You are on page 1of 22

TERM-IV

ASSIGNMENT-I
SUBMITTED TO:
PROF.MANMATH NATH SAMANTARAY
CONSUMER BEHAVIOUR
(GROUP-5)
S.NO NAME REGN. NO SIGNATURE

1 GOURI PRASAD KHANDUAL 18

2 GOURI SHANKAR SAHU 19

3 PRAGATI BANSAL 24

4 RAKESH KUMAR MOHANTY 31

5 SARITA DAS 34

6 USHARANI BEHERA 42
POSITIONING:

Positioning refers to the place that a brand occupies in the mind of the customer
and how it is distinguished from products from competitors. In order to position
products or brands, companies may emphasize the distinguishing features of their
brand (what it is, what it does and how, etc.) or they may try to create a suitable
image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end,
etc.) through the marketing mix. Once a brand has achieved a strong position, it
can become difficult to reposition it.

Positioning is one of the most powerful marketing concepts. Originally,


positioning focused on the product and with Rise and Trout grew to include
building a product's reputation and ranking among competitor's products. Schaefer
and Kuehlwein extend the concept beyond material and rational aspects to include
'meaning' carried by a brand's mission or myth. Primarily, positioning is about "the
place a brand occupies in the mind of its target audience". Positioning is now a
regular marketing activity or strategy. A national positioning strategy can often be
used, or modified slightly, as a tool to accommodate entering into foreign markets.

PRODUCT POSITIONING

"Product positioning" is a marketing technique intended to present products in the


best possible light to different target audiences. The method is related to "market
segmentation" in that an early step in major marketing campaigns is to discover the
core market most likely to buy a product—or the bulk of the product. Once
segmentation has defined this group ("active seniors," "affluent professional
working women," "teens") the positioning of the product consists of creating the
message likely to reach this group. Positioning involves symbol and message
manipulation, including displays and packaging. Two expert definitions:

Al Ries and Jack Trout, in their book Positioning: The Battle for Your Mind,
introduce the subject by saying: "positioning is not what you do to a product.
Positioning is what you do to the mind of the prospect. That is, you position the
product in the mind of the prospect. So it's incorrect to call the concept 'product
positioning.' As if you were doing something to the product itself. Not that
positioning doesn't involve change. It does. But changes made in the name, the
price and the package are really not changes in the product at all'¦. Positioning is
also the first body of thought that comes to grips with the problems of getting
heard in our over communicated society."

Louis E. Boone and David L. Kurtz, in their book Contemporary Marketing, put it
this way: "Product positioning refers to consumers' perceptions of a product's
attributes, uses, quality, and advantages and disadvantages relative to competing
brands. Marketers often conduct marketing research studies to analyze consumer
preferences and to construct product position maps that plot their products'
positions in relation to those of competitors' offerings."

THE IMPORTANCE OF PRODUCT POSITIONING IN MARKET:

Product positioning is an important element of a marketing plan. Product


positioning is the process marketers use to determine how to best communicate
their products' attributes to their target customers based on customer needs,
competitive pressures, available communication channels and carefully crafted key
messages. Effective product positioning ensures that marketing messages resonate
with target consumers and compel them to take action.

Customer Needs:

Effective product positioning requires a clear understanding of customer needs so


that the right communication channels are selected and key messages will resonate
with customers. Product positioning starts with identifying specific, niche market
segments to target -- not just women over 25 but women from 25 to 30 who work
in senior-level management positions, make $X per year, are single and enjoy
sporting activities. The more specific, the better. In addition to identifying the
customer based on demographic and psychographic (personality/lifestyle)
attributes, marketers need to understand customer needs, especially relative to the
products and services they have to offer, to clearly convey value as part of their
marketing plan.

Competitive Pressures:

Marketers must weigh competitive pressures when they are considering the
positioning elements of their marketing plans. Effective positioning conveys to
consumers why this company's product or service should be preferred over other
competitive options based on what the company knows about the target audience's
needs. Effective marketing plans clearly identify how the company's products or
services are different from competitors' offerings and in what ways. There is no
value in being a "me too" product offering and simply copying what competitors
are doing. Marketers must stand out from the crowd in ways that hold value for
their target markets.
Communication Channels:

Product positioning helps marketers consider how their offerings are different from
others that consumers have to choose from. But it is not enough to know this from
an internal perspective -- marketers must communicate this to the target audiences.
To do this effectively, they must choose communication channels that are designed
to connect with their identified target audiences at times when they will be most
receptive to these messages. Consider how automobile manufacturers position their
products through communication via television commercials during sporting
events, for instance, or how cosmetics manufacturers run full-page, full-color ads
in women's magazines.

