Differentiation & PositioningPresented By, Akanksha Gupta (11DCP059) Akshay Saxena (11DCP061) Nikhar Gupta (11DCP084) V S Parasaran (11DCP087)

Product DifferentiationProduct differentiation is the process of distinguishing a product or offering fromothers, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own product offerings.

Basis of Differentiation1. Attributes of the product or service - preferences are created by actual differences in the tangible product or service offered by the focal firm vis--vis competitors offerings 2. Relationship between the firm and its customers - preferences are created as the focal firm develops and exploits relationships with customers based on what the focal firm s target customers want. 3. Linkages between/within firms - preferences are created as the focal firm combines the competencies of different functions within or across organizations to produce tangible and/or intangible differences between the focal firm s offerings and those of competitors

Significance of Product Differentiationy y y It takes the firm away from total price based competition with all the benefits associated with it Through differentiation, firm move to a position wherein they can claim a premium in the market. Offered under different brands by competing firms, products fulfilling the same need typically do not have identical features. The differentiation of goods along key features and minor details is an important strategy for firms to defend their price from levelling down to the bottom part of the price spectrum. Within firms, product differentiation is the way multi-product firms build their own supplied products' range At market level, differentiation is the way through which the quality of goods is improved over time thanks to innovation. Launching new goods with entirely new performances is a radical change, often leading to changes in market shares and industry structures In an evolutionary sense, differentiation is a strategy to adapt to a moving environment and its social groups

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Differentiating Factorsy y y y y Product Service Image Channel PersonnelPage 2 of 34

Price Repara bility Form

StylePRODUCT DIFFERENTIA TION

Feature s

Reliabil ity Durabili ty Quality Perfor mance

Custom ization

Price: Differentiates from the competition based on pricing factor.yy

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Maruti Suzuki introduced Maruti 800 as a low priced car. It was the first economy car in the Indian market. Reliance Infocomm Reliance introduced CDMA phones which were with handset and were much cheaper than its competitors. Introduced extremely low call rates. Tide introduced its Washing powder for Rs. 25 only when other detergents were priced in a much higher price range. Big Bazaar is known for its low priced products and the great offers on goods. Big bazaar functions on the bulk purchasing and bulk discounts strategy. McDonalds launched its Happy Priced Menu which started from just Rs. 25. This menu was a great success amongst the target market which was the younger generation. Uninor created a competitive edge by introducing call plans starting at just 29p/mins.

Form: Many products can be differentiated in the form size, shape, or physical structureof the product y NDTV Good Times was India s first Lifestyle Channel featuring programs on travelling, fashion, fitness, cooking etc and catering to the young cosmopolitan urban Indian population.

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Fevi Stick launched its adhesive in easy to use tubes which were available in different sizes. These tubes were more convenient and user friendly as compared to the liquid glue. Bisleri Bisleri created an adage by concentrating on its packaging. Bisleri has bottles in 500ml, 1ltr, 5ltrs, 10ltrs etc. making it suitable to carry the smaller bottles as well as for storing. Pears The differentiating factor was that it contained glycerine. The transparency of the soap stood for gentleness and purity which made it a great success Pepsi MyCan was thinner than the normal cans. Pepsi wanted to target the younger generation with its MyCan by making it more stylish and easy to handle. Moov is available in gel as well as in spray.

Features: Products can be offered with varying features that supplement the basicfunction. y y y Hit for cockroach with sleek nozzle for hidden areas Harpic Toilet Cleaner is available with an application friendly noozle. Brylcreem in available in many variants such as wet look , extreme and also for oily hair. Apple launched the Mac Book Air, the lightest and thinnest laptop on the market. Good Knights Low Smoke Coil was different from its competitors as low smoke option was safer and healthier as compared to the normal coils. Brooke Bond Red Label Natural Care contains 5 Natural Ayurvedic ingredients i.e. Ashwagandha , Tulsi , Mulethi , Cardamom & Ginger.

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Customization: Marketers can differentiate products by customizing them for differentusers. Mass customization is such an example.y

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Tata Sky Customers can modified their subscription packages according to their requirements. Rolls Royce is famous for its personalized cars Dell XPS laptops can be modified according to user preference In Linux Operating Systems the Source code can be modified, and redistributed. It is generally used by computer professionals involved in advanced applications. Asian Paints colour world A customer can walk into any asian paints store and the company will make the paint of the exact colour the customer wants. Subway - The Subs are made using fresh ingredients, in front of the customer to their exact specification.

Performance: Level at which the product s primary features operate.Page 4 of 34

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Accenture- They understand the customer s needs and provide additional services to its customers. Surf Excel is more powerful detergent as compared to competitors Google World s most-preferred Search Engine. Google is faster, user friendly and highly reliable search engine Castrol motor oils and lubricants enforce their performance by its tagline It's more than just oil. It's liquid engineering. Vim vouches on its performance that more than 10,000 plates can be washed with just one bar. Bajaj - Introduced DTSi which enhances its power. Pulsar also had automatic indicator cutoff and digital speedometer.

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Quality: Ensuring that the product is of highest grade y y y y y y Xtra Premium Petrol with friction buster was a high quality petrol which was sold at a higher price. Lufthansa provides superior services to its flyers like First Class Flat beds, personalized menu etc. Siemens is known for its quality innovation products which are sold at a premium price. Havells symbolizes Quality by their safety features like anti shock and fire proof electrical appliances. Toyota Motors ensures quality by adopting the SIX SIGMA methodology in production. HUL s Pureit vouches for its quality with its 1 crore Safety Challenge

Durability: Measure of the product s operating life y y Duracell as the name suggests, it symbolizes durability. Duracell Batteries are known for its long lasting power Amaron Batteries Revolutionized the Indian Automotive battery segment with its commitment to deliver quality products driven by international standards in battery design Woodland is known for its rough & rugged products which eventually establishes Masculinity Berger Paints is mainly known for its exterior paint products which lasts long without deterioration to its color rendering

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Reliability: Is the measure of the probability that the product will not malfunction or fail within a given time y Sintex establishes its reliability by displaying an experiment of the water tank falling from the top of the building & still remaining intact in their advertisement.Page 5 of 34

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TATA brand name symbolizes / reminds us of reliability by its very existence for a very long time in the Indian market. Mercedes-Benz vouches for the reliability and safety features of the car. i.e Air Bags, Parking Sensors with Visualization screens on the front panel Godrej Nau-tal locks are the most reliable locks and the brand stands for safety & reliability which is now into safety lockers for domestic homes. Honda s Reliability means breakdowns are rare & service costs are minimal. Tupperware is unbreakable, easy to use light weight & stylish containers for modern day usage .

