POSITIONING

Presented by:Shruti Kulkarni (PC 18)Arti Dangi (PC 03)Neelam Upadhyay (PA 09 )

Positioning

• Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.

• The place a product occupies in consumers’ minds relative to competing products.

Why Positioning?

• Consumers overloaded with information about the products and services

• To make buying decisions simpler, consumers organize and categorize i.e. Position products and services in their minds.

• A products position is complex set of perceptions, impressions and feelings that consumer have for a product compared with competing products.

Why Positioning?

• Consumers position the products with or without the help from marketers

• But its risky to leave the products positioning to chance…

• Hence, marketers plan position that will give the product the greatest advantage, and design marketing mixes to create these planned positions.

Positioning

To (target segment and need)

our (brand) is a (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.

Effective Positioning

• Meaningful to consumers�• Credible/believable�• Unique to your brand�• Durable over time�

If a company decides to build a position it must deliver that position and maintain it through consistent performance and communication

Right Positioning is Critical

• Make or break the organization

 – launched in 1983– Noodles a new concept in Indian households– Targeted at children– Two options

• As a dinner item  • As a snack item

Maggi Noodles

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?

As a  ‘Snack Item’

• Between lunch and dinner• After playing or exercising• Spend energy• Want to eat something• Quick  preparation  and 

delicious• Variety of flavors• Filing• Will mothers accept this as

a ‘snack Item’

Right positioning was critical for the success of Maggi noodles.  

• Maggi was positioned as the only hygienic home made snack.• Through its ads, NIL positioned Maggi as a 'fun' food for kids which mothers could

prepare easily. – ‘ Mummy, bhookh lagi hai’– ‘ Bas 2-Minute’– ‘ Fast to Cook Good to Eat’ – ‘ Health Bhi, taste Bhi’

The first competition came from the ready-to-eat snack segment, that were usually ‘the bought out’ type. Eg Samosa• “unhealthy” and “uhygienic” option

The other competitor, ‘homemade’ snacks overcame both these problems but had the disadvantage of extended preparation time at home.

Positioning Strategy

•Competitive Advantage

•Point of Difference

•Point of Parity

1.Competitive Advantage

Competitive Advantage can be gained to the extent the company can position itself as “providing superior value” by differentiating along the lines of products, services, people or image

How many differences to promote?• Aggressively promote one benefit to target market.• Companies should develop a Unique Selling Proposition

(USP) for each brand and stick to it.

However, if two or more companies claim to have same USP, then the companies should position themselves on

more than one differentiator attribute

1.Competitive Advantage

Which to promote?

• Important• Distinctive• Superior• Communicable• Pre-emptive• Affordable (to company and consumer)• Profitable

2.Points of Difference

• Points of difference are attributes/ benefits that consumers strongly associate with a brand/product, positively evaluate, and believe that they could not find to the same extent with a competitive brand/product.

• Points of difference are usually in line with the Unique Selling Proposition and are critical in defining the competitive advantage of your products.

Eg. Fast-food chain Subway offers healthier meals than other quick-serve restaurants because its sandwiches have fewer grams of fat

2.Points of Difference

The sources of difference can be

– Product Design– Quality– Additional Services – Image– People (Staff)– Price– Others

3.Points of Parity

• Associations that are not necessarily unique to the brand but may be shared with other brands.

• While POPs may usually not be the reason to choose a brand, their absence can certainly be a reason to drop a brand.

Category point of parity means that the brand offers necessary but not necessarily sufficient category features.

Eg. A bank will not be suitable, for example, unless it offers adequate ATM service.

Competitive point of parity is designed to negate a competitor’s point of difference.

Eg. Lifebuoy soap will establish competitive POP with Dettol soap by claiming that it has germ killing qualities and vice versa.

POD vs. POP

Similar menu choice, similar in-store facilities, similar

pricing

More menu flexibility

Discount offers

Higher quality ingredients

In a Fast-food outlets

Overall Positioning Strategy

• Consumers want product and services that give them greatest value

• Hence, companies should position their brands on key benefits that they offer relative to competing brands.

• The full positioning of a brand is called the brand’s Value Proposition – the full mix of benefits upon which the brand is positioned.

Overall Positioning Strategy

Value Proposition

• Under-positioning:– Not positioning strongly enough.

• Over-positioning:– Giving buyers too narrow a picture

of the product.

• Muddled Positioning:– Leaving buyers with a confused

image of the product.

Positioning Errors

Perceptual Mapping

• Displaying or graphing, in two or more dimensions.

• The location of products, brands , or group of products in customers’ minds.

