Brand Positioning Strategies

A product can be positioned based on 2 main platforms: The Consumer and The Competitor.
When the positioning is on the basis of CONSUMER, the campaigns and messages are always
targeted to the consumer himself (the user of the product)

Peter England always campaigns their product concentrating on the consumer, the user of
its product.

Louis Philip also concentrates on this kind of campaigns. 

The other kind of positioning is on basis of COMPETITION. These campaigns are targeted
towards competing with other players in the market.

Dettol television commercials always concentrate on advertisements, which show that this
product would give you more protection, then the others.

A number of positioning strategies might be employed in developing a promotional program.

The 7 such strategies are discussed below:

POSITIONING BY PRODUCT ATTRIBUTES AND BENEFITS

Associating a product with an attribute, a product feature or a consumer feature. Sometimes a

product can be positioned in terms of two or more attributes simultaneously. The price/ quality
attribute dimension is commonly used for positioning the products. 

A common approach is setting the brand apart from competitors on the basis of the specific
characteristics or benefits offered. Sometimes a product may be positioned on more than one
product benefit. Marketers attempt to identify salient attributes (those that are important to
consumers and are the basis for making a purchase decision)

 Consider the example of Ariel that offers a specific benefit of cleaning even the dirtiest of
clothes because of the micro cleaning system in the product.
 Colgate offers benefits of preventing cavity and fresh breath.
 Promise, Balsara’s toothpaste, could break Colgate’s stronghold by being the first to
claim that it contained clove, which differentiated it from the leader.
 Nirma offered the benefit of low price over Hindustan Lever’s Surf to become a success.
 Maruti Suzuki offers benefits of maximum fuel efficiency and safety over its competitors.
This strategy helped it to get 60% of the Indian automobile market.

POSITIONING BY PRICE/ QUALITY

Marketers often use price/ quality characteristics to position their brands. One way they do it is
with ads that reflect the image of a high-quality brand where cost, while not irrelevant, is
considered secondary to the quality benefits derived from using the brand. Premium brands
positioned at the high end of the market use this approach to positioning.
Another way to use price/ quality characteristics for positioning is to focus on the quality or
value offered by the brand at a very competitive price. Although price is an important
consideration, the product quality must be comparable to, or even better than, competing brands
for the positioning strategy to be effective.

Parle Bisleri – “Bada Bisleri, same price” ad campaign.

POSITIONING/BY/USE/OR/APPLICATION
Another way is to communicate a specific image or position for a brand is to associate it with a
specific use or application.

Surf Excel is positioned as stain remover ‘ Surf Excel hena!’

Also, Clinic All Clear – “Dare to wear Black”.

POSITIONING BY PRODUCT CLASS

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

POSITIONING BY PRODUCT USER

Positioning a product by associating it with a particular user or group of users is yet another
approach.

Motography Motorola Mobile Ad.n this ad the persona of the user of the product is been
positioned.

POSITIONING BY COMPETITOR

Competitors may be as important to positioning strategy as a firm’s own product or services. In

today’s market, an effective positioning strategy for a product or brand may focus on specific
competitors. This approach is similar to positioning by product class, although in this case the
competition is within the same product category.

Onida was positioned against the giants in the television industry through this strategy, ONIDA
colour TV was launched with the message that all others were clones and only Onida was the
leader. “neighbour’s Envy, Owners Pride”.
POSITIONING BY CULTURAL SYMBOLS

An additional positioning strategy where in the cultural symbols are used to differentiate the
brands. Examples would be Humara Bajaj, Tata Tea, Ronald McDonald. Each of these symbols
has successfully differentiated the product it represents from competitors

Brand positioning is an essential element of a winning branding strategy. Positioning simply

refers to how your product or service is viewed in the minds of prospects and customers relative
to other products or services available in your niche.

The term positioning has two connotations: a vertical and a horizontal one. In terms of the
vertical connotation, the term refers to the order in which your product ranks relative to the
products of your competitors in the minds of your customers in your industry niche. (For
example, which product comes to mind first when I say the word cola?)

In terms of the horizontal connotation, the term refers to the qualities and attributes your product
represents in the mind of your customers, again relative to your competitors.

While you cannot directly control the ranking that your product or service enjoys in the minds of
your customers, you can influence how you position the product in terms of qualities and
attributes. That is, by properly positioning your product relative to your competitors in the minds
of your customers, you will have much more control over how your brand is perceived in the
marketplace. You will then effectively have a guide or map for how to execute your branding
strategy.

Brief Exercise:

Identify the key differentiators of your product. Ask yourself: why would customers buy from
me? What makes my product different? What is the unique value it adds? Be sure to list at least
4-5 traits that set your product apart and make it unique.

In marketing, positioning has come to mean the process by 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, in the collective minds of the target market.

De-positioning involves attempting to change the identity of competing products, relative to the
identity of your own product, in the collective minds of the target market.

