This document summarizes key concepts from the 1981 book "Positioning: The Battle for your Mind" by Al Ries and Jack Trout. It discusses how positioning involves claiming a unique position for a product in the consumer's mind. First movers have an advantage, so a non-first product must find an unoccupied position. Leaders should reinforce their status without boasting and introduce related brands. Followers must find unique positions rather than trying to appeal to everyone. Repositioning competitors or changing perceptions of them can also be effective strategies. The name of a brand is very important in shaping consumer perceptions.
This document summarizes key points from the 1981 book "Positioning: The Battle for your Mind" by Al Ries and Jack Trout. It discusses how positioning involves claiming a unique place for a product in the consumer's mind. Being first helps establish leadership, but later entrants can succeed by finding an unoccupied position. The summary also covers strategies for market leaders to maintain their position, tactics for later entrants to find their own position, and potential pitfalls to avoid like using line extensions improperly.
This document discusses how brands can fail and provides strategies to prevent failure. It identifies common reasons for brand failure such as overestimating the market size, ineffective promotion, and pricing issues. The document also discusses the concept of branding and defines a brand as a person's gut feeling about a product. It emphasizes the importance of understanding customers and differentiating the brand. Additionally, the document outlines four disciplines of brand building: differentiation, collaboration, innovation, and cultivation.
The document outlines 22 immutable laws of branding, including that a brand becomes stronger when it narrows its focus, publicity rather than advertising is important for building a new brand initially, a brand should strive to own a word in the consumer's mind, and quality alone does not build brands but is reinforced through price and features. It also discusses laws around promoting the category rather than just the brand, using consistent branding over decades, and maintaining a brand's single-minded concept.
The document discusses several products that failed in the market due to issues with their marketing strategies. Some key reasons for failure included targeting the wrong customer segment, having an unnecessary or unclear value proposition, being overpriced, facing quality issues, and not differentiating effectively from competitors. Specific examples that failed due to these issues include Vanilla Coke, Levis Type 1 jeans, Crystal Pepsi, the Apple Newton, the Commodore Amiga 1000 computer, the Godrej Doodh Ganga milk brand, the Maruti Suzuki Sierra SUV, and the Honda Street motorcycle.
This document discusses how the speed of business has increased dramatically due to factors like Moore's Law and the internet. This has led to greater marketplace clutter from too many products, features, advertisements, messages, and media channels. Companies initially try to combat this clutter with more clutter through things like additional features or advertisements. However, this usually backfires. Due to the clutter, the human mind blocks out most information and only processes a small amount. As a result, brand-to-brand competition has shifted from competing on things like resources or capital to competing to have one's brand stand out and be remembered in the cluttered marketplace.
Dreaming of Brand Success? Want to see some case studies on great brand practice? Sometimes you learn a lot more from failures than you do successes...so we've brought together some great brand failures that we celebrate as offering us valuable lessons for great brand success. Enjoy!
This document discusses brands and brand failures. It defines a brand as a person's gut feeling about a product, service, or organization. A brand failure occurs when a product is withdrawn from the market, fails to achieve required market share, or is unprofitable. The document examines reasons for brand failures, including the seven deadly sins of branding: brand amnesia, ego, megalomania, deception, fatigue, paranoia, and irrelevance. It also discusses different types of failures such as classic failures, idea failures, extension failures, and more.
This document summarizes key points from the 1981 book "Positioning: The Battle for your Mind" by Al Ries and Jack Trout. It discusses how positioning involves claiming a unique place for a product in the consumer's mind. Being first helps establish leadership, but later entrants can succeed by finding an unoccupied position. The summary also covers strategies for market leaders to maintain their position, tactics for later entrants to find their own position, and potential pitfalls to avoid like using line extensions improperly.
This document discusses how brands can fail and provides strategies to prevent failure. It identifies common reasons for brand failure such as overestimating the market size, ineffective promotion, and pricing issues. The document also discusses the concept of branding and defines a brand as a person's gut feeling about a product. It emphasizes the importance of understanding customers and differentiating the brand. Additionally, the document outlines four disciplines of brand building: differentiation, collaboration, innovation, and cultivation.
The document outlines 22 immutable laws of branding, including that a brand becomes stronger when it narrows its focus, publicity rather than advertising is important for building a new brand initially, a brand should strive to own a word in the consumer's mind, and quality alone does not build brands but is reinforced through price and features. It also discusses laws around promoting the category rather than just the brand, using consistent branding over decades, and maintaining a brand's single-minded concept.
The document discusses several products that failed in the market due to issues with their marketing strategies. Some key reasons for failure included targeting the wrong customer segment, having an unnecessary or unclear value proposition, being overpriced, facing quality issues, and not differentiating effectively from competitors. Specific examples that failed due to these issues include Vanilla Coke, Levis Type 1 jeans, Crystal Pepsi, the Apple Newton, the Commodore Amiga 1000 computer, the Godrej Doodh Ganga milk brand, the Maruti Suzuki Sierra SUV, and the Honda Street motorcycle.
This document discusses how the speed of business has increased dramatically due to factors like Moore's Law and the internet. This has led to greater marketplace clutter from too many products, features, advertisements, messages, and media channels. Companies initially try to combat this clutter with more clutter through things like additional features or advertisements. However, this usually backfires. Due to the clutter, the human mind blocks out most information and only processes a small amount. As a result, brand-to-brand competition has shifted from competing on things like resources or capital to competing to have one's brand stand out and be remembered in the cluttered marketplace.
Dreaming of Brand Success? Want to see some case studies on great brand practice? Sometimes you learn a lot more from failures than you do successes...so we've brought together some great brand failures that we celebrate as offering us valuable lessons for great brand success. Enjoy!
This document discusses brands and brand failures. It defines a brand as a person's gut feeling about a product, service, or organization. A brand failure occurs when a product is withdrawn from the market, fails to achieve required market share, or is unprofitable. The document examines reasons for brand failures, including the seven deadly sins of branding: brand amnesia, ego, megalomania, deception, fatigue, paranoia, and irrelevance. It also discusses different types of failures such as classic failures, idea failures, extension failures, and more.
This document provides 17 points for companies to radically differentiate themselves from their competition. It emphasizes finding one unique quality or "Zag" that makes a company the only one to offer a specific product or service. Some key recommendations include hitting an underserved customer need, designing a brand experience that delights customers, and protecting the brand identity from inconsistencies that could undermine differentiation. Loyalty is also discussed as important to extending the brand's success through additional products or services.
A BRAND IS FOREVER: A FRAMEWORK FOR REVITALIZING DEAD AND DECLINING BRANDSSameer Mathur
The document discusses strategies for revitalizing dead or declining brands. It provides examples of brands like Harley Davidson and Cadillac that successfully revived their brands by reinvesting in quality and distinctive styling. Reviving an old brand is often more feasible than launching a new one because old brands have existing brand awareness and equity. However, brands can decline due to issues like neglect, poor quality, price increases that don't match value, or failing to stay relevant to the target market. The document outlines guidelines for brand revivals, such as repositioning the brand, rebuilding quality, resisting the temptation to lower prices, and pursuing a carefully defined target market.
The document outlines 22 immutable laws of branding, including:
- The law of generic warns against generic brand names that don't differentiate.
- The law of the company states brands should take precedence over parent companies in marketing.
- The law of sub-brands cautions that sub-brands can dilute the power of the main brand.
- The law of singularity emphasizes that brands are most powerful when they own a single, clear idea in consumers' minds.
Jamba Juice, a smoothie and juice bar chain that provided nutritious meals and helped build healthy communities, has closed after 45 years in business. While it accomplished its goals of aiding well-being and influencing long-term good, competing chains still remain, such as Robeks Juice, Smoothie King, and locally owned smoothie restaurants. Jamba Juice's vision was to open more locations globally and continue positively impacting health for decades to come through riding powerful nutrition and lifestyle trends.
25 Biggest Company and Product FailuresJesse Daniel
This document summarizes 25 major company and product failures, including Smith and Wesson mountain bikes, DeLorean Motor Company, Swiss Air, Commodore Computers, Cosmopolitan Yogurt, Webtv, Life Savers Soda, Coors Rocky Mountain Spring Water, Cocaine Energy Drink, Earring Magic Ken, Colgate Kitchen Entrees, Apple Newton, Kellogg's Breakfast Mates, Pepsi AM and Crystal Pepsi, Frito Lay Lemonade, Bottled Water for Pets, Bic Underwear, Harley Davidson Perfume, RJ Reynolds' Smokeless Cigarettes, Sony Betamax, New Coke, Pan Am, Pets.com, Polaroid, and
Borders bookstores aims to differentiate itself from competitors like Barnes & Noble and Amazon by focusing on deep connections with local communities and diverse, locally-relevant selections. Its vision is to be a "headquarters of knowledge and entertainment" for every community it serves. Its purpose is to "create richer, more satisfying lives through knowledge and entertainment." It will focus on building local interest sections, store performances, and community sponsorships to truly understand and serve local tastes.
This document discusses successful and unsuccessful branding strategies. Successful strategies include being different from competitors, focusing on a niche, and ensuring relevance to customer needs. The strongest brands simplify their positioning into a short, memorable phrase like "overnight" for FedEx or "safety" for Volvo. Pringles positioned itself as stackable chips opposed to greasy, broken competitors. Unsuccessful examples include green ketchup that lost consumer interest, bottled water for pets that was a niche product, and Pepsi AM as a breakfast cola that didn't taste good hot. Products like Orbitz drinks with floating gel balls and Reddi-Bacon that leaked grease into toasters also failed to catch on.
T&C Surf Designs is a locally owned surf shop in Hawaii that has been sharing the experience and lifestyle of Hawaiian surf culture since 1971. It represents authentic Hawaiian surf culture through its high-quality products and superior customer service. The brand aims to build a team that embodies the essence of Hawaiian surfing through commitment, power, style, and respect. Its stores strive to provide an unparalleled selection of apparel and equipment while representing local surf culture.
Soshi Sumsin Ltd is a South Korean electronics company that wants to expand into the American market. They are considering three options for their brand name in America: 1) Keep their original Korean names Sumsin or Soshi, 2) Acquire an existing American brand Monarch for $50,000, or 3) Select a new neutral name like Proteus or Blue Streak. Option 1 risks the names being hard to pronounce or meaningless to Americans. Option 2 risks negative perceptions from Monarch's past failure. Option 3 allows building recognition through promotion while meeting criteria for an international name like being neutral, easy to pronounce and remember globally. Adapting brand names is important to consider cultural and linguistic differences between countries
The document discusses branding and advertising strategies for small businesses. It notes that the small business climate is very challenging with many new businesses and products launching each year. It emphasizes that visibility is more important than ability for small businesses. Other key points include defining a brand's essence, developing a unique selling proposition, knowing the target audience, and establishing consistency in branding efforts over time.
ZAG- 17 steps process branding workshop (NYL)lynjang
The document summarizes the branding strategy of New York Life Insurance Company (NYL). NYL focuses on life insurance, annuities, and long-term care insurance. While competitors have expanded into other financial services, NYL remains focused on its core competencies. It emphasizes its long history of over 160 years in business, strong financial position, and highly-trained agent network to promote loyalty and trust among customers.
The document discusses common reasons why products fail in the marketplace. Some key reasons identified include:
1) Picking the wrong market that the company does not have the skills or resources to succeed in.
2) Taking too long to enter the market, allowing competitors to gain an advantage in meeting customer needs.
3) Failing to solve problems that customers actually want solved.
4) Having a product that is not good enough in terms of design, quality, or execution. Examples given include poor user experience, architecture, and implementation.
5) Choosing terrible names that do not resonate with customers or create confusion about the product. Several historical examples of product failures are discussed to illustrate these
The document presents a marketing plan for Damn Heels, a proposed business selling foldable flats created by Hailey Coleman to relieve foot pain from wearing high heels. It analyzes the market opportunity and competitors, and recommends selling the products on consignment in salons, bars and clubs to test demand. Alternative distribution methods like retail stores and an online store are also considered, but selling on consignment in locations where the products are needed is identified as the best first step to validate the business concept.
The document provides 15 checkpoints for designing a successful brand strategy called a "ZAG". It uses T&C Surf Designs in Hawaii as a case study. The checkpoints include defining the brand's purpose and vision, identifying trends, competitors, points of differentiation, and strategies for communication and customer engagement.
Ritualized collaboration has become a trend where companies team up to create extraordinary products. Examples discussed include Alexander Wang collaborating with H&M to make his high fashion designs more affordable, and COMME des GARCONS and Bape collaborating to satisfy all demographics with a highly sought after product. The document also provides examples of collaboration between Gillette and Marvel's Avengers and Dodge collaborating with the Fast and Furious franchise to promote new movies. Ritualized collaborations are effective at driving consumers between markets and creating buzz around new products.
The document discusses the importance of branding and logos and provides examples of well-known brands. It defines a brand as a symbolic embodiment of all information associated with a product or service. The history of branding is traced back to the 19th century with the advent of packaged goods and trademarks. Examples are given of logos from well-known brands like Harley Davidson, Pepsi, Apple, UPS, Coca-Cola, Nike, Google, Toyota, and IBM and the ideas or meanings behind their designs. The key ingredients for a successful brand are said to be great ideas.
The document outlines 17 checkpoints for designing a brand called a "Zag". The checkpoints focus on defining key elements of the brand including differentiation, communication, focus, and trend. Some of the checkpoints include defining the brand's purpose and vision, identifying trends to capitalize on, determining what makes the brand uniquely different, crafting explanations of the brand through a "trueline" and tagline, and aligning all communications to spread the brand's message. The overall goal of the checkpoints is to help create a strongly differentiated and focused brand identity.
This document discusses brand migration and collaborations. It begins by describing how a discussion about a beer-infused beauty product line led the author to notice many brands extending into new areas. It then examines what makes for a successful brand migration, such as maintaining a meaningful fit with the brand's core identity and offering real benefits to customers. The document provides examples of both successful and unsuccessful brand migrations. It also discusses different types of brand migrations and considers when collaborations between brands can be beneficial.
Glidden Paint Campaign Book -- GP RelationsIthaca College
Strategic Communications plan for Glidden Paint by the GP Relations team in Professor Scott Hamula's Introduction to Strategic Communications class at Ithaca College.
This document provides an overview of the aviation industry and two major aircraft manufacturers, Boeing and Airbus. It discusses the recent boom in aircraft orders, fueled by discounted pricing from manufacturers and leasing companies placing a growing number of orders. While this has led to a backlog, it may result in a downturn as the new aircraft enter service. It also profiles the Boeing 787 Dreamliner and Airbus A380, describing their passenger capacity and range. Finally, it provides a detailed history and overview of operations for the airline Virgin Atlantic.
The document discusses the rise of private sector participation in healthcare in India and the need for professionally trained hospital administrators. It notes an increasing demand for healthcare services, willingness to pay for services, and an entrepreneurial spirit has led to growth in the healthcare industry. However, there is currently not a large enough pool of trained hospital administrators. The document proposes strategies for developing this new type of skilled professional, including promotion programs and creating administrator positions and acceptance of their roles in hospitals.
This document provides 17 points for companies to radically differentiate themselves from their competition. It emphasizes finding one unique quality or "Zag" that makes a company the only one to offer a specific product or service. Some key recommendations include hitting an underserved customer need, designing a brand experience that delights customers, and protecting the brand identity from inconsistencies that could undermine differentiation. Loyalty is also discussed as important to extending the brand's success through additional products or services.