Carefully Crafted Key Messages:

The final challenge in effective product positioning is conveying the


differentiating, value-added aspects of your product or service to your target
audience through the communication channels you have selected. These messages
are designed to convey how your product is different (and better) than competitive
offerings, as well as to address the value-added attributes that are important to your
audience. Product positioning is at the foundation of any effective marketing plan
because it impacts the ultimate purchase decision.
Positioning: Creating an image of your product in your target
customer’s mind. Positioning is an essential part of launching your product and
company in the market. Positioning creates an image of your company’s product in
the mind of your target customer. The term “positioning” should be viewed both as
a verb and a noun.
As a verb, it can be defined as deploying a set of tools and processes used to
influence and control the market’s perception of your product or company in
relation to any competing alternatives. As a noun, it can be defined as an attribute
or condition associated with your product. Still, positioning is not what your
company physically does to a product—it is what your company does to a target
customer’s mind. It provides an effective answer to the question, “What do you
do?” Keep in mind that the question has to be answered from the customer’s point
of view and clearly state what the product does for the customer.Customers
develop opinions about companies and products. And the positioning of each in the
mind of the customer always occurs in relation to the competition or the
customer’s other alternatives (which may include doing nothing).

While marketing communications play a part in developing the desired position,


it’s worth noting that in reality customers make up their minds based on a wider
range of factors, including packaging, pricing, product performance, references and
media recommendations.

Positioning fundamentals
 Positioning is the single greatest influence on a customer’s buying
decision
 Each customer evaluates products in the market according to their
mental map of the market
 Positioning exists in customers’ minds, not in positioning statements
 People do not easily or willingly change their minds about a product’s
positioning
 Positioning must first demonstrate a product’s relevance, using
supportable, credible, and factual terms
 Making the product easier to buy through effective positioning makes
the product easier to sell.

Mapping the market: Identifying and staking out target customer segments
Mapping the market involves identifying and staking out the most
relevant customer segments. It enables you to establish and potentially control how
your product is viewed in terms of benefit and differentiation.
Benefit: The advantage conveyed by the product to the target customer based on
his compelling reason to buy.
Differentiation: The singling out of the one element that creates your benefit and
makes you unique in the marketplace, at the same time bearing relevance to the
customer.

Positioning template
The positioning template can help you to express the fundamental value
proposition that your product provides to a target customer and the market. It must
identify the:

 Target customer or market


 Compelling reason to buy
 Product’s placement within a new or existing category
 Key benefit that directly addresses the compelling reason to buy
 Primary alternative source (that is, competitor) of the same benefit
 Key difference or point of differentiation

Positioning statement
The positioning template enables you to create a positioning statement, which
explains who you are, what you offer, whom it is for, and why it is important and
compelling.

The positioning statement should meet several key criteria:

 It effectively identifies the target customer or segment, and makes the


situation clear and understandable.
 It makes your claim (and related benefit) concise, singular and
compelling and supports it by credible evidence.
 It makes the differentiation statement concise, singular, compelling, and
supportable, and it reflects the target customer’s attributes and
environment.
 It passes the “elevator test” (that is, it can be explained in a few words).
Using the template, a positioning statement can be structured like this:

 For (target customer or market)…


 Who (have a compelling reason to buy)….
 Our product is a (product’s placement within a new or existing
category)….
 That provides (key benefit that directly addresses the compelling reason
to buy)
 Unlike (primary alternative source [that is, competitor] of the same
benefit)
 Our product (key difference or point of differentiation in relation to the
specific target customer)

Positioning and market type


In a new market, you must define the market and your company’s place within it.
This involves positioning your company to visionary buyers as a thought leader
within an emerging, highly promising market category. You must also demonstrate
your product’s benefit or competitive advantage against existing products and the
status quo.

In an existing market, the positioning changes. Here, it must demonstrate to


economic buyers and end-users that your product and application are the most
credible and comprehensive option for the customers’ needs. In order to achieve
the desired positioning, your communication must clearly articulate your unique
points of differentiation.
INFORMATI WHY THIS IS A POSITIONING INFORMATION SOURCE
ON
SOURCE

IMC mix The firm’s communications mix has a big role to play as it usually focuses
on particular benefits and advantages of the product.

Competitor Positioning is viewed on a relative basis, therefore the competitors’ IMC


claims mix (product claims) will also affect the positioning of all products.

