Positioning

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strategy/
Think about motorcycles and freedom. Does any brand appear in your mind? Is it
Harley Davidson? How about a safest car? For many years this title has been
connected to Volvo. Even after they stopped advertising it.
➢ Positioning is about consumers’ perceptions of a brand like
what consumers think about a brand and how do they remember it.

Suppose you want to have pizza and you think of Domino’s and a local brand of pizza-
these names bring different images to your mind due to different perceptions about
them. It is what you think about a brand? how consumers remember a brand?
Positioning is brand perception in the mind of consumers.

➢ Positioning is – how company wishes its brand to be perceived. It is an act of

designing the company’s offering and communicating it to target consumers such
that its brand occupies a distinct and valuable position in consumers’ mind i.e.,
brand is to be perceived differently and as a better option than its competitors.

➢ Positioning is creation of a customer focused value proposition for a brand which

is different and better than competitors. To persuade consumers to buy,
companies give a benefit/ value relevant enough to make it better choice for
consumers.
➢ Regardless of company’s intent in positioning its brand, consumers determine
the brand’s position by their own perception, which may be same or different to
what a firm wanted to create.
➢ The value proposition needs to be unique and superior in the purchase criteria of
target group and in meeting the need. Purchase criteria can be tangible and
intangible--product features, price, emotional reasons (more trust in Siemen’s
brand then Philips or Luxury car for status symbol, insurance policy for fear).
➢ Brand Positioning is vitally important because positioning is the foundation for
telling your story. You can’t start to tell your story until you define your
positioning. And if you can’t tell your story, you will have a hard time capturing
the minds and the hearts of customers.

Children health drink market-if sellers do not differentiate, it becomes commodity. So,
need for firm’s product to be differentiated from those of competitors. It is done through
Positioning.

➢ Boost-positioned as energy enhancer-tagline-“Secret of my energy”

➢ Horlicks as pleasurable nourishment
➢ Bournvita-‘strength of mind and body”
➢ Complan-“complete planned milk drink”
 ➢ “Positioning is not what you do to a product. Positioning is what you do to the
mind of the prospect. That is, you position the product in the mind of the
prospect.”

➢ Mention of the brand must bring a clear and distinct image in the mind
showing association of brand with positioning benefit.

➢ Close up toothpaste for freshness

➢ Sensodyne for tooth sensitivity
➢ McCain for convenience
➢ Kellogg’s cereal on Nutrition
➢ Savlon-no burning sensation
➢ Patanjali-for Herbal
➢ Volvo for safety

STP--Once you decide on a segment as your target market, usually, you will find some
competition in the target market. When consumers are having many brands to choose
from and are being bombarded with messages
Question arises- “Why should they buy your brand?”
How to differentiate from competing brands and be considered as better choice as
compared to other brands in the market by target consumers. --this is Positioning
Decision
In other words, brand positioning describes how a brand is different from its competitors
and where or how it sits in customers’ minds. What is important to measure in positioning
is not the brand manager’s intent, but the brand positioning’s actual end result—how
consumers remember a brand.
➢ A brand’s position represents its location vis-à-vis its competitors in the mental
maps that consumers construct to represent the range of possible solutions to
their problems.

Mid-size cars of Honda and Hyundai brands occupy different locations in the mind of
consumers. Siemens and Philips MRI machines having different locations in the mind of
customers.

➢ Slogans/taglines are short-term, companies may keep changing them but

positioning of the brand is a long-term strategy and is not changed till there is
significant change in the environment affecting the brand. Positioning is
represented and communicated through elements of marketing mix whereas
taglines are just for communication.
 Taglines may be same as positioning like Tropicana Juice-tagline of the ad-‘Now
the breakfast shall win’ communicates its positioning strategy
Some of the Positions/Unique Selling Propositions (USP) of brands in their product
categories:
FedEx--“When it absolutely, positively has to be there overnight”
Domino’s—fresh, hot pizza delivered to your door within 30 min or it’s free”.
M&M-“chocolate melts in your mouth, not in your hands”
Pamper-“the driest diaper”
Head &Shoulder-“effectively targets the source of dandruff”
Pantene Shampoo- “provides dual benefit of healthy scalp and great-looking hair”