A BRAND IS FOREVER: A FRAMEWORK FOR REVITALIZING DEAD AND DECLINING BRANDSSameer Mathur
The document discusses strategies for revitalizing dead or declining brands. It provides examples of brands like Harley Davidson and Cadillac that successfully revived their brands by reinvesting in quality and distinctive styling. Reviving an old brand is often more feasible than launching a new one because old brands have existing brand awareness and equity. However, brands can decline due to issues like neglect, poor quality, price increases that don't match value, or failing to stay relevant to the target market. The document outlines guidelines for brand revivals, such as repositioning the brand, rebuilding quality, resisting the temptation to lower prices, and pursuing a carefully defined target market.
The document outlines 22 immutable laws of branding, including:
- The law of generic warns against generic brand names that don't differentiate.
- The law of the company states brands should take precedence over parent companies in marketing.
- The law of sub-brands cautions that sub-brands can dilute the power of the main brand.
- The law of singularity emphasizes that brands are most powerful when they own a single, clear idea in consumers' minds.
Jamba Juice, a smoothie and juice bar chain that provided nutritious meals and helped build healthy communities, has closed after 45 years in business. While it accomplished its goals of aiding well-being and influencing long-term good, competing chains still remain, such as Robeks Juice, Smoothie King, and locally owned smoothie restaurants. Jamba Juice's vision was to open more locations globally and continue positively impacting health for decades to come through riding powerful nutrition and lifestyle trends.
25 Biggest Company and Product FailuresJesse Daniel
This document summarizes 25 major company and product failures, including Smith and Wesson mountain bikes, DeLorean Motor Company, Swiss Air, Commodore Computers, Cosmopolitan Yogurt, Webtv, Life Savers Soda, Coors Rocky Mountain Spring Water, Cocaine Energy Drink, Earring Magic Ken, Colgate Kitchen Entrees, Apple Newton, Kellogg's Breakfast Mates, Pepsi AM and Crystal Pepsi, Frito Lay Lemonade, Bottled Water for Pets, Bic Underwear, Harley Davidson Perfume, RJ Reynolds' Smokeless Cigarettes, Sony Betamax, New Coke, Pan Am, Pets.com, Polaroid, and
Borders bookstores aims to differentiate itself from competitors like Barnes & Noble and Amazon by focusing on deep connections with local communities and diverse, locally-relevant selections. Its vision is to be a "headquarters of knowledge and entertainment" for every community it serves. Its purpose is to "create richer, more satisfying lives through knowledge and entertainment." It will focus on building local interest sections, store performances, and community sponsorships to truly understand and serve local tastes.
This document discusses successful and unsuccessful branding strategies. Successful strategies include being different from competitors, focusing on a niche, and ensuring relevance to customer needs. The strongest brands simplify their positioning into a short, memorable phrase like "overnight" for FedEx or "safety" for Volvo. Pringles positioned itself as stackable chips opposed to greasy, broken competitors. Unsuccessful examples include green ketchup that lost consumer interest, bottled water for pets that was a niche product, and Pepsi AM as a breakfast cola that didn't taste good hot. Products like Orbitz drinks with floating gel balls and Reddi-Bacon that leaked grease into toasters also failed to catch on.
T&C Surf Designs is a locally owned surf shop in Hawaii that has been sharing the experience and lifestyle of Hawaiian surf culture since 1971. It represents authentic Hawaiian surf culture through its high-quality products and superior customer service. The brand aims to build a team that embodies the essence of Hawaiian surfing through commitment, power, style, and respect. Its stores strive to provide an unparalleled selection of apparel and equipment while representing local surf culture.
Soshi Sumsin Ltd is a South Korean electronics company that wants to expand into the American market. They are considering three options for their brand name in America: 1) Keep their original Korean names Sumsin or Soshi, 2) Acquire an existing American brand Monarch for $50,000, or 3) Select a new neutral name like Proteus or Blue Streak. Option 1 risks the names being hard to pronounce or meaningless to Americans. Option 2 risks negative perceptions from Monarch's past failure. Option 3 allows building recognition through promotion while meeting criteria for an international name like being neutral, easy to pronounce and remember globally. Adapting brand names is important to consider cultural and linguistic differences between countries
The document discusses branding and advertising strategies for small businesses. It notes that the small business climate is very challenging with many new businesses and products launching each year. It emphasizes that visibility is more important than ability for small businesses. Other key points include defining a brand's essence, developing a unique selling proposition, knowing the target audience, and establishing consistency in branding efforts over time.
ZAG- 17 steps process branding workshop (NYL)lynjang
The document summarizes the branding strategy of New York Life Insurance Company (NYL). NYL focuses on life insurance, annuities, and long-term care insurance. While competitors have expanded into other financial services, NYL remains focused on its core competencies. It emphasizes its long history of over 160 years in business, strong financial position, and highly-trained agent network to promote loyalty and trust among customers.
The document discusses common reasons why products fail in the marketplace. Some key reasons identified include:
1) Picking the wrong market that the company does not have the skills or resources to succeed in.
2) Taking too long to enter the market, allowing competitors to gain an advantage in meeting customer needs.
3) Failing to solve problems that customers actually want solved.
4) Having a product that is not good enough in terms of design, quality, or execution. Examples given include poor user experience, architecture, and implementation.
5) Choosing terrible names that do not resonate with customers or create confusion about the product. Several historical examples of product failures are discussed to illustrate these
The document presents a marketing plan for Damn Heels, a proposed business selling foldable flats created by Hailey Coleman to relieve foot pain from wearing high heels. It analyzes the market opportunity and competitors, and recommends selling the products on consignment in salons, bars and clubs to test demand. Alternative distribution methods like retail stores and an online store are also considered, but selling on consignment in locations where the products are needed is identified as the best first step to validate the business concept.
The document provides 15 checkpoints for designing a successful brand strategy called a "ZAG". It uses T&C Surf Designs in Hawaii as a case study. The checkpoints include defining the brand's purpose and vision, identifying trends, competitors, points of differentiation, and strategies for communication and customer engagement.
Ritualized collaboration has become a trend where companies team up to create extraordinary products. Examples discussed include Alexander Wang collaborating with H&M to make his high fashion designs more affordable, and COMME des GARCONS and Bape collaborating to satisfy all demographics with a highly sought after product. The document also provides examples of collaboration between Gillette and Marvel's Avengers and Dodge collaborating with the Fast and Furious franchise to promote new movies. Ritualized collaborations are effective at driving consumers between markets and creating buzz around new products.
The document discusses the importance of branding and logos and provides examples of well-known brands. It defines a brand as a symbolic embodiment of all information associated with a product or service. The history of branding is traced back to the 19th century with the advent of packaged goods and trademarks. Examples are given of logos from well-known brands like Harley Davidson, Pepsi, Apple, UPS, Coca-Cola, Nike, Google, Toyota, and IBM and the ideas or meanings behind their designs. The key ingredients for a successful brand are said to be great ideas.
The document outlines 17 checkpoints for designing a brand called a "Zag". The checkpoints focus on defining key elements of the brand including differentiation, communication, focus, and trend. Some of the checkpoints include defining the brand's purpose and vision, identifying trends to capitalize on, determining what makes the brand uniquely different, crafting explanations of the brand through a "trueline" and tagline, and aligning all communications to spread the brand's message. The overall goal of the checkpoints is to help create a strongly differentiated and focused brand identity.
This document discusses brand migration and collaborations. It begins by describing how a discussion about a beer-infused beauty product line led the author to notice many brands extending into new areas. It then examines what makes for a successful brand migration, such as maintaining a meaningful fit with the brand's core identity and offering real benefits to customers. The document provides examples of both successful and unsuccessful brand migrations. It also discusses different types of brand migrations and considers when collaborations between brands can be beneficial.
Glidden Paint Campaign Book -- GP RelationsIthaca College
Strategic Communications plan for Glidden Paint by the GP Relations team in Professor Scott Hamula's Introduction to Strategic Communications class at Ithaca College.
This document provides an overview of the aviation industry and two major aircraft manufacturers, Boeing and Airbus. It discusses the recent boom in aircraft orders, fueled by discounted pricing from manufacturers and leasing companies placing a growing number of orders. While this has led to a backlog, it may result in a downturn as the new aircraft enter service. It also profiles the Boeing 787 Dreamliner and Airbus A380, describing their passenger capacity and range. Finally, it provides a detailed history and overview of operations for the airline Virgin Atlantic.
The document discusses the rise of private sector participation in healthcare in India and the need for professionally trained hospital administrators. It notes an increasing demand for healthcare services, willingness to pay for services, and an entrepreneurial spirit has led to growth in the healthcare industry. However, there is currently not a large enough pool of trained hospital administrators. The document proposes strategies for developing this new type of skilled professional, including promotion programs and creating administrator positions and acceptance of their roles in hospitals.
The document is a project report submitted by Arun S Kaimal for his Bachelor of Management Studies program. It includes a declaration by Kaimal stating that the project was completed as required. It also includes a certificate signed by his project guide and college administrators confirming completion of the project titled "Life Insurance Sector in India". The project provides an overview and analysis of the life insurance sector in India.
This document is a project report submitted by Kamlesh I. Parekh for their Bachelor of Management Studies program. It provides details about the project such as the title "Supply Chain and Logistics Management", the student and college information, dates of submission, declarations by the student and certification by the principal. It also includes an acknowledgement section thanking those who helped with the project and an executive summary that overviews the objectives, methodology, and constraints of the project focused on understanding supply chain and logistics management concepts.
The document discusses how building strong digital brands is becoming increasingly important as online opportunities continue to grow. It argues that most current online advertising is of poor quality and does more harm than good to brands. To be successful online, companies need to focus on managing the entire consumer experience on their websites from first visit through purchase and beyond, as positive or negative online experiences directly influence consumer perceptions of a brand. The document proposes that to build strong digital brands, companies need to align their brand promises made to consumers, the website design to deliver on those promises, and an economic model to be profitable.
This document provides an overview of newspapers in India, with a focus on comparing Times of India and Daily News and Analysis (DNA). It discusses the history and criticisms of Times of India, the introduction and ownership structure of DNA, and the competition between the two newspapers in Mumbai. DNA was launched in 2005 as a joint venture between Dainik Bhaskar Group and Zee TV to target younger readers. It outlines the editorial boards and sections of each newspaper.
The document discusses the history and concepts of quality control. It begins by introducing W. Edwards Deming, an American management consultant who helped revive the Japanese economy after WWII by emphasizing quality control systems that solved problems through worker-management cooperation. It then defines key quality control terms and concepts, including control, quality, and quality control. It describes the stages of quality control including receiving, inspection, storage, production, and design. It outlines the advantages of quality control for both buyers and sellers. Finally, it discusses factors that affect quality like markets, costs, management, and technology, and principles for enhancing quality like having a customer focus, leadership, and involving employees.
This document provides an overview of key concepts in tourism, including definitions of tourism and tourists. It discusses different types of tourism users and how to segment tourism markets. Some key points:
1. Tourism is defined as temporary, short-term travel for purposes like leisure, business, health, or visiting friends/family.
2. There are different categories of tourism users, from non-users to potential, actual, occasional, and habitual users.
3. Tourism markets can be segmented based on factors like lifestyles, holidays, purposes of travel, demographics, geography, and socioeconomics.
4. Understanding the behavioral profiles of different user segments is important for effective tourism marketing.
- The document discusses the role of executive search firms in corporate hiring. It provides background on recruitment processes and sources.
- Executive search firms are specialized recruitment consultancies that help companies find top and middle management talent. They perform in-depth searches, assessments, and screening to identify the best candidates.
- The document uses Maxima Global Executive Search as a case study to analyze the services executive search firms provide and how they add value in corporate hiring.
1. The document discusses 22 immutable laws of branding, including the laws of expansion, contraction, publicity, advertising, the word, credentials, quality, the category, the name, extensions, fellowship, the generic, the company, sub-brands, siblings, shape, colour, borders, and consistency.
2. Some key points are that brands become stronger when their focus is narrowed, brands are built with publicity and maintained with advertising, brands should strive to own a word in consumers' minds, quality alone does not build brands, and brands should promote their category rather than just the brand. Consistency is important and brands should not change over time.
3. Global branding allows brands to increase their market by growing
The document discusses different brand architectures that companies can use to structure their brands, including:
1) Stand-alone intimacy brands that are supported only by their own trademarks and marketing to build trust over time, though this approach is very expensive.
2) Combination architectures where companies use a house brand alongside product-specific brands that are linked through shared trademarks.
3) The trade-off involved is balancing brand clarity and focus with the increased costs of separate brands versus the risk of diluting brands under a house name.
When you think of a brand the first thing that probably comes to
mind is a brand on livestock. Branding of a product should be
viewed as the same thing. When you have a successful brand, it
sets your product apart from your competition. You want your
brand to be able to expand your customer base and increase
your market share. The larger your customer base and market
share the more powerful your brand will become.
There are many factors that go into making a brand successful and
there are even more that go into keeping you brand successful. By
learning the basic steps, you will be able to put your brand on the
best possible path to success. You will find that marketing and
branding go hand in hand. A good brand will help your marketing
and strong marketing will help build a strong brand. It is up to you to
do your homework to ensure that you make the right decisions to
help your company build a strong brand.
Your goal is to build a brand that is the recognized leader in a given
category. This makes the consumer want to be aligned with your
brand and will seek it out at the store. It will give them the satisfac-
vi Introduction
tion that they have made the correct decision for themselves and
their family when they purchase your brand.
With the explosion of the Internet, now more than ever, companies
have the chance to go global and increase their sales and profits. By
following the steps that are outlined here, you will have the informa-tion
that you need to make your brand successful and have the ability to go
global both on the Internet and with a brick and mortar store.
The document discusses several "laws of marketing" according to Thegeek.co.in:
1) The Law of Leadership states it is better to be first in a category than to have a better product than competitors. Being first allows getting into customers' minds most easily.
2) The Law of the Category says that if you cannot be first in a category, create a new category where you can be first. Promote the new category to avoid direct competition.
3) The Law of the Mind emphasizes being first in customers' minds is more important than being first in the marketplace. Getting the company name remembered aids being first in customers' thinking.
This document discusses factors to consider when developing branding strategies for international markets. It outlines different types of global brands such as truly global brands that maintain consistent identity worldwide versus adjusted brands where elements like price or appeal are tailored locally. Successful global brands position themselves consistently worldwide while allowing for some adaptation. Cultural, competitive and product factors also influence branding approaches in different countries. Umbrella branding using a strong corporate identity can help new products enter international markets.
Brands are accused of manipulating consumers into uniformity and an unhealthy lifestyle. This view has been popularized by books arguing that companies now market aspirations and dreams rather than product features to drive brand value and profits. Historically, building a brand simply meant consistent quality and novelty, allowing premium prices, but brands are now hugely powerful. Consumers face overwhelming choices and are cynical after frequent advertising exposures. Marketers also bear blame for outdated practices that focus on products rather than customers, but future brands will need to represent social responsibility in addition to quality and desirability.
Direct marketing classic: Advertising that sells by OgilvyMichael Leander
Direct marketers can still learn from this classic direct marketing guide on how to create advertising that sells.
Sure digital marketing has become a huge part of the direct marketing mix in the past decade, but the basics very much remain the same. No one has contributed to the education and inspiration of direct marketers around the world like David Ogilvy. You will find many nuggets in the How to create advertising that sells document.
