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How can we position our product.........?

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  2. 2. <ul><li>PRODUCT POSITIONING </li></ul><ul><li>“ POSITIONING IS THE ACT OF DESIGING THE COMPANY’S OFFERS AND IMAGE SO THAT IT OCCUPIES A DISTINCT AND VALUATE PLACE IN THE TARGET CUSTOMERS MIND ” </li></ul><ul><li>APPROACHES To Positioning: </li></ul><ul><li>1.Focusing on the consumer </li></ul><ul><li>2.Focusing on the competitors </li></ul><ul><li>ELEMENTS OF POSITIONING </li></ul><ul><li>The Product </li></ul><ul><li>The Company </li></ul><ul><li>The Competition </li></ul><ul><li>The consumer </li></ul><ul><li>DIFFERENTIATING THE PRODUCT </li></ul><ul><li>1.Better offering:- </li></ul><ul><li>( It means that company’s offer out performs its rivals. It usually involves improving an existing product in a minor way) </li></ul>
  3. 3. <ul><li>2 . Newer Offering:- (It means developing a solution that did not exist before. This usually involves higher risk than a simple improvement but also the chance of a higher than) </li></ul><ul><li>3 . Faster Offering:- (faster offering means reducing the performance or delivery time involved in using or buying a product or service.) </li></ul><ul><li>4 . Cheaper Offering:- </li></ul><ul><li>( That means getting a similar product for less) </li></ul><ul><li>Three basic strategies that lead successful differentiation & market leadership </li></ul><ul><li>Customer intimacy: </li></ul><ul><li>( Knowing customers intimately & being able to respond quickly to their specific & market leadership.) </li></ul><ul><li>2. Product leadership: </li></ul><ul><li>(Offering customers innovative products and services that enhance the customer’s utility and out perform competitor’s products) </li></ul>
  4. 4. <ul><li>3.Operational Excellence :- </li></ul><ul><li>(Providing customer with reliable products or services at competitive prices and easy availability) </li></ul><ul><li>Specific ways to differentiate :- </li></ul><ul><li>Product differentiation </li></ul><ul><li>Service differentiation </li></ul><ul><li>Personnel differentiation </li></ul><ul><li>Image differentiation </li></ul><ul><li>Product differentiation </li></ul>Performance Features Conformance Durability Reliability Repair-ability Style Design
  5. 5. <ul><li>Features:- </li></ul><ul><li>Are the characteristics that supplement the product‘s basic functioning. most products can be offered with varying features. features are a competitive tool for differentiating the company’s product.(ZAX-1) </li></ul><ul><li>Performance Quality :-  (ZAX-2) </li></ul><ul><li>Quality improvement </li></ul><ul><li>Quality maintenance </li></ul><ul><li>Quality adulteration </li></ul>Superior High Average Low Quality Level Time Quality Improvement Quality Maintenance Quality Adulteration
  6. 6. Conformance quality:- (Zax-2) Is the degree to which a product’s design & operating characteristics come close to the target standard. Durability:- (Zax-5) Is measure of the product’s expected operating life. Reliability:- Is the measure of the probability that the product will not malfunction or fail within a specific time period Repairability:- (Zax-5) Is the measure of ease of fixing a product that fail or malfunction expected operating life Style:- (Zax-3) Describes how well the product looks and feels to the buyers.
  7. 7. Design:- (Zax-3,1) A well designed product would be easy to open, install ,learn how to use, repair and dispose of. A good design attract , attention , improve , quality , and performance , lower costs and more strongly communicate value to the intended target market. Service differentiation Delivery Installation Consumer Training Consulting Services Repair Miscellaneous
  8. 8. Delivery:-Zax-7 Refers to how well , which includes , speed , accuracy , and care attending , the product or service is delivered to the customer Installation:- The marketers may differ in the quality of their installation . The buyers of heavy equipments expects good installation service from the marketer. Installation refers to the work done to make a product operational in its planned location. Customer training:- Refers to training the customer to use the marketer’s equipment properly and efficiently. As in the case of computers it is very important Consulting services:- Refers to the advising service that the market has offer free of cost at the time of installation the product. Repair:-Zax-7 Refers to the quality of repair service available to the buyers of the company’s product. Automobile buyers are quite concerned with the quality of repair service that they can expect from any dealer from whom they buy.
