Marketing Management I

Module 3: Brand Equity and Positioning

Dr. Anuj Kapoor

School of Management and Entrepreneurship (SME)

IIT Jodhpur

© Anuj Kapoor (Ph.D, FMS, Delhi)

What is a Brand?

“ There are some things money can’t buy. For

everything else, there’s ______ “

“ Thanda matlab”

A brand is the sum of all expressions by which an entity (person, organization, company, business unit, city, nation, etc.) intends
to be recognized.
COLA
Mineral Water
Luxury Car
Perfume Brand
https://www.youtube.com/watch?v=1_OC29X41EE

https://www.youtube.com/watch?v=MFPKos3
BLD4

https://www.youtube.com/watch?v=rv67HG__
45o&t=112s

https://www.youtube.com/watch?v=BnBvlz8Ea
Z0&t=8s
What is a Brand?

What YOU SEE AND What YOU FEEL

A Brand is something that lives in your head/heart.

Allen Adamson

Each person creates his or her own version of it [brand].

While companies can’t control this process,
BUT
they can influence it.
Brand Elements
BRAND IS JUST NOT A PRODUCT OR A LOGO

Country of
Origin

Campaigns
Perceptions Product
Attributes
Elements Emotions Uses Organizations
Quality
Benefits

Brand Brand
Relationships Personality

Logos

IDENTITY/
Product + IMAGE/ = BRAND
EMOTION

Usually managers characterize a brand by describing all of the brand elements used to identify it, including its name (e.g., Apple), symbol (e.g., silhouette
of an apple with a bite removed), package design (e.g., sleek white box), and any other features that serve to differentiate that brand’s offering from
competitors’.
Brand Vs Branding

Brand is the Branding is the

perception people process of actively
have of your shaping that
business perception.

Branding = Process of Creating a Brand

The brand = remains after the

marketing has swept through the
room.
Brand Equity
When a commodity becomes a brand, it is said to
have ‘equity’.
Brand equity is the set of assets and liabilities linked to a
Brand equity “lies in the mind of the customer,” which means
brand, its name, and its symbol, which add to or subtract from
that it is difficult for competitors to copy it.
the value provided by the firm’s offering and relationships.

Brand equity is a marketing term that describes a

brand’s value.

Positive Brand Equity Negative Brand Equity

Brand equity is the extra value a company gets from a product with
a recognizable name, as opposed to a generic equivalent.
Brand Equity INR 2,999/-

INR 1,000/-
Product vs Brand

Brands create
competitive
advantages with
product performance

Coca-Cola has been a leader in

their product categories by
creating relevant and
appealing images surrounding
their products.
 Brand Equity
Exists

Identify
Brand
Differences in
Knowledge
Brands

The Product is
a Commodity
 Perceived
Quality

Brand Brand Brand Image Brand

Brand Equity
Awareness Knowledge (Self) Preference

Brand Image
(Others)
Uber

Uber

Everyone's Private Driver

Electric but Ultra Luxury
Soap Vs real natural beauty, self-confidence and
self-acceptance
What is Positioning ?

The act of designing a company’s offering and image to occupy a distinctive place in the minds of the target market.

Positioning is not what you do to a

One foot in the present and one in the
product, it is what you do to the mind of
future.
the prospect.”- Ries & Trout

Superior Design

Economy Luxury

Standard Design
Positioning Strategy

Choosing a Frame
of Reference
Frame of Reference

Which other brands competes with and which should be

the focus of competitive analysis.

“
Frame of Reference

Extended

Natural

Category Membership

Products or sets of products

with which a brand competes
and which function as close
substitutes.
Frame of Reference - Fails

• Launched in 1985
• India’s first ever SUV – Promoted as a off roader
• Ambiguous Frame of Reference

• Low Mileage
• Seating Arrangements
• High Price
Positioning Strategy

Choosing a Frame
of Reference

Identifying POD’s
and POP’s
POP’s
Attributes that are not necessarily unique to the brand but may in fact be shared with other brands.

• In other words, points of parity are industry-specific similarities that are shared among many businesses.

