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When a brand faces different types of competitors, it needs to adopt multiple frames of reference, each with its own points-of-parity (POPs) and points-of-difference (PODs).
Example: Starbucks
Quick-Serve Restaurants and Convenience Shops
Competitors: McDonald's, Dunkin' Donuts
Intended PODs:
Quality: Starbucks emphasizes the high quality of its coffee compared to typical fast-food coffee.
Image: Starbucks portrays a sophisticated and premium image.
Experience: The ambiance and environment in Starbucks stores are designed to provide a relaxing experience.
Variety: Starbucks offers a wide range of beverages and snacks.
Intended POPs:
Convenience: Like McDonald's and Dunkin' Donuts, Starbucks has numerous locations and drive-thrus.
Value: Starbucks offers competitive pricing and loyalty programs.
Home and Office Consumption
Competitors: Folgers, NESCAFÉ instant, Green Mountain Coffee K-Cups
Intended PODs:
Quality: Starbucks promotes its coffee as superior in taste and quality.
Image: Even at home, the Starbucks brand evokes a premium feel.
Experience: Starbucks aims to replicate the coffee shop experience at home.
Variety: A wide range of products including whole bean, ground coffee, and capsules.
Freshness: Starbucks emphasizes the freshness of its coffee.
Intended POPs:
Convenience: Starbucks products are easy to find in supermarkets and online.
Value: The products are competitively priced.
Local Cafés
Competitors: Independent coffee shops
Intended PODs:
Convenience: Starbucks locations are widespread and easy to access.
Service Quality: Starbucks focuses on providing high-quality customer service.
Intended POPs:
Product Quality: Comparable to local cafés.
Variety: Similar range of products and beverages.
Price: Competitive pricing with local cafés.
Community: Starbucks also aims to be a part of the local community with initiatives and events.
Straddle Positioning
Straddle positioning allows a brand to address multiple frames of reference with a single set of POPs and PODs.
Example: Subway
Positioning: Healthy, good-tasting sandwiches
Against Fast-Food Restaurants (e.g., McDonald's, Burger King):
POP: Taste - Subway sandwiches are tasty and comparable to other fast-food options.
POD: Health - Subway emphasizes the healthiness of its sandwiches, with options for low-calorie and fresh ingredients.
Against Health Food Restaurants:
POP: Health - Subway sandwiches are healthy, aligning with the offerings of health food restaurants.
POD: Taste - Subway emphasizes that its healthy options do not compromise on taste.
Example: BMW
Positioning: The Ultimate Driving Machine, offering both luxury and performance.
Against U.S. Performance Cars (e.g., Chevy Corvette):
POP: Performance - BMW's cars match the performance of American sports cars.
POD: Luxury - BMW offers a level of luxury not found in typical performance cars.
Against U.S. Luxury Cars (e.g., Cadillac):
POP: Luxury - BMW's cars match the luxury of American luxury cars.
POD: Performance - BMW offers a level of performance not found in typical luxury cars.
Choosing Specific POPs and PODs
Selecting the right POPs and PODs involves emphasizing benefits that are desirable, deliverable, and differentiating.
Example: Dove Soap
Attribute: One-quarter moisturizing cream
Benefit: Softer skin
POP: Cleansing - Like other soaps, Dove cleans the skin effectively.
POD: Moisturizing - Dove differentiates itself by also providing superior moisturizing benefits, leading to softer skin.
Example: Singapore Airlines
Attribute: Well-trained flight attendants, strong service culture
Benefit: Superior customer service
POP: Reliable service - Comparable to other major airlines.
POD: Exceptional customer service - Singapore Airlines is known for going above and beyond in customer care.
Perceptual Maps
Perceptual maps help visualize consumer perceptions and market positioning.
Example: Beverage Market Perceptual Map
Map (a) Current Perceptions:
Brands: A, B, C, D
Attributes: Taste (light vs. strong), Image (contemporary vs. traditional)
Segment Preferences:
Segment 1: Prefers light taste and contemporary image.
Segment 2: Prefers strong taste and contemporary image.
Segment 3: Prefers strong taste and traditional image.
Map (b) Possible Repositioning for Brand A:
Current Position: Balanced in taste and imagery, not strongly preferred by any segment.
Option A': Make the image more contemporary to appeal to Segment 1.
Option A'': Make the taste lighter to appeal to Segment 2.
Emotional Branding
Emotional branding connects with customers on a deeper level by appealing to both rational and emotional aspects.
Example: Mederma
Original Focus: Practical benefits of scar treatment.
Added Focus: Emotional benefits, such as boosting self-esteem and confidence by improving skin appearance.
Example: Kate Spade
Functional Aspect: High-quality, fashionable products.
Emotional Aspect: The brand appeals to consumers' desires for style, individuality, and sophistication.
Conclusion
By understanding and applying these concepts—multiple frames of reference, straddle positioning, choosing the right POPs and PODs, using perceptual maps, and emotional branding—brands can effectively differentiate themselves, address various competitors, and connect with consumers on both rational and emotional levels. These strategies help in building a strong, recognizable, and desirable brand in the marketplace.
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