Positioning

Positioning 1

Positioning

Positioning 2

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?

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Suggesting Readings

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


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What is Positioning?- It is the act of designing the company’s

offering and image to occupy a distinctive place in the target market’s 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?


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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.

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Examples

Crest toothpaste

Promotes its anti-cavity protection

Mercedes

Promotes its great engineering

BMW

Ultimate driving machine

Attribute can be single or even multiples


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Perceptual Map

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Positioning - How do you differentiate your product

from competitors - Differentiation, which is

Important Distinctive Superior Not easily copied or Unique. Affordable Profitable


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Positioning: How many ideas to promote?

Unique selling proposition vs Unique value proposition

Developing and Communicating a Positioning Strategy

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Four major positioning errors1. Underpositioning

2. Overpositioning

3. Confused positioning

4. Doubtful positioning

Developing and Communicating a Positioning Strategy

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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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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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3. Confused PositioningCompany making too many claims

MilkmaidStarted as Tea Whitener

Did not clickAs a topping on pudding

Did not clickFinally clicked as base for dessert


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4. Doubtful PositioningFind it to difficult believe in what company claims

Maruti 1000- 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’

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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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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?


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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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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 positioningBenefit positioningUse or application positioningUser positioningCompetitor positioningProduct category positioningQuality or price positioning

Which Positioning to Promote?

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1. ATTRIBUTE POSITIONING - Positioning on attribute

Size No of years in existence Culture

Disneyland

Positioned as the largest manmade park in the world

Dove soapContains moisturizing cream


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2. BENEFIT POSITIONING Positioned as a leader in certain benefit

McDonald’s

Positioned as a family restaurant (QSCV)Honda

Economy and reliability BMW

Ultimate driving machine Volvo

Safety and Durability.


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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.


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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.


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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.


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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

LivonAfter hair wash oilSmooth and silky hair


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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’


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Adding Further Differentiation

Differentiation: products feature meaningful and valuable differences that distinguish the company’s offering from the competition.

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Adding Further Differentiation

Differentiation criteria:ImportantDistinctiveSuperiorPreemptiveAffordableProfitableUnique

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Form

Repairability

Performance

Style

Features

Reliability

Design

Durability

Conformance

Product Product Differentiation Differentiation

ToolsTools

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Miscellaneous

Services Differentiation Tools

Installation

Maintenance and repair

Ordering ease

Delivery

Customer training

Customer consulting

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Courtesy Reliability


Personnel Differentiation Tools

Credibility Communication

Competence Responsiveness

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Coverage

Expertise Performance

Channel Differentiation Tools

Symbols

Media

Atmosphere

Events

Image Differentiation Tools

Documents

Positioning