2.5 Positioning Approaches

What are the main ways to position a product? Brands/products can be positioned in many different ways in the marketplace. However, there are several major categories of positioning approaches, which will help us understand the range of positioning options available. The major positioning categories include: positioning by product attribute (product feature and/or benefit), positioning by user, positioning by product class, positioning versus competition, positioning by use/application, and positioning by quality or value. Main Categories of positioning POSITIONING CATEGORY DESCRIPTION By product attribute A product attribute is a specific feature or benefit of the product. Positioning in this way focuses on one or two of the product’s best features/benefits, relative to the competitive offerings. By user This positioning approach highlights the user (the ideal or representative target consumer) and suggests that the product is the ideal solution for that type of person and may even contribute to their social self-identity. By product class This positioning strategy tends to take a leadership position in the overall market. Statements with the general message of “we are the best in our field” are common. Against competition With this approach the firm would directly compare (or sometimes just imply), a comparison against certain well-known competitors (but not generally not the whole product class as above). By use/application With this approach, the product/brand is positioned in terms of how it is used in the market by consumers, indicating that the product is the best solution for that particular task/use. By quality or value Some firms will position products based on relative high quality, or based on the claim that they represent significant value. By using a combination of the above options Some products/brands are positioned using a combination of the above positioning options. However, care needs to be taken not to clutter and confuse the message by trying to connect with too many competitive advantages.

Which positioning approach to use? One of the key goals of positioning is to be able to enter an existing competitive market, by highlighting some unique features, benefits, and advantages to the end-consumer, with the goal of winning market

share (often from selective demand). With this task in mind, the following table of questions can act as a guide to the selection of an appropriate positioning statement. AREA TO CONSIDER QUESTIONS TO ASK Market gaps Where are their gaps in the target market? Why does the gap exist? Can we fill the gap? Substance/support Do we have the capability to deliver on this positioning promise? Can we really produce high quality products or compete on price? How we will compare to our competition when we get to market? Market need Would this positioning space appeal to the target market? Which features/benefits are of most interest to target market? Competitive barrier Will this be a long-term positioning? How easily could this position be duplicated by our competitors? Profitable What level of sales/profits is likely to flow from this positioning? Can we develop a supportive marketing mix on a cost-effective basis? Communication Is the positioning statement easy to communicate via media? Will it be simply understood by the target market?

Examples of Product Positioning Many firms have a tagline that is designed to support the firm’s/brand’s identity. A review of a tagline may help provide a clear indication of the product/brand’s desired market positioning. But you may need to care take with this approach as some firms use a slogan for a short-term marketing campaign. As an example, the firm might use “great deals over summer” or “now with an improved taste”. These slogans do not indicate the full positioning of the brand/product, which means that interpreting the positioning intentions of the firm by simply reviewing their slogan can be difficult. Regardless, the following table contains some famous taglines (still also referred to as slogans at times), which were designed to create a clear positioning in the minds of the target consumers. TAGLINE/SLOGAN COMPANY POSITIONING DISCUSSION Melts in your mouth, not in your hands M&Ms This slogan clearly establishes the competitive advantage of this candy product. It highlights a single product attribute and communicates a single clear benefit to the consumer. Always

Coca-Cola This seemingly simple slogan, encapsulates the ongoing connection between Coca-Cola and its marketplace. It is a product that has wide consumer appeal, strong loyalty, and is often treated like a ‘friend’ to the consumer. Hence the word ‘always’ reinforces this close consumer/product relationship. When it absolutely, positively, has to be there overnight Federal Express This slogan clearly highlights the efficiency and reliability of the courier and delivery service. Again it is an example of a clear statement that efficiently communicates a distinct positioning. We try harder Avis Rent-a-Car This well-known slogan highlights that their competitive advantage is in the area of superior customer service and creates a clear positioning that the firm will do more to help their customers. Eat fresh Subway In the competitive fast food market, this simple two word slogan stands out by clearly differentiating their offering on the healthiness and the freshness of their menu offering. Choice of a new generation

Pepsi This very effective positioning slogan makes a clear connection to younger people (or young-at-heart) that their product is the preferred cola product for today’s modern, youthful and energetic consumers.