Reparability: Measure of how easily a product can be fixedy

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Maruti Suzuki was a Wide Spread Network of authorized dealer / service centers to attend to any on-road service problems through out the country. Maruti Suzuki has won customer satisfaction award eight times in a row for its after sales support. HP was a Wide Spread Network of Customer Care Centers & ease of access in case of a problem . Microsoft Windows - Very Exhaustive Troubleshooting techniques as a part of the OS in addition to the online customer support system.

Style: Describes the products looks and feel to the buyery

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Hero Honda Passion was the first in this segment of bikes to introduce a stylish bike in the market. Sony Vaio recently introduced with changing colors of the laptop to suit the dress color and set the trend in the market. Fastracks Watches Stylish watches & sunglasses provided at a low cost without compromising on the quality. Ray-ban Sunglasses are considered one of the most stylish sunglasses. Puma is the most stylish among the sportswear and its unique point is its wide color range . Rolex is regarded as status symbol & a luxury product. Its usually priced high to maintain its exclusivity.

Service differentiation How do you differentiate your services from that of the competition? It is easier in products where the variables are tangibles but pretty different in case of services. When the physical product cannot be differentiated easily, the key to competitive success may lie in adding valued services and improving their quality. This is the outlook of service differentiation.

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Companies can also differentiate the services that accompany the physical product. Two companies can offer a similar physical product, but the company that offers additional services can charge a premium for the product. Mary Kay cosmetics offers skin-care and glamour cosmetics that are very similar to those offered by many other cosmetic companies; but these products are usually accompanied with an informational, instructional training session provided by the consultant. This additional service allows Mary Kay to charge more for their product than if they sold the product through more traditional channels. In the personal computer business, Dell and Gateway claim to provide excellent technical support services to handle any glitches that may occur once a consumer has bought their product. This 24-hour-a-day tech support provides a very important advantage over other PC makers, who may be perceived as less reliable when a customer needs immediate assistance with a problem. The main factors which can be used for service differentiation are: 1. 2. 3. 4. 5. 6. Ordering ease Delivery Installation Customer training Customer consulting Maintenance and repair

Ordering ease:

It Refers to how easy it is for the customer to place an order with the company.Page 7 of 34

Baxter Healthcare has eased the ordering process by supplying hospitals with computer through which they send orders directly to Baxter; consumers can now order and receive groceries without going to the supermarket through web-based service such as peapod and net grocer. Thus these services have differentiated themselves through ease of ordering. ILLUSTRATIONS:

DELL Dell generates 80% of its revenue from its customer care service. Dell service and support brands include the Dell Solution Station (extended domestic support services, previously "Dell on Call"), Dell Support Center (extended support services abroad), Dell Business Support (a commercial service-contract that provides an industry-certified technician with a lower call-volume than in normal queues), Dell Everdream Desktop Management ("Software as a Service" remote-desktop management) and Your Tech Team (a support-queue available to home users who purchased their systems either through Dell's website or through Dell phone-centers). The various services provided by dell arey y y y y y y y Application Services Business Consulting Business Process Cloud Based Services Configuration and Deployment Managed Infrastructure OEM Services Support Services

2. Make My Trip .COM Make My Trip: More Reliable than New Entrants in Travel Industry When you pick a travel agency for your travel needs, let it be flights, hotels or holiday package, the first thing you should look forward to is - Reliability. One thing which proves Reliability is the number of years the travel agency is in business. Considering this factor, Make My Trip tops the chart, as its been started in 2000 and is the oldest travel booking portal in India. Moreover, it has grown up to become the most successful travel agency in India. Make My Trip also caters to a lot of International Travelers especially Indians settled abroad like the NRI's who travel from US to India frequently. Over the years, Make My Trip has gradually raised the level of services provided to the best among International Standards. Even reliability is an important factor, its not the only factor to decide a travel agent. The quality of service provided and follow up made also matters. Make My Trip is very choosy in selecting the best hotels for its holiday packages and most of the hotels included in package are either 3,4 or 5 star hotels. The customer is given all the information about the travel inPage 8 of 34

advance and frequent follow up is made by Make My Trip. Overall Make My Trip leads the reliability and service quality than the new entrants in the travel sector. A lot of people are unaware of all the services offered by Make My Trip travel portal and use it only mainly for flight and hotel bookings. Here is a list of mostly all the services provided by MakeMyTrip.com. 1. International Hotel Bookings 2. Domestic Hotel Bookings 3. International Flight Bookings 4. Domestic Flight Bookings 5. Combined Flight + Hotel Bookings ( Save Extra) 6. Railway Ticket Bookings 7. Bus Bookings 8. Car Rentals 9. MICE ( Meetings, Incentive, Conference, Exhibitions) 10. Visa services, B2B Services and More 11. Domestic Holiday Packages 12. International Holiday Packages 13. Partner Program for Travel Agents It always helps to take a variety of services from the same portal rather than taking one service from each portal. It not only saves time to book but also saves you money. Example: MakeMyTrip.com gives you substantial discount if Hotel + flights are booked from in a combined manner. Not many portals have this kind of flexibility which MakeMyTrip.com has. MakeMyTrip.com virtually covers all kinds of holidays, starting right from Romantic holidays to cultural and historical locations in India and Abroad. Various offers and special discount promotions are offered on Make My Trip during the holiday seasons and one should watch out for these or contact the MMT's customer care for more details. WAVE CINEMAS The Centrestage Mall, Noida Redefining the world of movie-viewing experience ..

