Week 8

Disruptive positioning has several aspects that make it a robust strategy:

- Approachability: Disruptive positioning allows brands to create disruptive marketing. This further allows the brand to tell a story that customers can easily understand. And effective brand storytelling is invaluable in the times when consumers are 22 times more likelyLinks to an external site. to remember a fact if it has been embellished with a story. Why? Because stories can elicit an emotional response - they're designed to make us think and feel. - Affordability: Disruptive marketing does not have to be expensive to be effective. Instead, it has to change the way things are done and challenge how people are thinking about your product. - Curiosity: It's unique, so it attracts people and intrigues them, making them look for more information. In 2015 84% of consumersLinks to an external site. said it is somewhat or very important that the brand they buy from is innovative. But in the post-pandemic era, this has become essential! New problems require new solutions, and modern consumers crave products that deliver novelty and fun. Therefore, audiences love disruptive marketing campaigns because they make them think in completely new directions.

Brand positioning refers to

- the process of positioning the brand in the mind of the target customers. More than a tagline or a fancy logo, brand positioning is the strategy used to set your business apart from the rest. - Effective brand positioning happens through value creation and differentiation. In other words, when a brand that is created is perceived as valuable, and relevant to the consumer. - When a brand is deciding how to position itself in the marketplace, there are several options to consider. The best strategy is the one that highlights the competitive advantage of the company to point out brands strengths while implying the competition's shortcomings.

Convenience-Based Positioning Strategy

A brand is using a convenience-based position strategy to highlight why a company's product or service is more convenient to use than the competitors. This convenience can be based on factors like location, ease of use, wide accessibility, free shipping, and multiple platform support. For example, according to Forbs Amazon represents the most convenient online store in the world because they offer the convenience of Amazon search, fast shipping through Prime, and easy returns. There is virtually no risk to buy on Amazon, and this is why the Amazon bestsellers across all categories are often unknown brands.

Differentiation Strategy

A brand is using a differentiation-based position strategy to highlight its differentiation points in comparison to the traditional competition. Tesla is a great example. Before the Tesla vehicles existed, there hadn't been an attractive, fully electric vehicle available for purchase. Now, it's the leading tech company pioneering self-driving cars and AI robotsLinks to an external site.. In this and similar cases, consumers who value uniqueness, and innovation (and are not discouraged by the lack of history of use) are potential customers. In fashion industry, similar example, can be seen when subscribing to clothing rental brands such as Rent the runaway, rather than to conventional store brand.

Price-Based Positioning Strategy

A brand is using a price-based position strategy to present its product and services as the most affordable option. Great examples of this strategy are all fast fashion retailers that charge the lowest possible prices for their fashion goods. When the brand position itself as the cheapest on the market, a large customer base can be generated. But this strategy comes with its share of risks and drawbacks namely, giving prospects the impression of lower production quality. The brand may also run into reputational issues that can hinder the brand's positioning over time. For example, failures in the fast fashion supply chain are very well known which deteriorate some ethical-oriented consumers from buying fast fashion brands.

Quality-Based Positioning Strategy

A brand is using a quality-based position strategy when they want to emphasize the quality of their product to secure a price premium. In the luxury fashion sector, for example, quality-based positioning is secured through showcasing exceptional craftsmanship, small-batch production, high-quality materials, and sustainable practices. The quality of service can be shown through evidence of exceptional end results, high ROI, and glowing customer testimonials. When selecting this positioning approach brand may lose budget-conscious customers but this is where status-oriented, or quality-oriented consumers with a higher income would come into play.

Social Media Positioning Strategy

A brand is using a social media positioning strategy to secure a set of communication channels rather than a stand-alone communication tactic. In this approach brand doesn't have to show up across each platform. When using this strategy, the key is to choose the channels your target market uses the most. The factors to consider when choosing a social media platform for your brand strategy are: Where your target audience spends leisure time Where your target audience spends money Where your target audience looks for information and advice For example, Chinese brand Shein is conquering the West through an omnichannel experience with its website, app, and social media, as well as a wide network of fashion influencers.

