Positioning

Positioning

Positioning in the market place

At the end of this module the learning outcomes are 1. What is positioning? 2. What are the pitfalls in positioning? 3. What are the different positioning strategies that are available?

Positioning

Positioning in the market place

Suggesting Readings Marketing Management by Philip Kotler, 10th edition chapter 10 .

Positioning

Positioning in the market place

What is Positioning? - It is the act of designing the companys offering and image to occupy a distinctive place in the target markets mind. - Positioning is not what you do to the product - Positioning is what you do to the mind of the prospect - Customer does the Positioning - A product may have many distinctions. Which are most important to the customers?

Positioning

Positioning and Differentiation

Positioning statements:
To (target group and need) our (brand) is (concept) that (point-of-difference)
Example: To young, active soft-drink consumers who have little time for sleep, Mountain Dew is the soft drink that gives you more energy than any other brand because it has the highest level of caffeine.

Positioning

Positioning in the market place

Examples Crest toothpaste Promotes its anti-cavity protection Mercedes Promotes its great engineering BMW Ultimate driving machine Attribute can be single or even multiples
Positioning 6

Perceptual Map

Positioning

Positioning in the market place

Positioning - How do you differentiate your product from competitors - Differentiation, which is Important Distinctive Superior Not easily copied or Unique. Affordable Profitable
Positioning 8

Developing and Communicating a Positioning Strategy

Positioning: How many ideas to promote?
Unique selling proposition vs Unique value proposition

Positioning

Developing and Communicating a Positioning Strategy

Four major positioning errors
1.

2.
3. 4.

Underpositioning Overpositioning Confused positioning Doubtful positioning

Positioning

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Positioning in the market place

What to avoid 1. Under positioning Seen as just another entry in a crowded market Pepsi introduces its clear crystal Pepsi 1993 Customer not impressed Clarity not seen as an important benefit
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Positioning in the market place

2. Over positioning Narrow image of the brand Trying to widen Customer do not accept this Maruti Baleno Customers think Maruti can make cars up to 5 lacs Not higher end Image issue Poor sales
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Positioning in the market place

3. Confused Positioning
Company making too many claims

Milkmaid
Started as Tea Whitener Did not click As a topping on pudding Did not click Finally clicked as base for dessert

Positioning

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Positioning in the market place

4. Doubtful Positioning Find it to difficult believe in what company claims Maruti 1000
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Launches in 89 Positioned as ultimate in luxury Only luxury car Launch of Esteem in 94 More luxurious than Maruti 1000 Is it now Ultimate in luxury Sales dipped Customer confused Repositioned as Affordable luxury

Positioning

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Positioning in the market place

Right Positioning is Critical
Make or break the organization

Nestle Maggi noodles

launched in 1983 Noodles a new concept in Indian households Two options for Nestle 1.As a dinner item 2.As a snack item Targeted at children
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Positioning in the market place

1. As a Lunch or Dinner Housewives / Mothers take decisions Noodles as lunch or dinner item Replacing current lunch items Housewives want to serve children nutritious food Would noodles provide nutrition and replace tradition food?

Positioning

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Positioning in the market place

2. As a Snack Item Between lunch and dinner Children play Spend energy Want to eat something Quick preparation and delicious Variety of flavors Filing Will mothers accept this as a snack Item
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Positioning in the market place

Which Positioning Maggi - Which Positioning platform is acceptable - Careful study of mothers and children behavior - Nestle found that as a snack item would be more acceptable - Sales picked up - As a lunch / dinner would have been disaster. Right positioning was critical for the success of Maggi noodles.
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Developing a Positioning Strategy

Positioning possibilities:
Attribute positioning Benefit positioning Use or application positioning User positioning Competitor positioning Product category positioning Quality or price positioning

Which Positioning to Promote?

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Positioning in the market place

1. ATTRIBUTE POSITIONING - Positioning on attribute Size No of years in existence Culture Disneyland
Positioned as the largest manmade park in the world

Dove soap
Contains moisturizing cream

Positioning

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Positioning in the market place

2. BENEFIT POSITIONING Positioned as a leader in certain benefit McDonalds Positioned as a family restaurant (QSCV) Honda Economy and reliability BMW Ultimate driving machine Volvo Safety and Durability.

Positioning

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Positioning in the market place

3. USE / APPLICATION POSITIONING. Positioning for some use or application Nestle Maggi Noodles
Positioned as a snack item Between meals Fast to cook, good to eat

Nestle Milkmaid
Positioned as a base for dessert preparation.

Positioning

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Positioning in the market place

4. USER POSITIONING Positioning the product as best for some user group.

Red and white cigarettes

Positioned for people who are bold and brave Give bravery awards.

Positioning

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Positioning in the market place

5. COMPETITOR POSITIONING Product claims to have better performance than competitors Brooke Bond Taj Mahal Tea
Endorsed by Zakir Hussain If you find a better tea than Taj Mahal, then Zakir Hussain will stop playing Tabla. Directly or indirectly refer competitors.

Positioning

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Positioning in the market place

6. PRODUCT CATEGORY POSITIONING Positioning as a leader in certain category. Maruti 1000
Launched in 1990 Only luxury car in India Positioned as ultimate in luxury

Hero Honda
Four Stroke, fuel efficiency Claimed as the leader in fuel efficiency Fill it, shut it, forget it

Livon
After hair wash oil Smooth and silky hair

Positioning

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Positioning in the market place

7. QUALITY OR PRICE POSITIONING Positioning as offering the best scooters
Bajaj Scooters
Lowest prices You just cannot beat a Bajaj Repositioned as Hamara Bajaj

Positioning

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Adding Further Differentiation

Differentiation: products feature meaningful and valuable differences that distinguish the companys offering from the competition.

Positioning

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Adding Further Differentiation

Differentiation criteria:
Important Distinctive Superior Preemptive Affordable Profitable Unique

Positioning

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Positioning and Differentiation

Performance Features Form Reliability Repairability

Positioning

Conformance
Product Differentiation Tools

Design Style

Durability

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Positioning and Differentiation Services Differentiation Tools

Ordering ease
Maintenance and repair

Customer consulting
Customer training

Installation

Delivery

Miscellaneous
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Positioning and Differentiation

Personnel Differentiation Tools

Competence

Responsiveness

Credibility
Courtesy
Positioning

Communication
Reliability
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Positioning and Differentiation Channel Differentiation Tools

Coverage Expertise Performance

Image Differentiation Tools

Symbols Media
Positioning

Atmosphere Events
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