This document discusses brand positioning strategies. It defines positioning as manipulating how a product is perceived in a consumer's mind rather than creating something new. Positioning involves both subtle changes to a product and messaging to secure a worthwhile position. The document outlines several positioning strategies including being first to market, simplifying messages, taking the against position, and finding unique positions by ignoring conventional logic. It also discusses challenges leaders face in maintaining their position and the risks of line extensions that dilute a brand name.
A brand is a name, symbol or design that identifies a seller's products and differentiates them from competitors. There are four key branding decisions: brand positioning, brand name selection, brand sponsorship, and brand development. Brand positioning involves establishing how the brand will be perceived in customers' minds based on attributes, benefits or beliefs. The brand name should be memorable, distinctive and suggest the brand's benefits. A brand can be the manufacturer's, a private label, licensed or co-branded. Brand development grows brands through line extensions, extensions to new categories, or launching multiple brands to target different segments.
This document provides 38 tips for creating effective advertising based on lessons learned from David Ogilvy's advertising agency which created over $1.48 billion in advertising. Some of the key lessons include positioning your product effectively, promising a unique consumer benefit, developing a consistent brand image, using big ideas, giving products a quality image, innovating rather than following trends, testing ideas before implementing, and localizing messages for specific audiences.
12th Cairo Marketing Club (22 immutable Laws of Marketing) by Dr. Ahmed SamirMahmoud Bahgat
12th Cairo Marketing Club (22 immutable Laws of Marketing) by Dr. Ahmed Samir
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The document provides guidance on writing creative briefs with 5 key points:
1. Find out what competitors are doing in the market and do something different to stand out.
2. Focus on defining the brand's unique personality rather than logical propositions.
3. Define the target market in a way that shows respect for who they are.
4. Include some initial creative ideas to test how actionable the strategy is.
5. Make the brief inspiring by believing in its power to address business issues creatively and change the marketplace.
This document provides a summary of the key concepts from the book "Positioning" by Al Ries and Jack Trout. It discusses how positioning involves establishing a product, service, or brand in the mind of the consumer or decision-maker. It explains how overcommunication has led consumers to simplify information and only accept messages that match their prior beliefs. Therefore, effective positioning strategies focus on how the target audience already perceives a product rather than the product itself. The summary also highlights techniques discussed in the book for positioning new products in relation to market leaders as well as strategies for market leaders to maintain their position.
The 22 Immutable Laws Of Branding Biz -www.itworkss.comOnunkwo George
This document provides a summary of key concepts from the book "The 22 Immutable Laws of Branding" by Al Ries and Laura Ries. It summarizes 12 of the 22 branding laws discussed in the book, including the Law of Expansion, the Law of Contraction, the Law of Publicity, the Law of Advertising, the Law of the Word, and others. For each law, it provides a brief explanation and examples to illustrate how well-known brands have successfully applied or violated these branding laws. The overall summary aims to concisely outline some of the most important lessons around building powerful brands according to the authors.
23 of the world's most effective Positioning TerritoriesAshton Bishop
A brand's role is to own a position in their customers' minds. The way to find the 'position' that's right for you is to consider the dominant positioning territories. Step Change Marketing has compiled 23 of the world's best and most effective. Which one's right for you and your brand?
This document discusses product positioning and brand positioning in marketing. It provides examples of each type of positioning:
Product positioning examples include Tide detergent emphasizing whiteness, Avis claiming "We try harder" to be distinct from #1 Hertz, and Swatch creating a new "fashion watch" market.
Brand positioning examples include associating Volvo with safety, Kit Kat with breaks and indulgence, Coke maintaining a fresh image, Mercedes promising quality and prestige, and Domino's successfully positioning at the benefits level in customers' minds.
The document concludes that brand positioning drives around three fourths of the total market today, as brands aim to occupy distinct positions in customers' minds through memorable names and images
Global branding involves creating a consistent brand experience and image around a name worldwide. A global brand is perceived to reflect the same set of values globally, even when products are produced locally. Name evaluation assesses potential brand names to avoid negative connotations and ensure easy pronunciation in target markets. It involves surveying linguists in different countries on proposed names. Issues like pronunciation, meaning, and regulations must be considered to avoid problems when launching a brand globally. Localization companies are well-positioned to provide global branding and name evaluation services as a complementary offering.
This document discusses customer-centered brand management and focuses on customer equity over brand equity. It provides backgrounds on several authors in the field. It notes that while managers say they focus on customers, in reality they focus on brands. When brands are not aligned with customer needs, it can lead to problems. The document advocates reinventing brand management to have the larger goal of growing customer equity rather than brand value. It provides several case studies and suggests brands should be built around customer segments and managed to hand off customers between brands to maximize lifetime customer value. It also recommends changing how brand equity is measured to focus more on customer equity.
The document discusses how the human mind processes information and makes decisions. It argues that the mind has "ladders" or categories that information must fit into in order to be accepted. People see what they expect to see and reject information that does not match their prior knowledge. As a result, competitors must position their brands in relation to other brands on the "ladders" in people's minds in order to be considered. Taking an "against" position by pointing out weaknesses in the market leader or positioning as the "uncola" can help brands climb the ladder. Companies should avoid "forgetting what made them successful" by changing strategies that previously worked.
The document defines and provides details on banking and other financial services that are subject to service tax in India. Key services include financial leasing, credit cards, merchant banking, asset management, custodial and depository services, and advisory services. The value of taxable services includes fees, interest charges, and commissions. Certain exemptions apply for agreements signed prior to the July 2001 introduction of the service tax on banking and financial services.
1) The document is a dissertation analyzing the competitive strategies of three major domestic airlines in India: Indian Airlines, Jet Airways, and Sahara Airlines.
2) It includes sections on research methodology, an introduction to the Indian aviation industry, profiles of the three airlines, a comparison of their marketing strategies, an analysis of customer perceptions and preferences, and conclusions and recommendations.
3) Primary research was conducted through a customer response questionnaire and interviews with airline staff, while secondary sources included airline literature and pamphlets.
The author acknowledges Amity Business School for providing the opportunity to write a dissertation on global branding. They thank their advisor Dr. ATK Raman for guidance throughout the research. They also thank the librarian and computer lab staff for assistance during the project. The research paper helped the author learn about considerations for global branding and how it can be achieved.
This document summarizes a market research report submitted to Nokia India Pvt. Ltd. evaluating the potential of end-user services on India's 3G/WCDMA platform and possible revenue models. The report assesses which 3G services Indian consumers are interested in and willing to pay for. It identifies the main services consumers want and the preferred tariff plans through surveys and statistical analysis. The goal is to help Nokia convince mobile operators to adopt 3G/WCDMA technology by demonstrating which applications will be accepted by Indian users.
This document is a project report submitted by Kamlesh Gautam to fulfill requirements for an MBA degree. The report details a summer training project conducted at National Thermal Power Corporation Limited's Rihand Super Thermal Power Project.
The report includes certificates from Gautam's university and project supervisor validating the work. It then covers the objectives, methodology, findings and recommendations of a study analyzing the financial concurrence process for contract awards at NTPC Rihand. Key findings include the average time taken for financial concurrence of awards being 31 days and proposals for reducing this lead time and saving money.
identifying distribution gap and planning for route effiumesh yadav
This document appears to be a student project report on identifying distribution gaps and planning route efficiency for Hindustan Coca-Cola Beverages in Varanasi, India. It includes certificates, acknowledgements, prefaces, and sections on distribution, direct marketing, and objectives at the firm, brand, and product line levels. The student conducted surveys of dealers and retailers to analyze distribution gaps and issues with route efficiency, such as shortages of certain bottle sizes and improper retailer visits. The goal was to identify problems and opportunities to improve Coca-Cola's distribution in the assigned areas.
This document provides an overview of a project report submitted for a Master's degree. It includes an executive summary that outlines the objectives and key findings of the research project conducted during a summer training. The research examined various aspects of the soft drink market in Ghaziabad, including the use of merchandising assets by retailers, demand for different brands, availability of brands, and packaging preferences. The document also includes sections on acknowledgements, company profile, introduction, methodology, analysis, limitations, recommendations, and conclusions.
comparative market analysis through each dealer survey aumesh yadav
This document provides a history of the soft drink industry from the late 1700s to the 1960s. It describes how carbonated water became popular for its perceived health benefits and how flavors were then added, leading to the development of early soft drinks in the late 1800s like Coca-Cola, Dr Pepper, and Moxie. The soft drink industry grew in the early 1900s with new brands but faced challenges during World Wars I and II as well as the Depression. The 1960s saw the rise of diet soft drinks as saccharin and cyclamate sweeteners were introduced.
The document provides a history of Pepsi Cola from its origins in 1893 when Caleb Bradham, a pharmacist from North Carolina, began experimenting with soft drink formulations. One of his creations was called "Brad's Drink" which was later renamed Pepsi-Cola in 1898. Pepsi-Cola received its first logo that year and continued to grow, receiving trademark protection in 1903. The company established early bottling franchises and saw increasing sales throughout the 1900s while undergoing several logo changes as the brand developed.
This document provides a summary of the marketing strategies of Coca-Cola based on a research project report. It discusses Coca-Cola's history and operations in India. Coca-Cola acquired several popular Indian brands in 1993 which helped rapidly introduce its international brands. The document outlines Coca-Cola's 3A strategy to increase availability, acceptability, and awareness among consumers. It also describes some of Coca-Cola's major brands like Coca-Cola, Diet Coke, Fanta, Limca, Maaza, Sprite, and Thumps Up and the company's commitments to the Indian brands. The creative advertisements of some brands focusing on their unique tastes and personalities are also highlighted.
This document provides an overview and history of Cadbury India Ltd. It discusses Cadbury's origins in 1824 when John Cadbury opened a grocery shop in Birmingham, England. It then summarizes Cadbury's growth over the decades as it introduced new chocolate products like Dairy Milk chocolate in 1905. The document also includes sections on Cadbury's organizational structure, research methodology used for projects, and the design and development of some of its iconic chocolate brands like Dairy Milk and Milk Tray.
This document provides an overview of the casual wear market in India and the consumer decision making process for casual wear purchases. It discusses the objectives of the research project, which are to study the consumer decision making process and factors influencing purchase decisions for casual wear among 15-25 year olds in Delhi. It then provides context on the size and growth of the casual wear market in India. The document summarizes the various types of casual wear, and outlines the current market scenario, including competitive and fashion trends that influence consumers. It also gives a brief overview of the textiles industry in India.
The document is a market research report submitted by a group of students to their professor. It includes an introduction, objectives, methodology, analysis, limitations, recommendations, and conclusion regarding a survey of consumer preferences for beer in Delhi, India. The methodology section describes how the survey was conducted using standard marketing research practices on a sample of 476 households. The analysis section summarizes the findings of the report and includes cross tabulation analysis. The report aims to provide useful insights into consumer preferences to help beer companies with marketing decisions.
Working capital management is important for short-term financial decisions and liquidity. It involves managing current assets like cash, inventory, and receivables, as well as current liabilities. Inadequate working capital can cause business failure, while excessive working capital leads to idle funds. The objectives of working capital management are to determine optimal investment levels in current assets, maintain sufficient liquidity to meet obligations, and locate appropriate short-term financing sources. Efficient working capital management is vital for business solvency and continuous operations.
working capitalmgmnt. in air port authorityumesh yadav
This document is a project report submitted by Manoj S. Hule for the Master of Business Administration program at Tilak Maharashtra University. The project examines the working capital management of Airports Authority of India. It includes certificates from the university and Airports Authority of India confirming the project work. The table of contents outlines chapters on the rationale for the study, objectives, company profile, theoretical framework, research methodology, data analysis, findings, limitations and expected contributions. The report aims to analyze the working capital management practices at Airports Authority of India and identify areas for improvement.
This document provides an overview of the two-wheeler industry in India. It begins with an introduction to the industry, historical development, and current state. The major players are identified as Bajaj Auto, Hero Honda, Kinetic, LML and TVS Motors. In recent years, the motorcycle segment has grown most rapidly, increasing its market share from 37% to nearly 70% currently. The objectives and parameters of the project are outlined, focusing on analyzing industry structure, major players, and their strategies through areas of management. An executive summary provides high-level details on industry trends, including increased competition leading to pricing pressures and reduced margins unless offset by volume growth.
This document provides guidance on how to better manage one's time by reducing wasted time and improving scheduling and planning. It discusses identifying responsibilities and priorities, distinguishing between urgent and important tasks, different types of tasks, and setting goals. Ways to assess current time management habits and do better include understanding what needs to be done, having a positive attitude, and starting to plan time right away. Taking the time to properly organize, prioritize and schedule tasks is presented as key to making the most effective use of the limited time available.
The document discusses the history and evolution of placement as a professional practice in rehabilitation counseling. It traces the origins of placement services to early 20th century legislation providing vocational education and rehabilitation for disabled veterans and workers. Over time, placement emerged as a distinct specialization within the field, with its own professional competencies and standards. A key development was the formation in 1964 of the Job Placement Division within the National Rehabilitation Association, recognizing placement as a unique profession. The role and importance of placement services has continued to adapt to changes in legislation, consumer expectations, and the rehabilitation field.
This document discusses the "glass ceiling effect", which refers to invisible barriers that prevent women from rising to senior leadership positions. It provides background on the origins of the term in the 1980s and examines different levels of barriers - at the apprenticeship level, within the leadership pipeline, and at the executive level where advancement seems impossible. The document explores whether barriers truly exist or if women's choices are more responsible for the lack of representation in top roles. It ultimately aims to determine if the glass ceiling is fiction or truth.
Supply chain management involves coordinating the flow of materials and information between suppliers, manufacturers, warehouses, and stores. The document discusses the key components of supply chain management including planning, sourcing, production, delivery, and returns. It also outlines the strategic and operational decisions involved in areas like location, production, inventory, and transportation that are important for managing the supply chain effectively. Overall, supply chain management is a strategic tool that can improve customer service and competitiveness by efficiently integrating all parts of the supply chain.
Storytelling is an incredibly valuable tool to share data and information. To get the most impact from stories there are a number of key ingredients. These are based on science and human nature. Using these elements in a story you can deliver information impactfully, ensure action and drive change.
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
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The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
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This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
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brand positioning
1. Positioning
As Popularized by Al Ries and Jack Trout
In their 1981 book, Positioning: The Battle for your Mind, Al Ries and Jack Trout
describe how positioning is used as a communication tool to reach target customers in a
crowded marketplace. Regular use of the term dates back to 1972 when the same authors
published a series of articles in Advertising Age called "The Positioning Era." Not long
thereafter, Madison Avenue advertising executives began to develop positioning slogans
for their clients and positioning became a key aspect of marketing communications.
Positioning: The Battle for your Mind has become a classic in the field of marketing.
The following is a summary of the key points made by Ries and Trout in their book.
Information Overload
Ries and Trout explain that while positioning begins with a product, the concept really is
about positioning that product in the mind of the customer. This approach is needed
because consumers are bombarded with a continuous stream of advertising, with
advertisers spending several hundred dollars annually per consumer in the U.S. The
consumer's mind reacts to this high volume of advertising by accepting only what is
consistent with prior knowledge or experience.
It is quite difficult to change a consumer's impression once it is formed. Consumers cope
with information overload by oversimplifying and are likely to shut out anything
inconsistent with their knowledge and experience. In an over-communicated
environment, the advertiser should present a simplified message and make that message
consistent with what the consumer already believes by focusing on the perceptions of the
consumer rather than on the reality of the product.
Getting Into the Mind of the Consumer
The easiest way of getting into someone's mind is to be first. It is very easy to remember
who is first, and much more difficult to remember who is second. Even if the second
entrant offers a better product, the first mover has a large advantage that can make up for
other shortcomings.