Examples of Positioning by Category TAGLINE/SLOGAN BRAND HOW IS IT POSITIONED? Snap, Crackle, Pop Rice Krispies (or Rice Bubbles) By product attribute Simply highlighting the attribute of noise that this cereal makes, which adds a fun benefit to the product Finger lickin’ good KFC By product attribute Focuses on the enjoyable taste of the product No battery is stronger longer Duracell Batteries By product class and by product attribute Indicates that the battery is the leading product in its product class for durability The un-cola 7-up Against competition and by user Suggests a clear alternative to cola drinks and was designed to appeal to certain attitudes held among the target market Everything is easier on a Mac Apple Computer

Against competition Is targeting IBM style computers, highlighting that the Mac is much simpler and easier to use Once you pop, you can’t stop Pringles By product attribute Highlights that the taste is irresistible Impossible is nothing Adidas By user Taps into the self-identity and motivation of serious sportspeople Don’t leave home without it American Express By use/application States that the product is vital when you are traveling Have it your way Burger King Against competition Highlights the flexibility of their menu choices, implied against McDonald’s offerings A glass and a half in every half pound Cadbury By product attribute Simply focuses on a single ingredient Melts in your mouth, not in your hands M&Ms By product attribute Connects a product feature directly to the benefit it provides

Always Coca-Cola By user Targeted at regular consumers who feel connected to Coke When it absolutely, positively, has to be there overnight Federal Express By product class States that there is no competitive alternative when you want promptness and reliability We try harder Avis Rent-a-Car Against competition Targets the market leader (Hertz), by implying that they are lazy and complacent, particularly in the area of customer service Eat fresh Subway By product class Highlights their fresh menu items, against the range of fast food options available Choice of a new generation Pepsi By user and against competition Tapping into the youth market; this is your drink and clearly targeted against Coca-Cola

Positioning techniques Companies apply various positioning techniques in market so that they are always ahead in competition. Some of the techniques used for positioning are: Perceptual Mapping: When we define Perceptual mapping we say that it is basically a technique to represent what people think about products or services, people or ideas. Technically they are all objects. It is a spatial representation of the perceptions about the brands on the parts of different individuals. If you perceive the brands to be similar then you are getting them closer in the perceptual space, and if you perceive them to be dissimilar then you are putting them apart. In short, I can say that it represents both brands and people. As everyone knows that the environment is turbulent so it changes fast and calls for frequent changes in positioning. At times a company can lose its position due to change in technology, consumer attitudes, competitive activity both in the economy and amongst creative executives. That is the reason why a company should be in touch with the market place, and reposition itself before it suffers in terms of products, image and revenue. Positioning a product to specific segments: Positioning a product to specific segments is the next logical step. Thus positioning involves sacrifice – we have to sacrifice a few segments of the market. We cannot afford to give ‘all things to all people.’ When we are discussing about positioning, we have to decide as to who all are our competitors. Then there is a need to develop a core strategy that runs as a common thread through all pieces of planning. Core strategy basically tells us why customers buy our product and how we shall compete with others. Different segments need different core strategies. Core strategy is broader than USP because it considers both external and internal factors. Communication Process: When we are discussing about planning activity, we consider the offer, which consists of product, services, price and the way it is represented to the customer through a communication message. Communication helps the marketer to builds up image of the product. Image build up is influenced more by the effectiveness of the communication than by the communication budget. Most of the organization creates value through this offer. When we are discussing about the total marketing budget it is spent on advertising, sales promotion, sales management and distribution acts basically to enhance the value created by the offer, and accordingly they delivers the same value to the customer. These are infact marketing support activities. By this they are trying to market the offer in an attractive manner to their marketing intermediaries and customer. All of us know that a product has attributes and features. But these must be related to perceived benefits, preferences and selection. Positioning Map: Now lets us see the discussion on Products or services, which are ‘mapped’ together on a ‘positioning map’. This allows them to be compared and contrasted in relation to each other. This is the main strength of this tool. Marketers decide upon a competitive position, which enables them to distinguish their own products from the offerings of their competition. The marketer would draw out the map and decide upon a label for each axis. They could be price (variable one) and quality (variable two), or Comfort (variable one) and price (variable two). The individual products are then mapped out next to each other Any gaps could be regarded as possible areas for new products.