One of the unique ventures of Wave Inc., is Wave Cinemas the Group s own Movie Theater with its pioneering adoption of international standards of equipment which has changed the way the nation watches movies.

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Traditional to Wave Cinemas, is the world-class Digital Sound, Audio and Projection systems, with seating ergonomically designed comfortably wider, having more leg-room than the present industry standards. With projection systems from Kinoton-Germany, Audio Systems from Martin Audio-UK, Screens from Harkness Hall-UK and Dolby Cinema Processors from USA, movie viewing at Wave Cinemas is definitely a distinctive experience for the populace. The Wave Cinemas at selected venues offer the star attraction and revolutionary concept the Platinum Lounge a royal luxurious movie-viewing experience, which is conceptualized, designed, implemented and offered only by the "Wave Cinemas". The Platinum Lounge The Westend Mall, Ludhiana At the Platinum Lounge our patrons are welcomed with personalized attention to be seated in a cozy chesterfield having 168 degree reclining facility with a double curve lumber support and equally comfortable headrest & footrest, especially imported from Figure as International Seating, Spain. HOME SHOP 18 HomeShop18 is an Indian home shopping company which was launched as 24 hour Home Shopping TV channel on April 9, 2008. It is part of the Network18 Group. HomeShop18 operates a 24-hour basic shopping television network that can be seen on cable, satellite, and some terrestrial channels in India. The company also operates homeshop18.com, an ecommerce platform in India. HomeShop18 has partnered with major brand owners such as Reebok, Nokia, LG, Motorola, Philips, Kaya, and Godrej. G S Home Shopping of Korea, the third largest home shopping company in the world, has a 15% stake in the company. Network18 has the controlling stake of 51% Delivery: It is related to how well the product or service is delivered to the customer, covering speed, accuracy and customer care. Deluxe check printer, inc., has built an impressive reputation for shipping out its checks one day after receiving an order- without being late once in 18 years. ILLUSTRATIONS CEMEX Cemex ,a giant cement company based in mexico has transformed its business promising to deliver cement faster than pizza. It epuips every truck with global positioning system so the dispachers know it s real time location .Page 10 of 34

CEMEX has added some European flavor to its cement. The company, which had already climbed to the #3 spot in the cement world, acquired UK-based cement giant RMC Group in 2005. About 75% of CEMEX's sales come from cement; the company has an annual production capacity of more than 90 million tons. It also makes ready-mix concrete, aggregates, and clinker (an intermediate product used to make portland cement). CEMEX's operations are concentrated in North America and Europe, but it also operates in the Middle East, South America, and the Pacific rim. North America accounted for more than 50% of sales before the RMC acquisition, but now Europe is CEMEX's largest market. We continuously communicate and interact with our customers to identify and implement effective ways to create more value for them. We recognize that customer loyalty happens by design, not by chance. The following are examples of the different services offered to our customers throughout our operations. Not all these services are provided in all our operations and may vary from location to location. 24/7 LOAD Our delivery service offers customers the ease of receiving products whenever they need them, allowing our customers to optimize their project schedules according to their specific needs.

ATM-like Bulk Cement Dispatch System This service offers our customers greater flexibility and efficiency. It enables them to get cement at their convenience, shortening their logistics schedules by minimizing loading and unloading times and also cutting back on more traditional transactional practices.

Customer-oriented Educational and Training Services In several of the countries where CEMEX operates, customers can receive training on specific topics related to the use of building materials. By sharing knowledge and best practices, our educational and training services guide and teach our customers. Topics range from teaching customers about the characteristics and uses of white cement, to showing retailers how to improve their inventory management and increase their sales. Construction Financing Services Our customers can receive financing on certain projects and product purchases through various innovative financing programs that vary from country to country. For example, our UN award-winning low-income housing program, Patrimonio Hoy, has assisted more than 260,000 families with affordable services and building materials through financing mechanisms and technical assistance. Additionally, in certain countries such as Mexico, we offer turn-key solutions for developers and partner with governments and local authorities to identify, coordinate, and develop public infrastructure projects.Page 11 of 34

Mobile Solutions Through automated messages sent via SMS, our customers can be notified each time an order of cement or ready-mix concrete is ready for delivery. This free-of-charge service keeps our customers well informed of their specific project logistics. Our customers can also receive information about their pending invoice payments. Online Services (i.e., CEMEX Connect, CEMEX One, eSelling, CEMEXNet, Commercial Portal) Our customers have all day online access to information, from account balances to new products and services releases. They can place online cement orders, and in some countries, they are able to review their order status at any time during the day or night. The online service is also an open communication channel to receive feedback from our customers. Service Centers We offer a one-stop contact call center where customers can manage their business and find fast, reliable service. They can place orders, make inquiries, review their order status, or request technical assistance, all in one single call.

Technical Support We strive to provide our customers with top-level technical assistance through our state-ofthe-art equipment and our highly professional, well-trained technical services staff. We go the extra mile and provide value above and beyond fulfilling our customers need for cement, aggregates, ready-mix concrete, and related products such as mortar. In each market and locality in which we operate, we do our best to provide our customers with the most compelling integrated building solutions. For example, to solve infrastructure needs in major cities, we not only provide ready-mix concrete, but we also design the project, define the best technical solution, offer different financial schemes, and execute the project in collaboration with local builders. Similarly, we work alongside our neighbors in small, less-affluent communities to help them solve their housing needs and pave their streets and sidewalks. We suit our customers needs by providing them not only with high quality and tailor-made products, but also with the most reliable and cost-efficient service. For inquiries, contact your local CEMEX representative. Domino s For decades, "free delivery" was a popular slogan for almost all pizza stores. In Australia, a portion of the delivery charge is given to the driver as the store is required to reimburse the driver for the use of a personal vehicle.In other countries, a tip given by the customer represents to the driver the sole value of that business trip. Domino's Pizza is credited with popularizing free pizza delivery in the United States.[5] Pizza Hut began experimenting in 1999 with a 50-cent delivery charge in ten stores in the Dallas-Fort Worth area. By thePage 12 of 34

summer of 2001 it was implemented in 95% of its 1,749 company-owned restaurants in the U.S., and in a smaller number of its 5,250 franchisee-owned restaurants. By 2002, a small percentage of stores owned or franchised by U.S. pizza companies Domino's and Papa John's were also charging delivery fees of 50 cents to $1.50, and some of Little Caesar's franchisees charged delivery fees. In 2005, Papa John's implemented delivery charges in the majority of its company-owned stores to increase profits. Fed-Exy