The original work on Positioning was consumer marketing oriented, and was not as much
focused on the question relative to competitive products as much as it was focused on cutting
through the ambient "noise" and establishing a moment of real contact with the intended
recipient. In the classic example of Avis claiming "No.2, We Try Harder", the point was to say
something so shocking (it was by the standards of the day) that it cleared space in your brain and
made you forget all about who was #1, and not to make some philosophical point about being
"hungry" for business.

The growth of high-tech marketing may have had much to do with the shift in definition towards
competitive positioning. An important component of hi-tech marketing in the age of the world
wide web is positioning in major search engines such as Google, Yahoo and Bing, which can be
accomplished through Search Engine Optimization , also known as SEO. This is an especially
important component when attempting to improve competitive positioning among a younger
demographic, which tends to be web oriented in their shopping and purchasing habits as a result
of being highly connected and involved in social media in general.

Contents
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[edit] Definitions
Although there are different definitions of Positioning, probably the most common is: identifying
a market niche for a brand, product or service utilizing traditional marketing placement strategies
(i.e. price, promotion, distribution, packaging, and competition).

Also positioning is defined as the way by which the marketers creates impression in the
customers mind.

Positioning is a concept in marketing which was first introduced by Jack Trout ( "Industrial
Marketing" Magazine- June/1969) and then popularized by Al Ries and Jack Trout in their
bestseller book "Positioning - The Battle for Your Mind." (McGraw-Hill 1981)

This differs slightly from the context in which the term was first published in 1969 by Jack Trout
in the paper "Positioning" is a game people play in today’s me-too market place" in the
publication Industrial Marketing, in which the case is made that the typical consumer is
overwhelmed with unwanted advertising, and has a natural tendency to discard all information
that does not immediately find a comfortable (and empty) slot in the consumers mind. It was
then expanded into their ground-breaking first book, "Positioning: The Battle for Your Mind," in
which they define Positioning as "an organized system for finding a window in the mind. It is
based on the concept that communication can only take place at the right time and under the right
circumstances" (p. 19 of 2001 paperback edition).

What most will agree on is that Positioning is something (perception) that happens in the minds
of the target market. It is the aggregate perception the market has of a particular company,
product or service in relation to their perceptions of the competitors in the same category. It will
happen whether or not a company's management is proactive, reactive or passive about the on-
going process of evolving a position. But a company can positively influence the perceptions
through enlightened strategic actions.

[edit] Product positioning process

Generally, the product positioning process involves:

1. Defining the market in which the product or brand will compete (who the relevant buyers
are)
2. Identifying the attributes (also called dimensions) that define the product 'space'
3. Collecting information from a sample of customers about their perceptions of each
product on the relevant attributes
4. Determine each product's share of mind
5. Determine each product's current location in the product space
6. Determine the target market's preferred combination of attributes (referred to as an ideal
vector)
7. Examine the fit between:
o The position of your product
o The position of the ideal vector
8. interest and started a conversation, you'll know you're on the right track.

[edit] Positioning concepts

More generally, there are three types of positioning concepts:

1. Functional positions
o Solve problems
o Provide benefits to customers
o Get favorable perception by investors (stock profile) and lenders
2. Symbolic positions
o Self-image enhancement
o Ego identification
o Belongingness and social meaningfulness
o Affective fulfillment
3. Experiential positions
o Provide sensory stimulation
o Provide cognitive stimulation

[edit] Measuring the positioning

Positioning is facilitated by a graphical technique called perceptual mapping, various survey
techniques, and statistical techniques like multi dimensional scaling, factor analysis, conjoint
analysis, and logit analysis.
[edit] Repositioning a company
In volatile markets, it can be necessary - even urgent - to reposition an entire company, rather
than just a product line or brand. When Goldman Sachs and Morgan Stanley suddenly shifted
from investment to commercial banks, for example, the expectations of investors, employees,
clients and regulators all needed to shift, and each company needed to influence how these
perceptions changed. Doing so involves repositioning the entire firm.

This is especially true of small and medium-sized firms, many of which often lack strong brands
for individual product lines. In a prolonged recession, business approaches that were effective
during healthy economies often become ineffective and it becomes necessary to change a firm's
positioning. Upscale restaurants, for example, which previously flourished on expense account
dinners and corporate events, may for the first time need to stress value as a sale tool.

Repositioning a company involves more than a marketing challenge. It involves making hard
decisions about how a market is shifting and how a firm's competitors will react. Often these
decisions must be made without the benefit of sufficient information, simply because the
definition of "volatility" is that change becomes difficult or impossible to predict

5 Factors of Brand Positioning

Last week, I wrote about how to break through branding clutter by defining your brand’s unique
value proposition then owning it in the the marketplace thereby establishing your brand’s
position.  Today, let’s take a look at the 5 main factors that go into defining a brand position.

1. Brand Attributes

What the brand delivers through features and benefits to consumers.

2. Consumer Expectations

What consumers expect to receive from the brand.

3.  Competitor attributes

What the other brands in the market offer through features and benefits to consumers.

4.  Price

An easily quantifiable factor – Your prices vs. your competitors’ prices.