Product The actual design and features of the product, particularly when consumers
features use the product, has a major impact on the perception of the product and its
relative advantages.

Packaging One of the first experiences the consumer has the product is the look and
feel of the packaging.
Word-of- Word-of-mouth communication between consumers has a high level of
mouth credibility and cut through and will greatly influence positioning.

Media, Media discussion/articles or product reviews are also seen as quite credible
reviews and independent and will influence consumers’ perception.

Retailer mix The type of retailers where the product is sold gives an indication of the
product’s quality and status.

Pricing The overall price points of the product act as a cue for quality, and a high
frequency of sales promotions may suggest lower quality.

Product positioning involves tailoring an entire marketing program—including


product attributes, image, and price, as well as packaging, distribution, and
service—to best meet the needs of consumers within a particular market segment.
In this way, product positioning is part of the overall process of
market segmentation, but involves a narrowing of focus. "Segmentation analysis
tells us how the market is defined and allows us to target one or more
opportunities.

The key to product positioning understands the dimensions consumers use to


evaluate competing marketing programs and make purchase decisions. It may be
helpful for small business managers to create a graph in order to map consumer
perceptions along several different dimensions. Once consumer perceptions are
understood, the next step is to select the best positioning for the product and take
steps to align the marketing program behind this positioning choice. Some
examples of possible positioning choices include quality, reliability, and unique
features or benefits. Before delving into product positioning further, it may be
helpful to understand the process and goals of market segmentation.

UNDERSTANDING CONSUMER PERCEPTIONS:

Product positioning—which is the sixth and final step in the market segmentation
process—involves developing a product and marketing plan that will appeal to the
selected market segment. In order to position a product effectively, a small
business must identify the attributes that are most important to consumers in the
segment, and then develop an overall marketing strategy that will attract
consumers' attention. Positioning can be usefully applied during the earliest stages
of product design, when a company first identifies who its target customer will be
in terms of demographic, geographic, and behavioral characteristics.

A number of tools exist to help marketers understand the consumer perceptions


that underlie purchase decisions. One such tool, a perceptual map, is a graph that
can portray various product positioning options in a visual manner. Marketers can
create perceptual maps from market research data in order to identify consumer
needs that are not being fulfilled.

For example, say that consumers were asked to rate home computers on the
following attributes:1) ease of use, 2) availability of service, 3) processing speed,
and 4) data storage capacity. These four attributes could be combined into two
perceptual dimensions:1) utility (consisting of ease of use and availability of
service), which would appeal to non-experts who needed a basic computer for
business or personal use; and 2) technical (consisting of processing speed and
storage capacity), which would appeal to experienced computer users who wanted
the latest in technology. Then each brand of home computer could be represented
on the graph according to consumers' perceptions of the product. If most computer
manufacturers touted their products' technical attributes, there might be an
opportunity for a new market entrant who emphasized ease of use and service.

However, it is also important to understand the relative importance that consumers


place upon the different dimensions. In the home computer market, for example,
consumers ultimately want both utility and technical characteristics, but vary in the
importance they place upon each product dimension. "The implications of these
importance for positioning are significant," according to Urban and Star. "It is
necessary to understand preference differences within the targeted market
segments because they are important in selecting a position for a brand and in
determining the competitive structure within the segment. When preferences vary
within a segment, positions and physical product features may vary considerably.
If preferences are relatively homogeneous within a segment, the positions of
competing brands will be relatively similar, and the quantity of advertising and
promotion will be the critical competitive weapons."

It is also important to note that price is not represented in the home computer
perceptual map, whereas price definitely has an effect on the final purchase
decision made by consumers. Marketers can reflect the importance of price by
adding a dimension to the perceptual map, so that it becomes a cube, or by dividing
the dimensional coordinates of each brand by its average price. The resulting map
would show "utility per dollar" and "technical attributes per dollar," or
the tradeoffs consumers make between the original dimensions and price. Finally,
small business owners need to consider the fact that perceptual maps show "overall
dimensions of evaluation and not detailed features," as Urban and Star noted.
"Feature selection is critical in positioning, however, because features are an
important determinant of overall perception and choice." In fact, product features
influence both consumer perceptions and product pricing.

POSITIONING OPTIONS:

Once marketers have mapped consumer perceptions of competing brands and


gained an understanding of the target segment, the next step is to select a position
for their products. In positioning a product within a market segment, marketers
should try to maximize the share of consumer choices attained by their product in
order to achieve long-run profitability for the firm. Strategies that can help
marketers to maximize share include adding features desired by consumers or
advertising to improve consumer perceptions. Both of these strategies can be
costly, however, so it is important for companies to balance the cost of making
such expenditures with the payoff.

