1 Positioning

Positioning in the market place Positioning 2 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 ?

Positioning and Differentiation Positioning 3 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, PEPSI is the soft drink that gives you more energy than any other brand because it has the highest level of caffeine.

Positioning in the market place Positioning 4 Examples Close up toothpaste Promotes its anti-cavity protection Merc Promotes its great engineering BMW Ultimate driving machine Attribute can be single or even multiples

Positioning in the market place Positioning 5 - How do you differentiate your product from competitors - Differentiation, which is  Important  Distinctive  Superior  Not easily copied or Unique.  Affordable  Profitable

Developing and Communicating a Positioning Strategy Positioning 6 Positioning: How many ideas to promote? Unique selling proposition vs Unique value proposition

Developing and Communicating a Positioning Strategy Positioning 7 Four major positioning errors 1. Underpositioning 2. Overpositioning 3. Confused positioning 4. Doubtful positioning

Positioning in the market place Positioning 8 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

Positioning in the market place Positioning 9 2. Over positioning - Narrow image of the brand - Trying to widen - Customer do not accept this - Nano  Not higher end  Image issue  Poor sales

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

Positioning in the market place Positioning 12 Right Positioning is Critical Make or break the organization Nestle Maggi noodles Two options for Nestle 1. As a dinner item 2. As a snack item Targeted at children

Positioning in the market place Positioning 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 in the market place Positioning 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’

Positioning in the market place Positioning 15 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.

Developing a Positioning Strategy Positioning 16 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?

Positioning in the market place Positioning 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 in the market place Positioning BENEFIT POSITIONING Positioned as a leader in certain benefit McDonald’s Positioned as a family restaurant (QSCV) Honda

Positioning in the market place Positioning 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

Positioning in the market place Positioning 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 in the market place Positioning 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 in the market place Positioning PRODUCT CATEGORY POSITIONING Positioning as a leader in certain category. 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 in the market place Positioning QUALITY OR PRICE POSITIONING Positioning as offering the best scooters Bajaj Scooters Lowest prices You just cannot beat a Bajaj Repositioned as ‘Hamara Bajaj’

Adding Further Differentiation Positioning 24 Differentiation: products feature meaningful and valuable differences that distinguish the company’s offering from the competition.

Adding Further Differentiation Positioning 25 Differentiation criteria: Important Distinctive Superior Preemptive Affordable Profitable Unique

Positioning and Differentiation Positioning 26 Form Repairability Performance Style Features Reliability Design Durability Conformance Product Differentiation Tools

Positioning and Differentiation Positioning 27 Miscellaneous Services Differentiation Tools Installation Maintenance and repair Ordering ease Delivery Customer training Customer consulting

Positioning and Differentiation Positioning 28 CourtesyReliability Personnel Differentiation Tools Credibility Communication Competence Responsiveness