Professional Documents
Culture Documents
DIFFERENTIATION
&
POSITIONING
19-1
19-2
DIFFERENTIATION
19-3
Differentiation Variables
19-4
All products can be differentiated to some extent. But not all brand differences
are meaningful or worthwhile. A difference is worth establishing to the extent
that it satisfies the following criteria:
19-5
Multiple sources of
Differentiation
Eureka Forbes used personal selling as
the sole mean to reach consumers, IBM
differentiated along technology, Coke &
Pepsi differentiated through brand
power, Rolls Royce through superior
engineering, DuPont’s leadership in
chemical technology etc.
19-6
Tangible Product Attributes
Differentiation Based on Ingredients/formula
Example: Close Up Gel Toothpaste, TTK Prestige Teflon, Promise
with clove oil, New Ariel Microshine with Carezyme.
Differentiation Based on Functional Value
Example: 3M Scotch Magic Tape, Computer controlled fridge
Differentiation based on additional features
Example: Aristocrat suitcase with wheels, Dunlop Olympus
Packaging contributing to differentiation
Example: Frooti Tetrapack, Harpic Toilet Cleaner
Differentiation through product design
Kinetic Honda Electronic Ignition, Titan Watches
Differentiation based on quality
Example: Godrej Steel Cupboards
19-7
Intangible Characteristics and
Emotional Associations
Jo biwi se kare pyar wo prestige se kaise
kare inkar
Reid & Taylor
Rayban
19-8
POSITIONING
Southwest Airlines - Low cost carrier
Funskool - Safety, variety & education
Tata Salt - Iodized salt(1983) - Desk ka namak(2002)
Captain Cook (1990) - Free Flowing
Peter England - Honest Shirt(1997) - Honestly Impressive(2002)
Reid & Taylor (1998) - Luxury Suitings
Innova-(Qualis) - Spacious, trendy &Upmarket
Pepsodent (1993) - Long lasting protection for hours after brushing-Germ
Fighting Property
Woodland - Rugged High Quality Premium Casual Shoe
Vicks - Mothers Love Platform-”Touch Therapy”
19-9
SURF EXCEL
Dag Ache Hain
This campaign has a huge significance It
says:
It is ok to soil your cloths
It is ok to play in the mud
It is ok to enjoy life
Surf Excel hai na!!!!!!!!!!!!!!
19-10
Define Positioning….
Act of designing the company’s
offering and image to occupy a
distinctive place in the mind of the
target market.
19-12
How Many Differences to
Promote?
Each company must decide how many differences (e.g., benefits,
features) to promote. Ries and Trout favor one consistent positioning
message. With this approach, each brand is touted as “number one”
on a particular attribute, such as “best quality,” “best service,” “lowest
price,” or “most advanced technology.” If a company hammers away
at one positioning and delivers on it, it will probably be best known
and recalled for this strength.
19-13
19-14
Six basic strategies for product
positioning
By attribute or benefit
This is the most frequently used positioning
strategy. For a light beer, it might be that it
tastes great or that it is less filling. For
toothpaste, it might be the mint taste or
tartar control.
Example: Vediocon Picture-in-picture
19-15
19-16
By use or application
The users of Apple
computers can design
and use graphics more
easily than with Windows
or UNIX. Apple positions
its computers based on
how the computer will be
used.
Example: Vicks, Rasna
19-17
By user
Facebook is a social networking site used
exclusively by college students. Facebook
is too cool for MySpace and serves a
smaller, more sophisticated cohort. Only
college students may participate with
their campus e-mail IDs.
Example: Raymonds Vijapat inghania
19-18
By product or service class
Margarine competes as an alternative to butter.
Margarine is positioned as a lower cost and
healthier alternative to butter, while butter
provides better taste and wholesome
ingredients.
Example: Maggie, the two minute noodle
Domino’s, A good hot pizza, delivered to your
door within 30 minutes of ordering, at a
moderate price
19-19
By competitor
BMW and Mercedes often compare themselves to each other
segmenting the market to just the crème de la crème of the
automobile market. Ford and Chevy need not apply.
19-20
By price or quality
Tiffany and Costco both sell diamonds.
Tiffany wants us to believe that their
diamonds are of the highest quality,
while Costco tells us that diamonds are
diamonds and that only a chump will pay
Tiffany prices.
Examle: Karsanbhai Patel’s Nirma
19-21
Positioning by product class dissociation
Example: soft-drink 7-Up, which was No.
3 behind Coke and Pepsi. By relating
itself to Coke and Pepsi as the "Uncola",
7-Up was able to establish itself in the
mind of the consumer as a desirable
alternative to the standard colas.
19-22
19-23
Defining Associations
Points-of-difference (PODs) Points-of-parity (POPs)
Attributes or benefits Associations that are not
consumers strongly
necessarily unique to
associate with a brand,
positively evaluate, and the brand but may be
believe they could not find shared with other brands
to the same extent with a
competitive brand
19-24
Positioning Statement
Also referred to as a brand strategy, positioning strategy, or brand
positioning statement, a positioning statement is a succinct description of
the core target audience to whom a brand is directed, and a compelling
picture of how the marketer wants them to view the brand.
There are four elements or components of a positioning statement:
Target Audience - the attitudinal and demographic description of the core
prospect to whom the brand is intended to appeal
Frame of Reference - the category in which the brand competes
Benefit/Point of Difference - the most compelling and motivating benefit
that the brand can own in the hearts and minds of consumers relative to
the competition
Reason to Believe - the proof that the brand delivers what it promises
Template for a Positioning Statement:
For (target audience), (brand name) is the (frame of reference) that delivers
(benefit/point of difference) because only (brand name) is reason to believe).
19-25
19-26