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FedEx Home Delivery: A division of FedEx Ground, specializing in residential delivery Tuesday through Saturday and offers delivery options to provide more flexibility for residential recipients. The logo includes a drawing of a dog carrying a package . FedEx Home Delivery only operates in the United States. To make up the difference, FedEx Ground in Canada performs the business deliveries and residential deliveries. FedEx SmartPost: Consolidates parcels from merchants such as e-commerce and catalog companies and uses the United States Postal Service for the final delivery. Formerly the independent company Parcel Direct until FedEx acquired them for $120M in 2004.

FedEx Freight (Red "Ex"): Less than truckload (LTL) and other freight services. The second largest LTL carrier in the United States, with $4.5 billion in revenue for 2008.y

FedEx Custom Critical (Blue "Ex"): Delivers urgent, valuable, or hazardous items using trucks and chartered aircraft. Freight not accepted for transport includes perishable food, alcohol, livestock, household goods, hazardous waste and money. Drivers are independent contractors who own their vehicles. Service in Mexico uses interline carriers

Installation: It refers to the work done to make a product operational in its planned location. Buyers of heavy equipment expect good installation service. Differentiation by installation is particularly important for companies that offer complex products such as computers. ILLUSTRATIONS Eureka Forbes Forbes Facility Services Pvt. Ltd also provides Maintenance Services under its Operations & Maintenance division. Forbes Facility Services Facility Services specializes in helping customers get the most from their facility maintenance management. We have been providing Facilities Management Services to various industrial & commercial clients for more than 4 years across India. FFSL partners with its clients in delivering the O & M services complete with required Technical Expertise, Software and latest technology like Thermography to the benefit of the customer in terms of Cost & quality. Our services offer more than outsourced facility services as we strive to fully understand your business objectives and develop a maintenance operations plan that best help you reach it.

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Our employees are equipped with state-of-the-art technology, including wireless, handheld devices that capture critical data. This information empowers our team to make informed decisions about how to improve performance, safety, and reliability within your facility. The result is a maintenance plan for peak performance. FFSL currently offers the Operations & Maintenance services for the following Utilities Equipmenty y y y y y y y y y y y y y y y y y

Maintenance of DG Sets Central plant operations HVAC systems and controls Electrical systems and equipment Plumbing Fire alarm and life safety systems General building maintenance Uninterruptible power supplies Electrical power system HVAC system Mechanical systems Water management Sundry maintenance services Fire safety equipment Inventory management Cost effective AMC for AC systems Annual maintenance of transformers & HT panels CNC machine maintenance

Through our services we commit definite cost reductions by mapping of the current costs and then implementing programs to reduce costs and equipment down time. The service performance is measured through defined SLA s on parameters such as equipment uptime, energy costs, etc STLYE SPA Everything we do is for the love of furniture Our love for furniture is not a statement that adorns the wall outside our chairman s office. It s a belief that finds its roots in, your love for furniture. Your moments with it. Memories of it. And Yearning for it. It s not wood, metal and fabric in varied proportions, occupying different corners of the house. It s your kid's trekking rehearsal, wife's pampering, husband s bribes and mother-in-law's obsession for the remote. After Sales Service At StyleSpa, we value Customer s experience with us above all. We are proud to share thatPage 14 of 34

almost every one out of two customers comes back to us for their further needs of furniture. From the showroom team to the Managing Director, everybody is intensely committed to delivering Customer expectations. We have a Central Service Desk exclusively functioning to handle any after sales queries raised by our customers. This is located at our Head Quarters in Chennai & available on all working days during office hours. Customers can reach the Service desk through our Toll Free Number Customer training: It refers to how the customer s employees are trained to use the vendor s equipment properly and efficiently. General Electric not only sells installs expensive X-rays equipment in hospitals, but also gives extensive training to users of this equipment. Mc DONALD Mc Donald requires it s new franchisees to attend Hamburger University in Oak brook, to learn how to manage the franchise properly. McDonald's Corporation earns revenue as an investor in properties, a franchiser of restaurants, and an operator of restaurants. Approximately 15% of McDonald's restaurants are owned and operated by McDonald's Corporation directly. The remainder is operated by others through a variety of franchise agreements and joint ventures. The McDonald's Corporation's business model is slightly different from that of most other fast-food chains. In addition to ordinary franchise fees and marketing fees, which are calculated as a percentage of sales, McDonald's may also collect rent, which may also be calculated on the basis of sales. As a condition of many franchise agreements, which vary by contract, age, country, and location, the Corporation may own or lease the properties on which McDonald's franchises are located. In most, if not all cases, the franchisee does not own the location of its restaurants. The UK business model is different, in that fewer than 30% of restaurants are franchised, with the majority under the ownership of the company. McDonald's trains its franchisees and others at Hamburger University in Oak Brook, Illinois. In other countries, McDonald's restaurants are operated by joint ventures of McDonald's Corporation and other, local entities or governments. As a matter of policy, McDonald's does not make direct sales of food or materials to franchisees, instead organizing the supply of food and materials to restaurants through approved third party logistics operators. Customer consulting It refers to data, information system and advising services that the seller offers to buyers. For example, the Rite aid drugstore chain s communications program, called the Vitamin Institute, provide customers with research so they can make more educated judgments and

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fell comfortable asking for help. On the Web, Rite Aid has teamed with drugstore.com to offer even more health-related information. ILLUSTRATIONS IBM SUPPORT SERVICES Technology firms such as IBM have learned that such firms have increasingly essential and profitable part of their business Actionable insights improve customer experiences IBM Marketing, Sales and Service Differentiation solutions can help you capture new growth markets and increase revenues with higher levels of customer intimacy by providing new, value-added services. These services enhance the customer s experience and your return on assets while optimizing internal commerce and fulfillment functions. What IBM offers IBM Marketing, Sales and Service Differentiation solutions can help you provide the right products to the right customers at the right time. These solutions improve communication among OEMs, retailers and other providers in the automotive value chain. They cover two key areas:y

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Commerce and Fulfilment solutions can help you analyze customer, product, market, and channel profitability to optimize customer service and financial performance. Real-time dashboards offer end-to-end visibility into all aspects of your supply chain performance. By providing you with actionable insight (event driven, exception based, consolidated), these solutions can help you reduce costs. Services and Aftermarket Support solutions give you comprehensive capabilities to track and manage all critical assets and services through the entire asset lifecycle These solutions can help you reduce shrinkage and improve control over critical assets, including equipment, parts, tools and materials.

