We’ve chosen these examples precisely because they illustrate excellently the 5 factors of brand positioning. I am particularly interested in branding as I owned my own business too and wanted to be the local market leader. So here goes:
1. Coca Cola’s Brand Attributes
What words would you use to describe Coca-cola? Refreshing, perhaps, or ‘great-tasting’? Well these are the brand attributes of Coca-Cola and they might vary depending on which segment of their global consumer market you ask. In Africa, for example, Coca-cola might be seen as a luxury item. In America, probably not. Young Americans might see Coke as part of their daily diet. Older people might treat it as an off-diet indulgence.
These are all brand attributes, but you see how subtly they vary by consumer group? Coca-cola uses this to direct trendy advertising campaigns to young people who watch MTV whilst to the family-friendly, feel-good ‘Coke is it’ ads are on general release.
2. Shell and Consumer Expectations
Now here’s a brand that’s seen its fair share of trouble. The lawsuits brought against Shell Oil (the US arm of the company) in the 1990’s reached from human rights exploitation in their Nigerian plants, to misleading the consumer on home turf. Evidence seemed to be mounting that their attempts at sustainable energy were in fact (as aptly named by one NGO) a “greenwash”.
The accusations damaged Shell’s reputation and lowered their standing in the consumer market: consumers expected better of a multimillion dollar energy firm.
And in the end, they got it. Shell made their financial and moral commitment to reducing greenhouse gases public in 2005, when Shell chairman Lord Oxburgh actually used the word ‘disaster’ to describe the calculated effects of global warming. We now expect Shell to lead the way to viable sustainability.
3. Audi Vs BMW: Competitor attributes
Volkswagen’s high end brand, Audi and the superlative BMW have long been after the same kind of consumer, with BMW always keeping hold of its market share. But it looks like Audi might be finally closing the gap – now why the turnaround?
Your product might be frustratingly similar to your competitor’s – might sell for the same price, be aimed at the same consumer market, have similar brand attributes and brand positioning. You might even both have similar infrastructure set-ups, so that your products are delivered to spec and on time, with your consumer having access to trained personnel. Just how, you’re thinking, am I ever going to get ahead of him?
In Audi’s case it was simply an exercise in advertising. For the longest time, their campaign had directed consumers to ‘never follow’, something lots of their consumer market couldn’t grasp. Less than a year after changing their marketing strategy to be based around the “Truth in Engineering.” slogan, global sales went up 9.8%. And they’re still rising. BMW may still have a more prestigious brand, but Audi found their niche with a consumer who wanted precision as well as luxury.
4. Supermarket own brand Vs Known Brands: Price
An easily quantifiable factor, just research your prices vs. your competitors’ prices. Really, price is a competitor attribute, but it’s so important that marketing strategies often require that a great deal of thought has gone into just this one area.
It’s not just a case of who’s cheaper: your product may indeed benefit from undercutting the market, or perhaps the only way you will sell to your slice of the consumer market is by convincing them that your product is luxury, high end and exclusive.
Imagine a walk through the aisles of your local supermarket. Some branded products – from chocolate bars to pain killers – have been copied ingredient-perfect by the supermarkets, and sold for sometimes half the price. Which products will you buy the cheaper version for, and which will you make no compromises on? Why? Jot down a note of these reasons, now imagine your product is on the shelves, competing with a well-priced challenger… a good marketing strategy exercise!
5. MacDonald’s and Consumer Perceptions
McDonald’s is a part of the lives and culture of people around the globe: just a glimpse of their golden arches peeking around the edge of a building and you know precisely what you should expect – whether or not you’re a fan!
We know this brand offers a strategic marketing mix: cheap, tasty eating solutions, a fast, fun environment, takeaways that are on every urban corner and open all hours. Recently, however (and culminating in the documentary ‘Supersize Me’ in which Morgan Spurlock attests to the negative health effects of eating at McDonalds by only eating there for a month), the perceived nutritional value of a McDonald’s meal went down significantly. Up also rose the issue of how their beef patties were made and with it again the question of whether McDonalds has all along been putting profits before quality.
This global brand quietly introduced ‘healthy eating choices’ such as salads, water and yoghurts at all their stores, and attempted in various ways to force consumers to perceive a McDonald’s meal as nutritionally balanced. We feel however this is lasting damage to consumer perception they’ll never be able to shake off.
1. Who is your target consumer?
Based on your business or product research, do a sketch right now of the average person who should take one look at your product, and love it. Go through all the demographics you can think of – age, gender, income bracket, location. Even if it might not seem important right now, refer back to this profile at every marketing decision and ask yourself ‘how will this person look at my product if I do this?’
2. What is the consumer market like for your product?
Have there been notable upward or downward trends in the size of your consumer market – is your product for example seasonal, or does it go quickly out of fashion? If you have a large consumer market, can you divide it by location, age bracket or gender (for example)? This is called Market Segmentation and can be useful for target marketing to particular consumer groups.
3. What is the business market like for your product?
Does supply of your product depend on an unreliable commodity, or are commodity prices stable so far as your business market is concerned? Are your products sourced or manufactured in anothe
r country so that you need to be aware of the export conditions of that country? How do shareholders view your company compared to your competitor?
4. What is your unique idea?
Chances are someone’s already marketing a product similar to yours. So what’s your unique selling point – why should your target consumer choose yours above the brand leader? Think about
- What do you do that’s special? If you offer legal services, what are your specialities? If you’re running a bicycle shop, perhaps you’re experts at repairing BMS’s or assembling flat pack kids’ bikes? Be inventive and creative, think about what makes you different from your competitors, but always aim to satisfy.
- How is your business different? Do you offer 24 hour care, personal service or a specific guarantee?
Your unique selling point should form the basis of your marketing campaign.
5. How does your target consumer see your product?
This is called brand positioning and will require some market research on your part. The outcomes could astound you. Are you seen as the newcomer, state-of-the-art or unreliable, untested and a bit old-fashioned? How does this line up with how you view your business, or how you would like it to be viewed by your consumer market?