Marketers have several different positioning options available to them. One


positioning option is quality emphasis, which includes not only defect-free
production but also product design and customer service that meets or exceeds
customer expectations. Another positioning option available to marketers involves
offering unique features or benefits that consumers are unable to find in competing
products, from environmentally-friendly production aspects to trendiness. Ideally,
such features and benefits grow out of the company's unique sources of
competitive advantage in the marketplace. This makes it difficult for competitors
to match the features and benefits without incurring high costs. "If we develop a
unique competitive advantage on a dimension of importance to a significant
portion of the market, we can enjoy a substantial share and high margins," Urban
and Star noted. Of course, continued market research and innovation are necessary
to maintain such a competitive advantage.
Here we are taking an example of some FMCG brands like 2 to 3 types of
toothpaste.

CLOSE UP:

Close-up is a brand of toothpaste launched in 1967 by HINDUSTAN Unilever as


the first gel toothpaste. Close-Up toothpaste is also available in other countries like
Philippines, Indonesia, and Sri Lanka . It is one of the top brands in terms of sales
in India. The brand is positioned to target the youth segment with a lifestyle appeal
in its advertising campaigns. According to an August 2016 report in The Economic
Times, Close-Up was in the second spot in market share of toothpaste in India
during January-June 2015 as well as January-June 2016.

Close-up was a disruptive brand that changed the structure of toothpaste market in
India. With the red colour and smart advertising, it forced the market leader to
change its strategy and launch a gel variant.
The customer insight was that people are conscious about their breath and want to
get close with each other with confidence. Based on this insight the brand was
positioned on the Fresh Breath platform. The campaign was executed showing
"Happy couples having fun together". Even film Theatres had corners called as
"Close up Corners". The brand had the aspirational persona in it. Close Up have
used films and filmi songs to appeal to the Indian youth. Close Up was the first
brand to introduce the “Self-Check" of breath. The famous “HA HA" was the idea
of Close Up introduced in year 1987.
In 2004 Close Up again was relaunched. During that period, the fight between
Pepsodent and Colgate was hitting up. Both of these brands were owning the oral
care platform and Close-up’s share was coming down. Close Up found that its
mono-attribute focus is losing the sheen. Hll relaunched Close-up with Vitamin
and Fluoride. Thus Close-up offered more than Fresh Breath it also offered Oral
Care.
Close Up launched lot of variants that bombed in the market. The variants like Oxy
fresh and Eucalyptus Blue failed in the market. HLL decided that only the Lemon
variant will continue. The reason behind the failure of variant is because Close Up
is a Sensorial brand. And in such kind of brands, variants will not work. In
categories which are more rational, variants will work.
Colgate have given a run for money for Close Up with their gel variant. The "Talk
to me" campaign was a runaway success. Colgate failed to capitalise on that
campaign- that is another issue. But the gel variant took the breath out of Close Up.
Close Up had to reinvent to keep the category that it created. The account was
shifted from JWT to O&M. Now the mother brand is focusing on three attributes:
Fresh breath, White Teeth and Strong Teeth.
O&M have brought out a campaign “Kya aap Close up Karthe Hain" which was
perceived as "cool" among the market.
The recent campaign which aims at positioning on the "Smile” factor is a damp
squib, the campaign is poorly executed and treats the target market as a bunch of
adolescents who will do anything to attract the opposite sex. Indians never was
bothered about the way they look, let alone how their teeth look like. That is why
33% of urban market is not using tooth pastes and 67% of rural still use the
traditional way of brushing teeth like neem sticks. So when the ad shows that a
young person being conscious about their teeth, it does not click. (My opinion). I
guess the agency have run out of ideas.

COLGATE:

Colgate is an umbrella brand principally used to sell oral hygiene products such
as toothpastes, toothbrushes, mouthwashes and dental floss. Manufactured by the
American consumer-goods conglomerate Colgate-Palmolive, Colgate oral hygiene
products were first sold by the company in 1873, sixteen years after the death of
the founder, William Colgate. The company originally sold soap.