Positioning can be done through any single or combination of marketing mix elements
4Ps and/or company reputation or it can be done on emotional reasons alone or
combination of both emotional and rational reason.
It can be based on
Product attribute-perfume lasts longer or quick cooling of fridge; Distribution-similar
product but one with the facility of home-delivery/ better showroom and customer
service e.g., Nexa showrooms;
Price-by offering product or service at lower price, installment facility, bank loan with
lesser interest rate;
Communication- theme to create perceptual image, company name like Tata or Apple
also influences the perceptions about their brands. Emotional reasons like-status
symbol, hard work and sense of achievement, self-confidence by looking good with use
of cosmetic or wearing an apparel.
Image-Creation of every positioning requires creation of image, but every image
creation is not positioning because- positioning is in relation to competitive brands but
every image may not be related to competitive positioning.
When image is not in reference to competition, it is not positioning. Honda Amaze gives
X mileage is image, Honda Amaze gives best mileage is positioning.
Difference between a value proposition and a brand positioning statement

A value proposition statement focuses on the value that the company offers to the
customer. Meanwhile, the brand positioning statement explains how and when this
value is provided as well as how it does it better than the competition. The core of the
value proposition statement is part of the brand proposition statement.

4 elements of a positioning statement

The four basic elements of the brand positioning statement are the target audience,
product category (frame of reference), differentiation from the competition, and payoff
(benefits). For instance, Knorr soups are quick and healthy solutions (point of
difference) to make children (target market) happy (need) and when they are hungry
before dinner (time) and binge on snacks (product category)

Three sides of Positioning—3Cs (consumer, competition & company)

Creating a brand positioning strategy involves analyzing different aspects of your brand.
This helps you figure out:

➢ Uniqueness--What makes your brand stand out from the competition?

➢ Relevance — What makes your brand relevant to your target market?
➢ Credibility — Why should your target audience trust your brand?

Consumer

Competition Company

Analyze Competition:
(Uniqueness)
What makes your brand stand out from the competition? Differentiation is critical to
successful positioning of the company's product. Knowledge of the competitors’
positioning is imp for deciding on the benefit of brand’s position
Analyze Customer:
(Relevance)
What makes your brand relevant to your target market? The company can't successfully
position the product unless the company knows to answer this basic question: ''what is
the target customer's most pressing problem?".

Analyze Company:
What will make it possible? It's not sufficient to think of an attractive position for the
product. Company’s capabilities and marketing objectives must allow to deliver on the
selected positioning. It may require for a business to manufacture, package and
distribute products and communicate about it according to chosen position.
Consumer Analysis-(Relevance to consumer)
Understanding consumer needs and behavior is essential for choosing the right value
claim for positioning.
• Strong value claims mentioned as Benefits/product attributes must be perceived
as relevant and valuable by customers and must be in their purchase evaluation
criteria.
• Attribute/ Benefit must be unique in comparison to benefits being offered by
competing brands
• Claims/Benefits can be- tangible or intangible, wall paint-easy to clean -tangible,
Coca-Cola for happiness-intangible, luxury brands emphasize on
intangible/emotional benefits
• Claims/benefits may be expressed as rational or emotional or both
• Brands may be different on one or more attributes, but Positioning should be on
one important benefit
• Consumers may be implicit or explicit in expressing their needs. Identification of
relevant benefit for positioning can be done through market research on
consumers’ insights as the consumers may not be explicit in conveying the
benefits that they may like to have in the product.
• Positioning concept must come from consumers’ mind (outside in) and not from
imagination of marketers or product (inside out). e.g., Is consumer seeking
fairness or wants faster cooling or relief from both headache and after headache
dullness or wants cell phone to match with lifestyle and to convey about the
social-status or benefit of digital reading in thermometer

Finally, strong value claims should be believable. Many positioning statements use
exaggeration or other kinds of overstatement that makes their claims less believable.

Provide supporting evidence for the product’s value/position-It can come from-- logical
arguments, technological data, consumer testimonials, celebrity or expert
endorsements, product demonstrations, and seals of approval from independent agency
-Agmark seal on spices, Hallmark on jewelry.
Sometimes emotional evidence is more effective than scientific evidence. Nobody wants
to hear that a perfume is a complex concoction of extracts, but its emotional value.