  9. 9. Miscellaneous services :- Zax-8 Includes warranty, maintenance contract etc. Personnel Differentiation Competence courtesy credibility Reliability Responsiveness Communication
  10. 10. Image Differentiation Symbol Environment Media Events
  11. 11. A concept so simple, people have difficulty understanding how powerful it is!
  12. 12. What… <ul><li>Positioning is owning a piece of consumer’s mind </li></ul><ul><li>Positioning is not what you do to a product </li></ul><ul><ul><li>It’s what you do to the mind of the prospect </li></ul></ul><ul><li>You position the product in the prospect’s mind </li></ul><ul><ul><li>‘ It’s incorrect to call it Product Positioning’ – Ries & Trout </li></ul></ul>
  13. 13. Examples <ul><li>Colgate is Protection </li></ul><ul><li>Lux is Glamour </li></ul><ul><li>Pond’s DFT is Confidence </li></ul><ul><li>Axe is Sexual Attraction </li></ul><ul><li>Gillette is Quality </li></ul>
  14. 14. Why… <ul><li>The assault on our mind… </li></ul><ul><li>The media explosion </li></ul><ul><li>The product explosion </li></ul><ul><li>The advertising explosion </li></ul><ul><li>So little message gets through that you ignore the sender and concentrate on the receiver </li></ul>
  15. 15. How… <ul><li>The easy way to get into a person’s mind is to be first </li></ul><ul><ul><li>Xerox , Kodak , Polaroid, Sun TV, The Hindu, F&L </li></ul></ul><ul><li>If you didn’t get into the mind of your prospect first, then you have a positioning problem </li></ul><ul><ul><li>Better to be first than be best </li></ul></ul><ul><li>In the positioning era, you must, however, be first to get into the prospect’s mind </li></ul>
  16. 16. How… <ul><li>The basic approach is not to create something new or different, but manipulate what’s already in the mind </li></ul><ul><li>To find a unique position, you must ignore conventional logic </li></ul><ul><li>Conventional logic says you find concept inside product </li></ul><ul><ul><li>Not true; look inside prospect’s mind </li></ul></ul><ul><li>You won’t find an uncola idea inside 7-up; you find it inside cola drinker’s head </li></ul>
  17. 17. ‘ You concentrate on the perceptions of the prospect, not the reality of the product’ - Al Ries & Jack Trout
  18. 18. ‘ It’s difficult to change behaviour, but easy to work with it’ - Paco Underhill
  19. 19. What you need… <ul><li>Understand the role of words and how they affect people </li></ul><ul><ul><li>Turtle vs. Lexus </li></ul></ul><ul><li>Be careful of change </li></ul><ul><ul><li>Disney </li></ul></ul><ul><li>Need vision </li></ul><ul><ul><li>Long term / Not on technology or fad </li></ul></ul>
  20. 20. What you need… <ul><li>Courage </li></ul><ul><ul><li>To slug it out when others watch and wait </li></ul></ul><ul><li>Objectivity </li></ul><ul><ul><li>You need a backboard / a springboard </li></ul></ul><ul><li>Simplicity </li></ul><ul><ul><li>Not complicated or convoluted </li></ul></ul>
  21. 21. What you need… <ul><li>Subtlety </li></ul><ul><ul><li>Unique position and appeal that’s not narrow </li></ul></ul><ul><li>Willingness to sacrifice </li></ul><ul><ul><li>The case of Nyquil </li></ul></ul><ul><ul><li>Rexona wooing male and female </li></ul></ul><ul><li>Patience </li></ul><ul><ul><li>Geographical roll out / Demographic / Chronological </li></ul></ul><ul><li>Global outlook </li></ul><ul><ul><li>Taj Mahal tea </li></ul></ul>
  22. 22. Guidelines <ul><li>Start by looking not at the product but at the position in the market that you wish to occupy, in relation to competition </li></ul><ul><li>Think about how the brand will answer the main consumer questions </li></ul><ul><ul><li>What will it do for me that others will not? </li></ul></ul><ul><ul><li>Why should I believe you? </li></ul></ul><ul><li>Try to keep it short and make every word count and be as specific as possible </li></ul><ul><ul><li>Vagueness opens the way to confused executions </li></ul></ul>
