2. Positioning 2
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?
4. Positioning 4
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 in the market place
5. Positioning 5
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.
6. Positioning 6
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 in the market place
8. Positioning 8
Positioning
- How do you differentiate your product
from competitors
- Differentiation, which is
• Important
• Distinctive
• Superior
• Not easily copied or Unique.
• Affordable
• Profitable
Positioning in the market place
9. Positioning 9
Positioning: How many ideas to
promote?
Unique selling proposition vs Unique
value proposition
Developing and Communicating a
Positioning Strategy
10. Positioning 10
Four major positioning errors
1. Underpositioning
2. Overpositioning
3. Confused positioning
4. Doubtful positioning
Developing and Communicating a
Positioning Strategy
11. Positioning 11
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 in the market place
12. Positioning 12
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 in the market place
13. Positioning 13
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 in the market place
14. Positioning 14
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’
15. Positioning 15
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 in the market place
16. Positioning 16
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 in the market place
17. Positioning 17
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 in the market place
18. Positioning 18
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 in the market place
19. Positioning 19
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?
20. Positioning 20
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 in the market place
21. Positioning 21
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 in the market place
22. Positioning 22
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 in the market place
23. Positioning 23
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 in the market place
24. Positioning 24
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 in the market place
25. Positioning 25
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 in the market place
26. Positioning 26
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 in the market place
27. Positioning 27
Adding Further Differentiation
Differentiation: products feature
meaningful and valuable
differences that distinguish the
company’s offering from the
competition.
28. Positioning 28
Adding Further Differentiation
Differentiation criteria:
Important
Distinctive
Superior
Preemptive
Affordable
Profitable
Unique
29. Positioning 29
Positioning and Differentiation
Form
Repairability
Performance
Style
Features
Reliability
Design
Durability
Conformance
ProductProduct
DifferentiationDifferentiation
ToolsTools
30. Positioning 30
Positioning and Differentiation
Miscellaneous
Services Differentiation Tools
Installation
Maintenance
and repair
Ordering
ease
Delivery
Customer
training
Customer
consulting
