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Brand Management: Assignment

The document provides an overview of central brands versus distinctive brands and introduces the C-D (Centrality-Distinctiveness) perceptual map as a tool to analyze brand positioning. The C-D map plots brands based on how central (representative of the category) and distinctive (ability to stand out) they are as rated by customers. Brands fall into four quadrants - Aspirational, Mainstream, Peripheral, and Unconventional - each with strategic implications. The C-D map offers several business applications such as assessing brand positioning strategy, tracking competition, and managing brand portfolios. However, perceptual maps also have limitations such as oversimplifying brand attributes.

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rufus carvalho
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74 views

Brand Management: Assignment

The document provides an overview of central brands versus distinctive brands and introduces the C-D (Centrality-Distinctiveness) perceptual map as a tool to analyze brand positioning. The C-D map plots brands based on how central (representative of the category) and distinctive (ability to stand out) they are as rated by customers. Brands fall into four quadrants - Aspirational, Mainstream, Peripheral, and Unconventional - each with strategic implications. The C-D map offers several business applications such as assessing brand positioning strategy, tracking competition, and managing brand portfolios. However, perceptual maps also have limitations such as oversimplifying brand attributes.

Uploaded by

rufus carvalho
Copyright
© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
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BRAND MANAGEMENT

ASSIGNMENT

GROUP 4
21020348002 AMAN LALPURIA
21020348015 RUFUS ANGELLO CARVALHO
21020348028 MANGESH GANPAT WAGHMARE
21020348031 RUPALI SHAM SALVI
INTRODUCTION
CENTRAL BRANDS DISTINCTIVE BRANDS
First to come to our Mind They avoid direct competition with central brands
Brand shapes category dynamics, including pricing These Brands Position themselves away from the
and direction of innovation Brand crowd

Striking a Balance between Centrality and Distinctiveness of a brand is important.


TRADITIONAL PERCEPTUAL MAPPING HIGH QUALITY

Perceptual mapping is a visual representation of B

where a brand, product, or service stands among C


D
competitors. It is also known as positional

HIGH PRICE
LOW PRICE
mapping. A

Perceptual mapping utilizes customer input to


understand your brand, product, or service from G
F E
the customer’s perspective.
Performance gauging has its own set of tools
which measure brands on market share, growth.
LOW QUALITY
SHORTCOMINGS/LIMITATIONS OF TRADITIONAL PERCEPTUAL MAPS
Major limitation is traditionally, the map uses two variables and does not account for others. This
assumption can hinder the reliability of results, as in some cases, it is not safe to assume that there
are only two major factors influencing the decision of purchase for a consumer.
There was lack of coherence in handling the brand positioning along with the Business
performance.
The data needed to form a perceptual map is usually obtained through surveys, and can be difficult
to obtain and can be labor intensive.

"There is often a blurred line between what a business can offer


and what a consumer thinks the business can offer"
C-D MAP
(Centrality - Distinctiveness Map)
Links perception and performance
Customers rate the brands on two parameters

CENTRALITY - How representative of the category the brand are.


DISTINCTIVENESS - The Degree to which they stand out from the category
The Brands are mapped in four quadrants
Each Quadrant has strategic implications for Sales, Pricing, and Profitability.
Offers insights into competitive opportunities and threats.
UNCONVENTIONAL ASPIRATIONAL PERIPHERAL MAINSTREAM
How each of the four quadrants has Strategic implications for the
brands within it
A brand’s position on the map can vary dramatically depending on the customer segment, region, or
other factors.
For example, the Subaru brand was considered neither central nor distinctive; however, a survey of
consumers in the Northeast states would most likely position Subaru in the aspirational quadrant.
Likewise, older consumers would probably perceive the Cadillac brand as aspirational, while younger
consumers would most likely give it a peripheral position.

Identify
Gaps & Opprtunities

Visualize Difference in consumer


perceptions & performance in different countries

Should Reflect company strategy


and consistency with Business model
1 ASPIRATIONAL
Key Aspects: Are both central and distinctive – meaning that they have high sales volume, but can
still command high prices because they are held in high regard. Aspirational brands, as you may
suspect, often account the most profitability of the four quadrants. Redefine the category & Launch
Innovation

Challenge: They must defend their position against challengers coming at them from the
mainstream and unconventional quadrants

Strategic Context: Must focus to make their distinctive features sufficiently mainstream to be widely
appealing without becoming run-of-the-mill.
2 MAINSTREAM
Key Aspects: Are central, but not necessarily distinctive. They are solid brands, (Nissans, Fords, etc.),
but lack the wow factor. Heavy advertisement to make brand synonymous with category. Risk averse
but can shape markets.

Challenge: The primary competitive challenge to mainstream brands comes from peripheral and
unconventional products that could become central as consumer tastes shift.

Strategic Context: These brands appeal as “good deals” to large swathes of the population, and enjoy
high sales volumes albeit at comparatively lower prices to their more distinctive counterparts.
3 PERIPHERAL
Key Aspects: Are neither central nor distinctive.

This means that they don’t sell very high volumes, are not held in high regard, and often not easily
distinguished from one another.

Challenge: Peripheral brands may tend to position themselves as lower-priced alternatives to


mainstream brands, but may not enjoy such high sales volumes. However, business models may still
prove profitable due to low marketing and innovation costs.

Strategic Context: Peripheral brands may attempt to shift their positioning by adding distinctive
features or launching advertising campaigns, but this is an uphill and expensive battle.
4 UNCONVENTIONAL
Key Aspect: Are niche players, meaning that they are decidedly distinctive, and not particularly
central. As such, unconventional brands should expect low sales volumes, and instead look for
profitability through higher prices. Unconventional brands are not especially appealing to the
population at large.

Challenge: The niche market brand may be invaded by large companies, and small marketers may find
it difficult to compete.

Strategic Context: Migrate from the unconventional to the aspirational quadrant by making the
brand’s unique features more mainstream or adding mainstream features.
C-D MAPS FOR BEER (IN U.S. MARKET)

In the above example, we can see that in the beer markets, higher centrality scores equate to greater sales
volume. Indeed, Budweiser, captured almost 30% of the entire US beer market and were the most central
brand in the category.
C-D MAPS FOR CARS (IN U.S. MARKET)

The higher a brand scores on centrality, the greater its sales volume. Toyota, the car brand with the highest
score on this dimension in our survey, is the only one that sold more than a million passenger cars in the
United States
BUSINESS APPLICATION

1 Assess your Brand’s Positioning strategy:


C-D Map Reveal Disconnect between strategy and objective
Instant check on strategy's effectiveness by mapping customer's
perception of brand

2 Track the Competition:


Conventional Mapping have a narrow view, Not all brands may be
competing each other.
C-D Maps reveal consumers mental representation.
3 Manage Brand Portfolio
Compare brand performance and strategy across categories
Standardization and rationalization for budget allocation

4 Manage Global Brand:


Helps in setting realistic Goals geographically
Explain difference in cross border performance

5 Track and Analyze Results:


Repeatedly charts the position changes that result from marketing
initiatives
Helps marketer in gauging impact of themselves and their
competitors actions
Limitations

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