Classical positioning

A brand that is using a classical positioning provides products and services that are similar to ones that already exist in the market. Their products and services have the same price range, and classically positioned companies serve a similar target market. Because of all these similarities, visually, on a positioning map, the classically positioned brands will be positioned closer to their competitors. For example, you may think what is the difference, from a positioning perspective, between Coca-Cola and Pepsi?

Disruptive positioning

A brand that is using a differentiation-based position strategy relies on disruptive positioning. Visually, on a positioning map, the disruptive brand will be positioned far away from its competitors. Disruptive brands stand out by offering unique products or services. Thus, often disruptive brands do not have direct competitors, only indirect competitors. Disruption is all about risk-taking, trusting your intuition, and rejecting the way things are supposed to be. Disruption goes way beyond advertising. For example, disruptive marketing is taking all the marketing rules we know and stomping on them. It's never settling for the way things are, but rather turning "the way it's done" on its head. The question is then, why is disruptive positioning so important today? There are three essential reasons why disruptive positioning represents a huge trend. They include rapid technology development which allows innovation and disruption; changing consumer demands and oversaturated market.

Components of Brand Equity

Aacker has derived a simple framework, which explains the key components of brand equity: brand awareness (e.g., brand awareness concerns the extent to which a brand is known or recognizable to a consumer). brand association (e.g., brand evokes positive or negative sentiments, for example, a product's functional, social or emotional benefits) perceived quality (e.g., the brand's reputation for high-quality products and customer experience). brand loyalty (e.g., brand loyalty dictates that a consumer who truly believes in the value of a brand's offerings will often make frequent and repeat purchases from it instead of switching between brands). other proprietary assets (e.g., patents, trademarks, and channel or trading partner relationships).

Other Positioning Strategies

Above mentioned positioning strategies are not only strategies out there. Brand can be positioned as the leader, the first of its kind (the original), or the most popular. Brand can be positioned as the solution to a pervasive problem.

Step three - Create scores for these brands

After we have chosen the brands, we need to allocate scores for them using the two identified attributes. The simplest way to do this is by using a simple 1 to 5 rating scale. Ideally, a positioning map should be based upon results from a consumer survey, where respondents have been asked about their perception of the brand compared to the competing brands.

Brand equity

Brand equity is a complex concept, but its understanding remains central to a brand fulfilling its competitive potential. Its complexity is demonstrated by a wide range of perceived interpretations and attempted definitions by both academics and professionals. A popular definition of brand equity is that of renowned marketing theorist and Professor David Aacker, who defines brand equity in his book 'Managing Brand Equity' as: A set of assets or liabilities in the form of brand visibility, brand associations, and customer loyalty that add or subtract from the value of a current or potential product or service driven by the brand (Aacker, 2009). Put simply, brand equity represents the value of a brand. It is the simple difference between the value of a branded product, and the value of that product without that brand name attached to it.

Brand repositioning

Brand repositioning seeks to reach a new target audience while avoiding the changing brand name and other brand assets. Brand repositioning should be approached strategically.

BE: Positioning the Brand Consistently within the Market

Brands must keep consistent brand culture (including their values, and commitments) in that way consumers are not left confused or in doubt about what the brand stands for. Brand managers can make tactical changes, such as introducing new packaging or rewriting their slogans, but it is necessary to re-align them with changing consumer demands, and contextual factors. To maintain consistency this is what the brand can do: a conscious, consistent conveyance of the brand's core values; relaying to consumers what your products represent; clarifying what the brand is and what the brand is not; clarifying how brands differ from its competitors.

How to Build Brand Equity?

Building strong brand equity is the key to long-term business success. Brand equity can be reinforced by actively investing in its components.

BE: Focusing on Building Relationships

Consumers determine the strength of the brand's equity. Thus it is critical to building positive relationships with the brand's target market. Managers should track any negative press or feedback, and listen and respond while correcting mistakes. Also, providing excellent customer service at all times is required and not optional.

