Question

QUESTION TWO 25 MARKS
Positioning requires defining our desired or ideal brand knowledge structures and
establishing points-of-parity and points-of-difference to establish the right brand
identity and brand image. Unique, meaningful points-of-difference (PODs) provide a
competitive advantage and the “reason why” consumers should buy the brand. On
the other hand, some brand associations can be roughly as favourable as those of
competing brands, so they function as points-of-parity (POPs) in consumers’
minds—and negate potential points-of-difference for competitors. In other words,
these associations are designed to provide “no reason why not” for consumers to
choose the brand.

Using this argument, discuss how any Breweries is using
the two concepts of PODs and POPs to cements and consolidate its market position
in the beer market.

The subject is Brand Management and Customer Equity (Marketing Program)

Answer 1

In beer markets, the following PODs and POPs are used by the Breweries:

PODs:

Brand Name: The biggest differentiator in Beer Market is the brand name itself. In any beverage market, the brand name and its equity play the biggest role in creating the PODs and gives a significant competitive advantage.

Product Origin: The place of origin of the product is another competitive advantage in Beer Market after the brand name.

Experience selling through advertisement: Advertisements also creates the point of difference because advertisements try to give the connotation of different experience associated with the brand.

POPs:

Product Ingredients: Similar quality of product ingredients being used in the making of beer makes a very tough point of parity for all the brands competing in the market.

Package and bottling: The design element of packaging and bottling is almost similar for all the competing products.

Pricing Strategy: Beer market follows very competitive pricing, unlike the hard liquors which have its own pricing strategy based on the brand, origin, and aging of liquor.

Distribution Channel: Same distribution channel is used by all the competing brands.