• Points of parity are the bare minimum for competitive businesses. If you want to be competitive, your company needs to
have all the points of parity covered.
POD’s
Attributes or benefits (design, quality, performance) consumers strongly associate with a brand, positively evaluate, and believe
they could not find to the same extent with a competitive brand.

When the dye is gone, the brush is no longer effective and should
be replaced.
“
“
POD’s Vs POP’s
Points of Parity (POPs) Points of Difference
(PODs)
Antiseptic No Sting

Points of Difference
Points of Parity (POPs) Consumer’s (PODs)
Desire

Competitor's Your
Features “ Features
POP’s and POD’s
• POD, is what you need to determine once the points of parity have
been covered.
Similarity |Differences
• These are the things that are truly unique to your business and that give
you a competitive edge.

• Businesses have to convey both points of parity and points of

difference.
Over a period of
time, POD’s • POP tells your target market your product or service meets their basic
needs.
might become
POP’s • POD tells consumers why your product or service is the best option
over competitors that also have the essentials covered.

More than just a customer; you’re

a member of a select card-carrying club Convenience
Characteristics of POD’s

Desirable
Something that people actually want or
would value

Deliverable Differentiated
A promise the brand can actually deliver Something that is distinct from what other
on (and people will believe it can deliver on) competitive brands offer
POD’s - Fails
Straddle Positioning
• The Straddle Positioning is one of the positioning strategy
adopted by the marketers to position their product in two
categories simultaneously.

• In other words, the positioning strategy adopted to create a dual

image of the product in the minds of the customer is called as
Straddle positioning.
Perceptual Map
A perceptual map is a visual representation of different company positions within a market within a graph.

High in
Caffeine

Diet Diet
Pepsi Coke Pepsi Coke

Pepsi Coke Thumps

Light Zero -Up

Low in High in
Sugar Sugar

Dew Limca

7 Up Fanta

Low in
Caffeine
Positioning Strategy

Choosing a Frame Creating a Brand

of Reference Mantra

Identifying POD’s
and POP’s
Brand Mantra
A brand mantra is short phrase (five words
maximum) that encapsulates the entire positioning A brand mantra is an articulation of the heart and
platform (the competitive frame of reference, the soul that captures the essence of a brand
points of difference, the points of parity, and
everything else about your brand) into one thought.

Brand Mantra Tagline

Authentic- Athletic- Performance Just Do It

The way we establish the brand in the market and Its the short introduction of the product blended
keep it consistent in quality, service and with emotional or professional attachment of the
satisfaction. ultimate consumers.

ALWAYS SAID !! ALWAYS READ !!

Fun – Family - Entertainment Where Dreams Come true

Brand Equity and Profit

Brand Equity Sales

Brand
Equity

Decline
 Increase

Brand Consistent
Equity

Decline

Brand Reinforcement
Ensuring
Relevance
Brand Reinforcement refers to the set of activities where companies ensure that brand equity created doesn’t depreciate with
time.
 Brand
Consistency Recall
Relevance
 Increase
Bounce Back

Consistency
Brand
Equity

Decline

Brand Revitalization Bouncing Back

LEGO

Boys 91%

Girls 9%

Source: brickset.com/1980
 Boys

Sales Girls

T1

Time
 Boys

Sales Girls

T1 T2

Time
 Boys

Sales Girls

T2 T3
T1

Time
Lego - 2020
 Boys

Sales Girls

T2 T3
T1

Time
Lego - 2020
 Regaining
Brand Freshness
Brand
Relevance (Originality)
Equity

Nostalgia
Link 1: Hero:
https://www.youtube.com/watch?v=qP-bK1aLHFg

Link 2: Fortune:
https://www.youtube.com/watch?v=awvZ844DW-8&feature=youtu.be

Link 3: Snapdeal :
https://www.youtube.com/watch?v=LrHB6NelFHQ

Link 4: Snapdeal:
https://www.youtube.com/watch?v=kzuhxs5ivQo
Brand Revitalization – How it works !!

Product Design Logo Packaging Tag

Line

Brand Revitalization Re-Branding

Thank You
And
Questions