Key software products IBM has proven enterprise software products for Marketing, Sales and Service Differentiation solutions which are used by leading automotive companies worldwide. When the physical product cannot be easily differentiated the key to competitive success may lie in adding valued service and improving their quality. Mc Kinsey & Company McKinsey & Company is a global management consulting firm. We are the trusted advisor to the world's leading businesses, governments, and institutions. We are a values-driven organization. For us this means to always:

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Put the client s interest ahead of our own This means we deliver more value than expected. It doesn t mean doing whatever the client asks. Behave as professionals Uphold absolute integrity. Show respect to local custom and culture, as long as we don t compromise our integrity. Keep our client information confidential We don t reveal sensitive information. We don t promote our own good work. We focus on making our clients successful. Tell the truth as we see it We stay independent and able to disagree, regardless of the popularity of our views or their effect on our fees. We have the courage to invent and champion unconventional solutions to problems. We do this to help build internal support, get to real issues, and reach practical recommendations. Deliver the best of our firm to every client as cost effectively as we can We expect our people to spend clients and our firm s resources as if their own resources were at stake.

We operate as one firm. We maintain consistently high standards for service and people so that we can always bring the best team of minds from around the world with the broadest range of industry and functional experience to bear on every engagement.

Oracle Consulting Oracle provides the world s most complete, open, and integrated business software and hardware systems, with more than 370,000 customers including 100 of the Fortune 100 representing a variety of sizes and industries in more than 145 countries around the globe. Oracle's product strategy provides flexibility and choice to our customers across their IT infrastructure. Now, with Sun server, storage, operating-system, and virtualization technology, Oracle is the only vendor able to offer a complete technology stack in which every layer is integrated to work together as a single system. In addition, Oracle's open architecture and multiple operating-system options gives our customers unmatched benefits from industry-leading products, including excellent system availability, scalability, energy efficiency, powerful performance, and low total cost of ownership. The leading Oracle service provider to:y y y y

Define your strategy and goals Implement solutions using Oracle best practices Manage your systems for you Identify ongoing business-streamlining enhancements and cost saving

ERNEST & YOUNG Ernst & Young s business strategy is founded on engagement with our people, clients and communities to help them achieve their potential.

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As a company that embraces corporate responsibility, we think carefully about how to invest in society today to make sure there will be a business context where both we and society can thrive tomorrow and long into the future. Increasingly, business, government and NGOs are pulling together to promote business, social and environmental progress. With 135,000 people in 140 countries, one of the best ways EY can contribute to this effort is through skill-based volunteering that s coordinated globally while taking account of local conditions and culture. We channel our efforts into three key areas that are aligned with our business strategy and critical to improving and expanding market economies. Entrepreneurship supporting and celebrating start-up companies as they create opportunity Education developing skills and broadening access to make sure the next generation has the skills it needs to make a positive impact Environmental sustainability minimizing our impact on the environment Maintenance and repair: It describes the service program for helping customers keep purchasing products in good working order, an important consideration for many products.

Rolls Royce Rolls-Royce & Partners Finance Limited (RRPF) provides short, medium and long-term spare engine leasing solutions with the largest world-wide portfolio of Rolls-Royce and International Aero Engine (IAE) engines. Managing a Changing World In today's volatile environment, control on the cost of ownership and maximising operational capability is becoming increasingly essential. Removing technical and financial uncertainty and the administrative burden associated with engine aftercare can assist in addressing these issues. Taking Care of You Rolls-Royce has a long history of offering programmes which provide service support for our customers' engines. Over the last five years we have taken these services to new levels in response to the change in customer demand. With the introduction of our value-added service solutions,y y y

Total Care Corporate Care Mission Care and Mission Ready Management Solutions, we are able to support all our customers with optimum cover, recognising individual needs.

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The vision for Rolls-Royce Services is to be the customers first choice when they are looking for service support for our products. We aim to:y y y y

Partner with customers and build long-term relationships. Give affordability over the entire life cycle of the product. Meet availability targets and minimise disruption for our customers. Create value and satisfy our shareholders.

Rolls-Royce has ensured its aircraft engines are in high demand by continuously monitoring their health through live satellite feeds.Under its Total Care Program airline pays Rolls a fee for ever hour an engine is in flight . Maruti Suzuki India's Most Trusted Brand 2010: The Economic times Maruti Suzuki has been ranked India's most Trusted Brand in Automobile Sector by India's leading Business newspaper The Economic Times. 2000-2010: JD Power Customer Service Index Award - India The biggest draw for the past eleven years has been the award for highest recognition by the customer. y In 2009-10 again, for the tenth consecutive time, Maruti Suzuki ranked the highest in J.D. Power Asia Pacific 2010 India Customer Service Index (CSI) study Rated as No. 1 in J D Power Sales Satisfaction Index y Hatchback of the year - Ritz by Autocar y Car of the year - Ritz by Business Motoring y Manufacturer of the year by CNBC Overdrive y Ranked third amongst global car companies in the World's Most Reputed Company Survey 2009 y National Award for Excellence in Corporate Governance by ICSI Maruti Suzuki True-Value, the company's service business includes sales and purchase of pre-owned cars. These initiatives, besides providing total mobility solutions to customers in a convenient and transparent manner, have helped improve economic viability of the company's dealerships. DEFINITION OF POSITIONING: Positioning is the act of designing the company s offering and image to occupy a distinctive place in the target market s mind. The end result of positioning is the successful creation of a market-focussed value proposition, a valid reason why the target market should buy the product.