Types of Value/USP consumers may be interested in

4 types-economic, functional, experiential, social
Economic- tangible monetary savings either at purchase or over their long- term use
offer consumers Printer
Functional-comparing different features of the product comparing on price and features-
e.g., for laptops
Emotional -- intangible psychological and emotional benefits associated with the brand
Coca-Cola, LIC
Social- Facebook’s value comes from sharing information, pictures, and videos with
friends.
2 Types of positioning
(a)Physical Attributes
Physical Attributes positioning-based on easily defined objective features or measurable
characteristics of the product or service. 30 minutes delivery of pizza, features of cars,
services of a hospital, kinds of technology of machines in hospital, home collection of
samples by a path lab, online booking of appointments, follow-up reminders, payment in
installments, Objective dimensions of computers like Computer Memory (RAM), Wi-Fi
Ability (wireless network card), Warranty, Size/Weight, Operating System-functional
benefits
Physical positioning is important but how is it going to be mentally processed and
perceived by the consumers is also important. Perception of German or Japanese cars
to be better even if the other car has similar attributes. Low price may be perceived as
low quality.
(b)Perceptual benefits
Perceptual Positioning-perceived image of the brand for its emotional, social benefits in
the mind of consumers in relation to competing brands.
Perceptual positioning helps to differentiate when the products are similar in attributes,
like Coca-Cola and Pepsi, two similar kinds of hospitals, two 5-star hotels.
https://youtu.be/lqT_dPApj9U Coca-Cola Happiness Ad
Perceptual positioning is also useful when consumers are unable or unwilling to
differentiate products completely based on technical features.
For example, consumers may not be able to evaluate all technical aspects of brands of
ACs, so company/brand image is also included in the comparison.
Positioning on Perceptual benefit/Emotional Factor
Nike's ‘Just Do It’
https://www.youtube.com/watch?v=nQWMLWoGEOw

Competitive Analysis-(Uniqueness)
Why would someone choose your products or services over similar ones in the market?
Competitive analysis help identify their weaknesses--you can capitalize on some of
these, or identify new strong points that can make your brand unique. This will form the
foundation of your brand positioning statement.
Analyze competitive scenario, who and how many competitors are there, and kind of
positions taken by them. One of the essential elements of strong brand positioning is
being distinctive. Analyze positions (benefits) already taken up by competitors, for
example-positions taken by different toothpaste, shampoos, stethoscopes, dental chair
brands. Also analyze how cluttered the market is with existing brands. With competitive
analysis, marketers can zero in on particular value claims of the product or service that
are distinctive, defensible and durable vis-a-vis competition.
For example, Sensodyne offered a distinct benefit/value claim/USP as ‘toothpaste for
sensitive teeth” to its consumers and this was a relevant position for consumers
suffering from sensitive teeth and not being offered by existing competitive brands. It
was made believable to consumers by showing doctor’s recommendation and a typical
customer feeling relived with its usage. This position is for long-term, so it is durable.

Competition in the selected target market- Competitors can be direct or indirect.

Direct competition is with reference to competing brands within same product category.
Like Google vs Yahoo, Samsung vs Apple cell phones, Sony TV vs LG TV, Accu chek
vs One touch glucometers, Coca-Cola vs Pepsi, Real vs Tropicana juice.
Indirect competitors are with reference to other product categories. For example, Knorr
soup positioned as a healthy snack item instead of being considered as soup is based
on identification of opportunity in healthy snack category-it is positioning on indirect
competition.
Analysis of direct and indirect competition helps identify opportunities for positioning.
The market selected for the brand (other competitors) is its Frame of Reference