Coke classical positioning

Consumers strongly prefer one or the other; it is hard to find someone who enjoys both. Coke was the first soda ever created back in 1886. Then, in 1898, a rivalry that would span decades was born as soon as Pepsi hit the market. However, from a positioning perspective, we can say these two products are similarly positioned. Both of them are soda drinks, and they have similar ingredients and similar product prices. They also target a similar target market. Enough reasons to argue that these two brands are classically positioned. Slight differences in the marketing include that Coke used a few celebrity endorsements in the past. Pepsi on the other hand is known for working with high-profile celebrities. In their US campaigns, they've worked with the likes of Cindy Crawford, Britney Spears, Beyonce, Jennifer Lopez, David Beckham, and Jeff Gordon. In international markets they've partnered with; the Spice Girls, Sakis Rouvas, Priyanka Chopra, and Kylie Minogue as a few examples. Other classically positioning brands are McDonald's and Burger King (why? similar products, similar target market, and price ranges). Similarly, in the fashion industry, we can argue that H&M and Forever 21; Gap and Old Navy; J crew, and Banana republic are classically positioned.

BE: Building Brand Awareness

Create strong, unique, and positive brand attributes that consumers will retain in their minds, for example, by engaging with online communities using different social media and creating viral content (videos, campaigns).

Negative Brand Equity:

Failing to adequately manage brand equity can have negative business consequences. A key example is the Volkswagen emissions scandal of 2015 (Links to an external site.), where it was revealed that the brand had been falsifying its emissions figures using technology, which could cheat on emissions tests. Volkswagen's brand equity was left subsequently damaged. As a consequence, brand associations deteriorated since the public could no longer associate the brand with positive feelings of trustworthiness or reliability. The perceived quality of Volkswagen also decreased since consumers undoubtedly felt that other mid-market car brands could provide greater overall quality only by fitting their cars with reliable and fully functioning emissions technologies. Financial value declined following the scandal, and Volkswagen lost nearly a quarter of its market value (23%) (Links to an external site.), a reduction of approximately $17.6 billion.

Managing brand equity is essential in achieving long-term competitive benefits, which in return will drive profitable growth.

For example, brands with strong brand equity can charge price premiums, which are not attributable merely to product-related benefits but are attributed to the value and strength of attaching the brand name to that product. Such products will also enjoy a low price elasticity, meaning that consumers will be less inclined to switch to even those competitors with lower prices. Further brands with high brand equity are exposed to significantly less risk when introducing line extensions or extending their brand name to new products since the brand name alone carries a value. For example, when Apple, a brand with strong equity introduce new products, consumers would likely not hesitate to purchase them. This is due to the positive associations that the Apple brand triggers, and therefore the brand loyalty it inspires. Thus, it is a smart strategy to build strong brand equity, so that the brand name can protect the company against uncertain market conditions, ever-more-complex consumer demands, shifting behavioral trends, and increasing numbers of competitor market entrants.

Step one - select two determinant attributes

For example, for the shoe brand analysis, we can analyze the following attributes: comfort, design, quality, functionality, style, price, etc. From the list of above-mentioned attributes (that may be given to you or you may need to develop based on your best judgment), you are to select two that you want to analyze. These two will form the axes of your perceptual map (attribute one x-axis and attribute b y-axis). Try and pick the two that you think would be the most important in terms of the product choice between competitive offerings.

Step two - list the main competitors in the product category

For whatever brand you are looking at, you will need to compile a list of the main (or direct) competitors. These are the brands that will be plotted upon your perceptual map. You don't need to list every single competitor in the marketplace, but you should try for a list of five to ten players.

Qualitative Measurements on the other hand might include:

Monitoring social media reactions Tracking 'buzz' the brand creates Conducting consumer focus groups to evaluate their emotions and feelings towards the brand.

Brand Life cycles

Over the years, brands experience life cycles that if brands are to survive and prosper, changes in business strategy become required. This often requires repositioning to a different target market, or to a lesser extent a revitalization that retains and often builds upon prior positioning and seeks to merge heritage with more modern design /and service sensibility. Brand life cycle stages are similar to ones we have as humans and they include brand development, brand birth/introduction, brand growth, brand maturity, and brand decline. Somewhere between brand growth and brand maturity is recommended stage when revitalization should be made. Brand managers need to keep a steady finger on the pulse of the market and several key performance measures including declines in sales, size of the market share, or profit levels often suggest that a brand's health may be at issue. Remedial strategies then need to be applied. However, first, the problem needs to be properly identified so that company can develop a proper repositioning strategy. Different remedies should be used for different maladies. For example, sometimes rebranding is necessary through natural brand evolution. However, at times, brands need to extend their offerings to the new target market. Therefore, depending on the circumstances approach should be selected. Rushing headlong into celebrity endorsements is a risky repositioning strategy as it not only requires a relevant outreach to the new customer base but also needs to stay relevant to the existing one or risk alienating some or losing both cohorts as customers.