An act of creating distinct place in the mind of consumers on select/relevant variables , against competitors. ..

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Examples a) Mahindra & Mahindra positioned their SUV Scorpio to life style oriented consumers. b) Indica by Tata Motors for small car consumers who want a more spacious vehicle. c) Domino s Pizza for convenience-minded pizza lovers. Benefits being delivery, speed, and good quality. d) Indigo E-CS is trying to position itself as Most fuel efficient car. e) Tata Aria is positioning itself as luxurious, spacious(Mini van) and SUV f) BMW positioned itself as a Luxury, comfort and sporty (quality and luxury) to enter the market when USA market has cars either as quality (mileage but no comfort and luxury) or comfort and luxury. Word positioning was popularised by two advertising executives, Al Ries and Jack Trout. They see positioning as a creative exercise done with existing product i.e. Positioning starts with a producer with a product. A piece of merchandise, a service, a company, an institution, or even a person . But positioning is not what you do to a product. Positioning is what you do to the mind of the prospect. That is, you position the product in the mind of the prospect. PROCESS OF POSITIONING: IDENTIFING COMPETING PRODUCTS Defining the market in which the product or brand will compete IDENTIFYING ATTRIBUTES Under this marketers identify the special feature or quality of their product. COLLECTING INFORMATION This includes survey to know the prospects perception on relevant attributes. IDEAL VECTOR This includes to make a benchmark for your attribute. DETERMINING PRODUCTS LOCATION This includes choosing and locating the attribute from a large table of attributes, in which your product will be positioned.Page 20 of 34

SHARE OF MIND This includes public communication and awareness. Motive is advertising and promotion. EXAMINING FITS Examining the fits like position of competing products, position of your product and position of ideal vector. OPTIMUM POSITIONING AND POSITIONING Then we find optimum way of positioning and then we start positioning. Strategies of Positioning

Products are positioned using various strategies.. These positioning captures the mind of people and basically lure them to the product and enable them to buy the products. These strategies also define a particular space product will have in mind and once set it get difficult to change that. Various strategies are: Positioning by Price

Positioning can be based on either high price or low price. With low price positioning you sell your product cheaper than your competitor.On the contrary position based on high price sell their product at a high price. Many luxury brands use this position. People associate high price with quality and exclusivity. Marketers position themselves on the basis of price which may be reasonable and affordable price or high price for high ends. Examples McDonald sMcDonald s with its campaign Purane Zamane Ke Daam emphasized on less price .

Big Bazaar Big Bazaar always emphasizes on priced of the products. As visible from its tag line it claims to offer the lowest prices for the products.

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Sonata Watches Sonata is the 'Value for Money' watch brand from Titan Industries Ltd. Sonata, India's largest selling watch brand, offers stylish looks at affordable prices. The thoughtfully crafted designs encompass the aspirations of young India. The boldness and uniqueness of each design reflects the confidence of the wearer. Nirma Nirma is customer focussed company laying emphasis on the cost effectiveness. Nirma is a phenomenon and synonymous with Value for Money. Nirma was positioned as a low cost detergent powder. Tata Nano The Tata Nano is a low-cost, rear-engine, four-passenger city car built by Tata Motors. It is primarily aimed at the Indian domestic market. Wheel This product was created specifically by Hindustan lever to counter Nirma, the low cost detergent, which had taken the ground away from surf, the top selling detergent at that time from HLL. Rolex Rolex watches are popularly regarded as status symbols. These are very priced watches. Mont Blanc Mont Blanc pens are in the high end of writing instruments. They make classic ballpoint pens as well as rollerballs and fountain pens. These expensive pens show their quality through striking and beautiful designs. For example, the Mont Blanc Starwalker has a crystal on top with a floating star. Mont Blanc pens are also known for their weight and good balance in the hand. Positioning by Quality

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Marketers often use quality characteristics to position their brands. One way they do it is with ads that reflect the image of a high-quality brand. Premium brands positioned at the high end of the market use this approach to positioning. Product quality must be better than, competing brands for the positioning strategy to be effective Examples: Skoda Skoda is a premium carmaker who emphasises on the quality of the cars. As its tag line suggests it is obsessed with quality and is positioned as very high quality product. Ernst & Young Ernst & Young look themselves as people who build relationships based on doing the right things. They stress on quality on every work which they perform. Bridgestone Bridgestone, in a short stint of 10 years in India has grown to tremendous heights. It has become one of the major suppliers to almost all the reputed car-manufacturing companies in India. Quality has always been a premium at Bridgestone and the strict standards followed, are certified by the world's leading authority in quality certifications. Toyota Camry Toyota Camry heralds a perfect example of charming beauty and engineering excellence. Going with its tag line "beyond excellence", Toyota Camry boasts number of strong, contemporary and luxurious features that is expected from a luxury Sedan car.

Positioning by Features

Marketers often position themselves on their unique feature. For examples: Maruti Suzuki Known for its Fuel Efficiency Dominoz has a feature of fast delivery with quality food. Colgate like they helping In preventing capacity

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Dettol featured themselves for reviving Positioning by Benefits Marketers position their product by quantifying the benefits that the user may derive out of the product. For Examples: Red Label: Positioned themselves as good for immunity which is beneficial to the consumer. Loreal Anti Ageing Cream: Positioned themselves as cure to ageing problems for women. Positioning by User Category

This positioning relies on customer segments. It is successful when the segment has some unique quality that ties product benefits more closely to the group than to other segments. Marketers often position themselves particularly for a specific user group.