However, all is not lost for products that are not the first. By being the first to claim a
unique position in the mind the consumer, a firm effectively can cut through the noise
level of other products. For example, Miller Lite was not the first light beer, but it was the
first to be positioned as a light beer, complete with a name to support that position.
Similarly, Lowenbrau was the most popular German beer sold in America, but Beck's
Beer successfully carved a unique position using the advertising,
"You've tasted the German beer that's the most popular in America. Now
taste the German beer that's the most popular in Germany."
2. Consumers rank brands in their minds. If a brand is not number one, then to be successful
it somehow must relate itself to the number one brand. A campaign that pretends that the
market leader does not exist is likely to fail. Avis tried unsuccessfully for years to win
customers, pretending that the number one Hertz did not exist. Finally, it began using the
line,
"Avis in only No. 2 in rent-a-cars, so why go with us? We try harder."
After launching the campaign, Avis quickly became profitable. Whether Avis actually
tried harder was not particularly relevant to their success. Rather, consumers finally were
able to relate Avis to Hertz, which was number one in their minds.
Another example is that of the soft-drink 7-Up, which was No. 3 behind Coke and Pepsi.
By relating itself to Coke and Pepsi as the "Uncola", 7-Up was able to establish itself in
the mind of the consumer as a desirable alternative to the standard colas.
When there is a clear market leader in the mind of the consumer, it can be nearly
impossible to displace the leader, especially in the short-term. On the other hand, a firm
usually can find a way to position itself in relation to the market leader so that it can
increase its market share. It usually is a mistake, however, to challenge the leader head-
on and try to displace it.
Positioning of a Leader
Historically, the top three brands in a product category occupy market share in a ratio of
4:2:1. That is, the number one brand has twice the market share of number two, which
has twice the market share of number three. Ries and Trout argue that the success of a
brand is not due to the high level of marketing acumen of the company itself, but rather,
it is due to the fact that the company was first in the product category. They use the case
of Xerox to make this point. Xerox was the first plain-paper copier and was able to
sustain its leadership position. However, time after time the company failed in other
product categories in which it was not first.
Similarly, IBM failed when it tried to compete with Xerox in the copier market, and
Coca-Cola failed in its effort to use Mr. Pibb to take on Dr. Pepper. These examples
support the point that the success of a brand usually is due to its being first in the market
rather than the marketing abilities of the company. The power of the company comes
from the power of its brand, not the other way around.
With this point in mind, there are certain things that a market leader should do to
maintain the leadership position. First, Ries and Trout emphasize what it should not do,
and that is boast about being number one. If a firm does so, then customers will think that
the firm is insecure in its position if it must reinforce it by saying so.
3. If a firm was the first to introduce a product, then the advertising campaign should
reinforce this fact. Coca-Cola's "the real thing" does just that, and implies that other colas
are just imitations.
Another strategy that a leader can follow to maintain its position is the multibrand
strategy. This strategy is to introduce multiple brands rather than changing existing ones
that hold leadership positions. It often is easier and cheaper to introduce a new brand
rather than change the positioning of an existing brand. Ries and Trout call this strategy a
single-position strategy because each brand occupies a single, unchanging position in the
mind of the consumer.
Finally, change is inevitable and a leader must be willing to embrace change rather than
resist it. When new technology opens the possibility of a new market that may threaten
the existing one, a successful firm should consider entering the new market so that it will
have the first-mover advantage in it. For example, in the past century the New York
Central Railroad lost its leadership as air travel became possible. The company might
have been able to maintain its leadership position had it used its resources to form an
airline division.
Sometimes it is necessary to adopt a broader name in order to adapt to change. For
example, Haloid changed its name to Haloid Xerox and later to simply Xerox. This is a
typical pattern of changing Name 1 to an expanded Name 1 - Name 2, and later to just
Name 2.
Positioning of a Follower
Second-place companies often are late because they have chosen to spend valuable time
improving their product before launching it. According to Ries and Trout, it is better to
be first and establish leadership.
If a product is not going to be first, it then must find an unoccupied position in which it
can be first. At a time when larger cars were popular, Volkswagen introduced the Beetle
with the slogan "Think small." Volkswagen was not the first small car, but they were the
first to claim that position in the mind of the consumer.
Other positions that firms successfully have claimed include:
age (Geritol)
high price (Mobil 1 synthetic engine lubricant)
gender (Virginia Slims)
time of day (Nyquil night-time cold remedy)
place of distribution (L'eggs in supermarkets)
quantity (Schaefer - "the one beer to have when you're having more than one.")
4. It most likely is a mistake to build a brand by trying to appeal to everyone. There are too
many brands that already have claimed a position and have become entrenched leaders in
their positions. A product that seeks to be everything to everyone will end up being
nothing to everyone.
Repositioning the Competition
Sometimes there are no unique positions to carve out. In such cases, Ries and Trout
suggest repositioning a competitor by convincing consumers to view the competitor in a
different way. Tylenol successfully repositioned aspirin by running advertisements
explaining the negative side effects of aspirin.
Consumers tend to perceive the origin of a product by its name rather than reading the
label to find out where it really is made. Such was the case with vodka when most vodka
brands sold in the U.S. were made in the U.S. but had Russian names. Stolichnaya
Russian vodka successfully repositioned its Russian-sounding competitors by exposing
the fact that they all actually were made in the U.S., and that Stolichnaya was made in
Leningrad, Russia.
When Pringle's new-fangled potato chips were introduced, they quickly gained market
share. However, Wise potato chips successfully repositioned Pringle's in the mind of
consumers by listing some of Pringle's non-natural ingredients that sounded like harsh
chemicals, even though they were not. Wise potato chips of course, contained only
"Potatoes. Vegetable oil. Salt." As a resulting of this advertising, Pringle's quickly lost
market share, with consumers complaining that Pringle's tasted like cardboard, most
likely as a consequence of their thinking about all those unnatural ingredients. Ries and
Trout argue that is usually is a lost cause to try to bring a brand back into favor once it
has gained a bad image, and that in such situations it is better to introduce an entirely new
brand.
Repositioning a competitor is different from comparative advertising. Comparative
advertising seeks to convince the consumer that one brand is simply better than another.
Consumers are not likely to be receptive to such a tactic.
The Power of a Name
A brand's name is perhaps the most important factor affecting perceptions of it. In the
past, before there was a wide range of brands available, a company could name a product
just about anything. These days, however, it is necessary to have a memorable name that
conjures up images that help to position the product.
5. Ries and Trout favor descriptive names rather than coined ones like Kodak or Xerox.
Names like DieHard for a battery, Head & Shoulders for a shampoo, Close-Up for a
toothpaste, People for a gossip magazine. While it is more difficult to protect a generic
name under trademark law, Ries and Trout believe that in the long run it is worth the
effort and risk. In their opinion, coined names may be appropriate for new products in
which a company is first to market with a sought-after product, in which case the name is
not so important.
Margarine is a name that does not very well position the product it is describing. The
problem is that it sounds artificial and hides the true origin of the product. Ries and Trout
propose that "soy butter" would have been a much better name for positioning the
product as an alternative to the more common type of butter that is made from milk.
While some people might see soy in a negative light, a promotional campaign could be
developed to emphasize a sort of "pride of origin" for soy butter.
Another everyday is example is that of corn syrup, which is viewed by consumers as an
inferior alternative to sugar. To improve the perceptions of corn syrup, one supplier
began calling it "corn sugar", positioning it as an alternative to cane sugar or beet sugar.
Ries and Trout propose that selecting the right name is important for positioning just
about anything, not just products. For example, the Clean Air Act has a name that is
difficult to oppose, as do "fair trade" laws. Even a person's name impacts his or her
success in life. One study showed that on average, schoolteachers grade essays written by
children with names like David and Michael a full letter grade higher than those written
by children with names like Hubert and Elmer.
Eastern Airlines was an example of a company limited by its name. Air travel passengers
always viewed it as a regional airline that served the eastern U.S., even though it served a
much wider area, including the west coast. Airlines such as American and United did not
have such a perception problem. (Eastern Airlines ceased operations in 1991.)
Another problem that some companies face is confusion with another company that has a
similar name. Consumers frequently confused the tire manufacturer B.F. Goodrich with
Goodyear. The Goodyear blimp had made Goodyear tires well-known, and Goodyear
frequently received credit by consumers for tire products that B.F. Goodrich has
pioneered. (B.F. Goodrich eventually sold its tire business to Uniroyal.)
Other companies have changed their names to something more general, and as a result
create confusion with other similar-sounding companies. Take for instance The
Continental Group, Inc. and The Continental Corporation. Few people confidently can
say which makes cans and which sells insurance.
The No-Name Trap
6. People tend use abbreviations when they have fewer syllables than the original term. GE
is often used instead of General Electric. IBM instead of International Business
Machines. In order to make their company names more general and easier to say, many
corporations have changed their legal names to a series of two or three letters. Ries and
Trout argue that such changes usually are unwise.
Companies having a broad recognition may be able to use the abbreviated names and
consumers will make the translation in their minds. When they hear "GM", they think
"General Motors". However, lesser known companies tend to lose their identity when
they use such abbreviations. Most people don't know the types of business in which
companies named USM or AMP are engaged.
The same applies to people's names as well. While some famous people are known by
their initials (such as FDR and JFK), it is only after they become famous that they begin
using their initials. Ries and Trout advise managers who aspire for name recognition to
use an actual name rather then first and middle initials. The reason that initials do not
lead to recognition is that the human mind works by sounds, not by spellings.
Most companies began selling a single product, and the name of the company usually
reflected that product. As the successful firms grew in to conglomerates, their original
names became limiting. Ries and Trout advise companies seeking more general names to
select a shorter name made of words, not individual letters. For example, for Trans World
Airlines, they favored truncating it simply to Trans World instead removing all words and
using the letters TWA.
The Free-Ride Trap
A company introducing a new product often is tempted to use the brand name of an
existing product, avoiding the need to build the brand from scratch. For example, Alka-
Seltzer named a new product Alka-Seltzer Plus. Ries and Trout do not favor this strategy
since the original name already in positioned in the consumer's mind. In fact, consumers
viewed Alka-Seltzer Plus simply as a better Alka-Seltzer, and the sales of Alka-Seltzer
Plus came at the expense of Alka-Seltzer, not from the market share of the competition.
Some firms have built a wide range of products on a single brand name. Others, such as
Procter & Gamble have selected new names for each new product, carefully positioning
the product in a different part of the consumer's mind. Ries and Trout maintain that a
single brand name cannot hold multiple positions; either the new product will not be
successful or the original product bearing the name will lose its leadership position.
Nonetheless, some companies do not want their new products to be anonymous with an
unrecognized name. However, Ries and Trout propose that anonymity is not so bad; in
fact, it is a resource. When the product eventually catches the attention of the media, it
will have the advantage of being seen without any previous bias, and if a firm prepares
7. for this event well, once under the spotlight the carefully designed positioning can be
communicated exactly as intended. This moment of fame is a one-shot event and once it
has passed, the product will not have a second chance to be fresh and new.
The Line Extension Trap
Line extensions are tempting for companies as a way to leverage an existing popular
brand. However, if the brand name has become near generic so that consumers consider
the name and the product to be one and the same, Ries and Trout generally do not believe
that a line extension is a good idea.
Consider the case of Life Savers candy. To consumers, the brand name is synonymous
with the hard round candy that has a hole in the middle. Nonetheless, the company
introduced a Life Savers chewing gum. This use of the Life Savers name was not
consistent with the consumer's view of it, and the Life Savers chewing gum brand failed.
The company later introduced the first brand of soft bubble gum and gave it a new name:
Bubble Yum. This product was very successful because it not only had a name different
from the hard candy, it also had the the advantage of being the first soft bubble gum.
Ries and Trout cite many examples of failures due to line extensions. The consistent
pattern in these cases is that either the new product does not succeed, or the original
successful product loses market share as a result of its position being weakened by a
diluted brand name.
When Line Extensions Can Work
Despite the disadvantages of line extensions, there are some cases in which it is not
economically feasible to create a new brand and in which a line extension might work.
Some of the cases provided by Ries and Trout include:
Low volume product - if the sales volume is not expected to be high.
Crowded market - if there is no unique position that the product can occupy.
Small ad budget - without strong advertising support, it might make sense to use
the house name.
Commodity product - an undifferentiated commodity product has less need of its
own name than does a breakthrough product.
Distribution by sales reps - products distributed through reps may not need a
separate brand name. Those sold on store shelves benefit more from their own
name.
8. Positioning Has Broad Applications
The concept of positioning applies to products in the broadest sense. Services, tourist
destinations, countries, and even careers can benefit from a well-developed positioning
strategy that focuses on a niche that is unoccupied in the mind of the consumer or
decision-maker.
Recommended Reading
Al Ries and Jack Trout, Positioning: The Battle for Your Mind
The bestselling marketing classic on which this summary is based. Covers the full details
of positioning principles. Ries and Trout write in an easy-to-understand manner, using
successes and failures of real products as examples to help the reader internalize the
principles and develop an intuitive feel for them.
DIFFERENTIATION, ONE OF THE TWO MAIN ROUTES
TO MARKETING STRATEGY(Ramaswamy)
In marketing strategy and competitive advantage, we seen that there are only two basic
routes to marketing strategy, the price route and the differentiation route. In their search
for market leadership, companies take to either of the two routes; they try to achieve
either a low cost position/cost leadership, or a differentiated position through which they
can offer superior value to the consumer.
Differentiation Helps the Firm on Non-Price Plank
The major attraction and the major benefit in resorting to differentiation is that it takes
the firm away from a total price-based competition. In other words, it allows the firm to
fight on the non-price plank, with all the benefits associated with it. So, differentiation is
a crucial decision for a firm and forms an integral part of its marketing strategy. Through
differentiation, firms move to a position wherein they can claim a premium in the market.
Differentiation can be Achieved Through Multiple Sources and in Multiple Ways
Companies can achieve differentiation using the product, or distribution methods, or
promotion steps. Actually, right from the firm‘s collaboration, or plant location, to its
after-sales service, practically anything can be used to differentiate an offer and make it
distinct. In fact, companies can differentiate through every activity that they perform,
provided they excel in it.
9. Modi Xerox used its collaboration with Rank Xerox as its differentiation. Garden Silks
has differentiated through its emphasis on design. L& T, the engineering firm, recruits
engineers with excellent qualification and claims superiority in executing projects.
DuPont‘s leadership in chemical technology lends its products a highly differentiated
position. Caterpillar Tractor, the leader in earthmoving equipment, made a mark through
its distribution channel and service. Eureka forbes, the leader in vacuum cleaners in India,
has used personal selling as the sole means of reaching the customer and built up a
distinction through this feature. IBM differentiated along technology and service, Coke
and Pepsi differentiated through brand power and rolls through superior engineering.
PRODUCT LENDS MAXIMUM SCOPE FOR DIFFERENTIATION
Though differentiation can be achieved through a large number of ways as explained
above, the maximum scope for exploiting differentiation remains with the product. While
all the 4Ps of marketing are important elements from the point of view of strategy, the
other Ps normally go as elaborations of the offer, while the product forms its core.
Product differentiation is of vital importance in product management and has great
potential in forging successful marketing strategies.
1 tangible product attributes and functions and
2 intangible characteristics and emotional associations.
Through a series of examples we shall see how differentiation on the above planks are
made.