Products and services generally contain two types of attributes that can be transformed
into value claims and leveraged for brand positioning: unique attributes- that only one
competitor has and common attributes- which are same as with those of competitors.
• Points of parity (POP) are those product or brand attributes, benefits, or values
that are common across competitors. In any product or service category, there
are certain features that all competitors offer. These often represent “must-
haves”—features that consumer demand before they are willing to consider a
product or service for purchase. For example, all automobiles must pass
minimum safety guidelines, all laptops must offer portability.
• Points of difference (POD) are the differentiating points of each brand from its
competitors. Two types of strategies allow managers to leverage their product or
service’s points of difference
• (i) stresses a particular brand’s superior performance on those attributes, using
words such as smaller, faster, and cheaper, network provides better coverage
than those of its competitors, its Internet connection speeds are the fastest, that
its hotels’ beds are softer and more comfortable than those of its competitors.
• (ii) adding new attributes, benefits, or values to attract customers. For example,
Kellogg added the benefit of nutrition to its cereal or Good Knight has been
adding new features to its machine.
Create a list of your competitors and conduct an analysis. What are the similarities? Is
there something unique you can offer that they don’t?
Market Research may be done for in-depth analysis into consumers’ insights to find if
consumers are less satisfied with the benefits of existing brands or if there is any new
benefit desired by them and can be in their purchase criteria.
Two important aspects to be considered for positioning
1. Attributes and benefits-For buying decision, consumers use evaluative criteria of
attributes and benefits and give different importance to different benefits. But if several
firms use the same important dimensions, positioning on the same imp attributes will not
create a distinct image. If fuel efficiency of car is important and being used by number of
other brands, you may provide fuel efficiency but positioning on fuel efficiency will not
create a distinct image. You need to find another benefit to position the brand.
2. Check how cluttered the market is with existing brands and their positions on various
attributes. Depending upon this assessment-Take the decision whether to
compete/position in the same product category with similar benefit as one more “me
too” brand or as a brand with new benefit or as a brand in the different product category.
For example, Coaching classes market is cluttered with too many brands with similar
positioning of offering the same benefit for getting good class result or for getting
admission.
Whereas, Tropicana instead of competing in juice category, decided to compete as
breakfast item by communicating ‘Breakfast shall win”, competes with other items
consumed for breakfast and not with other competing juice brands.
Search for gaps for benefits that can be offered and is useful to consumers.

➢ Two Approaches to Product Positioning with respect to competitors:

➢ Head-to-head positioning (competing on same benefit as competitors)
➢ Differentiation (competing with different and unique benefit)

The company may decide on anyone of the options depending on how keen the
competition is in the market. There was only Clinic shampoo in the market positioned as
Anti-dandruff. Head and Shoulder shampoo was made to take the head-to-head
position as another anti dandruff shampoo. When there are too many competitors
offering same benefit, it may be better to use Differentiating benefit for positioning.
Some of the examples of distinct and valuable positions after analysis of consumer
needs and competitors’ brands
Eno-In 30 seconds, non-sticky hail oil, fairness cream with perception of glow, cough
syrup with perception of being non-drowsy.

Company analysis
Managers should assess the company’s capability to deliver on its desired positioning,
feasibility of various positioning statements to determine which ones the company can
actually deliver against in its everyday practices. Every marketing decision across the 4
Ps must support and reinforce the selected position, from product strategy to pricing
strategy, to place (distribution strategy), to promotion strategy. At every customer touch
point and during every customer interaction, the positioning statement must be
consistently and reliably delivered.
A company known for luxury brands may not find it relevant to have USP to get large
market share of the segment. It may hurt company’s image and large number of
consumers do not buy luxury brands. It is a niche market.
Assessing the profitability differences between various positions allows managers to
see their differential value to the company and to choose the one that is most favorable.

Perceptual Mapping

Perceptual mapping is graphical representation of positions of different brands in a

product category. It shows-How consumers perceive different brands of a product
category based on selective attributes.

Usually, it’s a two-dimensional graph with two intersecting horizontal and vertical lines
on X and Y axes creating four quadrants. Perceptual mapping can be can be multi-
dimensional. The end of each intersecting line represents an attribute of a high and low
value. X and Y axis represent important attributes of purchase criteria of target
consumers.

i) Identify the important dimensions of purchase criteria for your product

category (various attributes including price) and use them as different
 dimensions X and Y of Perceptual Map/ Brand. It can be done with perceptual
mapping of various brands on the dimensions, which are in the purchase
criteria.
ii) Find out consumers’ perceptions about different existing brands on each of
these dimensions. (Consumers are asked to compare and contrast competing
brands across a set of attributes)
iii) Plot the brands according to consumers’ perceptions on the map.
iv) When the dimensions are more than two, it is done with the help of software.
v) Once you identify the two dimensions you wish to assess in the map, you plot
various competing brands on the map based on customer perceptions about
brands on the selected dimensions. The results of plotting brands on the map
reveal if there is a space not taken by any brand on the graph, which could be
an opportunity for positioning your brand or where too many brands are sitting
close by on the map indicating keen competitive situation. Positions of brands
on the map show spatial differences among brands.
vi) Perceptual map of the watch industry can be built by asking consumers to
describe a series of watch brands on two continuums: from functional to
fashion and from affordable to luxury.

