Market

Positioning

Positioning 1
Positioning in the market place
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 2
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 3
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 4
Perceptual Map

Positioning 5
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 6
Developing and Communicating a
Positioning Strategy
Positioning: How many ideas to
promote?
Unique selling proposition vs Unique
value proposition

Positioning 7
Developing and Communicating a
Positioning Strategy

Four major positioning errors

1. Underpositioning
2. Overpositioning
3. Confused positioning
4. Doubtful positioning

Positioning 8
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 9
Positioning in the market place

2. Over positioning
- Narrow image of the brand
- Trying to widen
- Customer do not accept
- this
Maruti Balenothink Maruti can make
Customers
cars up to 5 lacs
 Not higher end
 Image issue
 Poor sales

Positioning 10
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 11
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 12
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 13
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 14
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 15
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 Mag g i n oodles.
Po sitio nin g 18
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 17
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 18
Positioning in the market place

2. BENEFIT POSITIONING
Positioned as a leader in certain benefit

McDonald’s
Positioned as a family restaurant (QSCV)
Honda
Economy and reliability
BMW
Ultimate driving machine
Volvo
Safety and Durability.

Positioning 19
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 20
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 21
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 22
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 23
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 24
Adding Further Differentiation
Differentiation: products feature
meaningful and valuable
differences that distinguish the
company’s offering from the
competition.

Positioning 25
Adding Further Differentiation

Differentiation criteria:
Important
Distinctive
Superior
Preemptive
Affordable
Profitable
Unique

Positioning 26
Positioning and Differentiation

Performance Conformance

Features Product Design

Differentiation
Form Tools Style

Reliability Durability
Repairability
Positioning 27
Positioning and Differentiation

Services Differentiation Tools

Ordering Customer
ease consulting
Maintenance Customer
and repair training

Installation Delivery

Miscellaneous

Positioning 28
Positioning and Differentiation

Personnel Differentiation Tools

Competence Responsiveness

Credibility Communication

Courtesy Reliability

Positioning 29
Positioning and Differentiation

Channel Differentiation Tools

Coverage
Performance
Expertise
Image Differentiation Tools
Symbols Atmosphere
Media Events
Positioning 30