1. tangible product attributes and functions
ingredients/formula
functional values
additional features
packaging
design superiority
product quality/ technology/ operational efficiency/ service
Differentiation based on ingredients/ formula
Close-up with gel; hll‘s close-up was putt on the market with a distinction. It was a
toothpaste based on gel. While the other toothpastes then available used calcium carbonet
as carier , close-up used glycerine. A paste with glycerine as base could be coloured
nicely; it could also be given better flavour. Close-up gel came in bright red colour; and
blue and green variants were added later. Another special feature of close-up was that it
served as a mouthwash as well. In other words, it combined the properties of toothpaste
and a mouthwash. Such strong product differentiation helped HLL to secure for Close-up
a market share of over 15 per cent during the early growth stage itself. Colgate, the leader
10. in the industry, was compelled to copy this differentiation as its market share fell at the
hands of the new brand.
TTK Prestige with Teflon: TTK group launched the prestige range of frying pans as
non-stick cookware. It claimed for the new range, the distinction that the coating used
was Dupont‘s Teflon, the best material available for ensuring the non-stick property.
Promise with clove oil: in the latter half of the 1980s, Balsara‘s Promise toothpaste was
creating waves in the Indian oral care market. Its differentiation was the special
ingredient, clove oil, which was a traditional herbal remedy for tooth/gum complaints.
Vatika with herbal ingredients: Dabur Vatika claimed distinction as a hair-oil carrying
a blend of several natural, herbal ingredients traditionally used by Indian women for hair
care. The ingredients included oil, ‗brahmi‘, lime, ‗mehandi‘. Etc.
New Ariel with Carezyme: P&G introduced the New Ariel Microshine (an extension of
its Ariel microsystem), a new technology detergent, incorporating Carezyme and OD
Base. Carezyme is P&G proprietary formula, which gives the detergent certain unique
properties and helps it perform far beyond conventional cleaning. P&G had launched
Ariel microsystem in 1990 in India and gained some market share in the premium
detergents market. The company was then trying to strengthen its position by new
product offers supported by new formulate/ingredients.
Differentiation Based on Functional value
Videocon computer controlled fridge: the fridge had its differentiation on a variety of
new functions. ‗videocon‘s 450-litre, 6 door refrigerator. Computer controlled. A fully
front control makes operation easier. Quick Freezing Corner and the Deodoriser can be
activated at the touch of a finger. Quick Freezing Corner: a stream of cold air chills
foodstuff quickly, preserving taste and freshness. Deodoriser: Eliminates odour. Partial
Freezing. Preserve food stuff at a temperature of -3 C, without actually freezing them;
making it easy to slice meat and fish . Fresh-Vegetable Compartment. Keeps vegetables
fresh for days without any protective covering or wrapping. The Videocon 6 door no-
frost. It‘s big. It‘s new. It‘s right for you.‘
Roti Chef: Roti Chef a newly launched kitchen gadget for making chappathi, used speed
and ease of cooking as the differentiation plank: It is an instant chappathi maker, which
does the spreading and roasting in a jiffy.
Differentiation Based on Additional Features
The ‗mega‘ feature as a differentiator: companies in the television, audio and refrigerator
industries in India, for example, came with‘mega sized‘ products, and used the ‗mega‘
Feature as part of their differentiation effort. In television sets, BPL, Videocon, Onida,
Philips, Optonica, and Bush have introduced large screen models. The screen sizes first
went up from 21 inches to 29 inches, and then to 33 inches. Philips started the trend with
11. its 29 inch model. In audio, BPL came out with its D1000 digital fidelity system. The
speaker of this new system was 34.65 inches tall. In refrigerators, godrej initiated the
mega trend, with the introduction of its 300-litre Sumo model. This followed by a 390-
litre, double door model, which was way ahead of all other refrigerator brands in terms of
size. BPL followed with its two-door 230-litre model, three-door 230-litre and four door
350-litre frost-free models. Then, it brought its 390-litre model, which had two
compressors, one for the freezer and the other for the main section. BPL‘s four-door
refrigerator model,BR- 3504, came with four different temperature zones, a deodorizer, a
humidity filter and a special high-energy efficient compressor. All these companies
differentiated their products on the theme of ‗bigness‘.
Aristocrat suitcase with wheels: when the manufacturers of Aristocrat moulded luggage
introduced suitcases with wheels, it was a case of offering a unique convenience to the
ground on its wheels. The feature did amount to a distinctiveness.
Differentiation Through Product Design
Product design has a lot to do with product success. Quite naturally, product design
becomes a good avenue for product differentiation. a well-designed product makes real
difference to the customer. It ensures product reliability and durability. In addition, it
enhances user comfort.
Kinetic Honda: in the first half of the 1990s, the two-wheeler industry withnessed a
recession. Countering the effect of recession and scoring over competition was a real
challenge for any two-wheeler firm during that period. When the industry growth rate
was negative, kinetic Honda came up with excellent performance. Kinetic Honda‘s
market research revealed that most existing brands of two-wheelers were not adequately
user-friendly. Starting was the main problem. Kinetic Honda brought in the new-wave
scooter, which had electronic ignition and could do away with the kick-start routine. The
users, especially women, found this improvement a blessing. The new model contained a
whole range of other features too, such as automatic gear shifting , choke, built-in-
indicators and a streamlined aerodynamic body design . Kinetic Honda made these
features, especially the ‗kick start‘ as its differentiation plank. Not only did the company
succeed in marketing its two-wheeler in the years of recession, it even embarked upon a
programme of expansion.
Differentiation Based on quality/ Operational Efficiency/ Technology/ Service
Microsoft excels through service: Microsoft, the computer software major, makes its
offer distinct through many efficient service programmes. For example, the company
strives to sort out 99 percent of the customer complaints through telephone from three
technical support centers. Microsoft is keeping ‗designated service providers‘ for this
purpose; they are hired computer engineers. When a Microsoft engineer cannot answer a
call directly, the customer‘s problem. Microsoft compensates the service providers on a
per call basis, with guaranteed minimum number of calls per day. With this arrangement,
12. Microsoft has been able to set its service standard in this matter at a very high level. The
standard set is to answer 90 percent of service calls within 60 seconds.
2. Intangible Characteristics and Emotional Associations
So far, we have seen differentiation built among the various tangible, functional attributes
of the product. Now, let us see how differentiation can be built around intangible
characteristics and emotional associations.
Dinesh Suitings, for example, is not differentiated on a utility plank. Its differentiation is
built around ‗prestige‘. In its advertising campaigns, it builds an aura around the brand
just by using Sunil Gavaskar as the model. The brand and the prestige of the model are
nicely combined in the ads. The punch line reads: ‗Dinesh Suitings….the world in your
stride.‘
Reid & Taylor: in the same product category of suitings, Reid & Taylor uses the same
approach for differentiation, with even more telling effect. Here ‗James Bond‘ is the
prestigious endorser. The ad message links the prestige of bond and the brand:
Reid & Taylor… the legend of cloth…
James Bond….the legend of a man
Luxury suitings….Bond with the best
Ray Ban: similarly, Ray Ban Sunglasses does not build a differentiation on the functional
characteristics of its glass. It projects aesthetics, instead, and claims,….‘Ray Ban…for
exhilaration!‘ It is the lifestyle that is played up.
The Task is to Locate Attributes that will Make the Product Distinct
The examples provided above reveal that the major task involved in differentiating a
product is to identify certain product attributes that can attract buyers. The attribute may
be real or psychological. It may be centering on the product—its quality, use
characteristics, etc. or, the image and prestige dimension. The success depends on the
way the attributes are built in and communicated. The name of the game is to make the
product distinct.
Effective product differentiation requires a through understanding of the distinctive
attributes of competitors‘ products. In addition, it requires a through appreciation of the
expectations of the buyers and their motives in respect of the product under
consideration.
Enhancing Value, the Aim; Product Attributes, the tool
No firm can build up differentiation around its product offer all of a sudden. A lot of
customer/competition analysis and product planning lies at the root of the differentiation
task.
The major questions are:
what is the value the customer would seek from the offer?
13. To give him that value, what attributes should our product have?
How are the competing products placed in this respect?
How do we provide the attributes one better than the competitors?
In short, what unique attributes should we develop to make our offer absolutely
distinctive and satisfying to the customer?
In other words, the firm looks for ‗product gaps‘/‘satisfaction gaps‘ and tries to
fill these gaps in its attempt at differentiation.
Locating customer benefits/ product attributes
We have seen that the aim of differentiation is to enhance the value of the offer to the
customer. the marketing man as to identify the assess the customer benefits that are to
be incorporated in the product. It is obvious that no product can carry the entire
spectrum of benefits. The firm has to decide how far it can accommodate customer‘s
expectation in its offer.
Value addition and product differentiation are concurrent processes: in fact, it is
the awareness about the requirement of customers value that enthuses the firm to
continuously upgrade a generic product to different levels of augmentation to suit
different segments of the market. This way, value addition and product differentiation
are concurrent processes; value addition is the end purpose; identifying the attributes
to be provided incorporating them in the product, and differentiating the product from
competitors product is the route
In short, effective differentiation requires careful evaluation of the benefits sought by
the target audience and incorporating the benefits in the product offer. As mentioned
earlier, various market research techniques are available to assess and measure the
benefits sought by a specific consumer group in a particular product in a given
context, and to construct a comparative profile of benefits perception. The profile
while indicate the relative weightage given by consumers to different benefits, which
are linked to different product attributes. In the chapter on market research, we are
covering techniques like perception mapping, which are widely used to study
consumers‘ perception regarding different combinations of customer benefits/ product
attributes.
Conditions for differentiation to succeed
For differentiation to be rewarding, the differentiation claim must be real and
satisfying to the user, and be also sustainable. The claim has to be backed up by product
performance. The customer using the product has to be convinced that the differentiation
claimed is true and that it is actually delivered. Taking the prestige cookware example
cited earlier, the cookware should prove a non-stick vessel it the kitchen. And, the Teflon
should work and work better than other similar products in the market. In the caterpillar
example, the spare parts should actually reach the customer in any part of the world
within 24 hours of the request. Caterpillar should have lined up the infrastructure like
dealer network, strong points, transport arrangements and inventories to honors its
differentiation claim.
14. The differentiation should be perceptible
The differentiation claimed may be real or psychological, matter-of-fact or subtle. The
main requirement is that the consumers must perceive the products as intended by the
firm. In other words, the differentiation claimed has to be readily perceivable. Moreover,
it is not enough if a few consumers perceive the difference. To be of real marketing
significance, a differentiated product has to be seen as different and distinct by a
sufficiently large segment of consumers.
Should be Rooted in Competitive Advantage
Product differentiation is no easy game. For differentiation to succeed, the firm must
have built up the required competitive advantages. Channel and technology clout, unique
production process, flexible production facilities, and advanced R&D set-up for product
innovations capacity to develop such avenues.
Earlier, we mentioned that brand image is the differentiation plank for a product like
Coca-Cola. It fights on the power of its name, the sway it holds on minds of millions of
consumers round the globe. But to achieve this dominant image, the company has carried
out a sustained marketing effort, supported by heavy investments, over a long period of
time. Similarly, Hindustan Leaver has spent over 100 years and huge investments to
build a brand like Lifebuoy. It means that only if a firm is committed to brand
development, it can build brands that can serve as a source of competitive advantage and
fight on their differentiation strength.
When we take service as the differentiator, Maruti is a good example to cite. Maruti has
built up an extensive service network in India, consisting of over 180 dealer service
workshops and 1,2oo authorized service stations spread out in 470 towns and cities. No
other car company operating in India can claim a dealer-cum-service spread anywhere
near this. Channel/service clout is a competitive advantage for Maruti and it uses it to
differentiate and strengthen its product offer. It can boast of a Maruti service station in
every nook and corner of the country, including sparingly populated areas, and promise
that the Maruti vehicle will be attended to in all places.
The point to be remembered is that product differentiation as a strategy can work only if
the product-claims are sustained. And, one can make sustainable product claims only
with the support of the relevant competitive advantages.
What is positioning
Positioning is a platform for the brand it facilitates the brand to get through to the target
consumers .
Positioning is act of fixing the locus of the product offer in the minds of the target
consumers. In positioning, the firm decides how and around what parameters, the product
offer has to be placed befor the target consumers. The significance of product positioning
15. can be easily understood from david Ogilvy‖s words; the results of your campaign
depends less on how we write your advertising than on how your product is positioned.
Main concern in positioning
A product cannot be everything to everyone; hence, the importance of positioning
The need for positioning arises out of the fact that a product cannot be ‗everything to
everyone‘ and has to be something to some segment. Normally some unique feature of
the product, some special needs of the market or some noticeable gap in competing offers
is picked up hand the product is positioned around that feature/or a combination of
features for a particular target audience
Identifying such features and using them imaginatively as the plank on which to project
the product is the essence of positioning. A product can be positioned for an exclusive
well-to-do segment of the market; it can be positioned for men for children; for the fun
living distinctiveness convenience economy uniqueness novelty or usage it can also be
positioned against a competing brand.
Positioning means putting the product in a predetermined orbit
Positioning is the specific task of taking the product to a chosen orbit in the minds of the
target consumers. If the positioning decision is faulty, the product suffers heavy losses. It
may take a long time and enormous effort to reteive a wronglt positioned product. While
repositioning a successfully positioned product at a latter stage in the light of the changes
in its lifecycle may be easy, it will not be all that easy to reposition a wrongly positioned
product.
In fact the varience that ocures between the position intended by the marketing man and
the position assigned by the consumers is a problem inherent in positioning. This has to
be talked at the very outset and in case it could not be anticipated and handeld in advance
it must be handled as a course correction as soon as possible after the launch. Marketing
savvy companies quickly find out the consumers perception of the position. If it is at
variance from what is intended by them, they rectify the gap .
Positioning connects product offering with target market
While target market selection clarifies for whom the product is intended, and marketing
mix shows the way in which the 4Ps are to be aligned in the offer to the target market,
positioning acts as the bridge linking the product offer with the market.
Consumer’s mind a geometric perceptual space; the product/ brand seeks a locus in
the space through positioning
In positioning, the consumer‘s mind is viewed as a geometric perceptual space, with
different product categories and brands occupying certain positions therein. These
positions held by products/brands change as the available space within the consumer‘s
mind and how to retain it is the question in positioning. By making what kind of
16. propositions, say, in a bathing soap, can a firm secure a position? Where lies the gap in
the mind?What are the attributes which the consumer seeks and which will help fill that
space? Does the firm‘s product possess those attributes? Or, is it possible to replace an
existing brand‘s position in the consumer‘s mind by offering a better value proposition?
We can seek a position in the consumers mind through several routes/propositions. We
may seek a position placing our brand against another ongoing brand, or we may place it
against certain expectations the consumer nurtures. In other words, we will be placing our
brand against some frame of references as seen by the consumer. In our endeavour at
meeting the desired position, we might have already endowed our product/brand with
certain differentiation value. Now, we want this product to be perceived by the consumer
in a particular way. This ‗perception in a particular way‘ is what positioning is all about.
Through positioning, we are launching the product to a particular trajectory in the
consumers mind. The consumer has a frame of reference as far as the given product
category is concerned; and he will evaluate any new offer against this reference. The
issue is: in this frame of reference, where do we want our brand to fit in.
While positioning a brand, the firm has to reckon competitors—especially the
leader’s—positioning
As a part of the positioning task, the firm analyses the competitors‘ positions, sizes up its
own offer and identifies the best possible proposition for its product.
