A customer-focused value proposition is the first step of positioning.

Value proposition refers to

the satisfaction that the target customers expect in the product, in terms of price, quality,

performance, durability, or expectations [15- Marketing Management, Kotler & Keller Ch1 Pg 11].

Steps involved in creating value propositions are: [16]

1. Know your customers (KYC) - Study of the potential market through different market

research tools, and their expectations concerning a particular product are determined.

2. Understand costs and benefits - Even if the product or service is very appealing to the

consumers, a higher cost of production can lead to them being hesitant to pay higher prices.

3. Assess competitors - SWOT analysis of the competitors to evaluate the competitive landscape

of the market and examine a unique way of creating a value proposition.

4. Be clear and concise - The message or tagline used to target the targeted customers should

bring the desired benefits clearly, be easily conveyed and grasped by the customers.

5. Design is king - The customer value proposition should be easily visible and appealing on all

consumer touchpoints to become advantageous while making a buying decision.

Choosing a competitive frame of reference - Competitive frame of reference is the arena where

the brand will compete with other brands and design a market positioning strategy. The steps

involved in choosing a competitive frame of reference [17- Marketing Management, Kotler & Keller Ch10 Pg 298,299]

1. Identifying competitors present in that segment. It includes not only the current competitors

but also the potential competitors that may be planning to enter the market in the future. There

are four different varieties of competitors, namely Brand competitors, Product competitors,

Generic competitors, and Total budget competitors. [18]

2. Analyzing competitors refers to conducting a SWOT analysis of the present and potential

competitors in that segment where the brand is planning to enter.

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Based on the competitive frame of reference, marketers can define the following:

Points-of-differences (PODs) [20- Marketing Management, Kotler & Keller Ch10 Pg 300,301]

PODs refer to unique attributes or benefits in the mind-space of consumers, which help them

strongly relate with a brand, positively evaluate, and establish a belief that these selling points

stand-out in front of other competitive brands. Strong brands are associated with a set of PODs.

Marketers face a real challenge to establish robust, favourable and distinct associations in the

minds of consumers, critical for achieving competitive brand positioning.

There are three criteria to ascertain whether a brand association can act as a POD:

 Desirability by consumers - Consumers associate with brands if they find unique attributes

that are personally relevant, accompanied by a strong reason and a clear rationale for why and

how the brand can deliver the desired value propositions.

 Deliverability by the company - The company must be equipped and committed to

communicating the desired associations to the consumers to create shifts in the way consumers

perceive the brand.

 Differentiation - Consumers must be able to identify the unique offerings and superior features

that differentiate the brand from its competitors.

Points-of-Parity [21- Marketing Management, Kotler & Keller Ch10 Pg 302]

POPs are the common attributes or benefits of the association shared among the competitive

brands. The brand must be good enough on that front to enable consumers to evaluate other factors

more favourable to the brand. These common associations include:

Category POP - It includes essential attributes, benefits, and offerings that are necessarily

associated with the product or service category.

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 Correlational POP - It includes potentially negative associations of the brand arising from

the conflicting positive ones. A positive attribute in one aspect might lead the consumer to

think unfavourably about some other attribute.

 Competitive POP - Associations designed to overcome the perceived shortcomings of the

brand relative to the competitors’ POD, which in turn shape the brand’s POP. It can be done

by adapting to the competitor’s POD.

Straddle Positioning - It is a strategy to position products in two frames of reference

simultaneously by creating a dual image of the product in the minds of consumers. Marketers use

a blend wherein PODs for one category become POPs for the other and vice-versa. Straddle

positioning can be a great hit if applied correctly, offering a “best of both worlds” solution for

conflicting consumer preferences and thereby helping the brands to expand market coverage and

customer base. However, there is a massive risk of the brand not being viewed as a legitimate

player in either category in case the POPs and PODs fail to be credible.

Choosing specific POPs and PODs [23- Marketing Management, Kotler & Keller Ch10 Pg 305]

Building a sustainable competitive advantage arising out of what POPs and PODs is the first step

in brand positioning. The company can differentiate at every stage in marketing. However, it is

also essential to maintain the POPs so that the customer can link the product with the overall

product category.

The company can visualize its POPs and PODs with the help of perceptual maps, which tell how

it is perceived in the market compared to its competitors. These are 2-D graphs with one

characteristic each on both the axes resulting in 4 distinct consumer segments. Based on this, the

marketers can choose to reposition the company in a way that it maintains its existing PODs and

achieves POPs with its competitors.

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Emotional Branding [24 - Marketing Management, Kotler & Keller Ch10 Pg 307]

An important aspect of brand positioning is appealing to the consumer’s emotions. While product

performance helps in building competitive advantage, building upon it to factor in the emotional

appeal helps in building strong brands. Emotional branding can increase the value, both tangibly

(in terms of profits) and intangibly (in terms of consumer trust).

Brand Mantras [25 - Marketing Management, Kotler & Keller Ch10 Pg 308]

It is a useful device, highlighting in 3-5 words the PODs of the brand, the broad definition of what

is brand-appropriate, and provides a general direction for the employees and marketing partners to

follow. While a brand slogan is a projection of the brand for external parties, a brand mantra helps

in defining and focusing on the areas in which the brand would like to compete.

Establishing a Brand Positioning [26 - Marketing Management, Kotler & Keller Ch10 Pg 310]:

The brand positioning strategy devised by the marketers is established by communicating it to

everyone in the organization. It helps individuals and teams across functions to align products with

the brand as much as possible. It also helps in analyzing and developing specific POPs and PODs,

which provide the most significant competitive advantage to the brand.

At the core of the brand positioning strategy are the brand mantra, POPs, and PODs for the brand.

These are supported by substantiation or the “reasons-to-believe”, which can factually demonstrate

the POPs and PODs of the brand. Finally, it includes the intangible attributes of the brand, like its

values/character, and the tangible attributes like the visual identity of the brand.

A brand positioning strategy also provides the context in terms of consumer profiles, competition,

and the big picture view.

Consumer buying behaviour [27- Marketing Management, Kotler & Keller, 15e Ch6 Pg 166-170]

Consumer behaviour depends on various factors, such as Cultural, Social, and Personal.

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