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Positioning
Positioning involves designing a company's offering and image to occupy a distinctive place in the target market's mind. It is important because consumers are overloaded with information and organize products mentally relative to competitors. Marketers can plan strategic positions to give their products an advantage. Effective positioning is meaningful, credible, unique, and durable over time. Repositioning involves changing a product's identity in response to market changes. Reasons for repositioning include changing consumer needs, competition, and falling sales. Repositioning strategies include gradual or radical changes to reconnect with customers. Brand case studies demonstrate different approaches to repositioning over time.
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Positioning
- 1. POSITIONING Presented by: Shruti Kulkarni(PC 18) Arti Dangi (PC 03) Neelam Upadhyay (PA 09 )
- 2. Positioning • Positioning isthe act of designing the company‘s offering and image to occupy a distinctive place in the mind of the target market. • The place a product occupies in consumers‘ minds relative to competing products.
- 3. Why Positioning? • Consumersoverloaded with information about the products and services • To make buying decisions simpler, consumers organize and categorize i.e. Position products and services in their minds. • A products position is complex set of perceptions, impressions and feelings that consumer have for a product compared with competing products.
- 4. Why Positioning? • Consumersposition the products with or without the help from marketers • But its risky to leave the products positioning to chance… • Hence, marketers plan position that will give the product the greatest advantage, and design marketing mixes to create these planned positions.
- 5. Positioning To (target segmentand need) our (brand) is a (concept) that (point-of-difference). Example: To young, active soft-drink consumers who have little time for sleep, Mountain Dew is the soft drink that gives you more energy than any other brand because it has the highest level of caffeine.
- 6. Effective Positioning • „Meaningful to consumers • „ Credible/believable • „ Unique to your brand • „ Durable over time If a company decides to build a position it must deliver that position and maintain it through consistent performance and communication
- 7. Right Positioning isCritical • Make or break the organization – launched in 1983 – Noodles a new concept in Indian households – Targeted at children – Two options • As a dinner item • As a snack item Maggi Noodles
- 8. As a Lunchor Dinner • Housewives / Mothers take decisions • Noodles as lunch or dinner item • Replacing current lunch items • Housewives want to serve children „nutritious‟ food • Would noodles provide nutrition and replace tradition food? As a „Snack Item‟ • Between lunch and dinner • After playing or exercising • Spend energy • Want to eat something • Quick preparation and delicious • Variety of flavors • Filing • Will mothers accept this as a „snack Item‟ Right positioning was critical for the success of Maggi noodles.
- 9. • Maggi waspositioned as the only hygienic home made snack. • Through its ads, NIL positioned Maggi as a 'fun' food for kids which mothers could prepare easily. – ‗ Mummy, bhookh lagi hai‘ – ‗ Bas 2-Minute‘ – ‗ Fast to Cook Good to Eat‘ – ‗ Health Bhi, taste Bhi‘ The first competition came from the ready-to-eat snack segment, that were usually ‗the bought out‘ type. Eg Samosa • ―unhealthy‖ and ―uhygienic‖ option The other competitor, ‗homemade‘ snacks overcame both these problems but had the disadvantage of extended preparation time at home.
- 10. Positioning Strategy •Competitive Advantage •Pointof Difference •Point of Parity
- 11. 1.Competitive Advantage Competitive Advantagecan be gained to the extent the company can position itself as ―providing superior value‖ by differentiating along the lines of products, services, people or image How many differences to promote? • Aggressively promote one benefit to target market. • Companies should develop a Unique Selling Proposition (USP) for each brand and stick to it. However, if two or more companies claim to have same USP, then the companies should position themselves on more than one differentiator attribute
- 12. 1.Competitive Advantage Which topromote? • Important • Distinctive • Superior • Communicable • Pre-emptive • Affordable (to company and consumer) • Profitable
- 13. 2.Points of Difference •Points of difference are attributes/ benefits that consumers strongly associate with a brand/product, positively evaluate, and believe that they could not find to the same extent with a competitive brand/product. • Points of difference are usually in line with the Unique Selling Proposition and are critical in defining the competitive advantage of your products. Eg. Fast-food chain Subway offers healthier meals than other quick-serve restaurants because its sandwiches have fewer grams of fat
- 14. 2.Points of Difference Thesources of difference can be – Product Design – Quality – Additional Services – Image – People (Staff) – Price – Others
- 15. 3.Points of Parity •Associations that are not necessarily unique to the brand but may be shared with other brands. • While POPs may usually not be the reason to choose a brand, their absence can certainly be a reason to drop a brand. Category point of parity means that the brand offers necessary but not necessarily sufficient category features. Eg. A bank will not be suitable, for example, unless it offers adequate ATM service. Competitive point of parity is designed to negate a competitor‘s point of difference. Eg. Lifebuoy soap will establish competitive POP with Dettol soap by claiming that it has germ killing qualities and vice versa.
