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Positioning

Positioning
Positioning is a strategy to identify a distinct 
position for a brand in the consumer’s mind 
and occupy it.

Choosing what value to offer/ What meaning 
to assign to the brand that is different from 
competition

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Positioning
• Is not what you do the product alone, but you do to the 
consumers’ mind.
• Is a set of associations the consumer has with the brand
• Is typically relative to competition

• Good positioning
• clarity of what brand stands for
• stress certain chosen aspects (value propositions) only and not all
• all elements of marketing mix has to be integrated around them
• has to be consistent
• Is a ‘fit’ between a group of unique attributes (differentiation) 
with a group of consumers (segment) for whom these attributes 
are salient

Differentiation
Consumers’ Competitors’
needs offerings

Their POD

POP

Our POD Benefits


Hole/ white Consumers do not
Space? need ?

Company’s
Offerings

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Brand Positioning

What
A brand for
benefit?
whom?
Point of
Target
difference/
Value

Brand
How this against
benefit? whom?

Reason Competitor
Set

Steps in Developing Value 
Proposition
• What is Company’s Competence?
• What benefits customers require? 
• List of Benefits
• Importance of benefits
• Who are your competitors? How would you club 
them to define the category in which you compete?
• What are Points of Parity & Points of 
Differentiation?
• What are their PoDs?
• What are our PoDs?

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Evaluating Value Proposition 
Statement
• Relevance: Do customers care?
• Clarity: Will customers ‘Get it’?
• Credibility: Will customers believe it?
• Uniqueness: Does it set apart from competition?
• Attainability: Can we deliver? Claims in Consistency 
with performance?
• Sustainability: Can the position be maintained over 
time?

How to articulate Value 
Proposition?

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Marketing Strategy Statement
To <Target Segment & Need>, a <Brand> is 
<Category Reference Point> that <Point‐of‐
difference> because <reason to believe> 

Mountain Dew Marketing Strategy
• To the 18 year old males, who embrace 
excitement, adventure and fun Mountain Dew 
is the great tasting Carbonated Soft Drink that 
exhilarates like no other, because it is 
energizing (more sugar and caffeine), thirst 
quenching and one‐of‐kind citrus flavor .

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Marketing Strategy Statement
For <target/ end user>, who wants/ need 
<compelling reason to buy> the <brand> is a 
<product category> that provides <key 
benefits>. Unlike <main competitor>, the
<brand> has <point of difference>

Pantene Marketing Strategy
• To the females 18‐49 who possess dry damaged 
hair and believe they cannot achieve truly 
healthy/shiny hair Pantene is a hair care system 
(shampoo/conditioner/ styling aids) that offers
“hair so healthy it shines” because it
“penetrates from root to tip” through its 
patented Pro‐Vitamin B5 formula.

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Positioning Strategy Statement
To <Who are you talking to>, a <Brand> is 
<whom you want to beat> that <how you 
are going to beat him>

Snickers Marketing Strategy
Among snackers, Snickers is the brand of 
candy bar that satisfies your hunger because 
it is packed with peanuts

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For the game called road 1

For the game called road 2

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For the game called road 3

Marketing Strategy Statement
To <Target Segment & Need>, a <Brand> is 
<Category Reference Point> that <Point‐of‐
difference> because <reason to believe> 

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• To the young, middle‐class vehicle owners who 
find driving on Indian roads extremely 
challenging CEAT is a vehicle tyre that offers
“superior road grip” because it has “advanced 
polymer” technology.

Go far to come closer

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Evaluating Positioning Statement
• Relevance: Do consumers care?
• Clarity: Will consumers ‘Get it’?
• Credibility: Will consumers believe it?
• Uniqueness: Does it set apart from competition?
• Attainability: Can we deliver? Claims in Consistency 
with performance?
• Sustainability: Can the position be maintained over 
time?

