56 Positioning Your Product David A. Aaker and J. Gary Shansby David A. Aaker is a professor of mar- keting and J. Gary Shansby a professor oof marketing strategy, both at the Uni versity of California at Berkeley. ‘The authors thank John G. Myers for his helpful and stimulating comments Sophisticated analysis of all the positioning alternatives can, and should, be done. ‘ow should a new brand be positioned? Can a problem brand be revived by a re- positioning strategy? Most mar- keting managers have addressed these and other positioning ques- tions; however, “positioning” means different things to different people. To some, it means the segmentation decision, To others it is an image question. To still others it means selecting which product features to emphasize. Few mana- gers consider all of these alterna- tives. Further, the positioning deci- sion is often made ad hoc, and is based upon flashes of insight, even though systematic, research-based approaches to the positioning dei sion are now available. An under standing of these approaches should lead to more sophisticated analysis in which positioning alter- natives are more fully identified and evaluated. A product or organization has many associations which combine to form a total impression, The positioning decision often means selecting those associations which are to be built upon and empha- sized and those associations which are to be removed or de-empha- sized. The term “position” differs from the older term “image” in Copyright © 2001 All Rights Reserved that it implies a frame of reference, the reference point usually being the competition. Thus, when the Bank of California positions itself as being small and friendly, it is explictly, or perhaps implicitly, positioning itself with respect to Bank of America. The positioning decision is often the crucial strategic decision for a company or brand because ‘the position can be central to customers’ perception and choices decisions. Further, since all ele- ments of the marketing program can potentially affect the position, it is usually necessary to use a positioning strategy as a focus for the development of the marketing program. A clear positioning strate- gy can insure that the elements of the marketing program are consis tent and supportive. What alternative positioning strategies are available? How can positioning strategies be identified and selected? Each of these ques- tions will be addressed in turn. Positioning Strategies first step in understanding the scope of positioning altematives is to consider some of the ways that a posi Business Horizons / May-June 1982Positioning Your Product tioning strategy can be conceived and implemented. In the following, six approaches to positioning strat- egy will be illustrated and dis- cussed: positioning by (1) attri- bute, (2) price-quality, (3) use or applications, (4) productuser, (5) the product-lass, and (6) the com- petitor. Positio ing by Attribute Probably the most frequently used positioning strategy is associating a product with an attribute, a product feature, or customer bene- fit. Consider imported —auto- mobiles. Datsun and Toyota have emphasized economy and relia- bility. Volkswagen has used a “value for the money” association. Volvo has stressed durability, showing commercials of “crash tests” and citing statistics on the long average life of their cars. Fiat, in contrast, has made a distinct effort to position itself as a Euro- pean car with “European crafts: manship.” BMW has emphasized handling and engincering effi- ency, using the tag ultimate driving machine” showing BMWs demonstrating their performance capabilities at a race track. ‘A new product can upon ocea- sion be positioned with respect to an attribute that competitors have ignored. Paper towels had _em- phasized absorbency until Viva stressed durability, using demon- strations supporting the claim that Viva “keeps on working.” Sometimes a product will at tempt to position itself along two or more attributes simultaneously. In the toothpaste market, Crest became a dominant brand by posi- tioning itself as a cavity fighter, a position supported by a medical group endorsement. However, Aim achieved a 10 percent market share by positioning along two attri- utes, good taste and cavity pre- vention. More recently, Aqua-fresh has been introduced by Beecham as a gel paste that offers both and cavity-fighting and breath-fresh- ening benefits. It is always tempting to try to position along several attributes. However, positioning strategies that involve too many attributes can be most difficult to imple- ment. The result can often be a fuzzy, confused image. Positioning by Price/Quality ‘The price/quality attribute dimen- sion is so useful and pervasive that it is appropriate to consider it separately. In many product cate- gories, some brands offer more in terms of service, features, or per- formance and a higher price serves to signal this higher quality to the customer. Conversely, other brands emphase