Positioning Positioning

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					Positioning




          Positioning   1
Positioning in the market place

At the end of this module the learning
    outcomes are
1. What is positioning?
2. What are the pitfalls in positioning?
3. What are the different positioning
    strategies that are available?




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Positioning in the market place

Suggesting Readings
Marketing Management by Philip Kotler, 10th
  edition chapter 10 .




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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?



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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.




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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
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Perceptual Map




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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

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




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Developing and Communicating a
Positioning Strategy


     Four major positioning errors
     1.   Underpositioning
     2.   Overpositioning
     3.   Confused positioning
     4.   Doubtful positioning




                     Positioning     10
Positioning in the market place

What to avoid
1. 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
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Positioning in the market place

2. 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
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Positioning in the market place

3. 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




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Positioning in the market place

4.   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’




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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
           1.As a dinner item
           2.As a snack item
         Targeted at children
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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?


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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’

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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
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    success of Maggi noodles.
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?
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Positioning in the market place
 1. 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



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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.


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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.




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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.




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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.




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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




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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’




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




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Adding Further Differentiation

     Differentiation criteria:
       Important
       Distinctive
       Superior
       Preemptive
       Affordable
       Profitable
       Unique


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Positioning and Differentiation


  Performance                       Conformance

   Features          Product          Design
                  Differentiation
     Form              Tools           Style

    Reliability                     Durability
                  Repairability
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Positioning and Differentiation


    Services Differentiation Tools

    Ordering                                     Customer
      ease                                       consulting
       Maintenance                        Customer
        and repair                         training

               Installation           Delivery

                        Miscellaneous

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Positioning and Differentiation


    Personnel Differentiation Tools


        Competence               Responsiveness

     Credibility                      Communication

           Courtesy                 Reliability

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Positioning and Differentiation

       Channel Differentiation Tools
     Coverage
                                Performance
     Expertise


       Image Differentiation Tools
        Symbols                    Atmosphere
        Media                      Events
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