Examples: Breitling Breitling is a brand of Swiss watches from Grenchen, Canton of Solothurn . The watchmaker offers Certified chronometers designed primarily for aviation use, though most frequently worn as high-end luxury watches. Breitling's watches offer aviation functions, though their chronograph functions have become more of status symbols than practically applied tools. Johnson and Johnson Has positioned itself strongly as kid product. Specially for the babies under 3 years. It is finding it hard to come out of that shadow and move to other age group category. Doy Soaps Positioned themselves for children use only. Or they positioned themselves as a product for children as a user. Sony Play Stations

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Positioned themselves for game loving customer and they considered the game loving people as user. Positioning by Use Products can be positioned as the right product to use for a particular occasion or purpose. Marketers often position their product for the utility that a consumer will derive. For example: Vanish Positioned themselves specifically as stain removal fabric care, additive to normal detergent Parachute Hair Fall Therapy Positioned themselves specifically for hair fall control. Useful for them who are suffering from severe hairfall. Positioning by Celebration Few products positions themselves according to the celebration or the festival or occasions. Examples: 1.Cadbury Dairy Milk : it has positioned itself as a product that can be used for any celebration from where it is a normal celebration of Payday, to trying a new dress or it is the celebration of many major festivals like Diwali, Holi, or Rakhi. Tag Line: Aaj Pehli Tarikh Hai . 2. Hamdard's Rooh Afza: Hamdard has positioned itself as a standard drink to be served as a part of all celebration, fun with guest or any occasion. Tag Line: Jashn Ka Asli Mazza

5. Coca Cola :

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Diwali celebration Tag Line: Khule to baat chale Open Happiness.

Positioning by Category For example Ujala Drops Jyoti Laboratories launched the first ever liquid whitener in India. They positioned it as a new category which was different from Detergent Powders and Cake. 7 Up Coldrink Positioned themselves as UNCOLA for making it different or apart from other Cola Brands. Positioning by Competitor Positioning by competition is basically when a company / product is openly campaigned / benchmark with respect to competitors product. Some firms deliberately compare themselves to competitors as a means of gaining the desired position for their product in the mind of the consumer. For example

Active wheel positioned themselves against Nirma openly in campaign with Prachi Desai and Salman Khan and positioned themselves better from Nirma. Sun D2H DIRECT Connection openly targeted Tata Sky in the campaign. Coca Cola and Pepsi Both the big brands had always known as the cut throat competitors and they compete against each other openly in many campaigns striving to be the best amongst customers. Rin Vs TidePage 26 of 34

Rin s campaign against Tide openly so as to prove its whiteness is much better than that of tide and proved it to be better than Tide.

TYPES OF POSITIONING: REPOSITIONING Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. For example: Hutch to Vodafone When Vodafone came to India and Hutch was converting into Vodafone then market behaviour changed towards hutch that the performance level will be decreased when hutch will be Vodafone. So Vodafone carried out the campaign which depicted Hutch and Vodafone going together with each other and Hutch will be the same in performance just the name will be Vodafone. So they gradually repositioned themselves as Vodafone and continued their hold on the market. When Goldman Sachs and Morgan Stanley suddenly shifted from investment to commercial banks. The expectations of investors, employees, clients and regulators all need to shift, and each company will need to influence how these perceptions change. Doing so involves repositioning the entire firm. Parle-G as we know it was famous as gluco-buscuits. But many companies started mimicking the product in a local market. So the name Parle-G was introduced and slowly from glucobuscuits(a must for whole family) a must dip with tea it positioned itself also with intelligence G mane genius . Maggi launched itself as an instant noodle product. 2 minute noodle and positioned itself as instant hunger solution. But with time in 2005 it repositioned itself as a Taste bhi health bhi product and is repositioning itself from instant noodles to a healthy alternative food. 7 up first positioned as thirst quenching as another soft drink but was not that successful then repositioned itself as UNCOLA and became 3rd largest selling soft drinks. Complain who started journey as a ration to soldiers positioned itself as a supplement to adult nutrition but later repositioned it to a nutrition to children for growing children complete planned food and saw its market growing.

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DEPOSITIONING: 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. For example: Rin versus Tide Rin and Tide campaigns show the cut throat competition between them. Campaigns by Rin depicts the superiority of Rin and inferiority of Tide quality. Rin tried to attack Tide from front in the campaign and this affected the minds of the prospective market. Rin depositioned or say Rin changed the identity of Tide in the collective minds of the target. Tylenol depositioned aspirin by a campaign Aspirin can irritate stomach lining..... Trigger asthmatic as a response to which Aspirin become dirtier by claiming NO Tylenol is not found safer than aspirin Many campaigns of Pepsi and coke tries to deposition each other. Once, coca cola came with a campaign known as Poopsi where as pepsi showed coca cola delivery man taking and admiring pepsi diet coke. When pepsi started making spoof of Thums up coca cola came with another product sprite which again made spoof of pepsi campaign. Dew theme do the dew got converted to I want to do .

Positioning Errors: 1. Under-positioning It is a positioning error in terms of communication aimed at creating a low profile or a low image with regard to the marketing offer being communicated. Market only has a vague idea of the product. It is a process in which the marketer comes up with a simple positioning idea and gives it to creative department. As a result positioning gets diluted. a) Hotel du palais in Biarritz is trying to be an international hotel but still is unknown outside France b) Most of the PC and laptop suffers from under-positioning as people still dont have clear idea about the products. Even a techie find it difficult to understand i-5 processor or many times meaning of core.