  23. 23. Guidelines <ul><li>Keep the positioning up-do-date </li></ul><ul><ul><li>Give as careful consideration to change as you did to the original statement </li></ul></ul><ul><li>Look for a Key Insight ! </li></ul><ul><ul><li>An ‘Accepted Consumer Belief’ </li></ul></ul>
  24. 24. What is key insight? <ul><li>Key Insight is ‘seeing below the surface’ / ‘seeing inside the consumer’ </li></ul><ul><li>Insight expresses the totality of all that we know from seeing inside the consumer </li></ul><ul><li>An insight is a single aspect of this that we use to gain competitive advantage </li></ul><ul><li>By identifying a specific way… </li></ul><ul><ul><li>That the brand can either solve a problem or </li></ul></ul><ul><ul><li>Create an opportunity for the consumer </li></ul></ul>
  25. 25. <ul><ul><li>Key Insight </li></ul></ul><ul><ul><li>‘ I wish to get married to a handsome prince’ </li></ul></ul>
  26. 26. <ul><ul><li>Key Insight </li></ul></ul><ul><ul><li>‘ Fragrance of my current talc does not last long and I miss opportunities to enjoy life’ </li></ul></ul>
  27. 27. <ul><ul><li>Key Insight </li></ul></ul><ul><ul><li>‘ Soap leaves my skin feeling dry and tight’ </li></ul></ul>
  28. 28. More on key insight… <ul><li>It will require two separate thoughts to be related to each other in a new and fresh way </li></ul><ul><li>Insight will generally be enduring </li></ul><ul><li>Often the process will lead to several insights </li></ul><ul><li>The one to use is the one that offers to be the source of greatest competitive advantage </li></ul>
  29. 29. More on key insight… <ul><li>No need for insight to change if you have identified the higher-order needs of consumers </li></ul><ul><li>Keep asking ‘why’ to find the real need behind the obvious insight </li></ul><ul><li>Remember, the insight is always the basis for a brand’s positioning </li></ul>
  30. 30. How to find one? <ul><li>What are the ways in which the category / brand can improve someone’s life? </li></ul><ul><li>What are the conflicting needs that people face and that the brand can solve? </li></ul><ul><li>How important is it that the product delivers? Who will notice? </li></ul><ul><li>What is standard of excellence in the category? </li></ul><ul><li>With every answer you get, you need to probe deeper: </li></ul><ul><ul><li>‘ Why is that?’ </li></ul></ul>
  31. 31. The 3C’s of positioning <ul><li>Be C rystal clear </li></ul><ul><li>Be C onsumer-based </li></ul><ul><ul><li>Be relevant and credible to the consumer </li></ul></ul><ul><ul><li>Write in consumer language and from consumer’s view point </li></ul></ul><ul><li>Be C ompetitive </li></ul><ul><ul><li>Be distinctive </li></ul></ul><ul><ul><li>Focus on building brand elements into powerful discriminator </li></ul></ul><ul><ul><li>Be persuasive </li></ul></ul><ul><ul><li>Be sustainable </li></ul></ul>
  32. 32. And then… <ul><li>The brand name! </li></ul><ul><li>The name is the first point of contact between the message and the mind </li></ul><ul><li>‘ The brand name is a knife that cuts the mind to let the brand message inside’ </li></ul><ul><li>– Ries & Trout </li></ul>
  33. 33. Guidelines <ul><li>It’s not the goodness or badness of the name in an aesthetic sense that determines effectiveness </li></ul><ul><ul><li>It’s the appropriateness of the same </li></ul></ul><ul><li>Name begins the positioning process, tells the prospect what the product’s major benefit is </li></ul><ul><ul><li>Fair & Lovely </li></ul></ul><ul><ul><li>Close Up </li></ul></ul><ul><ul><li>Krack </li></ul></ul><ul><ul><li>Head & Shoulders </li></ul></ul><ul><ul><li>Vaseline Intensive Care Body Lotion </li></ul></ul>