In particular, the firm has to reckon the leader‘s position. It is difficult to dislodge the
leading brands position from the consumers mind; coca-cola is synonymous with cola,
Xerox with photocopying and walkman is practically a generic name for personal stero.
So, any newcomer to these business has to study the positioning of these leading brands
and then decide how it should position its offer.
One problem marketers usually face in positioning is that it is difficult to dislodge a
position that is deeply ingrained in the consumers mind. Al Ries and Jack Trout , who
championed the positioning theme through their book positioning—The battle for your
mind, discuss the subject at length. If somebody asks you which is the highest mountain?
One may not remember. Through a series of such questions, the authors drive home the
point that the ‗the first mountain, the first company, the first product to occupy the
position in mind is hard to dislodge‘.
To illustrate further, throughout the world, among computer customers, IBM holds a
dominant position. Others brands cannot enter the market without relating themselves in
some way to IBM‘s position. In the chocolate market of India, Cadbury‘s have created a
dominant position and way any newly entering brand has to necessarily reckon with it .
one cannot wish away the leader‘s position. Because, the consumer will ask himself, ‗is it
tastier than Cadbury‘s?‘ The point is that wherever there is a dominant brand/competitor,
the other brands have to reckon with its position.
Positioning is not Over at One Stroke; it has to be Monitored and Adopted
Positioning is not over at one stroke. One has to monitor the brand‘s performance and see
whether the positioning is working well. The test takes place in the market and only the
performance of the brand can prove whether it is positioned rightly or not. The firm may
intend a particular positioning, but the market may perceive it differently. And
17. sometimes, the very assumptions of the firm in positioning the brand might have gone
wrong. Such drawbacks will come to the fore only by a constant evaluation. As we shall
see in the complan example it is not easy to get right positioning. Even if the positioning
is right at the launch and clearly growth stage, it needs monitoring and correction through
the growth stage. Brands –even successful ones—may need repositioning.
Product positioning and value proposition
For product positioning to succeed, it must be based on an identifiable, meaningful and
compelling value proposition.
What is the value you propose to give the consumer through your product? What is it that
the consumer gains by possessing your product?
A value proposition is the assertion/statement of the benefits and satisfaction that the
product is offering. In fact, the first rule in positioning is that it should state the value
proposition and thereby appeal to the target consumers.
Value proposition—examples
We can understand the concept of value proposition better by examining how companies
make value propositions in positioning their products.
South west airlines, USA
The claim:… south west Airlines offer the best prices with dependable service and
reasonable amenities.‘
The company is making a very distinctive claim and offering certain value to the
consumer. Now, the company has to support/ substantiate these claims so that the
consumer is convinced of the soundness and credibility of its proposition. It is here that
the differentiation attributes of the product offer come in.you are guaranteeing the
proposed value through the special and unique attributes of your product/brand.
The claim has to be justified by differentiation attributes: let us see how south west
Airlines justifies the claim it makes: ‗..South West Airlines offer the best prices with
dependable services and reasonable amenities because we don‘t charge the customer
anything for amenities‘(no fills, lowest price).
It is clear that the value proposition made by a product becomes convincing when it is
explained and justified by the cifferential attributes of that product. In fact, these two
elements together— the claim supported by the product differentiation plank—illuminate
the positioning theme of the brand.
And to whom? The positioning exercise is still not over. The firm has to specify to whom
the offer is addressed. To the two elements, when the target market factor—i.e. to whom
this offer is addressed to – is also added, the product positioning statement becomes
complete.
Let us see how south west Airlines clarifies this part.
It adds, for the short distance travelers.
18. Let us see how the total value positioning looks like, with the three components, the
target market, the claim and the supporting justification based on product differentiation,
in place:
‗for the short distance travelers, we (SWA) offer the best prices, with dependable service
and reasonable amenities, because we do not charge the customers anything for
amenities(no frills, lowest price)‘.
Citibank
For the business traveler…
The most convenient bank,
Because you can access your money from wherever you are.. all our branches are
computer linked.
Avis
For business people who rent cars,
Avis is the company who will provide the best service
Because the employees own the company.
Home Depot
For do-it-yourselfers,
Home Depot offers the best prices
Because we are the largest building supply company.
Communicating the value proposition to target consumers
We saw at the beginning of this that by positioning the firm is trying to secure a place for
its product in the consumer‘s mind. So a major task is to communicate to the target
audience the distinction, which your product offer claims. In fact, once the value
proposition is decided, the crux of the positioning job lies with marketing
communications. Market segmentation and marketing targeting decides its target market.
In fixing positioning, the firm bridging the product with the target market. All the other
Ps, namely price, place (channel) and promotion, support the positioning task, with the
brunt of the responsibility taken up by marketing communications/promotion.
In a well- orchestrated product strategy, advertising and promotion are the extended
stages in the total product positioning exercise. The burden of marketing communications
in general, and advertising in particular, is to see that the product offer and the value
proposition that goes with it, is properly carried and delivered to the consumer‘s
attention. In fact, quite often, product failures are traced to inept communicated properly
to the target audience.
It is the job of advertising to communicate effectively the positioning, which the firm
seeks. The media, the message, the source, the headlines and the display all have to be
blended appropriately so as to effectively communicate the position one is seeking in the
mind of the consumer.
An effective ad is one that clarifies successfully the positioning of the brand. Extending
the logic further, one can even say that if from an ad we cannot isolate the three
components, target market, value proposition and the supporting product differentiation,
19. the ad is deficient. It may also imply that the marketing team is not clear about
positioning of the product and hence their to the ad agency is deficient. In either case,
advertising fails in its basic purpose.
The burden of advertising is to see how best and how imaginatively and convincingly the
product positioning can be taken to the target audience.
Product positioning and Brand positioning
It is essential to understand the relationship between product positioning and brand
positioning. Though in discussions, the two terms are synonymously and interchangeably
used, technically they are different.
Product positioning denotes the specific product category/product class in which the
given product is opting to compete. And brand positioning denotes the positioning of the
brand viz-a-viz the competing brands in the chosen product category. Let us understand
this distinction better through the example of Maruti Omni.
Example of Maruti Omni
Way back in the 1980s, when Maruti Udyog decided to launch one more vehicle in
addition to the Maruti 800 car, it came out a vehicle, much more spacious than the Maruti
800 car. It had the looks of a van; it could comfortably seat six passengers; it had five
doors, substantial luggage space and taller roof; and it ran on petrol.
Product (category) positioning of Omni: the initial question to be answered was:
As what should this vehicle be positioned?
A car?
A multi-purpose van?
In other words, which was the product category in which this new vehicle was to be
positioned?
If positioned as car, this vehicle would be competing with the then existing brands like
ambassador and fiat in addition to its own Maruti 800. if positioned as a van, it would be
competing with the other brands like Matador and Tempo.
Omni positioned as a multi-purpose van: Maruti decided to position the vehicle as a van
and it was named Maruti Omni.
Brand positioning of Omni: once the product category positioning was decided, the next
question was how should the brand positioning of M aruti van be done viz-a-viz the
competing brands in the van category. The new van had seek its position on its distinctive
advantages. The company had to analyse how the competing brands were perceived on
the different attributes special to this product category.
In the van market, the Maruti van had to compete with other brands like Matador and
Tempo. All those attributes, which the consumer considers important and looks for in a
van had to be analysed and the consumer‘s perception of the existing brands on those
attributes had to be assessed. And then,Maruti van‘s desired locus/positioning viz-a-viz
the competing brands had to be decided.
20. One analysis by the company taking two major attributes, passenger space and price,that
mattered much in this category (based on consumer perception) showed that Maruti van
could be positioned as the high space—low price brand in the market. This is brand
positioning.
Omni positioned as the low priced, spacious, brand in vans: Maruti Omni was positioned
as the low priced, spacious van. But in the market, as time passed, Maruti Omni could not
acuire a dominant position viz-a-viz the brands. The major competing brands were more
spacious, though higher priced. At this juncture, Maruti decided to take a fresh look at the
positioning of Maruti Omni.
Repositioning of Omni as the most spacious, lowest priced, family car:
while trying tosort out the problems faced by in Omni in the van segment, the company
found that the consumer had acquired a different perception about the functionality of the
Maruti Omni.
Many people had started using it as a good substitute for car. For middle class homes, it
ideally served as a family car. More analysis by the company followed. The finding was
that it was advantageous to position it as a car. The company found the positioning
theme, ‗the most spacious family car at the lowest price‘. And in the new position, Maruti
Omni was in the product category of cars, competing with brands like Ambassador, Fiat
and Maruti 800.
As part of the positioning of Maruti Omni as a spacious family car, the company ran an
ad campaign. In this campaign, Maruti stressed as the value proposition ‗the most
spacious car for the family‘. The valu proposition was supported and justified by product
attributes.details are given below:
Maruti Omni Repositioning
Its surprising that most cars don‘t have the fifth door. Sure, you might call it the
boot-bath or the dicky, but in this car it is definitely a point of entry—especially
for a whole gang of excited kids, or the Mrs.‘ shopping bonanaza!
In other words , it opens wide into wide inner space. And when you combine so
much space with the superb Maruti features of styling, performance, fuel-
efficiency and driving pleasure, you‘ll admit it‘s a total car. No wonder it‘s
called the Omni.
Omni space: versatile
On a rough calculation, there is 7.5 cubic meter of space on those four wheels.
Remove the rear seat and the omni doubles up as a cargo carrier, a picnic
hatchback, an out-of-town roadster. And to you, it‘s still the family car, the office
car, and the knock-about-town car.
In fact, with so much space, its versatility depends on your imagination.
The benefits of a car and the advantage of more space. Space that translates into
more headroom, more legroom, more luggage –room and more people-room too.
Omni ; designed for driving comfort
21. It‘s a pleasure to drive. The instrument penel is sleek, with easy-to-read displays.
The articulated steering column is positioned just right; seats are adjustable, with
control levers and gear shaft at hand-touch distance.and of course, plenty of
breathing space.
The high-performance Suzuki engine
Technically, it‘s described as a 3-cylinder 4-strike, 800cc engine.
Designed for over 150,000 kms of trouble-free operation, after which it can be re-
bored.
The Maruti plus points
Features for safety and stability are standard to omni. What is important is that
such features are found in more expensive cars.
A MacPherson strut independent suspension in front and a leaf spring type in the
rear.
30-cm diameter drop-center wheels contribute to safe, stable cornering, and tight
turning ability.
Synchromesh forward gears and a duel braking circuit.
Electrophotric paint desposition that ensures non-corrosion of the car‘s
framework.
A coolant system that eliminates the daily chore of filling water in the radiator.
Beyond doubt a very good car. Better still, the most spacious on the road.
Issues in product (category) positioning and brand positioning
It is evident that for any product, before entering the market, it has to sequentially carry
out the two exercises, product (category) positioning and brand positioning. As already
mentioned, in the first step, the product category where the new wntrant should enter and
compete, i.e. against what all products it has to compete, has to be decided. In this step, it
is broad function that the product is trying to serve that matters. This choice of product
category will decide the nature of the competition the product is going to face. Once
product category positioning is decided, the position for the new entrant against
competing brands in the chosen product category has to be analysed and fixed. In short,
the issues that are raised in product category positioning and brand positioning are
different. The questions to be raised are evident from the Maruti example.
Issues in product positioning
Where is the new offer going to compete? As what?
Which other product categories serve this need? In other words, what are the
substitute products that serve the same need?
Where is the real gap, where is such a new offer most welcome and wanted by the
market?
What are the company‘s competencies of fight here?
22. In fact, these are the issues the film agitates in target market selection too. The linkage is
only natural because in product positioning. The film is actually bridging the product
offrer with the right target market.
Issues in brand positioning
In deciding the brand positioning, the issues are:
Which are the competing brands in the chosen product category?
What are the unique claims/strengths of the various brands?
What position do they enjoy in consumer‘s evaluation and perception?
According to the consumer rating of the competing brands,is there a wide gap in
expectations-performance? What kind of a product/new attributes/new functions
will attract the consumer?
What is the most favoured position……..and yet vacant?
Can the new brand claim the needed distinction and take the position and satisfy
that need?
MAIN ELEMENTS IN THE POSITIONING TASK
Relate and link your positioning to your differentiation theme.
Differentiation and positioning are to be employed in alignment;
differentiation is actually the prelude to positioning.
Find out the positioning gaps in the product category and the attributes
that can fill them in the minds of the consumers.
Analyse your competitors‘ positions and identify the possible position for
your product.
In a particular, evaluate the leader‘s position; the leading brand that
occupies a special position in the consumer‘s mind(cadbury‘s in
chocolates); other brands have to necessarily relate themselves in some
way to the leader‘s position; they cannot ignore the position of the leader,
nor wish it away.
Decide the locus you seek in the minds of the consumers and the attributes
of your offer with you will secure it.
Relate and link your positioning to your target consumers (for whom is it
intended?) and ensure that the positioning appeals to them.
Segmentation/targeting and differentiation/positioning are to be handled in
a composite manner.
Communicate effectively to the target market the positioning you have
chosen.
Link your positioning to your value proposition; ensure, it actually
emanates from your value proposition.
Monitor the positioning as the product picks up. Check whether any
variance occurs between your intended positioning and the actual position
the consumer assigns to it in mind. Tackle the variance; go for a new
positioning, if required.
23. WHAT IS POSITIONING ( Subroto sengupta)
Defines positioning
Product position refers to a brand‘s objective (functional) attributes in relation to
other brands. It is a characteristic of the physical product and its functional features.
Position, on the other hand, refers to a brand‘s subjective (or perceived) attributes in
relation to competing products.
This perceived image of the brand belongs not to the product but rather is the property of
the consumer‘s mental perceptions and in some instances, could differ widely from a
brand‘s true physical characteristics.
We will go later to the question but let us now turn to a very important thought—that the
perceived image of the product belongs not to the product but rather is the property of the
consumer‘s mental perceptions.
This suggests that the advertiser‘s main concern should be with that subjective perception
of his brand as seen by the target consumer. Creating the desired perception and
occupying a particular point or space in the target consumer‘s mind is the essence of
positioning or repositioning strategy .
MULTIPLE DEFITIONS
Can we wrap up what has been said so far with a neat and tidy definition of
‗positioning‘? this is not entirely easy. Positioning is a comparatively new marketing
concept, unlike ‗consumer segmentation‘, for instance, which is an old friend and clearly
stands for the same idea to most of us. The debates there are on ever newer criteria for
segmentation: demographic; usage volume; loyalty patterns; degree of liking for the
brand; brand benefit; social class; life style; attitudes, interests and opinions; personality
characteristics; and like.
In contrast, positioning, to this day, appears to be both a confused concept, and there are
almost as many definitions as there are writers on the subject. To some, ‗positioning‘ is
the ‗proposition‘ or benefit of the product. To others it is its image, or perhaps its status
in the market relative to the brand leader. And some equate it with ‗brand personality‘
A few, indeed, believe that it is no more than old wine in new bottles; a mere rehash of
the ideas of market segmentation and product differentiation.
24. The ‗position‘ of a brand is its perception among target consumers. This perception is
based on its functional attributes and benefits (‗tasty‘, ‗aromatic‘,‘ sporty‘,‘ roomy‘ etc)
as well as on the non—functional or emotional associations it as acquired mainly from its
advertising (‗reliable‘, ‗traditional‘, ‗ smart‘, ‗ prestigious‘, ‗ modern‘, ‗ contemporary‘,
‗stodgy‘, ‗ lively‘) similarly, because it is a perception, it is colored by the target
consumer‘s own attitudes, beliefs and experience, thus leading to the fact that different
segments may perceive the same brand in different ways.
