
supporting and enhancing its core values by
associations with the licensed products/service
or category (e.g. association with a healthy food
or with a cutting edge mode of fashion)
entering new markets (consumer or
geographical) which were unfeasible with its
own resources or capabilities
generating new revenue streams, often with
little involvement or additional financial or other
resource implications
 The Benefit of Licensing
Thefor Licensees
key benefit for a licensee (especially
manufacturer or retailer) is the ability to
significantly increase consumer interest in
and sales of its products or services.
Licensing can do this by:
providing additional marketing support or
momentum from the core propertys
activity provided by the licensor
gaining additional retail space and favor
reducing efforts of licensee for marketing
Trust of customer
 Conclusion
Needless to say, the entire process is
lengthy and time consuming. One must
also keep in mind that the goal is not to
achieve the license but to make a
success of it and the activities that
follow the signing of the contract. These
processes, if executed well, on the one
hand, can ensure huge success of the
program. While on the other hand, if
either the licensee or the licensor do not
live up to their commitments, it can
affect sales, and more importantly the
reputation of the brand
 Terminologies
Advance or Advance Payment
The initial guarantee paid by a licensee to a
licensor, due upon execution of a license
agreement. Advances are typically nonrefundable
and credited against future earned royalties
Guarantee

The minimum Royalty Payment, or prepaid

royalties that a Licensee is contractually obligated
to pay a Licensor. Typically, the Guarantee is
computed by taking a percentage of the
licensee's estimated Royalties for the entire Term
of the License Agreement. Guarantees may be
paid quarterly, semi-annually or annually and are
typically nonrefundable and credited against
future Earned Royalties
 Earned Royalties
The Royalties that are owed to Licensor by Licensee
computed by multiplying the Royalty Rate by the Net
(Wholesale) Sales of all Licensed Products or Articles.
Earned Royalties differ from Paid Royalties in that
Guarantees and Advances are not subtracted. Earned
Royalties + Guarantees and Advances = Paid
Royalties.
License Agreement
The contract between the Licensor and Licensee
that grants the right to use the Licensed Property in
a specified manner in exchange for payment;
typically a Royalty based on Wholesale Sales. The
license agreement lays out the terms of the
partnership including: legal, financial and other
Licensing Agent
A company that develops and manages licensing
programs for brand owners or licensors, and
manufacturers or licensees. The primary role of the
agent is to bring the two parties together to
consummate license agreements in return for a
share of the royalties.
 Audit Rights
The permission for a Licensor, or licensor's agent,
to review Royalty Payment, financial statements,
accounting data, warehouse and inventory, financial
systems and procedures, or other pertinent
licensing information to verify accuracy
Strategic Licensing Plan (SLP)
A document, developed by the Licensing Agent
with input and approval by the Licensor that
outlines strategies and details of the Licensing
Program. A well-written plan includes the targeted
list of Licensed Products or Articles, Channels of
Distribution and marketing plans.
. Brand Representation Licensing
A Brand Owner's enlisting of manufacturers to
produce, market and sell approved products bearing
its brand name, logo, or Mark and/or its Licensable
Assets in exchange for a fee, typically a Royalty,
paid as a percentage of Wholesale Sales
 t
ri ty en
b e m
l e r s
e
C nd o
e
Definition
Purpose
Products
Models giving insight of celebrity
endorsement
Benefits
Disadvantages
Definition of celebrity
Celebrity
Celebrities are people who enjoy public
recognition by a large share of a certain group
of people and can influence life of people.
Celebrities are :
Actors
Models
Sports figure
Entertainer
Pop star
Business man
Politician
Fictional celebrities
Definition of celebrity
endorsement
Aform ofbrandoradvertising
campaignthat involves a well
knownpersonusing their fame to
helppromotea product orservice.
Manufacturersof most of products usesclassic
celebrity endorsementtechniques, such as
television ads andlauncheventappearances,
in themarketingof theirproducts.
Read more:http://www.businessdictionary.com/definition/celebrity-endorsement.html#ixzz3LV4b7aHD

As our obsession with celebrities has reached

unhealthy levels, fuelled by media, gobbled up
by the masses, marketers have dialed up the
idea that consumers are prepared to buy into
the celebrity lifestyle more than the product
itself.
Basic
Generallypurpose
increase sale
of celebrity
endorsement
Attract more attention of customer

Celebrity Endorsement Required for

products
Markets in which advertising coordinates
consumer purchases, celebrity endorsements
are more likely chosen for products that have
either of the following: -
High price-cost margins
Large potential customer pools
The need to coordinate across diverse sets of
customers
Specially for young age product as young ages
take impulsive decision to buy a product as
their need changes continuously as per trend.
 Models
1. Sourcegiving insight
credibility and of CE
attractiveness
Source attractiveness refers to endorsers
physical approach, personality, likeability
to receiver
Endorser must be trust worthy enough to
modify people attitudes toward brand

Source Credibility Source attractiveness

2. Match up hypothesis
Effectiveness depend on the existence
of fit between celebrity spoke man and
endorsed brand
It say that CE will only change buying
behavior if characteristics of product
match-up with the Priyanka
image conveyed by
Product
chopra and
celebrity Ranbir
kapoor
Young For young people
Stylish Energetic
Energetic
Choice of youth
 3. Model of meaning transfer
Meaning attributed to celebrity become
associated with the brand in the
consumer
Consumer acquire brand meaning
 4. Multiple brand and celebrity
endorsement
specificbrand is endorsed by the different
spokesman to attract diverse set of target
customer .But it may confuse the customer
about brand identity so it should assure that
each and every celebrity must possess
compatible meanings that are sought for
brand
Some celebrity endorse several
brand or Preety zenta endorses
Cadbury Godrej TVS Scooty , Maggie,
head and shoulder
 Benefits Of Using Celebrity
Endorsements
Attract New Users:
Finding and keeping new customers is hard for some
organizations. Using a celebrity to endorse an
organization's product or service can entice new
customers.
Breathe Life Into A Failing Brand:
Celebrity endorsements can help revive a product or
service that is losing market share. Celebrities can
tout the benefits of the brand and help create new
interest from consumers.
Build Awareness:
Brand awareness is an indicator that measures how
familiar people are with a particular product or
service. Celebrities advertising can build brand
awareness, according to Supermarket News, a
publication covering the food distribution industry.
Benefits of using celebrity endorsement
Influence Consumer Purchases:
Celebrities who are well respected can instantly add
credibility to a product or service. Consumers may have
the attitude, 'If this celebrity is backing the product or
service, it must be good.' Consumers might also think 'If
the product is good enough for him or her, it is good
enough for me.'
Position a Brand:
Celebrities can be used to position a brand. Product
positioning is a process of convincing the consumers that
the product being advertised is the best on the market and
all other products are inferior.
Recall brand
People recall brand in mind which is associated with a
celebrity.
Connect emotionally and quickly
As people are emotionally connected with the celebrities
so they connect with the product sometimes they endorse

Disadvantages
Multiple endorsements
Preety in vatika and head n shoulder
Brand shifting
e.g. when aishwarya rai and Amir khan
shifted to the coke from Pepsi
Overshadowing
Negative image of celebrity
Veena malik
Influence of celebrity scandal and moral
violation on brand
( salman khan scandal Thums up drink
take akshay face hard)
Celebrity trap
Once into a celebrity its hard to get rid
of it