differentiation & positioning

7/30/2019 Differentiation & Positioning

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PRODUCTDIFFERENTIATION

&

POSITIONING



Differentiation helps the firm fight on a non-

price platform

Product Differentiation – Provides customer with

a reason to buy

Differentiation should add value

Differentiation can be achieved through multiple sources



Differentiation & Branding

It is differentiation that builds brands.

Differentiation is a promise & a brand delivers it

While differentiators create brands,

over time,

Brand itself becomes a differentiator



PRODUCT DIFFERENTIATION

Product Differentiation can happen on two planks:

Tangible Product Attributes & Functions

Intangible characteristics and emotional associations



TANGIBLE PRODUCT DIFFERENTIATION

Based on Ingredients & Formula

Eg. Marie DigestiveColgate Active SaltDabur Vatika – Henna conditioning



Based on Functional Value

Apex UltimaVideocon computer controlled fridge3M Scotch Magic Tape & Glue




Based on Additional Features

Size as a differentiator

Cell Phones

Aristocrat –

Suitcase withwheels




Based on Packaging

Mango Frooti

Kurkure

Gluestick by Fevicol




Based on Design Superiority

Apple MacBookBajaj Pulsar Scorpio by M&MJaguar bathroom fittings




Based on Product Quality/ Technology / OperationalEfficiency / Service

Domino's PizzaLG – No waiting policyLG – Foodguard technology




Intangible Differentiation

Intangible attributes/ emotional associations & beliefs

around which product can be differentiated

• Prestige/ Status

• Sentiments

• Beliefs




Intangible Characteristics &

Emotional Associations

Used when tangible differentiation does not exists or

used by all players

Depicts prestige

Generally done for premium range products

Depict emotions



Intangible Differentiation

Eg. – RaymondsEg. Dinesh Suitings

Eg. – Rayban

Eg. TATA Salt



Challenges for Product Differentiation

Distinctive Attributes

Enhance value of product

Giving customer the value he seeks for

Locating customer benefits / Product Attributes




Cond it ions for Dif ferent iation to succeed

Differentiation should be perceptible

Differentiation should add value to consumer

The promise must be delivered

Differentiation should be rooted in Competitive Advantage



PRODUCTPOSITIONING



Positioning is the act of fixing the locus of the product

offer in the minds of target consumer

A product cannot be ‘Everything to Everyone’



Al Ries & Jack Trout – Positioning is what you do

to the product in the minds of the consumers

Sengupta – The aim of product positioning is to

create a perception for our brand in the prospect'smind, so that is stands apart from the competing

brands



Tasks involved in Positioning

Analyzing competitor’s positioning: Is there a gap?

Fixing the positioning plank

Ensuring Infrastructure/ competitive advantage todeliver the promise

Developing Value PropositionCommunicating the value proposition to Targetconsumers

Monitoring the positioning



Perceptual

Maps



POSITIONING

Positioning is not over in one stroke, it has to be

monitored & Adapted



Repositioning

Eg. Lifebuoy, Milkmaid, Philips,Complan



POINTS OF DIFFERENCE

&

POINTS OF PARITY

differentiation & positioning

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