  34. 34. Checklist: Brand name <ul><li>Should be simple </li></ul><ul><li>Should be acceptable in all key languages </li></ul><ul><li>Should be appropriate when geographically spread </li></ul><ul><li>Should be amenable for easy registration </li></ul>
  35. 35. Warming up to brands
  36. 36. Let’s identify the brands associated with these visuals and slogans
  37. 54. Slogans <ul><li>Just do it! </li></ul><ul><li>Kuch meetha ho jaye </li></ul><ul><li>Impossible is nothing </li></ul><ul><li>Connecting people </li></ul><ul><li>Lagey raho </li></ul><ul><li>Express yourself </li></ul><ul><li>Keep walking! </li></ul><ul><li>There are some things money can’t buy. For everything else there is ….. </li></ul>
  38. 55. Slogans <ul><li>It’s hot! </li></ul><ul><li>The world’s local bank </li></ul><ul><li>The Citi never sleeps </li></ul><ul><li>The power of knowledge </li></ul><ul><li>The best a man can get </li></ul><ul><li>God’s own country </li></ul><ul><li>The taste of India </li></ul><ul><li>Do you have it in you? </li></ul><ul><li>Think different </li></ul>
  39. 56. Brands….The beginning
  40. 57. Roots <ul><li>Uniformity is the mother of branding </li></ul><ul><li>Identity is lost due to homogeneity as there is no differentiation </li></ul><ul><li>Origin of the word ‘brand’ lies in the Norse word ‘brandr’ which means ‘to burn’ </li></ul><ul><li>In early times, farmers used to identify their livestock with a burn mark or a symbol </li></ul><ul><li>Distillers branded their casks </li></ul>
  41. 58. Roots <ul><li>The producers’ names identified the products - Smirnoff, Ford, Mercedes, Levi Strauss </li></ul>
  42. 59. Today…. <ul><li>Brands are an integral part of our life - products; services; people; places; football clubs; fictional characters; virtual worlds…. </li></ul><ul><li>They are intangible assets that need to be exploited </li></ul>
  43. 60. Savour this <ul><li>Indian firms eye Jaguar, Land Rover </li></ul><ul><li>- Tata </li></ul><ul><li>- Mahindra & Mahindra </li></ul><ul><li>World’s top 100 brands worth more than India’s total m-cap </li></ul><ul><li>- $ 1.15 trillion </li></ul><ul><li>- More than combined market value of over 4000 listed cos. in India </li></ul>
  44. 61. We work not for ourselves, not for the company, not even for our clients. We work for Brands Brand Stewardship ( Ogilvy)
  45. 62. To be most valued by those who most value brands Brand Stewardship ( Ogilvy)
  46. 63. Brand <ul><li>A Brand is </li></ul><ul><li>a product which has earned a place in the consumer’s life </li></ul><ul><li>through perception, experience, beliefs, feelings </li></ul><ul><li>....... until a relationship is built </li></ul><ul><li>It is the sum of how consumers feel about a product </li></ul><ul><li>Brand Stewardship (Ogilvy) </li></ul>
  47. 64. Brand “ A brand is nothing more or less than the sum of all the mental connections people have around the product. Memories from childhood, something your mum said ... and in the case of newer brands, memories from ads. The trick is to arrange things so that the mental connections around the brand are enhancing” Michael Perry Former Chairman & CEO, Unilever
  48. 65. Brand “ Consumers build brands the way birds build nests... from scraps and straws they chance upon” Jeremy Bullmore Former Chairman JWT
  49. 66. The ‘classic’ definition <ul><li>Keller: “A brand is a set of mental associations, held by the consumer, which add to the perceived value of a product or service” </li></ul>
  50. 67. Mental associations <ul><li>Unique (Exclusivity) </li></ul><ul><li>Strong (Saliency) </li></ul><ul><li>Positive (Desirable) </li></ul>
  51. 68. Mental associations <ul><li>What is the brand territory (perceived competence; typical products or services; specific know-how)? </li></ul><ul><li>- Gillette </li></ul><ul><li>- Apple </li></ul><ul><li>- Virgin </li></ul><ul><li>- Nokia </li></ul><ul><li>- Dettol </li></ul><ul><li>- Karim’s? </li></ul>