price and value Jn general merchandise stores, for example, the department stores are at the top end of the price/ quality scale. Neiman-Marcus, Bloomingdale’s, and Saks Fifth Avenue are near the top, followed by Macy’s, Robinson’s, Bullock’s, Rich’s, Filene’s, Dayton’s, Hud- son’s, and so on. Stores such as Sears, Montgomery Ward, and J.C. Penney are positioned below the department stores but above the discount stores like K-Mart. Sears efforts to create a more upbeat fashion image was thought to have hurt their “value” position and caused some share declines." Sears’ recent five-year plan details a firm retum to a positioning as a family, middle-class store offering top value. Sears is just one company that has faced the very tricky positioning task of retaining the image of low price and upgrading their quality image. There is always the risk that the quality message will blunt the basic “low-price,” “value” position. Positioning wit Application Respect to Use or Another positioning strategy is as- 1, "Sears! New 5-year Plan: To Serve Mide fc Ameria." Advertsing age, December 1078. Copyright © 2001 All Rights Reserved sociating the product with a use or application. Campbell's Soup for many years was positioned for use at lunch time and advertised exten sively over noontime radio. The telephone company more recently has associated Iong distance calling with communicating with loved ones in their “reach out and touch someone” campaign. Industrial products often rely upon applica tion associations. Products can, of course, have multiple positioning strategies, al- though increasing the number in- volves obvious difficulties and risks. Often a positioning-by-use strategy represents a second or third position designed to expand the market. Thus, Gatorade, intro- duced as a summer beverage for athletes who need to replace body fluids, has attempted to develop a winter positioning strategy as the beverage to drink when the doctor recommends drinking plenty of fluids. Similarly, Quaker Oats has attempted to position a breakfast food produet as a natural whole- grain ingredient for recipes. Arm & Hammer baking soda has success- fully positioned their product as an odor-destroying agent in. reftig- erators. Positioning by the Product User Another positioning approach is associating a product with a user or a class of users. Thus, many cos- metic companies have used a model or personality, such as Brut’s Joe Namath, to position their product. Revlon’s Chatlie cos- metic line has been positioned by associating it with a specific life- style profile. Johnson & Johnson saw market share move from 3 percent to 14 percent when they repositioned their shampoo from a product used for babies to one used by people who wash their h frequently and therefore need a mild shampoo. In_ 1970, Miller High Life was the ‘champagne of bottled beers,” was purchased by the upper class, 8758 “The identification and selection of a positioning strategy can draw upon a set of concepts and procedures that have been developed and refined over and had an image of being a woman’s beer. Phillip Morris re- positioning it as a beer for the heavy beer drinking, blue-collar working man. Miller’s Lite beer, introduced in 1975, used con- vincing beer-drinking personalities to position itself as a beer for the heavy beer drinker who dislikes that filled-up feeling. In contrast, earlier efforts to introduce low- calorie beers positioned with re- spect to the low-calorie attribute were dismal failures. One even claimed its beer had fewer calories ‘than skim milk, and another fea- tured a trim personality. Miller's positioning strategies are in part why its market share has grown from 34 percent in 1970 to 24.5 percent in 1979? Positioning with Respect to a Product Class Some critical positioning decisions involve product-class associations. For example, Maxim freeze-dried coffee needed to position itselt with respect to regular and instant coffee. Some margarines position themselves with respect to butter. Dried milk makers came out with instant breakfast positioned as a breakfast substitute and a virtually identical product positioned as a dietary meal substitute. The hand soap “Caress” by Lever Brothers 2.°A2, Miller Brews Continue to Barr Ahead” Advertising Age, August 4 1980: 4. the last few years.” positioned itself as a bath oil product rather than a soap. The soft drink 7-Up was for a ong time positioned as a beverage with a “fresh clean taste” that was “thirst-quenching.” However, re- search discovered that most people regarded 7-Up as a mix rather than a soft drink. The successful “un- cola” campaign was then de- veloped to position 7-Up as a soft drink, with a better taste than the “cola.” Positioning with Respect to a Com- petitor In most positioning strategies, an explicit or implicit frame of refer- ence is the competition. There are two reasons for making the refer- ence competitor(s) the dominant aspect of the positioning strategy. First, a well established