3.4 Positioning Methods / Positioning Strategies

The following is a list of some established product positioning methods / strategies. 

Against a Competitor: Positioning your product directly against a competitor’s typically requires a specific product superiority claim. A memorable example is Avis Rental Cars’ We’re #2. We try harder.

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Away from a Competitor: Positioning yourself as the opposite of your competitor can help you get attention in a market dominated by some other product. A famous example is 7-UP calling itself the Uncola.

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Benefits: This strategy focuses on a benefit your product provides to your target audience.

Examples include Volvo’s emphasis on safety and Crest toothpaste’s focus on reducing cavities. • Product Attributes: Highlighting a specific attribute of your product can also be compelling. For example, Ritz Carlton hotels focus on luxury; Motel 6 focuses on economy. • Product Categories: Comparing your product to a product in a different category can be an effective way to differentiate yourself. In a soap-comparesitself-to-lotion Example, Palmolive dishwashing liquid claims that it softens you hands while you do the dishes. • Usage Occasions: This kind of positioning stresses when or how your product is used by your target audience. Jeep’s focus on off-road driving is an excellent example. • Users: Focusing on the unique characteristics of specific users can also be effective. The …For Dummies series of instruction books are attractive to people who want to learn about a topic from a source that doesn’t assume any prior knowledge on the reader’s part.

POSITIONING BY PRICE/COST LEADERSIP When it comes to marketing the business, there are three generic strategies you can use: focus, differentiation and cost leadership. This means that you need to minimize your costs and pass the savings on to your customers. WAL-MART Wal-Mart Stores Inc. has been successful using its strategy of everyday low prices to attract customers. The idea of everyday low prices is to offer products at a cheaper rate than competitors on a consistent basis, rather than relying on sales. Wal-Mart is able to achieve this due to its large scale and efficient supply chain. They source products from cheap domestic suppliers and from lowwage foreign markets. This allows the company to sell their items at low prices and to profit off thin margins at a high volume. MCDONALD'S The restaurant industry is known for yielding low margins that can make it difficult to compete with a cost leadership marketing strategy. McDonald's has been extremely successful with this strategy by offering basic fast-food meals at low prices. They are able to keep prices low through a division of labor that allows it to hire and train inexperienced employees rather than trained cooks. It also relies on few managers who typically earn higher wages. These staff savings allow the company to offer its foods for bargain prices.

POSITIONING BY LIFESTYLE Brand position in car-MAZDA MAZDA's Brand Positioning Strategy There are similar products throughout the automotive industry. Mazda considers it vitally important to strengthen its emotional bonds with consumers. In order to create an excellent brand image through strong emotional ties with consumers, Mazda did not initially concentrate on brand strategy schemes, but rather sought to define a brand DNA.

Target customers Mazda's target customers are those individuals who stay young, have a good capability to express themselves, are always passionate and are self-confident in their choices. Mazda's Brand DNA Mazda's brand DNA is divided into two concepts of Personality and Product. In order to gain pathos from the target customers, Mazda tried to create an image where Personality is defined as Stylish, Insightful and Spirited, and to guide Mazda's craftsmanship, Product is defined as Distinctive Design, and Responsive Drive.