  52. 69. Mental associations <ul><li>What is its level of quality (low; medium; premium; luxury)? </li></ul><ul><li>What are its qualities? </li></ul><ul><li>What is its most discriminating quality or benefit (also called perceived positioning)? </li></ul><ul><li>- Burnol is for burns </li></ul><ul><li>- Marlboro is not just a cigarette; it’s about fierce independence; about being macho </li></ul><ul><li>- Hummer: Like nothing else </li></ul>
  53. 70. Mental associations <ul><li>What typical buyer does the brand evoke? </li></ul><ul><li>- Harley Davidson </li></ul><ul><li>- Goa </li></ul><ul><li>- Rolex </li></ul><ul><li>What is the brand personality and brand imagery? </li></ul>
  54. 71. Beyond mental associations…. <ul><li>The power of a name is also due to the specific nature of the emotional relationships it develops </li></ul><ul><li>Patents and rights are of course a key asset. They provide competitive advantage over a period of time </li></ul>
  55. 72. Brand anatomy
  56. 73. Brand Gestalt Physical Product Attributes Quality Uses Brand Personality Logo Visual Appearance Country of Origin User Imagery Tangible Benefits Emotional Benefits Brand Customer Relationship Source: Soni Simpson, Stuart Graduate School of Business
  57. 74. <ul><li>A synthesis of all elements, physical, aesthetic, rational AND emotional </li></ul><ul><li>End result = </li></ul><ul><ul><li>appropriate </li></ul></ul><ul><ul><li>differentiated </li></ul></ul><ul><ul><li>relevant </li></ul></ul>Brand
  58. 75. <ul><li>The Coca-Cola Brand Is… </li></ul><ul><li>1800s Heritage The Real Thing </li></ul><ul><li>Americana Battles with Pepsi </li></ul><ul><li>Sold Everywhere Logo </li></ul>Brand
  59. 76. <ul><li>The McDonald’s Brand Is… </li></ul><ul><li>The Big Mac Happy Meals </li></ul><ul><li>French Fries Red and White Restaurants </li></ul><ul><li>Fun For Children Ronald McDonald </li></ul><ul><li>Golden Arches Value for Money </li></ul>Brand
  60. 77. How do brands provide value?
  61. 78. Providing Value to Customers <ul><li>Short cut for interpreting, processing and storing information </li></ul><ul><li>Gives confidence in the purchasing decision - reduces risk </li></ul><ul><li>Enhances use satisfaction </li></ul>
  62. 79. Providing Value to the Firm <ul><li>Enhance the effectiveness and efficiency of marketing programs - one of the rewards for risk- taking </li></ul><ul><li>Decrease brand switching </li></ul><ul><li>Higher prices and margins (Brand-involved consumers bargain less) </li></ul><ul><li>Trade leverage </li></ul><ul><li>Competitive advantage </li></ul>
  63. 80. The Product and the brand
  64. 81. Product <ul><li>Kotler: “A product is anything that can be offered to a market to satisfy a want or need” </li></ul>
  65. 82. What is a Product? <ul><li>Kotler’s Five levels to a product: </li></ul>Potential Product <ul><ul><li>The Fundamental Need or Want that consumers satisfy by consuming the product or service </li></ul></ul><ul><ul><li>Basic Version of the product containing only those elements absolutely necessary to function. No distinguishing features. </li></ul></ul><ul><ul><li>Attributes and Characteristics that buyers normally expect and agree to when they purchase a product </li></ul></ul><ul><ul><li>Additional product attributes, benefits, or related services that distinguish the product from competitors </li></ul></ul>Potential Product <ul><ul><li>All the augmentations and transformations that a product might ultimately undergo in the future </li></ul></ul>Generic Product CORE BENEFIT Expected Product Augmented Product Generic Product Expected Product Augmented Product
