POSITIONING & DIFFERENTIATION

POSITIONINGPOSITIONING

• When you think of thanda, [ ] often comes to mind.

• If you are looking for luxury of a car and thrill of SUV, you probably think of

[ ].• Whenever you want a long lasting paint for

your home, [ ] often comes to mind.

POSITIONINGPOSITIONING

These products have well defined positions in

the minds of consumer

POSITIONINGPOSITIONING

DefinitionDefinition

• Act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.

•Defined by consumers on the basis of important attributes.

Process of Market PositioningProcess of Market Positioning

1. Identify key offer characteristics and their weight age by target market

2. Draw a perceptual/ positioning map on characteristics considered most important by target market

Positioning of Hotels in Belleville:Price vs. Service Level

Expensive

Shangri-LaHigh

Service Moderate Service

Grand

Regency

Sheraton

Italia

CastleAlexander IV

Airport Plaza

PALACE

Atlantic

Less Expensive

Positioning of Hotels in Belleville: Location vs. Physical Luxury

High Luxury

Shopping District and Convention Centre

Shangri-La

Moderate Luxury

Financial District

Inner Suburbs

Grand Regency

Sheraton

ItaliaCastleAlexander IV

Airport Plaza

PALACE

Atlantic

3. Identifying possible competitive advantages

(Cost leadership or differentiation)

4. Choosing the right competitive advantage How many differences to promote?

• Unique selling proposition (i.e. pick one benefit; Volvo = safety)

• Choose more than one if others share a claim to be best:

Which differences to promote?

- Important Benefits, Distinctive, Superior, Affordable

Process of Market Process of Market PositioningPositioning

5. Developing a positioning statement Positioning statements summarize the company or

brand positioning EXAMPLE: To (target segment and need) our

(brand) is (concept) that (point-of-difference).

6. Communicating the chosen positionA common way to communicate a product’s positioning is through its marketing mix especially promotion.

Process of Market PositioningProcess of Market Positioning

POSITIONING STATEMENTSPOSITIONING STATEMENTS

Example:

• To young, active soft-drink consumers who love adventure, Mountain Dew is the soft drink that gives you more energy than any other brand.

Mountain Dew – DAAR KE AAGE JEET HAIN

Differentiation Strategies

• Product

• Personnel

• Channel

• Image

• Based on product design – Kinetic honda

• Based on Formula/Ingredients – Vatika

• Based on functional value – Whirlpool Refrigerator 6th sense door open alarm

• Based on additional features – Aristocrat suitcase with wheels

Differentiation through Product

• Maruti

• Hutch

• Reliance mobile

• Dell computers

• Eureka-Forbes

Differentiation through Channel

• Educational institutes – IIMs, IITs

• ICICI bank

Differentiation through People

• Soft-drinks – Pepsi, Thumbs up, Fanta

• Luxury products – Ornaments

• Cigarettes and liquor brands

• Hotels

• Tourist destinations

Differentiation through Image

Define positioning statements of

PULSAR

DOMINO’S PIZZA

THUMBS UP

MOUNTAIN DEW

Task of the dayTask of the day