- Innovate beyond the product.
- Balance brand positioning, pricing and distribution.
- Build differentiated brands in sectors like FMCG markets, fintech services and consumer durables.
- Understand the role of marketing and brand strategy in enhancing brand equity
Product/Brand Positioning, Pricing, and Distribution
Brand positioning which is dependent on meeting customer needs cannot be separated from pricing strategy and distribution strategy
Typically brand positioning is relative to the market/customer segment being targetted and also to the competitors in the same market/customer segment
Brand positioning wrt Pricing Strategy:
- Mass market – low price
- Niche market – high price
Both these pricing strategies would lead to a different perspective of the brand in the minds of the customer
Brand positioning wrt Distribution Strategy:
- Product available in small store
- Product available in a mall
Both these distribution channels would lead to a different perspective of the brand in the minds of the customer
Also, customer engagement and satisfaction is important for brand positioning
Brand benefits are different across the value chain:
Manufactures/Service partners are interested in:
- Customer Loyalty
- Price protection from brand
- Shareholder value
Retailers/Distributors are interested in:
- Better margins
- Return on Investment
Customers are interested in:
- Choice and service
- Quality and Performance
Objectives of Marketing Managers: Brand Strength and Customer Value
- Awareness, image, reputation
- Perceived risk
- Product and Service Quality
Objectives of Brand Managers: marketing performance and customer consequences
- Price premium vs share premium
- Customers’ willingness to wait
- Customer loyalty and retention
- Trial of extensions to other products
- Speed of market penetration (time premium)
Objectives of Corporate Managers: Brand Value and Financial Value
- Cash flows and profits
- Risk and vulnerability
- Barrier to competition
Innovating Beyond the Product
Innovation efforts are majorly focused on Product Performace. But other factors should be also in focus since Product Performace has the least impact on Brand Positioning
Success factors of Products:
Brand value, customer engagement, and distribution channels have to be in focus to improve customer experience
- Communicate the value to the customer
- Build trust with the customer
- Customers should get peace of mind while interacting with the brand
For example, Tanishq build trust by providing a certificate of authentication and a return policy, thus derisking the customer’s decision
Four Pillars of Brand Health:
- Differentiation: A brand’s ability to capture attention in the cultural landscape. Relates to premium margins and pricing power
- Relevance: How appropriate and meaningful a brand is to consumers. Relates to market penetration.
- Esteem: How highly regarded a brand is. Relates to brands delivery on its promise
- Knowledge: The depth of understanding people have of a brand. Relates to customers’ experience
Differentiation and Relevance are correlated
Esteem and Knowledge are correlated
The BAV Calculator is a tool that you can play around with and map different companies to notice where they belong within the pillars of branding.
Example: Building the brand of ESPN and how they changed their price with improvement in their branding value
Management of B2B and B2C Brand Simultaneously
The end consumer has to be consumed that they are getting value from the brand.
For example, Microsoft sells Office for both B2C and B2B
Evolution of Online Market: E-networks management is the final frontier
India Stack for FinTech
Note: These are notes from the ISB Executive Education – Product Management program for my personal consumption.
In case you are looking for a Product Management course, I would highly recommend joining this cohort-based course.