2. Over Positioning over positioning is a common positioning error created because of a superlative communication model adopted by the marketer, thereby creating a picture in the minds of the audience which is hyper in character and does not fit in with the true product image, which the marketer is trying to communicate. Buyers believe that the product is meant for a very select audience because it is premium priced. Biyers

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believe it is either for a thin segment or it become so generic that people find it difficult to accept in other category. a) when Aqua Guard introduced Aqua Sure, people thought that it was meant for upper class consumers. Whereas the product was priced only at Rs. 1600. Rolex Watch, company started its operations in 1905 with passage of time enduring strong customer relationship, build a brand and still having stunning reputation, Rolex recently offered a new affordable swift watch collection to attract new customer s having low range, but customer hold s a narrow image of the brand and probably thinks that Rolex watches only starts from 1000$ although Rolex made it AFFORDABLE with 500$ starting..! c) Hansi plast has become such a generic name people find it difficult to use it another than the purpose and it has become a generic name of Band-aid. d) Xerox, Maggi, dettol finds it difficult to move to new category other than those in which they are market leader.b)

3. Confused positioning Buyers have a confused image of the product as it claims too many benefits or it changes the claim too often. a) Aircel has started the campaign with product for lower class users with campaign of Divya Dutta a talkative common-woman of lower middle class. After that Aircel started campaigning for Save Tiger and social welfare to attract higher social class. b) Titan when launched tanishq it was for top 1% of Indian urban population. Design were western, advertisement sophisticated and showroom was glamorous but gold quality was 18 carat instead of norm of 22 carat .so it was perceived for rich but low quality was mismatch for rich. Tanishq then repositioned for upper middle class, new Indianized design of 22 carat gold. c) Crest Rejuvenating Effects was a toothpaste positioned for women. They became confused. How were their teeth different from men? Teeth are teeth. More confusion: Crest Rejuvenating Effects re-mineralised teeth. Women didn t understand this positioning benefit. What did it mean? It sounded like something straight from a chemistry text. How did one look into the bathroom mirror and determine whether their teeth had been re-mineralised? Crest Rejuvenating Effects was basically the same old Crest with a few superficial flourishes. It was fake innovation structured around a confused positioning. Since it lacked that Rice Kris pies snap, crackle, and pop, the brand died a merciful death. ! 4. Doubtful positioning Buyers find it difficult to believe the brand s claims in view of the product s features, price, or manufacturer. a) Nirma Shudh Namak has not hit chores with Indian consumer as Nirma is strongly positioned as detergent powder which is synthetic where as salt is edible. b) Pakistan Telecommunication Corporation Limited (PTCL) that started its operations in January 2001under the brand name Ufone . The motto of Ufone services says To Become the best cellular option for U but when it comes to delivering promises to thePage 29 of 34

valued customers regarding the promotion offered which are normally experienced Double crossed. (BBFD) Bring Back From Dormancy, as per the promotion details Ufone promised to offer 10,000 FREE SMS and 1000 Minutes for Free on the revival of connections not used from 1st Jan 2010 this promo was for the duration from 15th Mar till 15th Apr 2010 but all it was just a direction to green lavish valleys corollary double crossed its subscribers but it was just revenue generating activity for a time being but conclusion ally many customers got disgruntled with this policy. c) When Uninor started its operation in India there was a SMS circulated that UNINOR is a Pakistan based company as a Result its market got a hit as people refrained from buying the product. Perceptual Maps: Perceptual maps are used to plot the interrelationships of consumer products, industrial goods, institutions, as well as populations. Virtually any subjects that can be rated on a range of attributes can be mapped to show their relative positions in relation both to other subjects as well as to the evaluative attributes. Essentially perceptual mapping creates a mind map that shows the relative position of competitors. Need for Perceptual Maps: y To gain competitive advantage, a firm must correctly position itself, its products, or services against competitive offerings. Need to develop a Mental Map of how our product is perceived by consumers relative to the different competing products in the marketplace. Linking Segmentation and Positioning. Perceptual mapping provides answers to these vital questions:What is your market position relative to your competitors? What are your strengths and weaknesses? Where are there gaps in the market? How do you measure up to the ideal? What strategies will improve your competitive position so that you are both relevant to the market and differentiated from competitors? The perceptual map has the following characteristics: 1) It determines how a customer simplifies factors or aspects to differentiate competitors. These are used to create the axis in the map. 2) It shows position of competitors relative to each other, and particularly the distance from one competitor to another. 3) It determines specifically what factors or aspects contribute to the simplified decision-making

y

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4) Its powerful graphic simplicity appeals to senior management and can stimulate discussion and strategic thinking at all levels of all types of organizations. Perceptual Mapping Process: y y y y Specify the "Relevant" Objects or Products. Relevance means that the set of products chosen must be the set of competitive products that are relevant for managerial decision-making. Perceptual mapping involves two steps: (1) data collection and (2) data analysis and Presentation Two possible methodologies to collect information on consumers perception of products: Method 1: Attribute based method (Factor Analysis). Method 2: Similarity-Based method (Multi-Dimensional Scaling)

Method 1 Attribute Research Method: y Decide on the set of relevant attributes on which to capture consumer perceptions (6 attributes) Prior quantitative or qualitative research that elicits important attributes for the target consumers. Ensure that consumers are familiar with the product that are to be evaluated (e.g., through video presentation, or actual prototypes) Respondents (target customers) evaluate / rank or rate products.

y

Data Matrix = 4 (products) X 6 (attributes) X 300 (respondents).

Factor Analysis Method: y It is difficult to get a clear picture of the market when dealing with so many attributes and products. All the data/dimensions might not be necessary to capture consumer perceptions. Highly correlated attributes Create linear combination of the measures to get a single new dimension of the original attributes.

y y

y y

Take out attributes on which all products are rated about the same. Factor analysis output: Say 70% of the information contained in the original attributes can be represented by creating just 2 new dimensions. These dimensions are called factors. Analysis done using commercial software SPSS or SASPage 31 of 34

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Limitations of Factor Analysis Method: y y y Researcher should be able to clearly conceptualize the attributes No perception gap between intended and actual perception of the attributes. Works well for hard or functional attributes, (price, product features).

Overall Similarity Ratings (Multi-Dimensional Scaling): y The respondents will be ranking on a scale of 1-7 the similarity of two products. Do this for all pairs n products => n (n-1)/2 pairs. 1 is very similar 7 is very different y How different are the products perceived? What are features distinguish different products y Commercial software implementation SPSS and SAS. The numbers are like distances on a perceptual map. Multidimensional scaling (MDS) is a mathematical technique that helps implement this analysis of similarity perceptions with minimum information loss

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MDS Perceptual Map:

Advantages/disadvantages of MDS: Allows you to map products and simultaneously infer attributes. Better for softer attributes which we do not verbalize very well (feel, aesthetics) Impractical when the number of products is large.

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