- 16. POD vs. POP Similarmenu choice, similar in- store facilities, similar pricing More menu flexibility Discount offers Higher quality ingredients In a Fast-food outlets
- 17. Overall Positioning Strategy •Consumers want product and services that give them greatest value • Hence, companies should position their brands on key benefits that they offer relative to competing brands. • The full positioning of a brand is called the brand’s Value Proposition – the full mix of benefits upon which the brand is positioned.
- 18. Overall Positioning Strategy ValueProposition
- 19. • Under-positioning: – Notpositioning strongly enough. • Over-positioning: – Giving buyers too narrow a picture of the product. • Muddled Positioning: – Leaving buyers with a confused image of the product. Positioning Errors
- 21. • Displaying orgraphing, in two or more dimensions. • The location of products, brands , or group of products in customers‘ minds. Perceptual Mapping • Margo occupies the herbal ‘slot’ • Lifebuoy occupies the hygiene slot
- 22. Perceptual map Attribute dataNonattribute data Similarity Preference Correspondence analysis MDSDiscriminant analysis Factor analysis Approaches to Create Perceptual Maps
- 23. • Identify aset of competing brands1 • Identify important attributes through Qualitative Research2 3 • Conduct quantitative marketing research 4 Plot brands on a two dimensional brands Developing perceptual Maps
- 24. Price and Quality CompetitorAttribute UseProduct User Product Class Emotion Positioning Bases
- 25. Attributes Price and Quality Premium full serviceairline Low Cost, no frill players 6 sec
- 26. High HighLow low Colgate Dabur lal powder Fresh Breath Goodfor gums Perceptual mapping of Toothpaste Forhan’s regular Decay Prevention Minty taste, foaminess
- 27.
- 28. Cleans dirt Makes extra white RobinLiquid Detergent powders Detergent bars Perceptual map of washing products Robin liquid is attempting to distinguish itself from Detergent products on the dimension of ‘extra whiteness’
- 29. Competitor Mystery Shampoo “Amystery Shampoo”, 80% of Women say is better than anything else
- 30.
- 31. Medicinal Low EfficacyHigh Efficacy Natural Eno Gelusil Digene PudinHara Hajmola Perceptual mapping of Digestive Brands
- 32. Does Good Feels Good Cinthol Margo Ponds ColdCream Lavendar Dew Moti Perceptual mapping of Soap Brands Mysore Sandal Soap Liril I I = Ideal Position
- 33. Gentleness . Tylenol Effectiveness . Bufferin .Advil . Nuprin . Excedrin . Private-label aspirin . Bayer . Anacin Perceptual Map of Pain Relievers
- 34. Balms Vicks VapoRub Multi-PurposeColds Adult Child Day-time Night Forehead (colds) Nose, Throat Specific area of pain Chest and back
- 37. Repositioning: company modifies whatis already present. • The market demand changes rapidly and so, repositioning is important. • The main aim of this is moving something from somewhere towards a greater position at the market. • Help in saving the failing brand. • Done when the market is ―volatile‖
- 38. Repositioning • Brand positioning,when obsolete -occurs a need to Reposition it. E.g.: Hyundai cars positioning statement 10 years may not work for a 1,00,000 miles warranties ―brand‖ And 1 yr buy back program ―Value for money‖
- 39. Positioning is the processby which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization Re-Positioning involves changing the identity of a product, relative to the identity of competing products. De-Positioning involves attempting to change the identity of competing products, relative to the identity of your own product.
- 40. • Brand repositioningdone “Proactively” • Its is an expensive investment. • Educating the consumers for the new position
- 41. Repositioning of brandcan be rolled out at • The following three stages: Introductory stage Elaboration stage Fortification stage
- 42. Three types ofrepositioning strategies • Zero repositioning • Gradual repositioning • Radical repositioning
- 43.