Perceptual Mapping

• Margo occupies the herbal ‘slot’• Lifebuoy occupies the hygiene slot

Perceptual map

Attribute data Nonattribute data

Similarity Preference

Correspondence analysis

MDSDiscriminant analysis

Factor analysis

Approaches to Create Perceptual Maps

•Identify a set of competing brands

1

•Identify important attributes through Qualitative Research

2

3

•Conduct quantitative marketing research

4 Plot brands on a two dimensional brands

Developing perceptual Maps

4 2Price and Quality

5Competitor 1Attribute 3Use Product User

6Product Class 7Emotion

Positioning Bases

Premium full service airline

Low Cost, no frill players

6 sec

High

HighLow

low

Colgate

Dabur lal powder

Fresh Breath

Good for gums

Perceptual mapping of Toothpaste

Forhan’s regular

Decay Prevention

Minty taste, foaminess

Effective and safe

protection from

mosquito bite

A rub for child’s cold

Cleans dirt

Makes extra white

Robin LiquidDetergent powders

Detergent bars

Perceptual map of washing products

Robin liquid is attempting to distinguish itself from Detergent products on the dimension of ‘extra whiteness’

Mystery Shampoo

“A mystery Shampoo”, 80% of Women say is better than anything else

Medicinal

Low EfficacyHigh Efficacy

Natural

EnoGelusil

Digene

Pudin Hara

Hajmola

Perceptual mapping of Digestive Brands

Does Good

Feels Good

Cinthol

MargoPonds Cold Cream

Lavendar Dew

Moti

Perceptual mapping of Soap Brands

Mysore Sandal Soap

Liril

I

I = Ideal Position

Gentleness

. Tylenol

Effectiveness. Bufferin

. Advil

. Nuprin. Excedrin

. Private-label aspirin

. Bayer

. Anacin

Perceptual Map of Pain Relievers

Case Study of Vicks VapoRub

Balms Vicks VapoRub

Multi-Purpose Colds

Adult Child

Day-time Night

Forehead (colds) Nose, Throat

Specific area of pain Chest and back

Understanding the Indian Environment

REPOSITIONING

Repositioning: company modifies what is already present.

• The market demand changes rapidly and so, repositioning is important.

• The main aim of this is moving something from somewhere towards a greater position at the market.

• Help in saving the failing brand.• Done when the market is “volatile”

Repositioning

• Brand positioning, when obsolete -occurs a need to

Reposition it.

E.g.: Hyundai cars positioning statement 10 years may not work for a

1,00,000 miles warranties “brand”

And 1 yr buy back program

“Value for money”

Positioningis the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization

Re-Positioninginvolves changing the identity of a product, relative to the identity of competing products.

De-Positioning involves attempting to change the identity of competing products, relative to the identity of your own product.

• Brand repositioning done “Proactively”

• Its is an expensive investment.

• Educating the consumers for the new position

Repositioning of brand can be rolled out at

• The following three stages:Introductory stage Elaboration stage Fortification stage

Three types of repositioning strategies

• Zero repositioning

• Gradual repositioning

• Radical repositioning

Reasons for repositioning

Reasons for Repositioning:

Environmentally driven

Consumer driven Competitor driven

Internally driven

Maruti Omni:

From van to spacious car

Bournvita:

From milk additive to nutrition drink

Increase relevance to consumers:

Search for viable position:

Complan:

Fod for the convalescing to “for growing children”

Milkfood yogurt:

Form “at any time snack” to “misthi dohi”

Increasing occasion for use:

Monaco : From salted biscuits to biscuits with toppings

Burnol:

From oinment for burns to 3-in-1 oinment

Odomos: From outdoor to both

Dettol: from antiseptic liquid to multi use liquid

Vicks vapor rub: from child vapor rub to adult vapor rub

Titan watches: from elegance watches to best gift

Falling sales:

Ambassador:

From rational pitch to emotional pitch

Brooke bond’s red label:

Changing the tag lines

Bringing in new customers:

Johnson & Johnson: From baby to adults

Ray-ban:

From men to women

Cadbury’s dairy milk:

From children to adults

Making the brand contemporary:

Dabur chyawanprash:

From good for digestion to nutritional value

Femina magazine:

Repositioned as “ today’s women”

Differentiating the brand from competitors:

Mint-o:

Repositioned the mint “ all mint, no hole”

Changed market condition:

Horlicks:

Energy giver and health provider

Milkmaid:

From whitener for milk to topping for dessert

Brand Repositioning of Cinthol

Inception in 1952— with a unique smell

In 2000- as “family soap” (Tan Tazza, To Man Tazza)

1989 new image of freshness with Cinthol Lime

In 1986 vinod khanna ( I use Cinthol. Do you?) and Imran khan

In 1995, shahrukh khan.. The 3 international variants of cinthol

In 2008- tagline “don’t stop” endorsed by hrithik roshan

Cinthol embarks— “Alive is Awesome”….

• Cinthol repositioned itself again with the help of cricketer Virat Kohli (during IPL season)

•With the tagline “Alive is Awesome”

• Targeted “youth”

•Changed the wrapper from red to bold and abstract colours

•Repositioned the soap along with shower gels, deodrants and talcum powder.

Merits of repositioning:

Value over others

Updated personality

Relevant position

“Up to date” image

Demerits of repositioning:

Loss of focus

Neglecting original customers

Losing credibility of brand

Confusing the brand

References:

• Sengupta Subroto, “ Brand Positioning” strategies for competitive advantage, 2nd edition, TATA MacGraw hills Education Private Limited

• Lamb, Hair, Sharma, McDaniel- “MKTG”, CENGAGE learning.

• Trout Jack – “Repositioning” TATA McGrawhill edition