Another key aspect of a brand‘s position is the ways it is perceived in relation to
competitive brands among which we include similar products to product line of the same
company; for example, surf, sunlight and wheel washing powders, all marked by
Hindustan lever.
Position then, represents the essence of the brand as perceived by the target consumers, in
a multi—brand market. In that sense ‗position‘ subsumes the physical or functional
characteristics of the brand, sometimes referred to as ‗product position‘( as in the article
from the journal of advertising research quoted earlier), and non-functional or emotional
values.
For our purpose, we will not draw any distinction between ‗product position‘ and
‗position‘ and will use the terms interchangeably. Since we are mainly concerned with
brands this text will usually refer to brand positioning product and brand for our purpose
will also be used interchangeably, except when the context makes it clear that by and so
to a comprehensive definition.
1. The position of a brand is the perception it brings about in the mind of a target
consumer.
2. This perception reflects the essence of the brand in terms of its functional and
non-functional benefits in the judgment of that consumer.
3. It is relative to the perception, held by that consumer, of competing brands, all of
which can be represented as points or positions in his or her perceptual space and
together, make up a product class.
Note that the brand is not passive but active. It acts to bring about that perception. Note
that position represents the while or overall perception of the brand in that consumer‘s
mind that it is always a relative concept.
Consumer’s perceptual space
In marketing terms, there is no such thing as a product or service which exists by itself in
space, independent of the consumer. For a product to exist, it must find a place in an
individual consumer‘s perception of the world of products around him or her. And this
perception is subjective, governed by the individual consumer‘s values, beliefs, needs,
experience and environment.
This is the core thought behind brand positioning—the idea that each brand (if at all
noticed) occupies a particular point or space in the individual consumer‘s mind, a point
25. which is determined by that consumer‘s perception of the brand in question and in its
relation to other brands.
The spatial distance between the points in that consumer‘s mind reflects the subject‘s
perception of similarity or dissimilarity between products and brands.
The everyday phrase, poles apart‘, is a simple example of how consumers position
products in their mind; for example, an electric shaver v. a cut-throat razor.
Positioning is how a product appears in relation to other products in the market
Brands can be positioned against competing brands on a perceptual map.
A perceptual map defines the market in terms of the way buyers perceive key
characteristics of competing products.
The basic perceptual map that buyers use maps products in terms of their price and
quality, as illustrated below:
26. POSITIONING: OF WHAT STUFF IS MADE?
Product Class
Consumer segmentation
Perceptual mapping
Brand benefits and attributes
In what is probably one of the earliest academic references to positioning, as we now
understand it, Prof. Volney Stefflre described techniques that could be used to measure
consumers‘ perceptions of judged similarity between brands and products and thus give
them a position in a given market. Addressing a symposium on the application of the
sciences to marketing in 1966, stefflre described research, which showed, that brands and
products which were judged to be highly degree of competition and substitution. His
work has been credited as being among the first applications of multidimensional scaling
to marketing a subject, which we shall presently discuss.
Stefflre pointed out, in the work referred to earlier, how these techniques could be used to
prospect for ‗holes‘ or ‗blank spaces‘ for new products or brands in a product class. They
help a multi-product firm to develop new products that would
…. Position themselves in the market in a manner that makes them substitutable for and
competitive with competitors‘ brands while not cannibalizing the firm‘s own related
products.
Shortly afterwards, Norman L Barnett, writing in the Harvard business Review in
January-February 1969, talked of the nrrd to go beyond market segmentation‘; that is ,go
beyond our understanding of homogeneous consumer groupings and shift the focus to
‗‘consumer‘s perception of products‘‘
Positioning of brands is how ‗close‘ each brand is to every other brand. Thus brand
positions constitute a framework or market structure…
According to Bernett, new product introduction becomes the search for a position in the
market, which is preferred over the products currently available.
Four components
The definition that we have given in the previous chapter points to the four basic
components of the positioning concept:
1. Product class or the structure of the market in which our brand will compete.
2. Consumer segmentation
3. Consumer perception of our brand in relation to competitors, which leads to
perceptual mapping.
4. The benefits offered by the brand. These benefits may also be expressed as
attributes or dimensions along which brands are ‗fitted‘ to represent consumer
judgments.
These four components of the positioning concept are so closely interwoven
that they must be taken together when we consider the positioning of a brand.
27. 1. product class
A product class or product market can be defined as the set of products and brands
which are perceived as substitutes to satisfy some specific consumer need. The term,
product category, is also used interchangeably with product class and product market.
Research in India has shown that as middle-income and organized sector blue-collar
families earn more and move up on the social ladder, they are faced at bonus time
with the choice of buying TV set or a fridge.
Such examples, however, merely point to the fluid nature of product market
boundaries; they do not do away with cannot put the positioning concept to work
unless we get to grips with its very first component – the product class: which other
brands must our brand contend with in order to lodge itself in the target consumer‘s
perceptual space? In other words, what is the structure of the market or set of
substitutes amongst which our brand is to be positioned?
Consumer judgements of similarity and substitution can form the basis for defining a
product market or product category and are likely to be more reliable than categories
defined by industry classification.in India, low-cost detergent powders would
undoubtedly be grouped with higher-priced powders in the category of ‗washing
powders.‘there is little doubt, however, that these low-cost powders such as Nirma,
Wheel and Hippolin have also been positioned by consumers against the traditional
(oil based) laundry soaps and bars and have been perceived by them as substitutes for
such laundry soaps.
it is not difficult to presume that a telegraphic message is, in some ways, positioned
against and competes with a long distance telephone call. However, research into
consumers‘ judgements of similarity may show that telegraphic deliveries compete more
–that is, are perceived as a closer substitute of –‗speedpost‘ or courier services than of
trunk calls.
If we consider the product class of chocolates, cadbury‘s, Amul and Campco are clearly
positioned against one another. If we consider the ‗product class‘ of festival season gifts,
consumers may position a decorative box of chocolates against packaged and branded
halwa and even, perhaps, a poket transistor.
For instance, ponds‘ cold creams‘ compertable position seems to have been suddenly
challenged by a brand from another product class altogether. The first appearance of
lakme‘s Wnter Cre Ltion ad may well have come as a rude shock—being described as a
‗reasy cold cream‘by this violator of traditional boundaries which claims to boot,that it is
―oldcream + moisturizer in one‖and is ―o much more than cold cream.‖
28. 2.consumer segmentation
one cannot think of ‗positioning‘ a product or a brand expect in relation to a particular
target segment. You position a Bank fixed Deposit for those investors who prize security
along with a moderate return. You position an ‗un-fixed Deposit‘ for similar investors but
who, in addition, would prefer easy liquidity for their deposits without undue loss of
return.
if you wanted to broaden the market for Bank Fixed Deposits by appealing also to those
investors who favour high returns and are willing to shoulder risks, your only hope is to
position Bank Fixed Deposits in terms of a ‗portfolio‘ of investments in which high-
return and high-risk investments are balanced with moderate-reyurn, no-risk investments,
plus tax benefits.
In fact, either management judgement or research can led to defining yet another segment
of investors as thos who want the best of both the words-a high return with low or
‗manahed‘ risk. Unit trust‘s ‗Mastershare‘ was positioned for just such a segment,
followed by Canara Bank‘s ‗Canshares‘ and State Bank‘s Magnum‘ shares. What, you
may wish to debate, is the difference in the positioning of these three ‗brands‘ of
investment? What is the ‗distance‘ between them as perceived by investors?
3.PERCEPTUAL MAPPING
when marketers and advertising professionals began to display their interest in the
perceptions of target consumers segments, the next natural step was to measure those
perceptions. This constituted an open invitation to mathematical psychologists to move
in—which they did! Today, you cannot play the positioning game without ‗perceptual
mapping‘
what perceptual mapping does is to represent consumer perceptions—in (uaually) two-
dimensional space so that the manager can readily see where his own brand is positioned
in the mind of his prospect and in relation to other brands. The concept of the consumer‘s
perceptual space forms the theoretical basis of positioning. It is this concept which
distinguishes positioning and sets it apart as a major contribution of marketing theory and
practice. Perceptual mapping helps to make this concept operational.
Although the judgments of managers, sales staff or the trade may be used to plot brand
positions in the consumer‘s perceptual space, it is not advisable to substitute them for
consumer judgments, which can only be obtained through field research.
Consumers are asked to rate a set of brands along given attributes or benefits or they may
be asked merely to judge, by pairs, how similar or dissimilar the brands are.
29. 4.BRAND ATTRIBUTES AND BENEFITS
The physical existence of a brand is no assurance that it has a position in the target
consumer‘s mind. To enter that coveted territory—the consumer‘s perceptual space—and
to secure a ‗position‘ there the brand must satisfy his question: ―what‘s in it for me?‖ it
must offer a benefit which is of importance to him. This is elementary. So, when we talk
of brand attributes, we must remember that these are the manufacturer‘s views of the
brand. The consumer‘s frame of reference requires that those manufacturer‘s claim or
brand attributes be translated into consumer benefits in order to map consumer
perceptions. Thus, when we talk of positioning a brand with reference to an attribute or
when we ask a consumer to rate a brand along an attribute, we must reinterpret that
attribute as a meaningful consumer benefit.
Blue detergent powders gradually edged out the perceived importance of ‗blues‘ in the
Indian washing products market. The comeback of Robin Blue for the modern housewife
as Robin Liquid might be linked in the manufacturers viev to the fact that it has features
or attributes such as a ‗flouresecer‘ and ‗ultramarine‘ but these attributes can enter the
housewife‘s frame of reference only if she can be persuated of their benefits to her;
washing powder take away the dirt but robin liquid gives clothes that extra ‗coat of
white‘ and in advertising terms these becomes ‗the whiteness dip‘
After washing clothes with powders, give them that dip in robin liquid for extra
whiteness.
In a sense, robin liquid‘s advertising had to modify the housewife‘s frame of reference by
increasing the ‗saliance‘ of extra whiteness of clothes above and beyond what detergent
powders can do- cleaning clothes but leaving them some what off- white
With this positioning strategy, robin liquid achieved a trial rate of 25% among the target
segement in madras, where it was test launched, after just 12 exposures over TV. In
culcutta, the percentage of trial among target households was 14% after the same
numbers of exposures. It may be noted that madras consumers were some what more
familier with liquid blues than in culcutta.
Where we are- where we should be
It is not enough that we plot the existing positions of brands along crtain dimensions-
brand attributes and benefits. This, by itself, is a passive act. It tells us where we are but
not where we should be and neither can we judge whether we are where we should be.
For this we need to plot not only consumer perceptions but also the preferences of a
given consumer segment in a particular category or product market. Consumers can
express such preferences only in terms of benefits: to what degree they are obtaining a
specific benefit from existing brands; how important this benefit is to them; whether there
is some benefit which they are missing; whether they would prefer to obtain a specific
benefit in greter or lesser measure. Such preferences are also termed ‗ideal points‘ when
plotted on a perceptual map.
30. The techniques of obtaining such preferences from consumer through research and
locating their preferred position (or ideal poits) will be examined in chapter 11.
Let us consider at this stage the purposes of plotting such preferred or idealpositions.
And let us consider by way of example, the premium toilet soap market .
Look at the hypothetical map showing consumer perceptions of some of the
prominent brands of premium toilet soaps in India. ‗premium‘, as defined for ratail audit
purposes, includes soaps priced in 1988 above Rs 4.50 for 100 g. lower-priced soaps (like
lux and hamam) fall into the ‗popular‘ category. The dimensions of the map are based on
a market analysis done by Response.
31. The pursuit of Differential Advantage
CORNERSTONES OF POSITIONING STRATEGY
POSITIONING IS THE PURSUIT OF DIFFERENTIAL ADVANTAGE.
Brands can create franchises of loyal consumers only when they are seen to be different
in some way which is persuasive for the target segment. Recall that famous article by
Prof. Levitt, ―Marketing success through Differentiation—of Anything‖. There is no such
thing as a commodity, he argues. All goods and services are differentiable.
We know that as brands tend to become physical similar—as the better mousetrap is
followed by a dozen me-too mousetraps more and more on non-functional factors to
distinguish his brand. Persuasive differentiation becomes an increasingly difficult task.
One of the major contribution of positioning theory to marketing strategy has been to
bring out the concept of ‗distance‘ and dissimilarity between brands in the perceptual
space‘ of the prospect and to uncover the many opportunities for such perceived
differentiation based upon the capabilities of the product and its antecedents.
Positioning puts in the hands of the brand manager an entire array of differentiating
strategies. He must judge which of these strategies can help him locate a niche in the
market where his brand may be perceived by his target segment as unique and where it
will hold a competitive advantage.
These strategies revolve around different aspects of the brand which can be expressed as
four questions posed on its behalf.
The four strategic questions are:
1. who am I?
2. what am I?
3. for whom am I?
4. why me ?
the answers to these would determine the brand‘s position in the prospect‘s mind. Let‘s
take a closer look at the four questions.
1.WHO AM I?
This question concerns the corporate credentials of the brand. The prospect is urgued to
think of the brand in terms of its origins, its family tree, the ‗stable‘ from which it comes;
the idea being that this can give the brand a competitive advantage.
Positioning by corporate identity
We see this most often with durables when a tried and trusted corporate identity or
source—which has become a household name for some products like Philips for radios
and lamps—is used to imply the competitive superiority of never products bearing that
name: Philips Mixies; Philips Electric Irons; Philips Refrigerators.
This can be such a strong positioning element that companies who market each brand
32. under a different name,e.g.Hindustan Lever(Surf,Sunlight and Wheel detergent powders;
Lifebouy , Pears, Lux, Rexona, Liril bath soaps) nevertheless introduce the corporate
credential as a byline:
A quality product of Hindustan Lever
The Tata oil Mils Company Ltd (TOMCO) endorses its brands(e.g.Hamam, Jai, OK,
Revel,501) with the words, ―A TATA Product‖ . so does the Godrej Company.
Positioning by Brand Endorsement
When a brand has proved very successful the marketer can exploit the strength of that
name for entering another product category. After the phenomenal success of Nirma
Washing Powder seemed logical to give the next entry-a detergent bar-the same brand
name. The third entry of this company-a toilet soap-also bears the same brand name. The
popular toilet soap market in India is very competitive with strongly entrenched brands
like Lux, Rexona, Hamam.Nirma bath soap enters this market with a credible,
competitive answer to the consumer‘s query,‖Who are you? Do I Know you?‖ C Merle
Crawford refers to this positioning strategy as ‗parentage‘.
Parentage.. because of where it comes from, who makes it, who sells it, who
performs it, etc. the three ways of parentage positioning are brand (Cadillac or
citizen printer), company (Data General/One or Kodak diskette), and person.
In such situations, marketing management has to find the right balance. How much of
parentage positioning will give the new brand a good start against competition? How
much will swamp its identity and prevent the prospect from recognizing a new and
different offering?
This can be quite a thorny dilemma as you will find from this account of a new toothpaste
brand launched in 1984 as an extension of the Forhan‘s range.
For some time, Geoffrey Manners (who make and market the Forhan‘s range) had noted
with concern that their flagship brand—Forhan‘s Regular—was attracting fewer and
fewer of younger, urban consumers with modern tastes. At one time this was the No.2
brand in India after Colgate. With the launch of Forhan‘s Fluoride the total market share
of the company had increased but they still felt the absence of a brand which would carve
out a niche within the broad spectrum favouring Colgate(about 50% market share).
