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Positioning Strategies

The document discusses various concepts related to positioning and differentiation of products and brands. It defines positioning as designing a company's offering and image to occupy a distinctive place in the minds of the target market. Differentiation refers to how companies manufacture products differently from competitors. The document also discusses points of parity and difference, positioning strategies, emotional vs features/benefits positioning, line extensions, brand repositioning, and more.

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Sarvesh Maheshwari
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260 views19 pages

Positioning Strategies

The document discusses various concepts related to positioning and differentiation of products and brands. It defines positioning as designing a company's offering and image to occupy a distinctive place in the minds of the target market. Differentiation refers to how companies manufacture products differently from competitors. The document also discusses points of parity and difference, positioning strategies, emotional vs features/benefits positioning, line extensions, brand repositioning, and more.

Uploaded by

Sarvesh Maheshwari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Positioning & Differentiation

Differentiation is the process by which companies

manufacture and design products in a way that is


different from the products of other companies.
Positioning is less about what we do to the product

and more about what we do to the consumers'


perception of the product.

Positioning & Differentiation


Al Ries and Jack Trout: "The basic approach of positioning is

not to create something new and different. But to manipulate


what's already up there in the customer's mind and to retie the
connections already existing.
Rosser Reeves defines Positioning as - "Positioning is the art

of selecting, out of a number of unique selling propositions,


the one which will get you maximum sales".
Nestle positioned Maggi Noodles as a quick nutrient food for
school going children, instead of adults. Thus Nestl avoided
competing with any form of traditional breakfast and created
a separate category which competes with itself.

Product Identification
Positioning
Act of designing the companys offering and image to occupy a
distinctive place in the minds of the target market to maximize
the potential benefits to the firm.
Positioning requires the similarities and differences between
brands to be defined and communicated.
Positioning requires determining a frame of reference by
understanding the target market, competition and the ideal
POPs and PODs.
Successful positioning results into a customer-focused
value proposition(USP)

Brand & Product Positioning


Product positioning describes the characteristics of

the physical product and its functional features.


Brand positioning describes the brand's perceived

attributes in relation to competing products.


Brand: A customer's expectation from a name.
Product: A good, service or idea.
Positioning: A place in the mind of your prospect.

POPs and PODs


Points of Difference(PODs)
These are attributes associated to a brand by the
consumers and are not available to the same extent
with a competitor brand
Points of Parity(POPs)
These are associations made by the consumer which
are shared with the other brands also.

PODs (Dettol vs Savlon)


Antiseptic market is dominated by Dettol, a flagship
brand of RCI Ltd.
Savlon countered the category perception by
focusing on the no-sting property as major POD

Positioning Strategy
Marketer tries to launch a new product which may

be an unmet need of customers or a innovation that


creates a need with first mover advantage in a
different way to meet changing needs and create a
niche market
Marketer develops a certain need and pushes the

innovated product to justify that need. Its necessary


to communicate the product's usage

Positioning Strategy

Benefits:
Only brand recommended by IMA, cleans tough stains
Kills 99.9% germs in less than 60 seconds
Pleasant fragrance - Citrus, Floral, Pine & Jasmine

Cross-country positioning
International brands adopt different positioning

strategies for different regions. Some brands adopt


same strategy everywhere
Utility of a product varies from country to country
and expectations from product also varies

Market leader strategy


Market leader may face stiff competition from

competitors or enjoy a commanding share


To retain market leadership, the best method is to
counterattack the competitor. Competitor never
gets a chance to settle down

Idea Marketing
Social welfare campaigns, environmental protection

ads, pollution control ads, save water and save wild


life ads, etc., are some examples of idea marketing
Tata Tea ad campaign -"Har subah sirf utho mat.
Jaago re!

Features/Benefits positioning
Feature becomes important to customers only when

they look for a special benefit to meet a certain need


Marketer has to select the attributes which can
occupy a position in the customer's mind
TV ad for Pepsodent toothpaste

Emotional Positioning
Some consumers respond positively to emotionally

-charged advertisements
Rasna was in the number two position in noncarbonated drinks category after Rooh Afza
Rasna effectively communicated to show a child with
the tag line "I love you, Rasna

Damage control strategy


FDA received complaints about worms in

Cadbury's Dairy Milk chocolates and the message


was spread by the media
Cadbury realised knew that no advertisement
would help, therefore, discontinued all ads
Set up a media desk to ensure that every query
related to worms issue was answered

Damage control strategy


Consistently conveyed 3 things to customers
Infestation was a storage-linked problem
Significant packaging changes were initiated to

avoid such storage problems


Cadbury's reached out nationally through a press
ad, `Facts about Cadbury' which was released in 55
publications in 11 languages
Any damage control exercise requires the company
to own up its mistakes and defend every issue raised
by the media or other sources

Heritage Positioning
Brands with a rich heritage can use their legacy to

generate a strong emotional connection in the


customer's mind
No need to delineate the product features in the ad
Brand itself contains an image of what it stands for
When trust factor influences Consumer buying
behavior, heritage positioning is the best option
Indian customers blindly purchase products
manufactured by Tata or Birla.

Line Extension Positioning


Its a low-risk and low-cost option. Brands can provide a variety

of products to heterogeneous customer groups in a profitable


way
Marketers can add new products for the latest need. Companies

can stretch their product line upward when


enter a higher segment and vice versa
Line extension can be effective
when one is targeting a different
demographic segment like Age
J & J has entered the adult market

they wish to

Brand Repositioning
Repositioning is often done when an existing

positioning strategy doesn't work


To increase the brand share, bring new customers,
change of need and utility, cope with changing
market conditions etc.

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