competi tor’s’ image can be exploited to help communicate another image referenced to it. In giving direc- tions to an address, for example, it’s easier to say, it is next to the Bank of America building than itis to detail streets, distances, and turns. Second, sometimes it’s not important how good customers think you are; it is just important that they believe you are better (or as good as) a given competitor. Perhaps the most famous posi- tioning strategy of this type was the Avis “We're number two, 50 we try harder” campaign. The strategy ‘was to position Avis with Hertz asa Copyright © 2001 All Rights Reserved major car rental ageney and away from National, which at the time was a close third to Avi Positioning explicitly with re- spect to a competitor can be an excellent way to create a position with respect to an attribute, espe- cially the price/quality attribu pair. Thus, products difficult to evaluate, like liquor products, will often be compared with an estab- lished competitor to help the pos tioning task. For example, Sabroso, a coffee liqueur, posi- tioned itself with the established brand, Kahlua, with respect to quality and also with respect to the type of liqueur. Positioning with respect to a competitor can be aided by com- parative advertising, advertising in which a competitor is explicitly named and compared on one or more attributes. Pontiac has used this approach to position some of their cars as being comparable in gas mileage and price to leading import cars. By comparing Ponti to a competitor that has a well- defined economy image, like @ Volkswagen Rabbit, and using factual information ‘such as EPA gas ratings, the communication task becomes easier. On Determining the Positioning Strategy hat tioning strategy? identification and selec.Positioning Your Product tion of a positioning strategy can draw upon a set of concepts and procedures that have been de- veloped and refined over the last few years. The process of de- veloping a positioning strategy in- volves six steps: 1. Identify the competitors. 2. Determine how the competi- tors are perceived and evaluated. 3. Determine the competitors’ positions. 4. Analyze the customers. 5. Select the position. 6. Monitor the position. In each of these steps one can employ marketing research tech- niques to provide needed informa- tion. Sometimes the marketing re- search approach provides a con- ceptualization that can be helpful even if the research is not con- ducted. Each of these steps will be discussed in turn. Identify the Competitors This first step is not as simple as it might seem. Tab might define its competitors in a number of ways, including: a. other diet cola drinks b. all cola drinks call soft drinks 4. nonalcoholic beverages «. all beverages A Triumph convertible might de- fine its market in several ways: ‘a. tworpassenger, low-priced, imported, sports car convertibles b. two-passenger, low-priced, imported sports cars . two-passenger, low- or medi- um priced, imported sports cars d. low. or medium-priced sports cars €. low- or medium-priced im- ported cars In most cases, there will be 2 primary group of competitors and one or more secondary competi- tors. Thus, Tab will compete pri- marily with other diet colas, but other colas and all soft drinks could be important as secondary competitors. ‘A knowledge of various ways to identify such groupings will be of conceptual as well as practical value. One approach is to deter- mine from product buyers which brands they considered. For ex- ample, a sample of Triumph con- vertible bayer could be asked what other cars they considered and perhaps what other show- rooms they actually visited. A Tab buyer could be asked what brand would have purchased had Tab been out of stock. The resulting analysis will identify the primary and secondary groups of competi- tive products. Instead of cus. tomers, retailers or others knowl- edgeable about customers could provide the information. Another approach is the de- velopment of associations of products with use situations.” ‘Twenty or so respondents might be asked to recall the use contexts for Tab. For each use context, such as, an afternoon snack, respondents are then asked to identify all ap- propriate beverages. For each bev- rage so identified respondents are then asked to identify appropriate use contexts. This process would continue until a large list of use contexts and beverages resulted. Another respondent group would then be asked to make judgments as to how appropriate each bev- erage would be for each use situa- tion. Groups of beverages could then be clustered based upon their similarity of appropriate use situa- tions. If Tab was regarded as ap- propriate with snacks, then it would. compete primarily with other beverages regarded as appro- priate for snack occasions. The same approach would work with an industrial product such as com- puters, which might be used in several rather distinet applications. The concepts of alternatives from which customers choose