Positioning - Where do u stand ?

Contents Background Definition Positioning & Perception Positioning Concepts Positioning Process Positioning Strategy & Errors Positioning – Excellent examples & Cases

Background STP is the Basis for all Marketing Strategy

Definition Positioning is the act of designing the company’s offering & Image to occupy a distinctive place in the mind of target market Positioning is how your target market defines you in relation to your competitors. The place a product, brand, or group of products occupies in consumers’ minds relative to competing offerings.

Strengthen own current position Grab an unoccupied position De-position Re-position Product ladders Positioning According to Ries and Trout

Differentiation A marketer must believe “You can differentiate anything” Examples Differentiated brands for Water Clothing Lift / Elevator (OTIS) Chicken

Differentiation Variables Product Form, Features, Performance, Conformance Durability, Reliability, Reparability,Style, design Services Ordering ease,Delivery,Installation, Customer training, Customer consulting, Maintenance and repair Personnel Competence, Courtesy,Credibility, Reliability, Responsiveness, Communication Channel Coverage, Expertise, Performance Image Symbols, Media, Atmosphere, Events

Perception The concept of Positioning has two dimensions What the organisation wishes to achieve (how it wants its products to be percieved by consumers). What consumers actually believe about a particular Product or service Successful positioning often involves products and services which possess favourable connotations or perceived positive value. It is the perceived image and attributes of an organization or product/service is important in the battle for the minds of target customers.

Perception-Perceptual Mapping There will typically be a variety of attributes to consider and many of these will relate to image as much as to physical characteristics. Having identified the attributes of products/services that consumers consider to be important, further survey work can be undertaken to identify the extent to which these attributes are present in the available products (both the organization's own products and those of the competition). This is frequently represented on a product positioning map or perceptual map, which visually depicts consumer perceptions and the prioritizes brands in relation to those perceptions.

Rationale behind Perception- Perceptual Mapping Perceptual mapping plots the dimensions of the total product offering which are significant to the customer. The closer the positioning of two brands on the map, the more likely they are to compete. The closer the brand is to the ideal position, the more likely it is to be preferred. Gaps in the market can be identified that represent potential market niches. High Low) High Low Price Average

Process 1.Defining the market in which the product or brand will compete (who the relevant buyers are) 2.Identifying the attributes (also called dimensions) that define the product 'space' 3.Collecting information from a sample of customers about their perceptions of each product on the relevant attributes 4.Determine each product's share of mind 5.Determine each product's current location in the product space 6.Determine the target market's preferred combination of attributes (referred to as an ideal vector) 7.Examine the fit between: I.The position of your product II.The position of the ideal vector 8.Position

Positioning Strategies Positioning in relation to attributes. This involves positioning the product on the basis of very specific attributes such as performance, durability, quality reliability, style and design. Positioning in relation to the user/usage. This can involve positioning the product according to the occasions when it is used. Equally, it may be possible to position the product in relation to specific types of users or specific user lifestyles.

Positioning in relation to competitors. In this case, features which are to some extent directly comparable with those of competitors are emphasized. Three possible approaches include: Positioning directly against competitors This involves presenting the product as having all or more of the important features of the competing product at a comparable or lower price. This is potentially an aggressive and risky positioning strategy, since it involves challenging the competition head-on, but if successful it can offer considerable benefits in terms of improved sales and profits. The effective implementation of such a positioning strategy is dependent on production efficiencies and innovative marketing. Positioning Strategies

Positioning in relation to a different product class This entails positioning products in relation to competing offerings from a different but related product class. The rationale behind this approach to positioning is that it should enable the organisation to attract consumers who might not otherwise have considered purchasing a product of this nature. Positioning Strategies

Under positioning Failing to describe all the features and benefits that the product or business delivers Over positioning Making promises about features and benefits that the product or business does not always deliver. Confused positioning A confused image of the brand resulting from the company making too many claims or changing the brand’s positioning too frequently. Doubtful positioning “hard to believe” for a buyer as what company/brand is claiming as product features Four Major Positioning Errors

Vicks Vaporub A good positioning helps the firm to emerge as the market leader as it is evident from the success story of Vicks Vaporub. In early 1950s Richardson Hindustan Ltd. identified the need for a cold remedy in the market. At that time Amrutanjan was the market leader in the balm market. The company tried to carve out a separate niche and they decided to position it exclusively as a rub for colds. Realizing the fact that children were the prime concern of parents. Vicks Vaporub was positioned as a rub for Childs cold. The product was clearly distinguished from balm was much stronger and hence suitable for adults and being a mild formulation Vicks Vaporub is more suitable for children. In few years Vicks Vaporub became the largest selling brand for cold remedies and the success can be attributed to its proper initial positioning.

Vicks Vaporub 1950, Richardson Hindustan Ltd. Identifies the need for a cold remedy in the market. Market Leader Then – Amrutanjan Instead of taking them head on, they position themselves to address children’s needs. Result – Largest selling brand in the market in a few years