Product Positioning

A Case Study on Indian

Automobile Manufacturers

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 Meaning
According to kotler-
“positioning is the act of designing the
company’s offering and image to occupy a
distinctive place in the target market’s
mind”

Product’s Position - the way the product is defined

by consumers on important attributes - the place
the product occupies in consumers’ minds relative
to competing products.
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– The place the product occupies in
consumers’ minds relative to
competing products.

– Typically defined by consumers on the

basis of important attributes.

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Basic Position Map
Superior Quality

Mediocre Quality 4
 Points you should keep in mind
• What position do you currently own?
• What position do you want to own?
• Whom you have to defeat to own the position
you want.
• Do you have the resources to do it?
• Can you persist until you get there?
• Are your tactics supporting the positioning
objective you set?
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Choosing a Positioning Strategy

Step 1. Identifying Possible

Competitive Advantages

Step 2. Selecting the Right

Competitive Advantage

Step 3. Communicating and

Delivering the Chosen Position

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 Identifying Possible Competitive
Advantages

• Key to winning and keeping customers is to

understand their needs and buying processes better
than competitors do and deliver more value.

• Competitive advantage is an advantage over

competitors gained by offering consumers greater
value, either through lower prices or by providing
more benefits, that justify competitive advantage,

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 Identifying Possible
Competitive Advantages

Product Services
Differentiation Differentiation
i.e. Features, Performance, i.e. Delivery, Installation,
Style & Design, or Repair Services, Customer
Attributes Training Services

Image Personnel
Differentiation Differentiation
i.e. Symbols, i.e. Hiring, Training
Atmospheres, Events Better People Than
Competitors Do

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Selecting the Right Competitive Advantages

Important
Important

Profitable
Profitable Distinctive
Distinctive
Criteria
Criteria
for
for
Determining
Determining
Which
Which
Differences
Differences
Affordable to
to Superior
Affordable Superior
Promote
Promote

Preemptive
Preemptive Communicable
Communicable

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 Positioning for Competitive Advantage

Product
Product Product
Product
Class
Class Attributes
Attributes

Away
Awayfrom
from Benefits
Benefits
Competitors
Competitors G
G Offered
Offered
H
H C
C

A
A
D
D
Against
Againstaa
E
E
B
Usage
Usage
B
Competitor
Competitor
F
F Occasions
Occasions

User
UserClass
Class

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 Positioning Strategies
• Positioning by specific product attributes
• Positioning by benefits
• Positioning for user category
• Positioning for usage occasion
• Positioning against another competitors
• Positioning against another product class

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 Competitive Strategies:
Value Disciplines
Companies Gain Leadership
Positions by Delivering Operational
Superior Value to their Excellence
Customers Through These
Strategies:
Customer
Intimacy

Product
Leadership
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 Analyzing Competitors
Identifying the
company’s
competitors
Assessing competitor’s
objectives, strategies,
strengths and weaknesses,
and reaction patterns

Selecting which
competitors to
attack or avoid
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 Strategies Relative to Competitors
Firms Competing in a Given Target Market Differ in their
Objectives and Resources so May Choose the Following Forms:

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 Competitive Marketing Strategies

Firm
Firm With
Withthe
theLargest
LargestMarket
Market Runner-Up
Runner-Up Firms
Firmsthat
thatFight
Fight
Share
Share to
toIncrease
IncreaseMarket
Market Share
Share

Expand
Expandthe
the Protecting
Protecting Attack
Attackthe
the Avoid
Avoidthe
the
Total Market
Total Market Market
MarketShare
Share Market
MarketLeader
Leader Market
MarketLeader
Leader

Expanding
Expanding Attack
AttackOther
Other Acquire
AcquireSmaller
Smaller
Market
MarketShare
Share Firms Firms
Firms Firms
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 Competitive Marketing Strategies

Runner-Up
Runner-Up Firms
Firmsthat
that Want
Want Firms
Firmsthat
that Serve
Serve Small
Small Segments
Segments
to
toHold
Hold Their
TheirShare
ShareWithout
Without Not
Not Pursued
PursuedbybyOther
OtherFirms
Firms
Rocking
Rockingthe
the Boat
Boat
End-User
End-User Customer-Size
Customer-Size
Specialist
Specialist Specialist
Specialist
Follow
Follow Follow
Followat
ataa
Closely
Closely Distance
Distance
Geographic
Geographic Quality-
Quality-
Market Price Service
Service
Market Price Specialist
Specialist
Specialist Specialist
Specialist Specialist
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 18
Low Cost