and appropriateness to a use context can provide a basis for iden [Link] 8. Day, Alan D. Shocker, and Rajendra K- Seivasta, “Customer-Oriented Ape proaches io Identity Product » Markets” Journal of Marketing, Fal 1979: 8:19. Copyright © 2001 All Rights Reserved competitors even when market re- search is not employed. A manage- ment team or a group of experts, such as retailers, could employ one or both of these conceptual bases to identify competitive groupings. Determine How the Competitors are Perceived and Evaluated The challenge is to identify those product associations used by Duyers as they perceive and evalu- ate competitors. The product asso- ciations will include product attr utes, product user groups, and use contexts. Even simple objects such as beer can evoke a host of physi- cal attributes like container, after- taste, and price, and relevant asso- ciations like “appropriate for use while dining at a good restaurant” or “used by working men.” The task is to identify a list of product associations, to remove redun- duncies from the list, and then to select those that are’ most useful and relevant in describing brand images. One research-based approach to product association list generation is to ask respondents to identify the two most similar brands from a set of three competing brands and to describe why those two brands are similar and different from the d. As a variant, respondents be asked which of two brands is preferred and why. The result will be a rather long list of product associations, perhaps over a hundred. The next step is to remove redundancy from the list using logic and judgment or factor analysis. The final step is to iden- tify the most relevant product as sociations by determining which is correlated highest with overall brand attitudes or by asking re- spondents to indicate which are the most important to them. Determine the Competitors’ Posi- tions The next step is to determine how competitors (including our own 5960 entry) are positioned with respect to the relevant product associa- tions and with respect to cach other. Although such judgments can be made subjectively, search-based approaches are avail- able. Such research is termed mul- tidimensional scaling because its goal is to scale objects on several dimensions (or product associa tions). Multidimensional _ scaling can be based upon either product associations data or similarities data. Product-association-based_mul- tidimensional scaling. The most di rect approach is simply to ask a sample of the target segment to scale the various objects on the product association dimensions. For example, the respondent could be asked to express his or her agreement or disagreement on a seven-point scale with statements regarding the Chevette “With respect to its class I would consider the Chevette to be: sporty roomy economical good handling.” Alternatively, perceptions of a brand’s users or use contexts could bbe obtained: “I would expect the typical Chevette owner to be: older wealthy independent intelligent.” “The Chevette is most appro priate for: short neighborhood trips commuting cross country sightseeing.” In generating such measures there are several potential prob- lems and considerations (in addi- tion to generating a relevant product association list) of which ne should be aware: 1. The validity of the task. Can a respondent actually position cars on a “sporty” dimension? There could be several problems. One, a possible unfamiliarity with one or more of the brands, can be handled by asking the respondent to evalu- ate only familiar brands. Another is the respondent's ability to un- derstand operationally what “sporty” means or how to evaluate a brand on this dimension, 2. Differences among respon- dents. Subgroups within the popu- lation could hold very different perceptions with respect to one or more of the objects. Such diffused images can have important strate- gic implications. The task of sharpening a diffused image is much different from the task of changing a very tight, established 3. Are the differences between objects significant and meaningful? If the differences are not statisti- cally significant, then the sample size may be too small to make any ‘managerial judgments. At the same time, a small difference of no practical consequence may be sta- tistically significant if the sample size is large enough. 