Examples of X and Y dimensions:

• Price vs quality
Price vs functionality
any two important parameters of purchase decision

Examples of Multidimensional dimensions:

• Shoes: Comfort, design, style, quality, functionality

• Instant coffee: flavor, country of origin, quality
• Breakfast cereal: health values, sugar, fun/boring, variety, taste
• Holidays: temperature, travel distance, value, cultural offerings, safety.
• Consultancy: expertise, availability, past results

This map gives a visual representation of various competitors. From this map, you will
be able to identify gaps in the market, less cluttered and heavily cluttered zones of
positions taken up by various brands. Such representation of market will help you take
decision on position for your new brand.
For your existing brand, looking at these maps also allows managers to understand how
crowded their own section is, which indicates how fiercely they will need to compete for
consumers’ attention. Finally, it enables managers to understand how close or far away
competitors’ positions are and identify which rivals may encroach on their territory.
Given below are some examples of perceptual maps
Perceptual Map of Organic food retailers and online selling
Walmart and Sobeys are retailers, Lions market-farmers market, rest are online sellers

Positioning Statement Example of a product positioning using

Prime Hydration, a beverage company
Busy, active people who are looking for a
To (target market)
tasty energy drink
We are the brand Sports drinks where function meets with
of (product category) great flavours
That provide
Hydration drink that can fuel any lifestyle,
(description of your
tastes good, and be consumed regularly
product or service)
So that you feel
(emotional benefit or Refresh, replenish, and refuel
promise)
That’s because unlike Conventional sport and energy drinks that
(competitor) have strong, sweet flavours
– Zero-added sugar and does not contain
We have/are/do any caffeine
(value proposition and – Naturally flavoured beverage with 10%
reasons to believe ) coconut water

– Contains BCCA for muscle recovery

EXTRA

Positioning strategies- options could be found by looking at:

Who am I, what am I, for whom am I, why me—can reveal possible ways of
positioning?
Who am I? -linked to which company
Positioning by Corporate Identity-associating brand with company name to gain from
corporate brand equity. Apple, Whirlpool-“You and Whirlpool-the world’s best
homemakers”, Tata salt OR using corporate brand as endorsement giving support to
brand. Cadbury signature or Nestle monogram above Kit Kat or verbally by mentioning
watch y from Seiko, perfume x by Calvin Klein
What am I? --Using brand’s functional capabilities for positioning-category positioning,
usage positioning, usage occasion positioning, price-quality positioning
Category positioning- when the existing product category is overcrowded, Cycle brand
instead of positioning itself in the cycle category can cross over to health category.
Rolex does not compete in watch category and seeks to compete in investment
category.
Usage occasion-time of use positioning linking the brand with specific time. After bath
lotion, night cream, location for weekend getaway
Price-quality positioning-choosing a distinct position on price quality spectrum.
Economy position-low price-low quality- Nirma, Breeze, Big bazaar-sasta and acha
Premium position-high price-high quality-Surf excel, Montblanc pens, Luis Vuitton
Popular position-mid price and mid quality-Aristocrat luggage, mid-range models of
mobile phones
For Whom Am I? -linking with specific consumer group
Demographic group- Zandu Kesari Jeevan for older people, Complan for growing
children, multi-vitamins for men or women, for the age above 50 yrs
Psychographic group-Pepsi as-for new generation,
Behavioral group- Vim bar to wash large number of utensils-large family, restaurants
Why Me?
Attribute positioning- Dove for after bath dryness due to cream in it, Limca for quenching
thirst because it contains isotonic salts, Colgate active salt toothpaste for salt to clean
teeth.
Price-Quality Positioning-luxury brands, economy brands and popular mid-range brands
of Jeans, pens, cosmetics, detergent, eye- glasses
Use or Application Positioning-use it is put to. Maggi for quick cooking, Titan promoted
watches as Gifts, Vicks VapoRub for fast relief
User Positioning-Johnson & Johnson products, Creative line sweaters for women, Amul
lean milk for weight watchers
Product class Positioning-Nescafe positioned as an instant coffee, Bru as filter coffee,
Perk as quick snack
Positioning with respect to competitors-making direct or indirect reference to
competition-best soap in herbal category, Surf better than cheap powder (Nirma)

Coordination of all marketing mix elements is important for positioning. Positioning

statement usually mentions-
Who- Target consumer (demographic and or psychographic)
When the brand is to be considered for use-depends on category associations
Why should the brand be considered over its alternatives (points of difference)
How will it help the consumer in meeting the need?
For instance, Knorr soups are quick and healthy solutions (point of difference) to make
children (target market) happy (need) and when they are hungry before dinner (time)
and binge on snacks (product category)