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Positioning & Differentiation Differentiation is the process
by which companies manufacture and design products in a way that is
different from the products of other companies.
Positioning is less about what we do to the product and more
about what we do to the consumers' perception of the product.
Positioning & Differentiation Al Ries and Jack Trout: "The
basic approach of positioning is not to create something new and
different. But to manipulate what's already up there in the
customer's mind and to retie the connections already existing.
Rosser Reeves defines Positioning as - "Positioning is the art
of selecting, out of a number of unique selling propositions, the
one which will get you maximum sales".
Nestle positioned Maggi Noodles as a quick nutrient food for
school going children, instead of adults. Thus Nestl avoided
competing with any form of traditional breakfast and created a
separate category which competes with itself.
Product IdentificationPositioning Act of designing the companys
offering and image to occupy a distinctive place in the minds of
the target market to maximize the potential benefits to the
firm.Positioning requires the similarities and differences between
brands to be defined and communicated.Positioning requires
determining a frame of reference by understanding the target
market, competition and the ideal POPs and PODs.
Successful positioning results into a customer-focused value
proposition(USP)Brand & Product Positioning Product positioning
describes the characteristics of the physical product and its
functional features.
Brand positioning describes the brand's perceived attributes in
relation to competing products.
Brand: A customer's expectation from a name. Product: A good,
service or idea. Positioning: A place in the mind of your
prospect.
POPs and PODsPoints of Difference(PODs) These are attributes
associated to a brand by the consumers and are not available to the
same extent with a competitor brand
Points of Parity(POPs)These are associations made by the
consumer which are shared with the other brands also.
PODs (Dettol vs Savlon) Antiseptic market is dominated by
Dettol, a flagship brand of RCI Ltd.
Savlon countered the category perception by focusing on the
no-sting property as major POD
Positioning Strategy Marketer tries to launch a new product
which may be an unmet need of customers or a innovation that
creates a need with first mover advantage in a different way to
meet changing needs and create a niche market
Marketer develops a certain need and pushes the innovated
product to justify that need. Its necessary to communicate the
product's usagePositioning Strategy
Benefits: Only brand recommended by IMA, cleans tough stains
Kills 99.9% germs in less than 60 seconds Pleasant fragrance -
Citrus, Floral, Pine & Jasmine
Cross-country positioningInternational brands adopt different
positioning strategies for different regions. Some brands adopt
same strategy everywhere Utility of a product varies from country
to country and expectations from product also varies
Market leader strategyMarket leader may face stiff competition
from competitors or enjoy a commanding shareTo retain market
leadership, the best method is to counterattack the competitor.
Competitor never gets a chance to settle down
Idea MarketingSocial welfare campaigns, environmental protection
ads, pollution control ads, save water and save wild life ads,
etc., are some examples of idea marketing
Tata Tea ad campaign -"Har subah sirf utho mat. Jaago re!
Features/Benefits positioningFeature becomes important to
customers only when they look for a special benefit to meet a
certain need Marketer has to select the attributes which can occupy
a position in the customer's mind TV ad for Pepsodent
toothpaste
Emotional PositioningSome consumers respond positively to
emotionally -charged advertisements Rasna was in the number two
position in non-carbonated drinks category after Rooh Afza Rasna
effectively communicated to show a child with the tag line "I love
you, Rasna
Damage control strategy FDA received complaints about worms in
Cadbury's Dairy Milk chocolates and the message was spread by the
mediaCadbury realised knew that no advertisement would help,
therefore, discontinued all ads Set up a media desk to ensure that
every query related to worms issue was answered
Damage control strategy Consistently conveyed 3 things to
customers Infestation was a storage-linked problem Significant
packaging changes were initiated to avoid such storage
problemsCadbury's reached out nationally through a press ad, `Facts
about Cadbury' which was released in 55 publications in 11
languages
Any damage control exercise requires the company to own up its
mistakes and defend every issue raised by the media or other
sourcesHeritage PositioningBrands with a rich heritage can use
their legacy to generate a strong emotional connection in the
customer's mindNo need to delineate the product features in the ad
Brand itself contains an image of what it stands for When trust
factor influences Consumer buying behavior, heritage positioning is
the best option Indian customers blindly purchase products
manufactured by Tata or Birla.Line Extension Positioning Its a
low-risk and low-cost option. Brands can provide a variety of
products to heterogeneous customer groups in a profitable way
Marketers can add new products for the latest need. Companies
can stretch their product line upward when they wish to enter a
higher segment and vice versa
Line extension can be effective when one is targeting a
different demographic segment like Age J & J has entered the
adult market
Brand Repositioning Repositioning is often done when an existing
positioning strategy doesn't workTo increase the brand share, bring
new customers, change of need and utility, cope with changing
market conditions etc.