Perceptual Maps 

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Perceptual Maps
• How similar are each of the following 
brands?
A‐B 1 2 3 4 5
B‐C 1 2 3 4 5
C‐A 1 2 3 4 5

B A

Positioning Using Perceptual Maps
• Define category in which the brand would compete
• Identify competing brands
• Identify attributes which are relevant
• Survey
• Determine Competitor’s positions (Perceptual Mapping)
• Analyze Consumers (Preference Mapping)
• Identify Holes/ Ideal Points
• Select Position

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3 Popular ways to produce 
perceptual maps
• Attribute Ratings
•Each brand rated on various attributes by consumers
•Few factors from the large set of attributes are 
arrived at using factor analysis. 2 dimensional maps 
are plotted with all brands. 
•Optimal weighted combination of attributes found 
using discriminant/ factor analysis
•Consumers also rate an ideal brand

3 Popular ways to produce 
perceptual maps
• Similarity Judgments
•Consumers are asked to judge similarity of pairs of 
the brands. No attributes.
•Multidimensional scaling procedures are used to plot 
all brands on 2 dimensional map.
•No attributes and hence the axes are interpreted. 

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3 Popular ways to produce 
perceptual maps
• Attribute Associations
•Consumers are asked to name one or more brands 
that best describes a particular attribute for each of 
the identified attributes.
•Correspondence analysis is used to arrive at 
correspondence map.
•Correspondence map has both brands and attributes 
presenting multi‐dimensional map on 2 dimensional 
space.

Perceptual map of a beer market
Heavy

• Old  Budweiser Beck’s 
Milwaukee Miller • •
Heineken •
Meister Brau            
• 
• Stroh’s 
Coors

Budget Premium
Michelob 

Miller Lite   

Old Milwaukee  •             
Light  • Coors Light

Light

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Preference Map Juxtaposed with 
Perceptual Map
Heavy

1 Budweiser
• Old  Beck’s 
Milwaukee Miller • 4 •
Heineken •
3 Meister Brau            
• 
• Stroh’s 
Coors

Budget Premium
Michelob 
5 •
2
Miller Lite   
Old Milwaukee   • •             
• Coors Light

Light

Attributes of Laptops on a 
Perceptual Map
Common

∙   Toshiba 1960CT
Easy setup 
Slow 

Performance

Light
Value
∙ IBM 701 C
“Butterfly”

Elegant

Looks
The six attributes were measured on semantic differential scales: 1) Slow–Fast operation, 2) Plain–Elegant,
3) Easy–Difficult setup, 4) Poor–Excellent value, 5) Light–Heavy, and 6) Common–Distinctive.

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Interpreting Perceptual Maps

• The arrow indicates the direction in which that 
attribute is increasing (The attribute is decreasing in 
the direction opposite to the arrow).

• The length of the line from the origin to the arrow 
is an indicator of the variance of that attribute 
explained by the 2D map.  The longer this line, the 
greater is the importance of that attribute.

Attributes of Laptops on a 
Perceptual Map
(Plain)

Common

∙   Toshiba 1960CT
Easy setup 
Slow 

Performance

Light
Good
∙ IBM 701 C Value
“Butterfly”

Elegant

Looks

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Interpreting Perceptual Maps

Attributes that are both relatively important and close 
to the horizontal (vertical) axis help interpret the 
meaning of the axis.

To position a laptop on each attribute, draw an 
imaginary perpendicular line from the location of 
the laptop onto that attribute.  (These are shown 
by dashed lines on the map).

Perceptual Map of Beer Market 
(only Brands)

Old Milwaukee

Budweiser
• Beck’s•
Meister Brau •Heineken
• Miller •

• Coors
Stroh’s

•Michelob
• Coors 
Miller 
Lite
• Light

Old
Milwaukee Light

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Perceptual Map of Beer Market  
(Only attributes)
Heavy Popular 
Full Bodied Heavy with Men

Special 
Occasions
Blue Collar Dining Out Premium
Good Value

Budget Premium

Popular 
Pale Color with 
Women
On a 
Budget Light Less Filling
Light

Perceptual Map of Beer Market 
(both products & attributes)
Heavy Popular 
Full Bodied Heavy with Men
Old Milwaukee

Budweiser
• Beck’s•
Meister Brau Special  •Heineken
• Miller • Occasions
Blue Collar
Good Value • Dining Out Premium
• Coors
Budget Stroh’s Premium
•Michelob
• Coors  Popular 
Pale Color
Miller 
Lite
• Light with 

On a 
• Women
Old
Budget Milwaukee Light Light Less Filling
Light

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News Channel  Study

The Perceptual Mapping of Channel 
Brands
• Category Definition
•Hindi News Channel
• Competing Brands The picture can't be display ed.