BE: Emphasizing Positive Brand Associations

Positive brand associations are critical to building brand loyalty. Ways of enhancing positive brand associations include: using innovative and eye-catching advertising, and celebrity endorsement; highlighting the core functional, social, or emotional benefits of the products/service; ensuring responsible and ethical practices; promoting transparency.

quantitative measurements include various financial metrics, such as

Profit margins Price elasticity Profitability Growth rate Market share percentage Purchasing frequency

Resurrecting a dormant brand

The 3 critical questions brand managers should ask when attempting to resurrect a dormant brand or one that has not been in the market for several years: Can the brand regain its former glory? Can it be made to stand out and be unique? Does the company resurrecting the brand have the leadership and creative capabilities to get customers attention? When dealing with a so-called, Sleeping beauty which represents the dormant luxury brand, is different compared to a dormant mass market brand. For example, the dormant luxury brand might have forgotten brand heritage which can help rebuild a new brand narrative. It is here where dormant luxury brands have an advantage over non-luxury brands as the latter need to construct a brand narrative while the former already possess one. For example, Moynat was founded in Paris in 1849 and it was an artisan shop of exquisitely designed and crafted baggage and trunks, a rival to Louis Vuitton. In 2010, the business closed and the brand and the assets were purchased by LVMH and Bernard Arnault, the CEO. Arnault undertook no survey to confirm brand equity. He instead mentioned 15 years long timeline for LVMH to reposition and relaunch Moynat brand. Moynat was relaunched in 2011 under LVHM group and the brand was repositioning to reach new target market.

Positive Brand Equity: Nike.

The apparel brand Nike can serve as a positive example of brand equity. Brand recognition is high for this brand. Its highly recognizable slogan, "Just Do It", paired with its infamous 'swoosh' logo (Links to an external site.) means that many Nike campaigns do not need to mention the brand name, because brand awareness is already so strong. Positive brand associations are also reinforced through positive, inclusive, and inspiring marketing communication. Nike has established collaborations with influential athletes, such as LeBron James or Michael Jordan, which encourages consumers to believe that Nike is just as expert in the retail field as their representatives are in theirs. These celebrity endorsements also contribute significantly to the brand's perceived quality; if Nike is good enough for famed athletes, then it is good enough for any consumer. Nike customers are also brand loyal meaning they feel confident that Nike will deliver consistently high-quality products and customer service. The customer relationship is further enhanced through investment in the customer journey, with collaborative features such as the Nike Run Club, allowing consumers to track their fitness goals and receivetop-qualityy coaching, or the ability to personalize sneakers with Nike By You. Nike represents the world's most valuable apparel brand. I

The top brand attributes that matter the most to younger generations are:

Trustworthiness Creativeness Intelligence Authenticity Open communication

To craft the positioning statement, the brand manager needs to be crystal clear on the following business facets:

Who is the target customer What value the brand offers How does the brand position itself Why the company is in the business What makes the brand different from the competitors

Brand positioning statement template:

[The name of the brand] provides [offering/benefit that makes you better than competitors] for [your customers] who [customer needs] because [the reason why your customers should believe you are better than competitors].

Building a unique brand is all about

identifying what makes this brand different from all others as well as identifying what works the best for the business. It is recommended that the company conduct competitor research, so that they can see their own brand patterns. Only then company will be capable to see some businesses that have the same strengths and weaknesses. As brand compare the product or service to the product and service of others, it will be easier to identify their weaknesses, and use them to create your brand strength.

A positioning map

is a visual tool used by brand managers to identify the positioning of their products or services within the market, relative to their key competitors. It is very useful to provide input into SWOT analysis and help create a competitive business strategy.

The purpose of a positioning statement is

to convey a brand's value proposition to its ideal customers. It also frames the brand's identity, purpose, and distinguishing features within the context of the buyer's experience.

The most challenging task is to measure brand equity

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