Positioning

Session Coverage
Concept and Strategy Competitive Diff C titi Differentiation ti ti Communicating Positioning Strategy

Session Coverage
Positioning By:
Usage U User Product Benefit

Positioning
Marketers effort is to identify a USP for product. Its arranging the product to occupy a
Clear Di ti t Distinct Attractive

Position in the minds of target customers

Good positioning answers 3 QUESTIONS

Who are the Customers? What is the set of needs that product fulfills? Why is this product best option to satisfy those needs?

Positioning Solves all Problems

Often said that solving positioning p gp g problem solves Marketing Mix Problems. For Eg-Computer Company (T.S-People with low budget) NO FRILLS NO FRILLS Emphasize low price, Less expenditure in advertising, Direct to consumer channel strategy. t t Also important for Internal Communication IBM The solution of your problem is IBM has The IBM helped changed the internal culture of employees to be problem solvers for customers.

Positioning Ries and Trout (1982)

Positioning is not what you do to a product Positioning is what you do to the mind of a Positioning prospect. That is you position the product in the mind of the prospect. Well known products holds a distinctive position in consumers mind mind.

Some famous positioning statements

Four Square Live life king size. TVS Suzuki Fill it, shut it forget it it it, it. Savlon Yeh jale ga nahin Forhans F h Yeh jhag wala hai Avis We are No.2, but try harder Maggi Noodlesbus do minute ESSO petrol.. petrol Put a tiger in your tank.

Positioning Essentials
Positioning should be in line with the perception of consumers consumers mind not against it Coke: The R l Thi i fi C k Th Real Thing is fine; it is the original cola i th i i l l Coke: Always Coca-Cola may not be fine as half the market is Pepsi Many positioning ideas are founded on how company estimates the future Avis: We are No.2. We try harder Be Simple:Volvo Drive Safely B Si l V l D i S f l Positioning is long term. Do not be driven by the stock market

Developing and Communicating a P iti i Strategy Positioning St t

Basis of Positioning: g Attribute positioning Benefit positioning Use or application positioning User positioning Competitor positioning Product category positioning Quality or price positioning

Which Positioning to Promote?

Positioning t t i P iti i strategies Positioning by attribute

Functional value..
Liril uses Freshness

Ingredient.
Promise with clove oil / Close-up with Gel

Additional features..
VIP Luggage with 360 wheelers

Packaging.
BrandedFruit Juices/Frooti in Six layer packaging/Tetra pack

P d tD i Product Design
Kinetic Honda with self-start ignition

Quality/Technology.
Cross Pens offer lifelong warranty g y

Lintas on Positioning
Since positioning represents the slot the brand occupies in the consumers mind, The best way to define a p y particular p positioning slot is to use 3 or 4 words. g

The lifelong plywood The fun shoe polish The freshness soap The h lth Th health soap The gentle soap

Kitply Cherry Blossom Liril Lifebuoy Lif b Pears

Steps to a Positioning Strategy

1. Determine Target Market g
Laptop for the business professional

2. Determine category membership of the brand under consideration

Hewlett Packard is a sophisticated business laptop

3. Identify the competition

Sony, Toshiba, DELL

Steps to a Positioning Strategy

4. 4 Establish the Category Points of Parity HPs manufacturing quality is no way behind Sony or Toshiba It is backed by Toshiba. decades of manufacturing electronic systems

Points of Difference
Feasibility
HP has the required organization to make the service deliverable and the required technology to offer a value for money product

Communicability
- HP products are not known as very expensive HPs d t tk i

Sustainable
- HP h th required R&D t continue making state-of has the i d to ti ki t t f art upgrades

Steps to a Positioning Strategy

5. Establish the Points of Difference if any to take a differentiated position. If no POD exists then the brand takes a diff ti t d iti i t th th b dt k head on position or a me-too position HP has an excellent service network in India as compared to Toshiba. HP is not as expensive as Sony

Write out the Positioning Statement g

To the young urban professionals (target market) our product HP system with all the necessary features of a state-Of-art business computer and is offered as a value for money laptop b i t d i ff d l f l t with Excellent service backup.

Differentiation
It is the process of adding a set of meaningful and valued differences to distinguish a companys offering from company s competitor offerings

Differentiation Strategies

Product

Personnel

Channel

Image

Product Differentiation
Product form Features Performance Durability Reliability Reparability Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance

Service Differentiation
Service Differentiators Differentiators Ordering ease-Amazon. COM, Dell Computers Delivery-Dominos Pizza-Fastest and Reliable R li bl Financial Arrangement-MUL-8 Companies Installation, customer training customer consulting, and maintenance and repair g, p

Personnel Differentiation
Better trained sales/service/R&D personnel Competence, courtesy, credibility, reliability, responsiveness and communication. p British Airways-Knows job responsibility of customer satisfaction McDonalds- Courteous Service S gapo e es e committed a d well tted and e Singapore Airlines- Hire co trained individuals

Personnel
Trained personnel should exhibit the following Competence Repair engineers of process plants Courtesy - Front line staff in premium hotels Credibility Premium hospital doctors Responsiveness and Communication Beauty Consultants

Channel and Image Differentiation

Channel
- Coverage HUL - Expertise Avon p - Performance - Caterpillar

Image g
Differentiate Logo, colors, slogans, events and sponsorships

How many differences to promote?

How many differences (benefits and features) to promote? Rosser Reeves develop a Unique selling develop proposition for each brand and stick to it. it
Lux soap: cleanses, deodorizes, moisturizes

Which differences to promote?

Compare the Consequences of positioning efforts considering competitors Company standing Costs involved. Go for the most favorable alternative

Avoid Avoid
Positioning Errors
Over positioning-Buyers have narrow range of company s brand. companys brand Usually seen in cases where firm initially promotes brand as a premium brand. For Example: Tanishq Perceived to be very high priced, but offers jewelry that suits every budget also. Under positioning: (not positioning strongly enough) Products should be positioned with powerful ideas.

Doubtful Positioning
Buyers may find it hard to believe brand claims in view of product features, price or manufacturer. manufacturer

Repositioning
Changing consumers perceptions of a brand in relation to competing brands.

Product Positioning and Repositioning R ii i

Maruti Omni MUL decided to Launch more spacious vehicle, Had to look for a van, that could comfortably sit 6 passengers. It should gg g p petrol luggage space and should run on p Product Positioning: Initial Questions As What should this vehicle be positioned? A Car? A Multi purpose van?

Maruti Omni
If positioned with car, it would be competing with p , p g than existing brands like Ambassador and Fiat along with Maruti-800. OMNI POSITIONED AS MULTI PURPOSE VAN (Competition from Matador and Tampo) Brand Positioning of Omni: All those Attributes that are considered important and customer looks for in a van to be analyzed

Maruti Omni
Analysis revealed that two attributes viz: price and passenger space were most important (Based on customer perception) perception). Maruti Omni High Space Low Price Major Competing brands were more spacious, though higher priced, Company had to take a fresh look at positioning.

Maruti Omni Repositioning Omni.

Further research revealed that many customers were using it as a family car. So finding was that it will be beneficial if So, beneficial, company can reposition it as a family car. P iti i Th Positioning Theme M t spacious family Most i f il car at the lowest price Value proposition was justified by product attributes

Case to be Discussed Next Week

BMW Company of Ideas Campaign: Ideas Targeting the creative Class

Cielo-A Car in trouble