What is Positioning?
As defined by
Philip Kotler, Positioning is the act of designing a company's offering and
image to occupy a distinctive place in the minds of the target market.
A good positioning
not just give the company that competitive advantage but also help company in
realizing the customer focused value proposition. These are the target market
customer attributes carefully studied and incorporated in the company’s
marketing efforts.
Mahindra &
Mahindra's new SUV, TUV300, when recently launched to a segment of consumers
interested in lifestyle products (target market), they emphasis on ruggedness,
luxury and comfort. They roped in the actor of movie 'Bahubali' as brand
ambassador to clearly condition the desired attributes in the minds of
consumers.
Positioning Strategies
Decision regarding
positioning takes the careful investigation and analysis of the
following:
Step I - Determining
Competitive Frame of Reference
Frame of Reference
Frame of reference
is the setting around the product. It defines the competitors and target
consumers. Usually, the strategy aims at identifying one or two competitors and
present their position better than them. For example, Tide always positioned
with Rin, Ariel with Surf.
Identifying Competitors
Identifying
competitors also refers to identification of category. The category membership
includes all potential and current competitors as well as substitutes. For
example, Coke can have number of competitors depending upon the category
membership:
Identifying Target Customers
The positioning is
reflected in the minds of consumers, hence it very important to identify the
target market benefits and define the uses of product in their minds. The
target audience must clearly know that the product is for them. For example,
Starbucks is for young, Rolex is for achievers and Zara is fashionable. Company
can use qualitative research to identify the important attributes consumer use
when choosing between brands.
Analysing Competition
The competitors can be
analysed on the parameters of awareness, product quality, availability,
technical assistance provided and the employees. Different companies have
different combinations of these factors. A company that is very good in quality
and have a good name in market may not distribute extensively.
For the companies
entering into new markets, the first task is to identify and associate a
category which is very new. For example a product like ipod or ipad.
Step II - Defining
Optimal POD and POP
Point of Difference
These are attributes that are
strongly associated with the brand in the minds of consumers. POD is also known
as USP or unique selling propositions. A firms may have one or number of such
point of differences. The differences can be based on functional benefits,
emotional benefits and psychological benefits. Hettich kitchen fitting focus on
kitchen design that are more space saving and functional. Hero motors
differentiate on mileage of it's two-wheeler.
Differentiation Strategy
The
differentiation strategy should be focused on customer advantage. Ideal firm
develops differentiation in such a way that enhances the overall ability to
perform in one or more ways. Also the differentiation should be leverageable
and can use as a springboard to new advantages. Overall a firm may choose a
differentiation that is important, distinctive, superior, communicable,
preemptive, affordable and profitable.
The extent to that a company
can differentiate and position itself as providing superior customer value, it
gains competitive advantage. The differentiation can be created in products and
services, distribution strategies, people and overall image.
Point of Parity (POP)
This describes the
category the company or brand wants to serve. It's put larger frame of
reference in the minds of consumer. These are the associations that are not
necessarily unique to the brand but may be shared with other brands.
Category
points-of-parity are
associations’ consumers view as essential to be a legitimate and credible
offering within a certain product or service category. They represent necessary
conditions but not necessarily sufficient for brand choice. For example, a
cafe or a fast food restaurant. However, it may change over time due to
technological, legal, or consumer trends.
Competitive
points-of-parity are
associations designed to negate competitors’ points-of-difference.
The brand should be in a strong competitive position.
Dettol and Savlon both are antiseptic is their POP. No-sting property of Savlon is it's POD.
Multiple Frame of Reference
When a brand
identifies more than one actual or potential competitive frame of reference it
is has multiple frame of reference. For example, Cafe coffee Day can position
itself as a cafe (frame of reference local cafe), or a quick-serve restaurant
(frame of reference any fast food joint like MCD) or as a retail coffee brand
(frame of reference coffee brand like Nescafe).
Straddle Positioning
Occasionally
a company will try to straddle two frames of reference. Straddle positioning is
a situation one a brands POD in one segment becomes POP in other segment and
visa-versa. For example, Honda Mobilio's positioning as spacious MUV yet
stylish car. It is a stylish car in MUV segment and spacious for normal cars.
Step III – Choosing POP and POD
The selection of POP and POD
is driven by the needs of category membership and the necessity of comp etitive differentiation. Marketers must decide the
levels of brand attributes, benefits and value by using quantitative research. Consumer
centric positioning aims at identifying POP and POD using perceptual maps.
These maps are drawn looking into consumer perceived positioning by plotting them
in a graph. The dimensions of the graph can be any two dimension. For example –
price and quality. The relative and absolute position of a firm can be
identified on these two dimensions (attributes).
Step
IV – Establishing Brand Mantras
Brand
Mantra are heart and soul of the brand. This is what the company communicate to
its consumer about the brand promise
or brand essence. According to Kotler, the designing of brand mantra should
done keeping in mind that it should be communicate, simple and Inspirational. The
brand mantra can broaden the frame of reference. For example Britannia Little
Hearts biscuits promotes as “a treat to your heart” acts as emotional modifier.
These can also be used to change the position according to markets/ consumer’s
taste & preferences. For example – Dabur Honey as substitute for sugar for
health conscious people. In case of Dove, the mantra, “superior moisturizing”
help them grab a new category.
Kevin Keller in his paper, Brand Mantras: Rationale,
Criteria and Examples, has defined the core brand promise that combines functional
benefits with emotional and descriptive modifiers.
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