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Positioning & Differentiation Differentiation is the process by which companies manufacture and design products in a way that is different from the products of other companies.

Positioning is less about what we do to the product and more about what we do to the consumers' perception of the product.

Positioning & Differentiation Al Ries and Jack Trout: "The basic approach of positioning is not to create something new and different. But to manipulate what's already up there in the customer's mind and to retie the connections already existing.

Rosser Reeves defines Positioning as - "Positioning is the art of selecting, out of a number of unique selling propositions, the one which will get you maximum sales".

Nestle positioned Maggi Noodles as a quick nutrient food for school going children, instead of adults. Thus Nestl avoided competing with any form of traditional breakfast and created a separate category which competes with itself.

Product IdentificationPositioning Act of designing the companys offering and image to occupy a distinctive place in the minds of the target market to maximize the potential benefits to the firm.Positioning requires the similarities and differences between brands to be defined and communicated.Positioning requires determining a frame of reference by understanding the target market, competition and the ideal POPs and PODs.

Successful positioning results into a customer-focused value proposition(USP)Brand & Product Positioning Product positioning describes the characteristics of the physical product and its functional features.

Brand positioning describes the brand's perceived attributes in relation to competing products.

Brand: A customer's expectation from a name. Product: A good, service or idea. Positioning: A place in the mind of your prospect.

POPs and PODsPoints of Difference(PODs) These are attributes associated to a brand by the consumers and are not available to the same extent with a competitor brand

Points of Parity(POPs)These are associations made by the consumer which are shared with the other brands also.

PODs (Dettol vs Savlon) Antiseptic market is dominated by Dettol, a flagship brand of RCI Ltd.

Savlon countered the category perception by focusing on the no-sting property as major POD

Positioning Strategy Marketer tries to launch a new product which may be an unmet need of customers or a innovation that creates a need with first mover advantage in a different way to meet changing needs and create a niche market

Marketer develops a certain need and pushes the innovated product to justify that need. Its necessary to communicate the product's usagePositioning Strategy

Benefits: Only brand recommended by IMA, cleans tough stains Kills 99.9% germs in less than 60 seconds Pleasant fragrance - Citrus, Floral, Pine & Jasmine

Cross-country positioningInternational brands adopt different positioning strategies for different regions. Some brands adopt same strategy everywhere Utility of a product varies from country to country and expectations from product also varies

Market leader strategyMarket leader may face stiff competition from competitors or enjoy a commanding shareTo retain market leadership, the best method is to counterattack the competitor. Competitor never gets a chance to settle down

Idea MarketingSocial welfare campaigns, environmental protection ads, pollution control ads, save water and save wild life ads, etc., are some examples of idea marketing

Tata Tea ad campaign -"Har subah sirf utho mat. Jaago re!

Features/Benefits positioningFeature becomes important to customers only when they look for a special benefit to meet a certain need Marketer has to select the attributes which can occupy a position in the customer's mind TV ad for Pepsodent toothpaste

Emotional PositioningSome consumers respond positively to emotionally -charged advertisements Rasna was in the number two position in non-carbonated drinks category after Rooh Afza Rasna effectively communicated to show a child with the tag line "I love you, Rasna

Damage control strategy FDA received complaints about worms in Cadbury's Dairy Milk chocolates and the message was spread by the mediaCadbury realised knew that no advertisement would help, therefore, discontinued all ads Set up a media desk to ensure that every query related to worms issue was answered

Damage control strategy Consistently conveyed 3 things to customers Infestation was a storage-linked problem Significant packaging changes were initiated to avoid such storage problemsCadbury's reached out nationally through a press ad, `Facts about Cadbury' which was released in 55 publications in 11 languages

Any damage control exercise requires the company to own up its mistakes and defend every issue raised by the media or other sourcesHeritage PositioningBrands with a rich heritage can use their legacy to generate a strong emotional connection in the customer's mindNo need to delineate the product features in the ad Brand itself contains an image of what it stands for When trust factor influences Consumer buying behavior, heritage positioning is the best option Indian customers blindly purchase products manufactured by Tata or Birla.Line Extension Positioning Its a low-risk and low-cost option. Brands can provide a variety of products to heterogeneous customer groups in a profitable way

Marketers can add new products for the latest need. Companies can stretch their product line upward when they wish to enter a higher segment and vice versa

Line extension can be effective when one is targeting a different demographic segment like Age J & J has entered the adult market

Brand Repositioning Repositioning is often done when an existing positioning strategy doesn't workTo increase the brand share, bring new customers, change of need and utility, cope with changing market conditions etc.