5.  Consumer perceptions

The perceived quality and value  of your brand in consumer’s minds (i.e., does your brand offer
the cheap solution, the good value for the money solution, the high-end, high-price tag solution,
etc.?).

Take some time to create a thorough picture of the current market and how your brand fits in that
market to determine your brand’s current position.  If that’s not the position you want for your
brand, take the necessary steps to change it based on the gaps defined when you analyzed the
five factors above.

Do you use any other factors in your brand positioning definition process?

Five brand success factors

An efficient and scalable business model combined with innovation is necessary to stay ahead of
the competition. But individually these are not sufficient to make a successful global brand. Five
further overlapping components are required:

1. A great brand experience

Brand experience is not limited to the product or service. Every contact with the brand counts.

2. A clear and consistent positioning

People need to know what a brand stands for. That's why an established and successful
marketing campaign should not be abandoned simply for the sake of saying something new.
When change is required, the challenge is to re-interpret the brand positioning in a way that is
appropriate to the current time and culture.

3. A sense of dynamism

Innovation is key to brand success but it is not limited to the functional benefits of the brand. A
brand that sets the trends rather than reacting to them is likely to be seen as different and more
popular.

4. A sense of authenticity

Today consumers in developed countries have a finely tuned sense for what is true and authentic
versus shallow and contrived. They are still drawn to brands with a strong heritage.

5. A strong corporate culture

Today people seek out brands that display their values by the actions they take. In industries with
a strong customer-service component it is particularly important that everyone involved with the
brand understands and embodies its values.
Which brand epitomizes these success factors? Apple. In the 2008 Millward Brown BrandZ™
Top 100 Most Powerful Brands ranking, Apple's brand value increased 128 percent as a result of
strong business growth based on innovation and strong customer loyalty

Brand Repositioning and Types of Brand Repositioning

Brand Repositioning is changing the positioning of a brand. A particular positioning statement
may not work with a brand.

For instance, Dettol toilet soap was positioned as a beauty soap initially. This was not in line
with its core values. Dettol, the parent brand (anti-septic liquid) was known for its ability to heal
cuts and gashes. The extension's 'beauty' positioning was not in tune with the parent’s “germ-
kill” positioning.

The soap, therefore, had to be repositioned as a “germ-kill” soap (“bath for grimy occasions'') and it
fared extremely well after repositioning. Here, the soap had to be repositioned for image mismatch.
There are several other reasons for repositioning. Often falling or stagnant sales is responsible for
repositioning exercises. 

After examining the repositioning of several brands from the Indian market, the following 9 types of
repositioning have been identified. These are:

1. Increasing relevance to the consumer

2. Increasing occasions for use
3. Making the brand serious
4. Falling sales
5. Bringing in new customers
6. Making the brand contemporary
7. Differentiate from other brands
8. Changed market conditions.

It is not always that these nine categories are mutually exclusive. Often one reason leads to the other
and a brand is repositioned sometimes for a multiplicity of reasons.
 

Lipton Yellow Label Tea:  

Lipton Yellow Label Tea was initially positioned as delicious, sophisticated and premium tea for the
global citizen. The advertisements also echoed this theme. For instance, all the props and participants in
the advertisements were foreign. It is possible that this approach did not find favour with the customers.
The repositioning specifically addressed the Indian consumer through an Indian idiom.
 

Maharaja - the positioning:

 

Dishwasher in its initial Stages was possibly seen as an exotic product. Thus, Maharaja positioned it as a
product aimed at the upper crust. Thus, the positioning statement was “your guests get Swiss cheese,
Italian Pizza ...... you get stained glassware.'' But Indians are reluctant to use dishwashers because of
deeply embedded cultural reasons. Thus, the message had to be changed to appeal to the Indian
housewife. Thus the positioning was changed to “Bye, Bye Kanta Bai'' indicating that the dishwasher
signaled the end of the servant maid's tyranny. The brand, therefore, was repositioned from a
sophisticated, aristocratic product to one that is functional and relevant to the Indian housewife.
 

Visa Card - the Positioning:

Visa Card had to change its positioning to make itself relevant to customers under changed
circumstances. Initially it asked the customer to “pay the way the world does'' (1981). This is to give its
card an aura of global reach. But as more and more cards were launched on the same theme, to put
itself in a different league, it positioned itself as the “world's most preferred card'' (1993). To highlight
the services it provided, it shifted to the platform of “Visa Power” (1995). This focus on explaining the
range of services available with the card continues till date (Visa Power, go get it).

8 points for repositioning -

1. Your brand has a bad, confusing or nonexistent image.

2. The primary benefit your brand “owns” has evolved from a differentiating benefit to a cost-of-entry
benefit.
3. Your organization is significantly altering its strategic direction.
4. Your organization is entering new businesses and the current positioning is no longer appropriate.
5. A new competitor with a superior value proposition enters your industry.
6. Competition has usurped your brand's position or rendered it ineffectual.
7. Your organization has acquired a very powerful proprietary advantage that must be worked into the
brand positioning.
8. Corporate culture renewal dictates at least a revision of the brand personality