MARKETING MANAGEMENT

PART 4 BUILDING STRONG BRANDS

11. CRAFTING THE BRAND POSITIONING

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Developing & Communicating a Positioning Strategy Positioning is the act of designing the companys offering and image to occupy a distinctive place in the minds of the target market. The goal is to locate the brand in the minds of consumers to maximize the potential benefit to the firm.

PODs & POPs

Points-of-difference Points-of-parity (PODs) (POPs) Attributes or Associations that benefits consumers are not necessarily strongly associate unique to the with a brand, brand but may be positively evaluate, shared with other and believe they brands could not find to the same extent with a competitive brand

Dettol vs Savlon
Savlon, the product of Johnson & Johnson is a brand, which is clinically proven to be a better antiseptic than Dettol, having advantages like better scent and nonstinging properties. The brand was expected to give the market leader Dettol, a run for its money. But even after millions of rupees spent, Dettol still rules the antiseptic lotion market.

Dettol vs Savlon
Savlon is an effective germ killer than Dettol. It does not sting while being applied on wounds. Dettol used to give a stinging sensation while applied on wounds. Armed with superior properties, Savlon went into a direct attack on Dettol. The main differentiators for the brand were its no-sting property and better smell. J&J spent heavily on promoting the brand. The launch was a success and consumers tried out the new product. But the story did not continue like that. Dettol confronted the frontal attack from Savlon in a different manner. It tried to attack one of the most valuable brand of J&J - Band -Aid by launching Dettol plasters. This move got J&J defensive. It never expected Dettol to attack another brand in retaliation.

Dettol vs Savlon
Dettol plasters had the potential to attract consumers because of the brand equity of Dettol Antiseptic. J&J scrambled to protect Band-Aid by launching a series of variants in the medicated plaster segment. In doing so, resources were spent on defending Band-Aid rather than in advancing Savlon. Savlon suffered heavily because it lost the support in terms of investment in brand building. Dettol had a brand equity built over more than 50 years (at that period of time). Savlon needed painful long term sustained investment. However Savlon was pushed to a back burner after Dettol introduced the plaster. Savlon never re-emerged.

The Product Life Cycle

Products have a limited life. Product sales pass through distinct stages, each posing different challenges, opportunities and problems to the seller. Products rise and fall at different stages of the product life cycle. Products require different marketing, financial, manufacturing, purchasing and human resources strategies in each lifecycle stage. A new product progresses through a sequence of stages from introduction to growth, maturity, and decline.
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The Product Life Cycle

A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle.

The Product Life Cycle

Introduction Stage The firm seeks to build product awareness. Product branding and quality levels are established. Intellectual property protection such as patents and trademarks are obtained. Pricing may be low penetration pricing or high skim pricing. Distribution is selective. Promotion is aimed at innovators and early adopters. Marketing communications seeks to build product awareness and to educate potential consumers about the product.

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The Product Life Cycle

Growth Stage The firm seeks to build brand preference and increased market share. Product quality is maintained. Additional features and support services may be added. Pricing is maintained. Distribution channels are added. Promotion is aimed at a broader audience.

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The Product Life Cycle

Maturity Stage The primary objective at this point is to defend market share while maximizing profit. Product features may be enhanced. Pricing may be lower because of the new competition. Distribution becomes more intensive. Promotion emphasizes product differentiation.

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The Product Life Cycle

Decline Stage Maintain the product, possibly rejuvenating it by adding new features and finding new uses. Harvest the product; reduce costs and continue to offer it, possibly to a loyal niche segment. Discontinue the product.

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