4, Which product associations are not only important but also serve to distinguish objects? Thus, airline safety may be an important attribute, but all airlines may be perceived to be equally safe. Similarities-based -multidimen- sional scaling. Product-association approaches have several conceptual disadvantages. A complete, valid, and relevant product association list is not easy to generate. Fur- ther, an object may be perceived or evaluated as a whole that is not really decomposable in terms of product associat These dis advantages lead us to the use of non-attribute data—namely, simi- larity data. Similarity measures simply re- fect the perceived similarity of two objects. For example, respon- dents may be asked to rate the degree of similarity of assorted object pairs without a product association list which implicitly suggests criteria to be included or excluded. The result, when aver- aged over all respondents, is a similarity rating for each object Copyright © 2001 All Rights Reserved pair. A multidimensional scaling program then attempts to locate objects in a two-, three- (or more if necessary) dimensional space termed a perceptual map. The pro- gram attempts to construct the perceptual map such that the two objects with the highest similarity are separated by the shortest dis- tance, the object pair with the second highest similarity are sepa- rated by the second shortest dis- tance, and so on. A disadvantage of the similarity-based approach is that the interpretation of the di- mensions does not have the product associations as a guide. Analyzing the Customers A basic understanding of the cus- tomer and how the market is seg: mented will help in selecting a positioning strategy. How is the market segmented? What role does the product class play in the cus- tomer’s lifestyle? What really moti- vates the customer? What habits and behavior patterns are relevant? ‘The segmentation question is, of course, critical. One of the most useful. segmentation approaches is benefit" segmentation which focuses upon the benefits or, more generally, the product associations that a segment believes to be im- portant. The identity of important product associations can be done directly by asking customers to rate product associations as to their importance or by asking them to. make trade-off judgments be- tween product associations* or by asking them to conceptualize and profile “ideal brands.” An ideal brand would be a combination of all the customer’s _ preferred product associations. Customers are then grouped into segments defined by product associations considered important by cus: tomers. Thus, for toothpaste there could be a decay preventative seg- [Link] E, Green and Yoram Wind, “New Ways to Measure Consumers" Judgment" Haroord Businees Review, July-August 1975: 107-118.Positioning Your Product “Positioning usually means that an overt decision is being made to concentrate only on certain segments. Such an approach requires commitment and discipline because it’s not easy to turn your back on potential buyers.” ment, a fresh breath segment, a price segment, and so on. ‘The segment’s relative size and com mitment to the product association will be of interest. It is often useful to go beyond product association lists to get a deeper understanding of consumer perceptions. A good illustration is the development of positioning ob- jectives for Betty Crocker by the Needham, Harper & Steers adver- tising agency.* They conducted research involving more than 3,000 women, and found that Betty Crocker was viewed as a company that is: honest and dependable friendly and concerned about a specialist in baked goods but out of date, old, and traditional @ manufacturer of “old stand- by” products not particularly contemporary or innovative. The conclusion was that the Betty Crocker image needed to be strengthened and to become more modem and innovative and less old and stodgy. To improve the Betty Crocker image, it was felt that an under- standing was needed of the needs and lifestyle of today’s women and how these relate to desserts. Thus, the research study was directed to 5. Keth Reinhard, “How We Make Adver- tising” (presented tothe Feder! Trade Com mistion, May 11, 1979}: 22-25 basic questions about desserts. Why are they served? Who serves them? The answers were illu- minating. Dessert users tend to be busy, active mothers who are de- voted to their families. The pri- mary reasons for serving dessert tend to be psychological and re- volve around the family. Dessert is a way to show others you care. Dessert preparation is viewed as an important duty of a good wife and mother. Desserts are associated and help to create happy family moments. Clearly, family bonds, love, and good times are associated with desserts, As a result, the Betty Crocker positioning objective was to associate Betty Crocker uni- quely with the positive aspects of today’s families and their feelings about dessert. Contemporary, emo: tionally involving advertising was used to associate Betty Crocker with desserts that contribute to happy family moments. Making the Positioning Decision The four steps or exercises just described should be conducted prior to making the actual posi- tioning decision. The exercises can be done subjectively by the i volved managers if necessary, al- ‘though marketing research, if feasi ble and justifiable, will be more definitive. However, even with that Copyright © 2001 All Rights Reserved background, it is still not possible to generate a cookbook solution to the positioning questions. How- ever, some guidelines or check- points can be offered. 