POSITIONING.pdf

Positioning

1. POSITIONING
By:
Ashutosh Shukla

2. Introduction
Positioning is the perception of a brand or product it brings about in
the mind of a target consumer and reflects the essence of that brand or
product in terms of its functional and nonfunctional benefits as judged
by the consumer.
For example,
Nestle’s Maggi noodles has been successfully positioned as the “two
minute” noodle in the minds of target consumers and has created a
distinctive brand image. HUL’s soap Luxis the “beauty soap” of film
stars and Dettolis the antiseptic for minor nicks and cuts. BMWcar is
positioned as the “ultimate driving machine”.

3. Definitions
Positioning is the act of designing the company’s offering and image to
occupy a distinctive place in the target market’s mind.
-Philip Kotler
Positioning starts with a product, a piece of merchandise, a service, a
company, an institution, or even a person but positioning is not what you do
to a product. Positioning is what you do to the mind of the prospect.
-Riesand Trout

4. Importance/ Functions/ Role of Positioning
•To create a distinctive place of a product or service in the mind of potential
customers.
•To provide a competitive edge to the product i.e. an attempt to convey the
attractiveness of the product
•Helps to place intangible services within a more tangible frame of reference
•Helps to influence both service development and the redesign of existing services
•To consider the possible moves of the competitor and develop responses for
appropriate action
•To give the target market a reason to purchase the product and designing the
whole strategy.
•To provide guidelines for the development of marketing mix where each element
is consistent with the positioning starategy.

5. Positioning Strategies
•Attribute/ Feature/ Benefit Positioning: It involves positioning with
the help of the attributes, features or benefits that a brand has to
offer better than its competitors.
For example, Medimixsoap which is positioned as made from 24
different herbal ingredients.
•Positioning by Price Value: ‘Value for money’ can be used effectively
for positioning the product. This approach is not widely used in
international markets though since customers associate low price to
low value.
For example, Jio WifiDongle or Maruti Suzuki India Ltd. positions
itself delivering true value for your money.

6. •Positioning by Use or Application: The service product is here positioned
on the basis of the reason of its use. For example, a hotel may position
itself to the corporate world as a place most suitable for organizing
Business Meetings. It may promise to offer a one stop solution to all the
needs of a corporate meeting, with personalized attention to services.
•Positioning According to Class of Users: This relates and is done to those
segments of the consumers that use a particular service offering. For
example, an airlines may target the customers of Executive class, Economy
class, Frequent fliers and the tourists; and thus position its services
accordingly.
•Positioning with Respect to Product Class: This type of positioning can be
based on functional benefits as well as the emotional benefits of using a
product. It associates the offerings with experiences that are unique to the
customer. For example, positioning of Neutrogena, which is positioned as a
beauty bar, instead of positioning it as a soap. Dove also positions itself as
a moisturizing bar, and not as a soap.

7. •Category Positioning: This is done by making a product jump over from the
category that it actually belongs to and positioning it in a different product
category. For example, instead of positioning itself as a communication
device, Asus Rog Phone positions itself as a gaming device. Likewise, a
cycle brand may position itself as a health and fitness brand, instead of a
cycle brand.
•Positioning Against Competition:This type of positioning involves
distinguishing the product from the competition by directly positioning it
against the leading brand. For example 7UPpositioned itself claiming “the
un-cola drink”. Likewise, Spritepositioned itself claiming “Sprite bujhaye
only pyaas, baakisab bakwas”.
•Corporate Identity Positioning: Here the product brand tries to draw a
direct connection with the corporate identity and seeks to get benefited
from its identity. For example: The product labels of all ITC Products
mention “A quality product from ITC” or Tanishkproclaiming in its ad,
“Tanishk–A Tata product”.

8. •Brand Endorsement Positioning: This strategy does not make use of
the corporate identity but here, a successful brand is used to endorse
the new entry. For example, Maruti used the brand name of Alto to
introduce Alto 800 into the automobile market.
•Celebrity Endorsement Positioning: This approach makes the use of
popular celebrities from the fields like cinema, television and sports
etc who endorse the brand of the company.

9. Product Differentiation
•Product differentiation refers to the strategy used by businesses to
highlight the unique features and benefits of its product or service to
separate it from competitors.
•Also known as a differentiation strategy, product differentiation is a
method for companies to make their products stand out and grab the
attention of consumers. This helps the company develop a strong
brand that potential customers will recognize. And it increases the
likelihood they'll pick your product over a generic or un-differentiated
product or service.
•Product differentiation can be done in the form of various aspects
that include:

10. Major Aspects for Product Differentiation
•Form and shape
•Features
•Performance Quality
•Conformance Quality
•Price
•Durability
•Reliability
•Repairability
•Design
•After sales support

11. Errors/ Risks in Positioning
•Focusing merely upon the obvious aspects of the product features
•Tendency of living in the future instead of present
•Under Positioning
•Over Positioning
•Confused Positioning
•Doubtful Positioning
•Positioning on the Wrong Attributes