- 44. Reasons for Repositioning: Environmentally driven Consumerdriven Competitor driven Internally driven
- 45. Maruti Omni: From vanto spacious car Bournvita: From milk additive to nutrition drink Increase relevance to consumers: Search for viable position: Complan: Fod for the convalescing to ―for growing children‖ Milkfood yogurt: Form ―at any time snack‖ to ―misthi dohi‖
- 46. Increasing occasion foruse: Monaco : From salted biscuits to biscuits with toppings Burnol: From oinment for burns to 3-in-1 oinment Odomos: From outdoor to both Dettol: from antiseptic liquid to multi use liquid Vicks vapor rub: from child vapor rub to adult vapor rub Titan watches: from elegance watches to best gift
- 47. Falling sales: Ambassador: From rationalpitch to emotional pitch Brooke bond‟s red label: Changing the tag lines Bringing in new customers: Johnson & Johnson: From baby to adults Ray-ban: From men to women Cadbury‟s dairy milk: From children to adults
- 48. Making the brandcontemporary: Dabur chyawanprash: From good for digestion to nutritional value Femina magazine: Repositioned as ― today‘s women‖ Differentiating the brand from competitors: Mint-o: Repositioned the mint ― all mint, no hole‖
- 49. Changed market condition: Horlicks: Energygiver and health provider Milkmaid: From whitener for milk to topping for dessert
- 50. Brand Repositioning ofCinthol Inception in 1952— with a unique smell In 2000- as ―family soap‖ (Tan Tazza, To Man Tazza) 1989 new image of freshness with Cinthol Lime In 1986 vinod khanna ( I use Cinthol. Do you?) and Imran khan In 1995, shahrukh khan.. The 3 international variants of cinthol In 2008- tagline “don’t stop” endorsed by hrithik roshan
- 51. Cinthol embarks— “Aliveis Awesome”…. • Cinthol repositioned itself again with the help of cricketer Virat Kohli (during IPL season) •With the tagline “Alive is Awesome” • Targeted “youth” •Changed the wrapper from red to bold and abstract colours •Repositioned the soap along with shower gels, deodrants and talcum powder.
- 52. Merits of repositioning: Value overothers Updated personality Relevant position ―Up to date‖ image Demerits of repositioning: Loss of focus Neglecting original customers Losing credibility of brand Confusing the brand
- 53. References: • Sengupta Subroto,“ Brand Positioning” strategies for competitive advantage, 2nd edition, TATA MacGraw hills Education Private Limited • Lamb, Hair, Sharma, McDaniel- ―MKTG”, CENGAGE learning. • Trout Jack – ―Repositioning” TATA McGrawhill edition
Editor's Notes
- #21 This template can be used as a starter file for presenting training materials in a group setting.SectionsSections can help to organize your slides or facilitate collaboration between multiple authors. On the Home tab under Slides, click Section, and then click Add Section.NotesUse the Notes pane for delivery notes or to provide additional details for the audience. You can see these notes in Presenter View during your presentation. Keep in mind the font size (important for accessibility, visibility, videotaping, and online production)Coordinated colors Pay particular attention to the graphs, charts, and text boxes.Consider that attendees will print in black and white or grayscale. Run a test print to make sure your colors work when printed in pure black and white and grayscale.Graphics, tables, and graphsKeep it simple: If possible, use consistent, non-distracting styles and colors.Label all graphs and tables.
- #24 This is another option for an overview slide.
- #25 This is another option for an overview using transitions to advance through several slides
- #37 This template can be used as a starter file for presenting training materials in a group setting.SectionsSections can help to organize your slides or facilitate collaboration between multiple authors. On the Home tab under Slides, click Section, and then click Add Section.NotesUse the Notes pane for delivery notes or to provide additional details for the audience. You can see these notes in Presenter View during your presentation. Keep in mind the font size (important for accessibility, visibility, videotaping, and online production)Coordinated colors Pay particular attention to the graphs, charts, and text boxes.Consider that attendees will print in black and white or grayscale. Run a test print to make sure your colors work when printed in pure black and white and grayscale.Graphics, tables, and graphsKeep it simple: If possible, use consistent, non-distracting styles and colors.Label all graphs and tables.
- #38 Brand repositioning is all about changing the status of your brand by modifying its appeal to customers. However, determining when your brand needs to be repositioned is not always crystal clear, but is very important for the brand.Brand repositioning doesn’t start with a new design, logo or name. the critical point is to reposition a brand in the right way and in at the right time.As the market is everchanging it is important to reposition the brand according to the change in the demand.