  66. 83. Product and brand <ul><li>Product = Commodity </li></ul><ul><li>A product is a produced item always possessing these characteristics: </li></ul><ul><li>Tangibility </li></ul><ul><li>Attributes and Features </li></ul>Brand = “Mind Set” The sum of all communications and experiences received by the consumer and customer resulting in a distinctive image in their “mind set” based on perceived emotional and functional benefits Source: Soni Simpson
  67. 84. Product and brand <ul><li>Products come to life, live and disappear, but brands endure e.g. Zen, Honda City, Bajaj </li></ul><ul><li>A brand is the memory of the products </li></ul><ul><li>A brand is less elastic than its product. Once created, like fast-setting concrete it is hard to change </li></ul>
  68. 85. Are leading brands the best products? <ul><li>Not necessary </li></ul><ul><li>To be the ‘best’ means to compete in the premium tier which is rarely a large segment </li></ul><ul><li>The brand with the best quality/price ratio is market leader </li></ul>
  69. 86. Are leading brands the best products? <ul><li>Most brands are born out of a product or service innovation (ipod; Sony walkman and discman) </li></ul><ul><li>Later, as the product name evolves into a brand, customers’ reason for purchase may still be the brand’s “superior performance” image </li></ul>
  70. 87. Are leading brands the best products? <ul><li>It seems that brands alternate in their focus. They capitalise on their image, then innovate to recreate or nurture the belief of product superiority, then recapitalise on their image, and so on e.g. Gillette, Sony </li></ul>
  71. 88. Branding
  72. 89. Branding <ul><li>Transforming a commodity like product into customer satisfying value added propositions is the essence of branding </li></ul>
  73. 90. <ul><li>Brand Imposing One’s Will On </li></ul><ul><li>The Consumer </li></ul>Branding OLD SCHOOL THINKING DIPLOMA
  74. 91. <ul><li>“ Pretty much everything today can be seen in relation to a love-respect axis. You can plot any relationship – with a person, with a brand – by whether it’s based on love or based on respect. It used to be that a high respect rating would win. But these days, a high love rating wins. If I don’t love what you’re offering me, I’m not even interested.” </li></ul><ul><li>Kevin Roberts, Saatchi and Saatchi </li></ul>Branding
  75. 92. <ul><li>“ Pretty much everything today can be seen in relation to a love-respect axis. You can plot any relationship – with a person, with a brand – by whether it’s based on love or based on respect . It used to be that a high respect rating would win. But these days, a high love rating wins. If I don’t love what you’re offering me, I’m not even interested.” </li></ul><ul><li>Kevin Roberts, Saatchi and Saatchi </li></ul>Branding
  76. 93. <ul><li>TradeMark </li></ul>Branding Love * Mark Trust-Mark
  77. 94. <ul><li>Those Brands which are particularly well adapted to the environment and which thus, survive and flourish. </li></ul>POWER BRANDS <ul><li>Attached to Consumers </li></ul><ul><li>Deep respect </li></ul><ul><li>for the way products </li></ul><ul><li>fit into Consumers lives </li></ul><ul><li>= “Core” of Success </li></ul>
  78. 95. 4 components of branding <ul><li>Building the brand: Brand Identity is the first step; Brand positioning etc. </li></ul><ul><li>Leveraging the brand: Line extensions; Brand extensions; Co-branding </li></ul><ul><li>Identifying and measuring brand equity: consumer relationships; brand financial value etc. </li></ul><ul><li>Protecting: Dilution; Legal aspects </li></ul>
  79. 96. Suggested reading <ul><li>Visit and read the Interbrand 2007 report on global brands </li></ul><ul><li>Case study </li></ul><ul><li>“ Branding for President” </li></ul><ul><li>“ The New Strategic Brand Management” by J.N.Kapferer. Chapter 1 & 2 </li></ul>
  80. 97. Suggested reading <ul><li>“ Brand Management: Text & Cases” by Harsh Verma. Chapter 1 </li></ul><ul><li>Strategic Brand Management by Kevin Lane Keller </li></ul>