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  1. Positioning Positioning

  2. Positioning in the market place At the end of this module the learning outcomes are • What is positioning? • What are the pitfalls in positioning? • What are the different positioning strategies that are available? Positioning

  3. Positioning in the market place Suggesting Readings Marketing Management by Philip Kotler, 10th edition chapter 10 . Positioning

  4. 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

  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. Positioning

  6. 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

  7. Perceptual Map Positioning

  8. 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

  9. Developing and Communicating a Positioning Strategy • Positioning: How many ideas to promote? • Unique selling proposition vs Unique value proposition Positioning

  10. Developing and Communicating a Positioning Strategy • Four major positioning errors • Underpositioning • Overpositioning • Confused positioning • Doubtful positioning Positioning

  11. Positioning in the market place What to avoid • 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

  12. Positioning in the market place • 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

  13. Positioning in the market place • 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

  14. Positioning in the market place • 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

  15. 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 • As a dinner item • As a snack item • Targeted at children Positioning

  16. 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

  17. 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

  18. 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

  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? Positioning

  20. Positioning in the market place • 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

  21. 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

  22. 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

  23. 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

  24. 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

  25. 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

  26. 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

  27. Adding Further Differentiation • Differentiation: products feature meaningful and valuable differences that distinguish the company’s offering from the competition. Positioning

  28. Adding Further Differentiation • Differentiation criteria: • Important • Distinctive • Superior • Preemptive • Affordable • Profitable • Unique Positioning

  29. Positioning and Differentiation Performance Conformance Design Features Product Differentiation Tools Form Style Reliability Durability Repairability Positioning

  30. Positioning and Differentiation Services Differentiation Tools Ordering ease Customer consulting Maintenance and repair Customer training Installation Delivery Miscellaneous Positioning

  31. Positioning and Differentiation Personnel Differentiation Tools Competence Responsiveness Credibility Communication Courtesy Reliability Positioning

  32. Coverage Expertise Performance Positioning and Differentiation Channel Differentiation Tools Image Differentiation Tools • Symbols • Media • Atmosphere • Events Positioning