POSITIONING BY ATTRIBUTES Brand positioning is designed to develop a sustainable competitive edge on product attributes in the minds of the consumers.

The consumer choice depends upon the attributes of the brand and the utility thus derived.brand attributes also known as core values,represent the essence of the brand. FEW STRONG BRAND ATTRIBUTES: Sustainability: A strong brand makes business competitive.A sustainable brand drives an organization towards innovation and success.Example:Marks and spencer's. Inspirational: A strong brand should transcend/inspire the cateogary it is famous for.Example: NIKE transcendent jersey. Appealing: A strong brand should be attractive. Customers should be attracted by the promise one makes and by the value one delivers. Example:life insurance companies. Sometimes a product can be positioned in terms of two or more attributes simultaneously. The price and quality attribute dimension is commonly used for positioning the products. The product is associated with attributes it possess. Ariel offers a specific benefit of cleaning even the dirtiest of clothes because of the micro cleaning system in the product. Colgate offers benefits of preventing cavity and fresh breath. Promise, Balsara's toothpaste, could break Colgate's stronghold by being the first to claim that it contained clove, which differentiated it from the leader. Nirma offered the benefit of low price over Hindustan Lever's Surf to become a success. Maruti Suzuki offers benefits of maximum fuel efficiency and safety over its competitors. This strategy helped it to get 60% of the Indian automobile market.

POSITIONING BY QUALITY Another way is to communicate a specific image or position for a brand is to associate it with a specific use or application-'Quality It Possess' Surf Excel is positioned as stain remover ' Surf Excel hena!' Clinic All Clear - "Dare to wear Black".

POSITIONING ON THE BASIS OF PRODUCT CLASS Often the competition for a particular product comes from outside the product class. For example, airlines know that while they compete with other airlines, trains and buses are also viable alternatives. Manufacturers of music CD's must compete with the cassettes industry. The product is positioned against others that, while not exactly the same, provide the same class of benefits.

POSITIONING BY COMPETITOR Competitors may be as important to positioning strategy as a firm's own product or services. In today's market, an effective positioning strategy for a product or brand may focus on specific

competitors. This approach is similar to positioning by product class, although in this case the competition is within the same product category. Onida was positioned against the giants in the television industry through this strategy, ONIDA colour TV was launched with the message that all others were clones and only Onida was the leader. "Neighbour's Envy, Owners Pride".

POSITIONING ACCORDING TO THE PRODUCT USER Clinique, for example, has a strong image of being fresh, clean, and pure, with a white-coat clinical approach to skin care and cosmetics. The typical user is perceived to be a young woman with oily skin. The challenge for Clinique is to maintain its current image strengths but to soften the youthful image (to make the brand accessible to mature women) and to reach out beyond the specialized focus on oily, problem skin to a broader audience. For instance, Clinique would like to inject elements of elegance into the line, not to compete with the "elegant" position of competitors but to expand beyond their strong clinical position.

POSITIONING BY OCCASION Recognizing the market potential, Cadbury decided to add the Diwali twist to Celebrations. With the 1999 campaign that surprised families with `Diwali Ki Meethi Shubhkaamnaaye' and the `Har Pal Bane Ek Utsav'campaign in 2000, people were now reveling in the Diwali festivities with a box of Cadbury Celebrations. In 2002, with the tagline `Rishtey Pakne Do' the Rich Dry Fruit Collection was introduced in the market that got families together in festive times. Delving beyond families, the 2004 Celebrations commercials starring Amitabh Bachchan cemented the spirit of friendship with the tagline `Aisi Mithaas Jo Dosti Banaye Khaas'. In 2009, Celebrations took the brand thought deeper into the meaning of Diwali; it was now a symbol of new friendship, spreading happiness, and taking a moment to thank all those who remain unappreciated for most part of the year. Tapping into the festive mood of togetherness, Celebrations started asking people `Iss Diwali Aap Kisse Khush Karenge?'