According to a 2015 report by market research company Kantar World panel,


Colgate is the only brand in the world purchased by more than half of all
households. Colgate has a global market penetration of 67.7% and a global market
share of 45%. Despite this, it maintained the highest growth rate of all brands in the
survey, with 40 million new households purchasing Colgate-branded products in
2014. Its global market penetration is nearly 50%; higher than the second-placed
brand in the study, Coca-Cola with 43.3% penetration.
To promote its brand, Colgate mainly uses advertising strategies. Its distinctive
products which are intended for diverse sections are focused to the group of
onlookers by highlighting its components. Its normal slogan for all products is -
"No1 brand recommended by dentist". As such no advancement is done at retail
level aside from the suggestion by the businessperson. However in the rural
markets Colgate utilizes VAN (van is a versatile advancement station having
screen show facilities, slide show and mike reputation). In India, the researchers of
Colgate had submerged themselves in the lives of villagers, watching and
examining their oral consideration propensities, how they clean their homes and
other every day schedules. A key learning was that moms trust in a superior life for
their kids through instruction. In view of this knowledge, Colgate executed an
exceptional advertising strategy that helped form mindfulness for good oral
consideration propensities and offered grants to kids. Another way Colgate
interfaces with today's shoppers all-inclusive is by using integrated marketing
communications that incorporate a mixture of non-traditional and traditional
media. The launching of Colgate Sensitive Pro-Relief toothpaste utilized
numerous computerized touch focuses, including online media, highlighting the
powerful testimonials of the consumer and also web sites for informative products.
These activities, consolidated with more promotional events and customary media,
are adding to more market share (Colgate, 2011). Colgate educates its clients about
its new products and also the item that is being utilized by the clients. Colgate-
Palmolive induces and persuades its new and additionally old clients to buy its new
products. By using an effective advertising strategies Colgate has succeeded to
hold its brand image and customers. By this Colgate unequivocally concentrates on
distinctive advertising or promotional methods like sale promotion, publicity,
advertising, mass selling etc. Colgate has substantiated itself as a sharp onlooker of
the business and the way of life all around itself. Colgate has done in the past and
as yet doing right now. It is delivering & presenting its products extraordinarily for
the children. Colgate is extremely famous among youthful children simply due to
its ideal advertising strategies. Colgate promotes the kids products by naming the
cartoon characters like Barney, Barbie Looney tunes etc. (Berger, 2011).

Colgate's solid associations with experts have added to making Colgate and Hill's
the most suggested brands by dental specialists and veterinarians around the world.
PEPSODENT:

To tackle the problem of diverse toothpaste brands the company has kept all
its products innovative and unique. The brand has taken steps so that the
consumers can easily distinguish their products from those of their competitors. It
has positioned its merchandise as a fighter of germs more focused on the process
of fighting than on the result.

The pepsodent variants available in the market are as follows-

 Pepsodent Whitening that fights the yellowness of teeth and makes them
sparkling white.
 Pepsodent Germ check to fight the existing germs
 Pepsodent 2 in 1that provides double care
 Pepsodent Gum Care for healthy gums
 Pepsodent Center Fresh to maintain fresh breath
 Pepsodent Kids in three different variants called Barbie that is pink in color,
Tom & Jerry that is orange in color and Superman that is blue in color.
 Pepsodent Sensitive for tackling the sensitivity of the teeth

In order to meet the needs of oral hygiene the company has also decided to add
toothbrushes to its product kitty.
Pepsodent has taken the help of social and digital media to promote its advertising
campaign at its maximum capacity. There promotional strategy has proved
effective as the brand has gained the trust of the consumers and the people have
started identifying Pepsodent with quality.

It is necessary to keep a competitive approach, as there are manytypes of


toothpaste in the market who are ready to take advantage of any sloppiness. In
order to maintain the freshness of the campaigns they have been continuously
experimenting with their marketing strategies. The main target audience is the
female who is the decision maker in an Indian household and the adult male who is
the breadwinner. In2002, the pepsodent packs included an indicator that could tell
the consumer the level of efficiency of the toothpaste. Some of their campaigns
have been very educative emphasizing on the need to brush their teeth at night. The
company has also launched small packages for penetration in the rural
area markets and even has tie-ups with schools and hotel chains to promote and
sell their products. It has also introduced free packs for ten-day trials. In some
cases, schemes were launched where the 200 gm. pack had a free 50 gm. pack at
the same price. In other instances, free gifts like dummy tron bikes were distributed
with Pepsodent pastes. At one time Pepsodent toothbrush was distributed with
toothpastes. In order to create trendy ads the company released some very catchy
taglines and some of its famous tag lines are “My toothpaste fights 10”, “Gets your
teeth their whitest”, “Protection outside freshness inside” and “DSS nahi to bas
nahi”. Pepsodent has many famous personalities as its brand ambassador.
Actor Shahrukh Khanhas been closely associated with their ad campaigns.

……………………0………………….

You might also like