•AajTak
•Zee News The picture can't be display ed.

•Star News The picture can't be display ed.

•NDTV India
The picture can't be display ed.

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The Perceptual Mapping of Channel 
Brands ‐ Relevant Attributes
• Credibility  • Ability to Relate with anchors
• Honest  • Look of the Anchors
• Fair  • News Delivery 
• Unbiased  • Presentation 
• Courageous  • Arrangement of the studio
• Reliable  • Appearance of the studio
• Trustworthy  • Production
• Integrity  • Quality
• Broad Range of subjects  • Staging 
covered • Feel of the studio 
• Subjects that the viewers can  • Language/Words used
relate with • Quality of the Graphics
• Speed  • Clarity of the Picture
• Promptness with which news is  • Clarity of sound
updated
• First to report 
• Breaking News 
• Anchors/Host Reputation

Findings of Survey

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Brand - Attribute Map

0.6

Breaking News
Ze e Ne ws

0.4 Relevant coverage


Broad Range of
subjects covered

Fast coverage Courageous


0.2
Viewer friendly studio feel News Delivery
language studio appearance
Good graphics Star Ne ws
Sincere
0 Clear pictures
Reputed Anchors
-- axis 2 (28%) -->

Aaj Tak
Good Production
First to report Credible Quality
-0.2
Fair
Good Presentation
Reliable NDTV India
Good Looking Anchors
-0.4 Ability to relate with
anchors

Trustworthy

-0.6

Unbiased Updated coverage


-0.8

-1
-1.5 -1 -0.5 0 0.5 1 1.5 2
-- axis 1 (56% ) -->

Channel Perceptions – biplot using 


Correspondence Analysis
Mass, Popular, Repetitive,
1 Sensational
Jeevan

Jaihind

Creepy Crowlies
Repeatitive

Viewer Participation
Social Issues
Amrita
Common People
Local coverage
Indiavision
Unbiased, good Surya Biased, Not well
Sensational
Presentation Neutral to caste Religion Presented
0 Infotainment
-2 Studio Graphics 0Debates, discussions 2
Well researched Manorama Kairali
My voice
Credible & Trustworthy
Attractive Anchors
Accurate
Asianet Politically biased

Breaking news

Election Analysis People

News Updates

Premium,
-1 Analysis Based

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Thank you

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Scorpio

Car Market Overview

Segm ent shares Grow th rates


00-01 01-02 02-03 - 00-01 01-02 02-03AG
Segment A 30.6% 29.5% 26.5% -26.1% -3.2% -8.9%
Segment B 37.9% 41.0% 42.4% -1.3% 8.6% 4.7%
Segment C 10.5% 9.1% 10.6% 32.6% -12.6% 18.3%
Segment C+ 3.4% 2.8% 2.7% -4.6% -17.1% -3.1%
Segment D 0.1% 0.8% 1.7% 16.2% 828.7% 115.1%
UV 13.6% 12.8% 10.0% -17.2% -5.9% -20.9%
Entry SUV 4.0% 4.0% 6.2% 353.4% 0.1% 57.2%
SUV 0.0% 0.0% 0.0%
Total 693.5 695.5 705.1 -7.9% 0.3% 1.4%

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Scorpio launch plans
• Mahindra Baggage
• Unrealistic objectives
– 1200 vehicles a month
– Category leader – Safari was selling 250 vehicles 
a month

Evolved consumers
• The expectations on comforts
• Definition of luxury
• Wanted thrill of an SUV, but the comforts of 
a car
• At the same time was savvy in terms of 
price‐value equation

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Competition
• Saw themselves as a car vs. UV 
manufacturers
• Divided market on the basis of ‘car 
segments’
– A,B,C,D,UV etc.