- #39 We saw in the previous part how to develop a brand position and how to craft a strategy.however there may come atime when the brand does not gets its jpb done as wanted..that”s the time when reposition is required.Repositioning happens when you change the image of a brand to hold a new place in consumers’ minds relative to its competitors in the marketplace where it exists.For example, Hyundai repositioned its brand to make its low price image mean more than “cheap price = cheap car.” With the introduction of creative marketing, Hyundai launched 10-year, 100,000 mile warranties, and a 1-year buy-back program for consumers who fell victim to the recessionary environment. Suddenly, low price didn’t mean “cheap.” Instead, it meant “more value for your money.”A particular positioning statement may not work with a brand.For e.g Dettol toilet soap was positioned as a beauty soapinitially.It did not work .Dettol , the parent brand (antiseptic liquid) was known for itsability to heal cuts. The extension’s “beauty”positioning was not in tune with theparent’s “germ-kill” positioning. The soap therefore had to be repositioned as a germ-kill soapand it faired extremely well after repositioning.. Here the soaphad to be repositioned for image mismatch
- #41 Sometimes brand repositionings are done proactively. For example, a company might realize that the original brand position wasn’t well-researched or developed and a repositioning is necessary. However, repositioning a brand can be an expensive investment, so it must make strategic sense to pursue a repositioning initiative.For example, not only do you have to educate consumers about the new position, but for existing consumers in the marketplace, you need to ‘un-teach’ them everything they already know about your brand. In other words, you have to convince them to forget the old brand position and believe and accept the new brand position. Consumers dislike change, so this is not an easy task.- See more at: http://aytm.com/blog/research-junction/brand-positioning-standards-and-practices-part-4/#sthash.rtFRFzqb.dpuf
- #42 Introductory stageElaboration stage fortification stage
- #43 ZERO POSITIONING: zero repositioning, which is not a repositioning at all since the firm maintains its initial strategy in the face of a changing environment;Gradual repositioning:where the firm performs incremental, continuous adjustments to its positioning strategy to reflect the evolution of its environment; Radical repositioniing:repositioning that corresponds to a discontinuous shift towards a new target market and/or a new competitive advantage.
- #45 here are a variety of reasons why a brand might be repositioned. The most common reason is as a reaction to change. That change could be: Environmentally driven: such as economic fluctuation, political changes, or the green movement Consumer driven: such as changing tastes or preferences Competitor driven: such as a new brand launch from a competitor that makes your position obsolete or inferior Internally driven: such as a change in corporate strategic direction or acquisition of new technology, science, or other asset that gives your brand a competitive advantage and valuable differentiator -
- #46 Increase relevance to consumer:A brand has been existent in the market for sometime maylose touch with consumers because the consumers needsmay have changed. Thus it is possible that the brand is fundamentally sound andyet is not in sync with the consumer's current concern.So the answer is repositioningA) Maruti Omni : is a van. It probably is the cheapest Marutivehicle in the market. Yet maruti did not pitch it as a valuefor money vehicle. It is well known that maruti scores onroominess. Thus maruti repositioned it as the most spaciouscar with the tag line “one car fits all”Van---most spacious carB) Cadbury’s BournvitaBournvita is a case of how a brand changes itspositioning in keeping with the changing needs of the customers.Initially the emphasis was on it good taste (tasteadditive to milk). Then as the customers became more demanding ,the pitch was modified to include the nutritiveaspect as well ( extra nutrition, extra taste).Later to make itself more attractive it claimed togive sharpness of mind (nutrition, mentalstimulation)search for viable position:Complan: had at various timespositioned itself as “food for theconvalescing”, then they changed it to“for the family” (fussy child, busyexecutive, tired housewife). This is possibly because it was trying toget a viable positioning statement.Finally it seems to have found one inthe positioning line “for growing children”B) Milkfood’s yoghurt :was initially positioned as“anytime snack”. This did not work . Theythen changed it to “Ït is not just curd.” This also did not work.Probably positioning it as “mishti-doi”(sweet curd) for the east and northeastern parts of India would have possiblygiven it a better opportunity for success