The positioning concept of the new brand was expressed as follows:
A high quality foaming toothpaste for modern, young people;it has a pleasing minty
teste and also gives the reassurance of care of the gums .
From this positioning concept arose the name: ‗Forhan‘s Freshmint‘. Getting down to
bress tacks, the company had to decide ―How much of forhan‘s? How much of
freshment?freshmint is what differentiated tha brand from its parent ;
The parentage positioning dilemma was this had the name forhan‖s over the years
acquird a highly therapeutic and stodgy image whtch whold detract from the mordenity
33. and taste appel of the new brand? Yet hcould the brand position it self not as a pimply
little me-too to colgate but as a strong contender for those young urben men and women
who could opt for a brand that tasted as good as colgate appealed to thire sense of
modernity and also promised them a meaningful difference compared to colgate?
The name forhan‖s was already well known and had a widely accepted association with
gum care if the power of this name did not back the new brand would it be easy to
challenge colgate with a brand which was totally unknown? Should forhan‖s be played
up?played down?
The first testing ground to resolve this dilemma was the pack design. Eventually, after
many designs, it was felt that the pack represented the optimal answer to the question:
―Who amI?‖ the ad which launched Forhans si seen in the samje exhibit.
2 what am I?
The positioning strategies around this question relate to the product‘s functional
capabilities. They offer the brand manager considerable scope for perceived brand
differentiation.
‘What am I?’ differentiating strategies can be group under;
(a)category- related positioning
(b)benefit-related positioning
(c)positioning by uses occasion and time
(d)price-quality positioning
Category-related positioning
an important differentiating strategy when an existing product catogery is too crowded is
to take the same basic product and position it in another catogery, provided the attributes
the product can match consumers exceptions from that category. Your brand will then be
preicieved by prospects in a different light. This is reffered in to the jargon as ‗macro-
positioning or inter-set positioning‘.
If you are marketing a skimmed milk powder for instance the same basic product can be
positioned as;
(1)reconsitituted milk as we see in the hypothetical ‗akul home dairy‘ concept if this
position is already occupied you can position your brand as;
(2)a whitener for tea and coffe as in the ‗Akul Special‘ad- considering the growing
interest in physical fitness you can position it as:
34. (3) ‗Akul Weight-Watcher‖, the health-giving, low-calorie milk for the diet conscious
Again, following international trends you might decide to enter the breakfast foods
category and position your milk powder as:
(4) ‗Akul Instant Breakfast‘—remember we are talking of the same physical product in
four different incarnations. What are the implications of such category-related positioning
or repositioning?
Once you have chosen the category in which to slot your brand , you should be prepared
for suitable modifications in the product and other elements of the marketing mix. If a
milk powder has to be positioned as a ‗whitener‘ for tea or coffe you will take great care
over its instant solubility. You may also introduce a creamier variety. For the ‗Home
Dairy‘ position, it should be readily soluble in hot and cold water without leaving lumps.
As an ‗instant breakfast‘ you may need to add vitamins and other nutrients and possibly,
flavours. It must also offer good taste.
Thus, once the category positioning decision is taken, the smart marketer will try to
modify the functional features of his existing brand to mesh more closely with that
position. If it is a brand he will design it from scratch so as to make it a perfect match
The packaging form for ‗Home Dairy‘ may be a mental can. For the ‗whitener‘ it may be
serving-size sachets. For ‗instant breakfast‘ it may be a glass jar.
Distribution modifications may be needed as well. The ‗weight-watcher‘ product may
also fit on chemists‘ shelves for example, and certainly in the emerging health-food
outlets.
The category-related positioning decision determines the product market in which you
will operate. It defines your competition. You will wish to choose a category where there
are no strong competitors making your brand a ‗me-too‘. You may choose to enter a long
haul category because you believe it has a future, like ‗instant breakfast‘ or a food for the
diet conscious.
In an ad for a capital issue which appeared in November 1988, a new company, the Amrit
Protein Foods Ltd, announced as its objective:
A complete line of fitness foods: Health and fitness are making big headlines these days.
And to meet the growing demand for new generation fitness foods, Amrit Protein will
manufacture a wide range of products: Soya Milk, Soya Milk Beverages, Soya Dessert,
and High Quality Soya Paneer.
Somebody evidently believes that there is a long-term future for beverages and foods
positioned in the categpry of fitness foods.
35. With this positioning decision, you are really making your bed and you must be prepared
to lie it. Repositioning id indeed possible and may sometimes be unavoidable. But it is
better to make a long-term decision in the first place.
The Maruti van, initially, positioned and advertised as a van. It was to compete against
Bajaj and Standard Vans. Later, it was renamed ‗Omni‘ and repositioned as the most
spacious car on the Indian roads. Its competition was with the other cars like the
Ambassador and Fiat and, indeed, the Maruti car itself. As a matter of fact, many
consumers had already placed the Maruti Van in this position in their minds, as shown by
their attitudes to it and the way they used it. Maruti Udyog Limited(MUL) was
recognizing this fact in their new advertising.
Benefit-Related Positioning
A well made product would usually offer more than one benefit. Promises of multiple
benefits, however, tend to get lost because they leave in the consumer‘s mind a vague and
diffused imprint. Successful consumer products promise one or at most two benefits and
brand franchises are created around those specific benefits. Thus we have the opportunity
for differentiation of similar products based on benefit positions which have not yet been
occupied.
Consumers, who are similar in important ways, tend to cluster around the same benefits.
This enables differentiation in a product market and has been well documented as
‗Benefit Segmentation‘.
Russel J Haley conducted a research among toothpaste users in the USA (1963) and
divided them into segments, each desiring a specific benefit from their brand of
toothpaste. He uncovered four such benefit segments and their respective brand choices:
Economy : Those who were looking for low price.
Cosmetic: Those who wanted white, bright teeth.
Taste: Those to whom taste mattered the most .
Medical: Those who were concerned about prevention of decay.
Each benefit seeking group or segment had certain common characteristics:
Demographic, psychograpic, and also behavioristic.
There is no published account of similar research on the toothpaste market in India.
Judged by their advertising, the benefit positions occupied or sought by major brands
would be approximately as follows:
Benefit position Brand
Cosmetic: White, bright teeth Close-Up
Fresh breath Colgate, Close-Up, Forhans Regular
Taste Colgate
36. Decay prevention Colgate, Colgate Flourigard, Binaca
Fluoride, Signal
Gum care and other therapeutic Forhans Regular, Promise, Neem
Decay prevention and tartar control crest
As you can see, colgate, the market leader by far, is positioned across a broad brand of
benefits. Others are positioned by more specific benefits.
A new differentiated positioning can be sought by offering a unique combination of
benefits. This was the thinking behind Forhans‘ Freshmint which offered the gum care
benefit for Forhans, plus the minty taste associated with Colgate.
The introduction of crest in the above table is pure speculation at this time (1989) on the
part of the author. But since Procter & Gamble (P&G) are now formally in India, one
may well expect this gifted brand to surface here.
Features of benefits
In some texts, the phrase ‗positioning by features and attributes‘ is also used and is
referred to separately from ‗benefits‘. For example, wind in his book on product policy
says:
Positioning on specific product features:
Positioning a product by its performance on specific product attributes is among the most
common approaches to positioning, especially for industrial products… product feature
positioning can range from specific tangible benefits (such as chevette as the economy
car or VW‘s ‗Think small‘ to more abstract features such as Avis‘ ‗We Try Harder‘)
Positioning on benefits, problem solutions or needs:
Strongly linked to product features positioning is benefit positioning, which is more
effective than positioning which describes product features without their to the consumer.
It is clear from the even when positioning is based on a specific feature of a product, the
objective is or should be to position it in terms of the benefit flowing from that featureof
a product, the objective is or should be to position it in terms of the benefit flowing from
that feature or attribute. There is no contradiction between the two because consumers
buy benefits not features. Even industrial product purchasers buy solution to problems
and not attributes per se. features become important to the consumer only when they lead
to that special benefit which the consumer seeks.
The importance of a brand‘s physical features or attributes in the context of positioning
lies more in offering a convincing ‗reason-why‘ the brand will indeed deliver the
37. promised benefit. We will, therefore, look at ‗positioning by product features‘ with
regard to the brand‘s question, ‗why choose me?‘ later in this article.
In some cases the tangible, functional differences between brands would be substantial
and these are situations where the marketer has the inestimable advantage of a USP (
Unique Selling Proposition) enabling him to promise a benefit which others do not or
cannot. This would be true of Forhans Regular or Close –Up toothpaste, for instance.
But even when the physical characteristics or attributes of brands are similar, benefits-
related positioning enables the brand manager to create a perceived differentiation
between basically like products.
Let us take the example of a hypothetical chocolate malt-based beverage and let us
christen it ‗Brown-Vita‘. At least four strong positions can be created around the basic
formulation or physical characteristics of the product. For the sake of our example, we
will use the same brand name throughout this example but each of these positions can be
filled by a distinct brand commanding its own loyal segment. Thus, our brand, Brown-
Vita, can be positioned in the health beverage category as a chocolate-based drink which
has a lot of good taste.
The health drink that‘s full of taste Or we can position Brown-Vita as the
energy drink emphasizing its carbohydrate
contents.
The health drink packed with Energy Or Brown-Vita can be positioned for its
natural goodness. We would make much
of its ingredients—malt, milk, cocoa—and
stress the absence of artificial ingredients.
It would be:
The health drink full of Natural Goodness And finally, we might highlight the non-
fattening properties of Brown- Vita as
well as its proteins and vitamins to
promise the benefit of low calories plus
nourishment value:
The health drink high in Nourishment and
low in Calorie.
There are four major brands belonging to
this category of cocoa and malt-based
health beverages which are presently
marketed in India:
Bournvita
Maltova
Boost
Natramul
38. Emotional benefits
When we talk of benefit-related positioning, we must remember that a brand is a
composite entity and the position which the consumer gives it in her mind represents her
perception of the brand in terms of its tangible or functional benefits and also its non-
functional or emotional benefits.
How do we handle the concept of emotional or non-functional benefit in the practical task
of creating a distinct and persuasive for the brand?
Although the concept is now will accepted by marketing and advertising practitioners,
applying the concept to create a persuasive difference between functionally similar
brands is a more complex task .
Positioning by usage occasion and time of use
Positioning by usage occasion or application is another strong differentiating strategy
within the ambit of the question, ‗what am I?‘. If a brand employs this strategy well, it
can virtually pre-empt that particular usage. Find a strong usage position and sit on
it…for instance, the condensed milk brand, Milkmaid has come to dominate the dessert
usage position so strongly that it cannot be easily dislodged by a competitor.
Cadbury‘s drinking chocolate experimented with two usage positions:
The relaxing way to end your day: The Good Night Cup; and shortly afterwards…
Now is the time to sit back and put up your feet… making this the happiest time
of your day with Cadbury‘s Drinking Chocolate.
As you see, usage occasion and time of use, or when to use, are often combined.
The reason for a abandoning the Goodnight Cup position is not known. Can it be that this
position was not given a proper trial? In these days of stress, tension, high pressures of
work and competition, this represents in our view a potential valuable usage position in
the branded beverage market in India.
An exceptionally single-minded usage positioning strategy, linked also the time of use, is
the positioning of Vicks vaporub to be applied for a child‘s cold, at night. Many have
tried to breach this position and failed. Vicks Vaporub has made this usage position
virtually unassailable. We shall look at this striking example in greater depth in chapter 6
.
Burnol antiseptic ointment is for burns and strong entrenched for that usage. Dettol
antiseptic is for nicks and cuts, insect bites and other minor infections . Each of these
brands has set on its usage position for decades without any serious challenger . if you
have found position for your brand, sit on it, make it your domain .
39. Interestingly, dettol soap, relaunched in 1984, has made headway in the criwded premium
toilet soap market by adopting a strategy of creating and dominating a specific usage
occasion . This is the occasion when you feel particularly sticky or dirty or grimy and
would respond to the idea of a ‗100%bath‘ .
This makes dettol more like a soap for a middle of the morning bath after a grueling visit
to the bazaar or the after-work bath at the end of a long hard day . this is a courageous
decision-having the boldness to dominate a specific usage market – ‗A high quality soap
for a bath‘ – or aim for an extremely narrow usage, ‗the antiseptic bath soap‘ .
With this positioning, dettol soap has climbed from 1.7% market share before its relaunch
in 1984 to 3.7% share in 1988 . this compares with 4.5% market share of a well-
established, long-time brand like pears . a selective usage position may turn out to be
quite profitable after all, if it attracts an adequate number of consumer and you dominate
the position .
Product line positioning by usage
To minimize cannibalization, as we said in chapter 3, marketers adopt different positions
for their brands in the same product category. Differentaition by usage occasion is one
such strategy .
Union carbide‘s eveready (dry cell) batteries provide a good example. Till the seventies,
over 95% of the total battery demand came from torch and transistor usage. However,
since the eighties, there has been a boom in the population of cassette tape recorders,
two-in-ones, cameras using photoflash guns, battery-operated toys, calculators and other
sophisticated equipment like TV remote controls, hearing aids, etc. these equipments are
normally high drain devices and they consume more electrical energy per unit of time
compared to equipment like torches and transistors. In addition, since these equipments
are high value products, the need is more pronounced for a battery which is ‗safe‘ , i.e.
less prone to leakages .
To meet this demand union carbide developed a battery in 1985 using zinc chloride
technology . pricing for the product was fixed at a 20% higher level than red eveready,
the company‘s premium brand in the standard range . the pricing was arrived at after
considering value to the consumer and price-elasticity. The following comparative table
highlights the price-performance benefits of this product in relation to the best ‗standard‘
battery available.
Price
Index
torch transistor Photoflash
Guns
Toys
New battery 120 125 120 200 200
AA Size Performance Indices
40. Red
Eveready
100 100 100 100 100
The company and its agency, Rediffusion, then considered the following positioning
option.
1. The Most Leakproof Battery Available in India
To carry conviction one would have to compare it to standard batteries including red
eveready. Also, 100% leakproof performance could not be guaranteed.
2. The Superior Modern Technology Position
Valid, but again this would have involved a comparison with red evready. Besides, the
competitive edge would be diminished when other brands like Novino and Nippo
followed suit.
3. performance positioning
This could be a legitimate and strong positioning, but more than any of the other
alternatives, this position would hurt Union Carbide more than its competitors. It would
have implied the infirmity of the Eveready Standard range (Red, Blue and White) which
comprised 45% of the total battery market.
4. End-Use Based Positioning
Market research studies conducted for batteries had clearly indicated that consumers have
a definite hierarchical perception of quality relative to end-use for the battery. For
example, a transistor is perceived to be higher order equipment than a torch and hence if
a battery is said to be designed specially for transistor usage, it is superior to a battery
made for torches.
Research data had also indicated that in the hierarchy of equipments, photoflash
equipment was at the top, followed by cassette tape recorders (CTRs) and other
motorized gadgets. Transistors came next, with torches at the bottom of the rung.
Positioning this battery as a product for ‗modern machines‘, i.e. CTRs, photoflash
equipment and other motorized equipment would have allowed consumer beliefs
regarding the equipment hierarchy to rub off on to the new product and would definitely
help to position the product as a top-of-the-line battery, without endangering Eveready‘s
standard-line volumes/market share.However, a focus on end-use equipment to prove
performance superiority could only be effective if the consumer were given a ‗reason-
why‘ to believe the claim. The substantiation of this product claim lay in its zinc chloride
technology. The technology linkage provided not only the ‗reason-why‘ but also created