Positioning

Positioning

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?

Positioning

Positioning in the market place

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

Positioning

Positioning in the market place

What is Positioning?
- It is the act of designing the companys
offering and image to occupy a distinctive
place in the target markets 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

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.

Positioning

Positioning in the market place

Examples
Crest toothpaste
Promotes its anti-cavity protection
Mercedes
Promotes its great engineering
BMW
Ultimate driving machine
Attribute can be single or even multiples
Positioning

Perceptual Map

Positioning

Positioning in the market place

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

Developing and Communicating a

Positioning Strategy
Positioning: How many ideas to
promote?
Unique selling proposition vs Unique
value proposition

Positioning

Developing and Communicating a

Positioning Strategy
Four major positioning errors
1.
2.
3.
4.

Underpositioning
Overpositioning
Confused positioning
Doubtful positioning

Positioning

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Positioning in the market place

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

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Positioning in the market place

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
Positioning

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Positioning in the market place

3. 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

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Positioning in the market place

4.

Doubtful Positioning
Find 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

Positioning

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Positioning in the market place

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
Positioning

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Positioning in the market place

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?

Positioning

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Positioning in the market place

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
Positioning

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Positioning in the market place

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.
Positioning

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Developing a Positioning Strategy

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

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Positioning in the market place

1. 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

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Positioning in the market place

2. BENEFIT POSITIONING
Positioned as a leader in certain benefit
McDonalds
Positioned as a family restaurant (QSCV)
Honda
Economy and reliability
BMW
Ultimate driving machine
Volvo
Safety and Durability.

Positioning

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Positioning in the market place

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.

Positioning

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Positioning in the market place

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.

Positioning

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Positioning in the market place

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.

Positioning

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Positioning in the market place

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

Livon
After hair wash oil
Smooth and silky hair

Positioning

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Positioning in the market place

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

Positioning

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Adding Further Differentiation

Differentiation: products feature
meaningful and valuable
differences that distinguish the
companys offering from the
competition.

Positioning

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Adding Further Differentiation

Differentiation criteria:
Important
Distinctive
Superior
Preemptive
Affordable
Profitable
Unique
Positioning

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Positioning and Differentiation

Performance
Features
Form

Conformance
Product
Differentiation
Tools

Reliability

Design
Style
Durability

Repairability
Positioning

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Positioning and Differentiation

Services Differentiation Tools
Ordering
ease

Customer
consulting

Maintenance
and repair

Customer
training

Installation

Delivery

Miscellaneous
Positioning

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Positioning and Differentiation

Personnel Differentiation Tools

Competence

Responsiveness
Communication

Credibility
Courtesy
Positioning

Reliability
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Positioning and Differentiation

Channel Differentiation Tools
Coverage
Expertise

Performance

Image Differentiation Tools

Symbols
Media

Atmosphere
Events
Positioning

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