Scorpio communication strategy
• Call itself a CAR
– Connotes the comforts, luxury and imagery 
associated with it
• Give international look & feel
• Keep it within the city

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Branding strategy
• Scorpio to dominate Mahindra
– Bring up the imagery of Mahindra

Product design
• The spare wheel at the bottom
• Seats
• Hand rests at the doors
• Music system as part of the original equipent

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Result for Scorpio
• Sales of more than 2500 vehicles per month
• One month waiting period in a highly 
competitive market
• Various awards in “CAR” category
• Effies award for advertising
• Created a whole new category & 
terminology in Indian four wheeler market

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Positioning Approaches
• Product Characteristics or Benefits
– Physical,  pseudo physical, benefits
• Use or Application
– Time of use, Type of use , Place of use 
– Usually 2nd or 3rd time positioning for expanding market
• User
– Stimulate aspiration motivations, Lifestyle association 
– A good market expansion option
• Product Class
– defining new category
• Competitor based
– leverage well crystallized competitor image
• Price based
– Communicating ‘quality’ message at low‐price is risky

Bottled Water – 3 alternative Brand 
Propositions
• For [middle‐class consumers looking for an 
affordable and accessible luxury], PQR is 
the only brand among all [bottled waters] 
that offers [an elegant, sparkling, and 
refreshing water, with just a hint of 
zaniness] because [it is naturally carbonated 
by volcanic gases deep beneath the soil in 
southern France and features clever bottle 
designs by Andy Warhol].

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Bottled Water – 3 alternative Brand 
Propositions
• For [upscale consumers looking to make a 
design statement with their choice of 
water], ABC is the only brand among all 
[bottled waters] that offers [the purest and 
most distinctive drinking experience] 
because [it derives from an artesian source 
in southern Norway and is packaged in a 
stylish, iconic glass bottle

Bottled Water – 3 alternative Brand 
Propositions
• For [millennial consumers who are socially 
conscious], XYZ is the only brand among all 
[bottled waters] that [cares about solving 
the world’s clean water crisis], because [it 
donates five cents for every bottle sold to 
programs that help support water, 
sanitation, and hygiene education programs 
in water‐stressed countries].

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Mountain Man Beer company

Branding Decisions

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Branding Decisions
•Brand Sponsor Decision
• Manufacturer/ Private/ Licensed
•Brand Strategy Decisions
•Blanket Family
•Separate Family
•Company name combined with individual names
•Branding new offer/ Brand strategy grid
•Dual Branding/ Co‐branding – ingredient/ same‐
company/joint‐venture or alliance

Brand strategy Grid

Product Line

Existing
Line Extension Category Extension

Brand

New
Multibrand New brand

Existing New

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Brand Extensions
• Pros
•New Product Success at low cost, Quickly
•Positive feedback effects
• Cons
•Brand dilution
•Cannibalization

What’s a Mercedes?

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A Mercedes for every driveway.

Business Week, August, 26, 1996.

Mercedes is downsizing sticker.

Business Week, February 8, 1993.

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The cheap Mercedes.

$40,000

The off‐the‐road Mercedes.

35,000

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The Mercedes minivan.

$27,000

The Mercedes minitruck.

$25,000

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The mini Mercedes.

$17,000

Mercedes Smartcar.

$9,000

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Mercedes mountain bike.

$1,900

The Baby Benz.

$89.50

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An engineering icon slips.

The Wall Street Journal, February 4, 2002.

Failed the moose test.

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Mercedes’ quality tumbles.

Business Week, July 21, 2003

Mercedes tumbles in quality.

Automotive News, November 25, 2002.

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“Mercedes racks up problems.”

Lexus quality.

The Wall Street Journal, November 22, 2002.

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A Mercedes taxicab?

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How Broad/ Narrow Benefit?
• Feature Positioning
•What is in it?
•Dove: contains ¼ moisturizing cream
• Benefit Positioning
•What is in it for me?
•Dove: provides baby soft skin
• Value Positioning
•Why is it for me?
•Dove: because you are beautiful by skin and not by 
size, shape or color

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