Class 4 Brand Positioning: Post-Class Notes PDF

d HOUSEKEEPING 01 Brand audit project • • • • 02 You can change the brand later, at any point Draft I (parts 1 & 2) due Oct 17 Draft II (parts 1-4) due Nov 14 Only your final report will be graded Next class: First case study on lululemon • • • • How brand positioning is crystalized through it...

d HOUSEKEEPING 01 Brand audit project • • • • 02 You can change the brand later, at any point Draft I (parts 1 & 2) due Oct 17 Draft II (parts 1-4) due Nov 14 Only your final report will be graded Next class: First case study on lululemon • • • • How brand positioning is crystalized through its marketing programs (e.g., product, price, place, promotion strategies) Read the case carefully and thoroughly (~25 pages long) Check the discussion questions and prepare for answers Case & discussion questions uploaded on Brightspace CLASS 4 BRAND POSITIONING Q What is brand knowledge? § review § § Brand knowledge is shaped by what consumers have learned, felt, seen, and heard (i.e., information acquired) about the brand over time § Brand elements (i.e., logo, symbol, slogan) § Marketing activities (e.g., promotion, price, product) Brand knowledge determines how positively consumers respond to new marketing information The source of brand equity Q What kinds of associations should be chosen? § § § Favorable associations (so that Cs like it) Associations consistent with or relevant to preexisting associations (for C’s ease of info processing) Unique associations (for positioning purpose) # Outline the steps of designing brand positioning f Learning objectives # Understand how marketing programs deliver brand positioning to consumers (i.e., shape unique consumer perception of a brand) BRAND POSITIONING Definition § The essential part of marketing strategy § Act of designing consumer perception of a brand through marketing strategies so that the brand occupies a distinct and valued place in the target customer’s mind § Where to cast your fishing rod? BRAND POSITIONING Essentials § Identify the target market § Identify the nature of competition § Who is doing what and what are they good/bad at? § What are we good/bad at? § Who are the “true” competitors to us? § Choose brand associations § Unique associations to your brand § Shared associations across diff. brands in the same category etc. TARGET MARKET IDENTIFICATION Step 1: Market segmentation § Dividing the entire market into distinct markets in which consumers have similar needs and wants § Market means a set of all actual and potential buyers who have sufficient interest in, income for, and access to a brand § Why divide segments? § We want to be efficient! (cf. micro-targeting is only new) § Different segments have different brand knowledge structures, perceptions, and preferences for the brand. SEGMENTATION BASES DEMOGRAPHIC v Income/Class v Education v Age v Gender v Marital status v Race v Ethnicity GEOGRAPHIC BEHAVIORAL PSYCHOGRAPHIC v Values/Beliefs v International v Regional v Usage rate v Usage occasion v Brand loyalty v Brand retention v Religion v Political ideology v Environmental consciousness v Lifestyle v Healthy lifestyle v Spiritual v Community-focused or self-reliant HOMEGENEITY WITHIN SEGMENT Example: Demographics (age) HOMEGENEITY WITHIN SEGMENT Example: Demographics (age) § Generation Alpha (Born between 2010 – 2025) § Immersed in technology, highest digital literacy § Described by diversity in race, ethnicity, family structure, etc. § Experienced early childhood under the pandemic § Many of them have difficulty in reading emotions § Wider income inequality § Embrace activism from young age (e.g., BLM) HOMEGENEITY WITHIN SEGMENT Example: Behavior (Brand Loyalty) § Where’s a bottleneck? § What can we do to remove the bottleneck? HOMEGENEITY WITHIN SEGMENT Example: Behavior (Brand Retention) HOMEGENEITY WITHIN SEGMENT Example: Behavior (Brand Retention) Source (left): https://www.linkedin.com/pulse/blue-apron-cbcv-update-cocktail-good-bad-daniel-mccarthy/ Source (right): https://www.linkedin.com/pulse/blue-aprons-q3-18-results-cac-moves-higher-retention-trends-mccarthy/ HOMEGENEITY WITHIN SEGMENT Example: Psychographic (political ideology) HOMEGENEITY WITHIN SEGMENT Example: Psychographic (political ideology) HOMEGENEITY WITHIN SEGMENT Example: Psychographic (religion) CHOOSING TARGET CONSUMERS Decision criteria § Identifiability: Can you identify the segment and target them? § Proxies: Postal code (income, political ideology), Media preference (political ideology), IP address (income, geographic location, brand loyalty), Internet cookies & previous navigation activity (behavioral) § Size: How large is the sales potential? § Accessibility: Are there distribution channels and media to reach the segment? § Responsiveness: How will the segment respond? Can you track their response? NATURE OF COMPETITION Who are our competitors? (1/2) § Who are targeting the same target segment? § What are they/we good at? § Who are the “true” competitors? § Are they perceived similarly to consumers as us? § Are they really our match? (e.g., amount of resources, price level) § Are they serious about the target market? § Any indirect competitor? Consider the possibility of within- or crosscategory compensation (e.g., bottled coffee and fresh-brewed coffee) NATURE OF COMPETITION Who are our competitors? (2/2) § Identify multiple frames of reference § Starbucks vs. quick-serve restaurants (e.g., McDonald’s) § Starbucks vs. supermarket brands (e.g., Nescafe) § Starbucks vs. local cafes (e.g., Costa coffee) POSITIONING Criteria § § Choose a set of keywords that target consumers care about, for appeal § Consumers with conservative political ideology: Status-maintenance § Aged consumers: Respect, admiration, vitality § Consumers who are not loyal to your brand yet: Financial incentive Choose a set of keywords that distinguish your brand from other brands in the same market (i.e., keywords that are not taken by competitors) § Choose a set of keywords that help consumers establish brand knowledge about your brand in relation to the product category etc. POSITIONING Points-of-parity (POP) associations § Associations shared with other brands in the same market § Category POP: Unless POP is achieved, POD do not matter § Necessary condition for inclusion in choice set § Competitive POP: Associations designed to negate competitors’ points-of-difference § Brand A highlights its great functionality as POD § Brand B succeeds in quality improvement and now on par with the functionality of Brand A, hence established competitive POP POSITIONING Points-of-difference (POD) associations § Attributes or benefits that consumers (a) strongly associate with a brand, (b) positively evaluate, and (c) uniquely associate with a brand § PODs may rely on associations related to § Performance (e.g., Tesla’s technology) § Image (e.g., Louis Vuitton’s high-status image) § Or Both POSITIONING Points-of-difference (POD) associations (e.g., ”Get a mac” by Apple) § What are PODs of Mac claimed in this campaign? § How were these PODs delivered? https://www.youtube.com/watch?v=1rV-dbDMS18&t=364s&ab_channel=SEANTIME POSITIONING Points-of-difference (POD) associations (e.g., ”Get a PC” by Intel) § What are PODs of PC claimed in this campaign? § How were these PODs delivered? https://www.youtube.com/watch?v=oDMrMHI1kng POSITIONING Negatively correlated associations § Examples of conflicting attributes § Low price and High quality § Good taste and Low calories § How to address inverse relationships § Make the relationship less salient - as if they are separate (e.g., separate campaigns: Head & Shoulder anti-dandruff vs. beauty of hair) § Leverage equity of another entity (e.g., celebrity endorsing skin care product SKII: “secret key”) POSITIONING “OLD SPICE” Exercise • American male grooming products brand • Aftershaves, deodorants, shampoos, body shower, antiperspirants, etc. • Symbol of manliness and masculinity • Now owned by Proctor & Gamble POSITIONING “OLD SPICE” How it began (1957) https://www.youtube.com/watch?v=qw2pe8mwCTw&ab_channel=TVKoku https://www.youtube.com/watch?v=WQWVR0jxYFY&feature=emb_logo&ab_channel=advertarchive (1978) POSITIONING “OLD SPICE” New competitors (e.g., Axe) § § § § § § https://www.youtube.com/watch?v=clBi59oI6H0 Old Spice’s target consumer segment (e.g., gender, age)? Old Spice’s POPs? Old Spice’s PODs? How was Old Spice positioned? What about Axe? Why is Axe a competitor? POSITIONING “OLD SPICE” Repositioning Phase 1 https://www.youtube.com/watch?v=uLTIowBF0kE POSITIONING “OLD SPICE” Repositioning Phase 2 https://www.youtube.com/watch?v=0hwpDnA0_V8&list=RDLVHq2SlCja3zo&index=7 POSITIONING “OLD SPICE” Repositioning Phase 3 § § § https://www.youtube.com/watch?v=37nSD1Bsggg&list=RDLVHq2SlCja3zo&index=4 Isaiah (Timber) and Terry (Bearglove) Target consumer segment(s)? How is Old Spice positioned? POSITIONING “DOVE MEN” A different take on masculinity https://www.youtube.com/watch?v=t-Lc9Mhi9l0&ab_channel=wrfilmshd POSITIONING “OLD SPICE” Repositioning Phase 4 § § § https://www.youtube.com/watch?v=37nSD1Bsggg&list=RDLVHq2SlCja3zo&index=4 Deon & Gabrielle Target consumer segment(s)? How is Old Spice positioned? d NEXT CLASS 01 Read lululemon case and prepare for in-class discussion