Positioning research

Steps in the positioning exercise:

Identification and analysis of competitive products in the market Identification of determinant attributes and measuring their significance to the user

Importance
category membership should be determined first, i.e. other products that compete in the same market Determinant attributes define the products benefits ,value to the user, and associations with the product consuming process and consumer consumers evaluate your products and the competing products according the most significant determinant attributes

Tools/techniques used
quantitative approach- consumer survey

discussion group- association of words, completion of the sentence, completion of a short story, drawing test, subject perception test, role playing test. target segment survey likert scale semantic differential scale, staple scale, attribute assessment scale, fixed sum scale

identification of the products and other rival products current position in the market

Creation of a competitive positioning map

The desired position can be established with respect to segment attractiveness, current or potential strength of the product serving that segment

Positioning Research- Consumer Decision Model

Product attributes define consumer perceptions Consumers abstract several pieces of information on product characteristics into perceptual attributes. Based on these perceptions, consumers develop preferences and make purchase choices subject to situational constraints. Various analytical methods such as multiple determinant analysis, factor analysis, MDS and conjoint analysis have been used to model these relationships The model assumes that the heterogeneity in product perceptions and preferences can be linked to differences in individual characteristics arid ground variables. This assumption facilitates identification of homogenous consumer segments Consumer Decision Model

Product Characteristics

Product Attributes

Choice

Preferences

: influence product attributes and preferences : influence preferences and choice : influence Product Attributes and choice

Positioning Research Methodology

Positioning Base Research evaluate positioning assumptions and prior market structure studies, market segmentation information, branding research, client and competitive advertising, and competitive brand name architecture. We build hypotheses regarding the strength of comparative brands, their brand equity, acceleration of brand power and how consumers view the marketplace far reaching interviews with client management, field sales, product development and customer service staff. We talk to sales people in the channel about their own brand preferences and their perception of customers Positioning Qualitative Research: A non-directive design and style , combined with projective interviewing techniques to uncover buyer perceptions of the brand choices, and their differentiation qualities. The focus here is to uncover the language about the choice dimensions on which buying decisions are made. Positioning relies upon a solid segmentation and market definition analysis We may continue the qualitative exploration with a larger sample using an online qualitative time extended method which combines both qualitative and quantitative assessments. If certain conditions exist, we may add fovus group discussions to the qualitative market research work. Positioning Quantitative Market Survey Test hypotheses developed from the Positioning Qualitative Surveys related to segmentation, strength of segment dimensions, and category perceptions and buyer attitudes. Screen positioning concepts using concept statements and appeal ratings to assess qualities of positioning distance, or differentiation power

Positioning Research studies

Consumer survey The consumer survey provides information on: (1) the level of brand awareness ; (2) brand purchase intentions i (3) shopping habits Consumer panel This study provides the total unit sales for each segment; the relative size of each segment; and the market shares, based on units sold, for each brand in each segment Semantic scales Semantic scales describe how consumers perceive the marketed brands. Respondents are asked to rate each brand along each physical characteristic on a scale from 1 to 7 according to the way they perceive the brand. The study also provides the ideal ratings of each segment for each physical characteristic. Finally, it provides the importance of each characteristic, in other words, the weight each characteristic holds in the buying decision. Multidimensional scaling of brand similarities and preferences It provides a map showing the similarities and differences between marketed brands on three different dimensions. Two brands close to one another on the map are perceived as being similar Conjoint analysis This study is rather complex and expensive and is therefore not always made available to participants. It provides the utilities a real number between from 0 to 1 of various levels for each of the four most important physical characteristics and for each segment. High utilities, for instance close to 1, demonstrate high consumer preferences for the corresponding physical levels

Positioning Research Example-Spider Chart

Opening an new upscale restaurant in La Buena, CO 1: Identifying positioning attributes Following seven attributes were identifed : Cuisine type , price range, food quality, service levels, dcor, hospitality and serving size.except for cuisine type others can be rated on a scale of 1 to 10. The example assumes all attributes of equal importance 2. Performing the Research Telephone researchers ask respondents (residents living in upscale neighborhoods and military officers on base) torecall the last three restaurants they visited and to rank the attributes of each 3. Analysis of data The first analysis arranges comparative data along rating scales, consolidated to reveal commonality and singularity of ratings for each attribute. Each restaurant is represented by a different color and line configuration 4: Sample of an individual restaurant analysis

Different coloured dotted lines on the spider chart indicates different restaurant

Data for any of the seven restaurants identified for analysis(the red dotted plot) can be compared to both the average of all seven restaurants ( the solid blue plot) and with the range mid-point (5 and less on thescale represented by the grey area). It allow us to describe how customers perceive this restaurant.

This consolidated plot is a bit intimidating and confusing on first look, but it does provide an overall picture of the competitors. It basically shows no particular attributes have been ignored by at least one establishmen

Positioning Research Example-Spider Chart

5: Analysis of upscale cuisine type restaurants The three cuisine type A restaurants have many attributes in common. Every attribute is occupied by at least one establishment at a rating of 7 or higher. There is a slight shift toward mediocre performance when looking at serving size and hospitality 6: Discovering unoccupied positions and/or new categories Pairing attributes may reveal promising combinations that identify unoccupied positions. . The examples below demonstrate three such situations. The plots on previous pages helped determine which pairs might bare fruitful investigation. Each axis represents an attribute. The American restaurants are represented by red Xs, foreign cuisine by blue Os. A potential position for a new entry is represented by a red circle enclosing an X. The grey circle around the red circle represents the magnitude of the differentiation from the new business in relation to its nearest American competitor (Its radius is half the distance to the nearest American competitor).