- #47 Increasing occasion for use:A) Monaco : initially positioned as the “perfectsalted “biscuits. To increase occasions for use, itpitched itself as “excellent plain, terrific withtoppings.What was essentially a plain, salted biscuitturned itself into a biscuit that can be consumedas it is or with toppings thereby increasing itsoccasions for use.b)Burnol : initially positioned for curing burns.With increasing competition in the segment , itwanted to enlarge the franchise. Thus it calleditself a 3-in-1 ointment. Aimed at curing burns,cuts and gashes.C) Dettol liquid:antiseptic liquid is basically used toprevent cuts and gashes from developingsepsis. To increase the occasions for its use, itshows several other avenues. These are 1) for washing babies clothes2) for the shaving mug 3) for washingand swabbing 4) to clean floorsD) Odomos :was one of the first mosquitorepellants in the market.It was essentially pitched as an indoormosquito remedy.Later as mosquito mats became popular,creams became less popular as they wereseen as sticky.One way of combating the mats was tofight them outdoors.So now odomos is for both indoor as wellas outdoors.E) Vicks vaporub: was initially a child’s coldrub. Later in an attempt to increase uses aswell as users ,it was positioned as an adultcold rub for anytime during the dayF)Titan --- from watch with elegance(basically lifestyle for the rich and famous)to a gift watch. The new ads show differentoccasions for gifting like wedding day,marriage anniversary etc
- #48 Falling sales:À) Ambassador :was positioned as the “rugged road master”. This positioning was in line with the product perception because Ambassador is seen as a tougher vehicle than Maruti.However Maruti proved to be a sleek, more fuel efficient and even cheaper as compared to Ambassador. Then the positioning was changed to “a member of the family “.In other words falling sales forced Ambassador to move from rational pitch to emotional pitch.But none of the positioning changes helped it because the product itself was outdated.B) Brooke Bond’s Red Label :---- From Piyo to Jano to Desh ka Pyaala to 100% strong to Jiyo-mere-laal . Thus several attempts of repositioning had to be made because of falling salesbringing in new customers:A) Johnson and Johnson : launched a babyshampoo by name “No more tears”.Sales were not encouraging. This forcedthem to look for new users. This extra soft shampoo will be good forusers who use shampoo often. Thus a baby shampoo was stretched toinclude heavy users( mothers).Similarly Baby oil – from baby to baby andmotherB) Ray-Ban : from male to female as wellC) Cadbury’s dairy milk :It was found that most adultswanted to eat Dairy Milk but restrainedthemselves because it was supposed to beconsumed by children. Thus a repositioning campaign was launchedwhich showed adults doing unconventionalthings (like a lady breaking into a jig in themiddle of an overflowing cricket stadium )driving home the message that chocolatescould be enjoyed by adults as well.
- #49 Making the brand contemporary:A) daburchyawanprash :basically had the positioning of being good forhealth and digestion. To make the brand more attractive to theconsumer, the nutritional element was added toits positioningB)Femina :Repositioned itself as a magazine for “today’swoman” changing everything from packaging tocontent in the process.Differentiating from competitors:Mint- O : The positioning in the early 90s was adult candy”. This was to enthuse grown –ups to consume peppermint. This did not bring the brand much success.In 1995, a position that directly aimed at competition(Nestle’s Polo) was configured.Polo positioned itself as “The mint with the Hole”.Mint-O positioned itself as “All Mint , No Hole”.One of the advertisements even said “If your head doesnot have a hole, why should your mint”.Positioning the brand head-on with Polo gave it a distinctfocus.
- #50 Changing market condition:Horlicks:was initially both a substitute and an additiveto milk. This positioning served it well till the scarcity of milk was overcome in several parts of the country.Horlicks then shifted its positioning to “energygiver and health provider”.b) Milkmaid :It started of as a whitener for teaand coffee.Again like Horlicks , when the milk scaricityeased,it changed its positioning to “toppings for cakes andpuddings”and again to “üse in desert recipes
- #51 It is very easy to kill a brand or weaken its positioning. Ignore it, reduce investment and within no time, the brand will fade away from consumer's mind. But to bring a brand from obscurity to stardom is a Herculean task. Cinthol is one such iconic brand which now has the daunting task of bringing the old glory back. Cinthol is one such brand that is repositioning itself again and again.The brand was incepted in 1952 and with the green soap and red wrapper and it was positioned with a unique smell nd was positioned as soap for men.Later after 3 decades it was again repositioned…with the help of celebrities like vinodkhanna and cricketer imran khan to position it as sop with confidence.1989 cintholimtroduced a new soap named cinthol fresh against its aompetitorshul’sliril1995 introduced its 3 international variants nd positioned it with the help of shahrukh khan and gauri khan 2000 repositioned under the tagline taantazza to man tazza… as a family soap