1 POSITIONING ISSUES At the end of this module, the learning outcomes are Positioning is a strategic tool Challenges faced in carrying out positioning How organizations can improve their competitive strength by carrying out repositioning

2 POSITIONING ISSUES Suggested readings 1.Strategic Marketing Management by Wilson and Gilligan, Chapter 8 2.Strategic Brand Management by Jean Kapferer, Chapter 3

3 POSITIONING ISSUES Positioning Titan watches Positioned watch as a ‘ornament/fashion accessory’ Fought with HMT the then market leader Dethroned the leader New paradigm

4 POSITIONING ISSUES Nestle Maggi noodles Positioning As a lunch/dinner or snack item Decided as a snack item One of the major reasons for success of Maggi noodles

5 POSITIONING ISSUES REPOSITIONING Strengthen the brand Make or break the organization Changing consumer needs Complacency can be fatal

6 POSITIONING ISSUES HMT watches Inexpensive Simple Reliable Titan attacked As a fashion accessory HMT lost significant market share

7 POSITIONING ISSUES OPTIONS FOR MARKETERS Redefine the product category in which brand is placed Reposition as a member of different class Nestle Milkmaid Tea/coffee whitener Milk substitute Later topping on desserts Finally base for dessert preparation

8 POSITIONING ISSUES Change the benefit Launch of Maruti 1000 Ultimate in luxury Launch of Maruti Esteem Maruti 1000 repositioned as an ‘affordable luxury’

9 POSITIONING ISSUES Take a new look at the brand’s use/application occasion Dettol antiseptic lotion Dominated cuts/wounds market Declining market Occasional product Substitutes How to increase usage Reposition from occasional to daily Use for shaving/bathing/washing baby nappies

10 POSITIONING ISSUES Look at new product user Cadbury’s Dairy milk Initially targeted at children Later middle age groups Older people subsequently Trying to become a generic product Kuch meetha ho jai Meetha synoymous to Cadbury’s

11 POSITIONING ISSUES Change the brand’s personality/image Change meanings/symbols/feelings Marlboro Women’s cigarette in 50’s Decided to change personality Masculinity/ruggedness All American symbol cowboy Complete change Cultural symbol of America

12 POSITIONING ISSUES Try to change consumers’ ideal’ position During 50’s and 60’s Cooking oil Dalda Taste Preferred medium Saffola Changed ‘ideal’ position Healthy and fat-free oil Ignored by competitors

13 POSITIONING ISSUES REPOSITIONING IS TOUGH Difficult when brand exists for long time Risk of alienating loyal customers Stood for something yesterday How it can change today

14 POSITIONING ISSUES TO CONCLUDE Should we launch new product rather than repositioning an existing one? Repositioning a brand is a strategy in itself