Filipino SMEs, is your brand positioning on point?

Brand positioning has transformed the world since its beginnings in the 1960s and ’70s. And today, in a new era of online platforms and live selling, it remains as relevant — and powerful — as it has been since its inception. Local brands in particular should take note. Brand positioning has been a chronic blind spot for many Filipino SMEs, according to Emmanuel “Bingo” Soriano, a brand marketing expert with decades of experience in Unilever and as a consultant for brands such as HSBC, Purefoods, and Burger King.

It is because of this gap that Mr. Soriano has established his podcast, The Branding Nerd, and established Brand Con, where he is the founder and Chair. The event was held last November at Newport World Resorts, but I was able to catch up with him on my own podcast to talk about why brand positioning is such an important tool for Filipino SMEs and what they have to gain.

Like Bingo, I’ve had a parallel experience with brand-intense corporations when I was in Procter & Gamble. At the same time, I can appreciate his message as I am today — an entrepreneur with my own businesses. What follows are some of the highlights of my hour-long conversation with one of the country’s top brand marketing minds.

WHAT IS BRAND POSITIONING?
Before anything else, let’s first define what a brand is.

According to Mr. Soriano, “The definition I use actually comes from Al Ries, the father of Laura [Ries, the keynote speaker of Brand Con]. His definition is this: [A brand] is a singular idea or concept that you own in the mind of your prospect.”

Creating this brand — brand positioning — is easier said than done, and it affects every aspect of your business.

“To be able to own that concept in the mind is very difficult to do,” he continued. “That, to me, should be the aspiration of every single brand, to own a concept in the mind of their market and nobody else will own that.”

To achieve this goal he has created a framework, the Brand Building Framework, that he uses with the brands he works with.

“You follow the framework,” he summarized. “You position yourself. You create your identity. You execute consistently across the six P’s (product, price, place, promotions, people, process). If you do that over time, you will own the concept.”

In the full interview, he discussed many companies that have successfully positioned themselves in their respective markets to great effect, from worldwide juggernauts like Netflix and Starbucks, to local darlings such as Jollibee and Cebu Pacific.

“You don’t have to be everything to everybody,” he continued. “As long as you are attractive and clear in the mind of your prospect, you’re going to win. You’re going to be a market leader.”

‘IT’S ALL ABOUT EDUCATION’
Knowledge and expertise about branding is, unfortunately, in short supply in the Philippines.

“In the Philippines,” he said, “there tends to be a misconception of what branding is all about, or at least there’s a limited understanding. So, I wanted to present something more holistic and deeper.”

To this end, he established The Branding Nerd as well as Brand Con to educate Filipino companies about brand positioning — in particular SMEs.

He continued by saying “What I’m discovering is that there’s really a big need for our companies in the Philippines to understand the fundamentals, the foundational understanding of what really branding is all about.”

Through efforts like Brand Con, Mr. Soriano gathered many of the top experts in branding at one educational conference. Last year’s Brand Con had luminaries such as Laura Ries, a marketing expert from TBWA New York and marketing firm Ries & Ries. On the local side, there were marketing experts like the current chairman of the 4A’s, Melvin Mangada, and Norman Agatep, Co-Founder of Grupo Agatep. Bridging the gap between marketers and entrepreneurs, there were Grace Dimacali, founder of Mary Grace Café, and Paco Magsaysay, founder of Carmen’s Best. There’s simply so much to be learned from these branding experts and entrepreneurs.

UNDERSTAND YOUR CUSTOMER
At the core of what Mr. Soriano is teaching these SMEs is understanding your customer — a core tenet of brand positioning.

“One common thing I’ve noticed among Philippine companies is that they don’t understand their customer,” he lamented. “They haven’t really clearly defined who their customer and their segment is.

“One other common thing I’ve noticed is that companies don’t do market research in the Philippines,” he explained. “I have one client who’s been in the business for 37 years — never done research.”

These two observations, of course, are inextricably linked. But the good news is that the tools to understand your customers are within reach. And they don’t have to be expensive either.

From experience, I can understand how SMEs focused on the demands of the day-to-day may be reluctant to spend on marketing research. But Mr. Soriano encourages SMEs to simply engage with customers and talk to them. And this is so true; it’s so easy to engage customers in today’s online world.

He adds, “The purest definition of market research is simply finding out what the customer is looking for. And you’re always in front of customers. You can always ask them.”

THE DIFFERENCE BRAND POSITIONING MAKES
According to Mr. Soriano, “Brand positioning is really understanding what your customers are looking for, the most important factors, whatever segment you’re in, and who are the current competitors, who are the brands out there. When you put them together, you can literally draw a map.”

For Filipino SMEs, brand positioning doesn’t have to be difficult or expensive. It can be as easy as 1-2-3. Marketing experts like Mr. Soriano have even built a framework for SMEs to follow.

“I think the biggest benefit is really understanding the framework,” he says.

The framework he has built even has a workbook that SMEs can follow like a roadmap. And, what’s more, when you draw that map, opportunities arise. Your customers become real, and your business plan becomes clearer.

Your company could lead new segments, like Cebu Pacific did when they entered affordable travel. You could lead mindshare like Jollibee did by owning Langhap sarap. Or you could navigate your brand through change like Netflix did from on-demand video into the streaming age.

For entrepreneurs and SME owners, the difference brand positioning makes is clear. The question is, are you ready to raise your brand positioning game?

Note: In my previous column featuring Wee Community Developers, Inc., I stated that “Colliers recognized WeeComm as the ninth largest real estate developer in the country.” Upon review, I’d like to clarify that Colliers does not issue formal rankings or make such declarations. This note is shared to ensure accuracy and clarity moving forward.

RJ Ledesma (www.rjledesma.com) is a Hall of Fame Awardee for Best Male Host at the Aliw Awards, a multi-awarded serial entrepreneur, motivational speaker, and business mentor, podcaster, an Honorary Consul, and editor-in-chief of The Business Manual. Mr. Ledesma can be found on LinkedIn, Facebook and Instagram. The RJ Ledesma Podcast is available on Facebook, Spotify, Google and Apple Podcasts. Are there entrepreneurs you want Mr. Ledesma to interview? Let him know at ledesma.rj@gmail.com.