1. Positioning usually implies a segmentation commitment. Posi- tioning usually means that an overt decision is being made to concen- trate only on certain segments. Such an approach requires commit ment and discipline because it’s not easy to tum your back on potential buyers. Yet, the effect of generating a distinct, meaningful position is to focus on the target segments and not be constrained by the reaction of other segments. Sometimes the creation of a “diffuse image,” an image that will mean different things to different people, is a way to attract a variety of diverse segments. Such an ap- proach is risky and difficult to implement and usually would be used only by a large brand. The implementation could _ involve projecting a range of advantages while avoiding being identified with any one. Altcmatively, there could be a conscious effort to avoid associations which create positions. Pictures of bottles of Coca-Cola with the words “It’s the real thing” superimposed on them, or Budweiser’s claim that “Bud is the king of beers,” illustrate such a strategy. 2. An economic analysis should guide the decision. The success of any positioning strategy basically 6162 depends upon two factors: the potential market size x the pene- tration probability. Unless both of these factors are favorable, success will be unlikely. One implication of this simple structure is that a positioning strategy should attract, a sizeable segment. If customers are to be attracted from other brands, those brands shoufd have a worthwhile market share to begin with. If new buyers are to be attracted to the product class, a reasonable assessment should be made of the potential size of that growth area. The penetration prob- ability indicates that there needs to be a competitive weakness to attack or a competitive advantage to exploit to generate a reasonable market penetration probability. Further, the highest payoff will often come from retaining existing customers, so this alternative should also be considered. 3.1L the advertising is working, stick with it. An advertiser will often get tired of a positioning strategy and the advertising used to implement it and will consider making a change. However, the personality or image of a brand, like that of a person, evolves over many years, and the value of con- sistency through time cannot be overestimated. Some of the very successful, big-budget campaigns have run for ten, twenty, or even thirty years. 4, Don't try to be something you are not. It is tempting but naive—and usually fatal-to decide on a positioning strategy that ex- ploits a market need or oppor- tunity but assumes that your product is something it is not. Before positioning a product, it is important to conduct blind taste tests or in-home or in-office use tests to make sure that the product can deliver what it promises and that is compatible with a proposed image. Consider Hamburger Helper, successfully introduced in 1970 as an add-to-meat product that would generate a good-tasting, eco- nomical, skillet dinner. In. the mid-1970s, sales suffered when homemakers switched to more exotic, expensive foods. An effort to react by repositioning Ham- burger Helper as a base for cas- seroles failed because the product, at least in the consumers’ mind, could not deliver. Consumers per ceived it as an economical, reliable, convenience food and further felt that they did not need help in making casseroles. In a personality test, where women were asked to describe the product as if it were a person, the most prevalent char- acteristic ascribed to the product was “helpful.” The result was a revised campaign to position the product as being “helpful.” Monitoring the Position A positioning objective, like any marketing objective, should be 6. Reinhard: 29. Copyright © 2001 All Rights Reserved measurable. To evaluate the posi- tioning and to generate diagnostic information about future posi- tioning strategies, it is necessary to monitor the position over time. A variety of techniques can be em- ployed to make this measurement. Hamburger Helper used a “per- sonality test,” for example. How- ever, usually one of the more structured techniques of multi- dimensional scaling is applied. variety of __ positioning strategies is available to the advertiser. An object can be positioned: 1. by attributes—eg, Crest is a cavity fighter. 2: by price/qualty—e., Sears a “value” store. 3. by competitor—e positions itself with Hertz. 4. by application—eg., Gator- ade is for flu attacks. 5. by product user—eg., Miller is for the blue-collar, heavy beer drinker. 6. by product class—eg., Car nation Instant Breakfast is a break- fast food. The selection of a positioning strategy involves identifying com- petitors, relevant attributes, com- petitor positions, and market seg- ments. Research based approaches can help in each of these steps by providing conceptualization even if the subjective judgments of mana: gers are used to provide the actual input information to the posi tioning decision. (2 Avis