Submitted to: Submitted by: S.Apar Singh Sandeep Kaur Roll no. 742 Ph.D Coursework

School of Management Studies Punjabi University Patiala

PRESENTATION ON POSITIONING AND REPOSITIONING

Literature of review on Positioning and Repositioning

Positioning and Repositioning of BATA

Positioning and Repositioning of AIRTEL

Contents Of Presentation

POSITIONING Different scholars defined positioning in different ways.  A “position” is a set of buyers at whom the product is primarily aimed (Cronshaw et al., 1990).Positioning is the act of designing, establishing the company’s offer and image and communicating the products’ key distinctive benefits in the market so that it occupies a valued place in the minds of the target customers (e.g. Kotler, 1996; Kotler & Keller, 2009).

OBJECTIVE OF POSITIONING The objective of positioning is to locate the brand/product in the consumers’ minds so that organization can secure maximize potential Benefits (Kotler & Keller, 2009).

It differentiate product from

its competitors

It creates a unique

perception in buyers’ minds

Positioning is an important source

of competitive advantage and

acts as a support for competitive

advantage.

Why is positioning important?

To identify a relevant set of competitive products

To identify determinant attributes

To collect data about perception of the customers for products in the competitive set

To analyses the products’ current position in the competitive set

To determine customers’ most preferred attributes

To consider fit of possible positions with customer needs and segment attractiveness

To write positioning statement or value proposition to guide development of marketing strategy

Positioning In The Marketplace: Walker et al. (2003) seven steps

• product attributes, features or benefits• Examlpe: Toyota car

Features/Attributes

• comfort, happiness of customer• Examlpe: Automated Teller Machine (ATM)

Product Class/Benefits

• For a particular occasion or purpose• Examlpe: Nescafe Coffee

Use/Application

• Suited for certain users.• Examlpe Aishwarya’s advertise says that by

using Lux you can also become a star.User/Usage

• Compare themselves to competitors • Examlpe: Colgate and Pepsodent

Competitors

• High price superior in quality. Other firms use a lower price.

• Examlpe: low price: nanno, Quality: hpPrice and Quality

Different Positioning Options

As positioning indicates buyers’ perception about existing or potential brands in a market and hence in order to position a product/brand firms need to go for positioning analysis which is helpful for the managers to understand how customers perceive their market which may be different from their own views

To formulate a positioning strategy effectively firms require a simultaneous analysis of competitor and consumer behavior (Ansari et al., 1994).

Repositioning The implication with the term” repositioning” is that a

company modifies something that is already present in the market and in the consumer’s mind

Brand repositioning is all about changing the status of brand by modifying its appeal to customers.

It is change the position of brand. Repositioning refers to the major change in positioning

for the brand/product. To successfully reposition a product, the firm has to change the target market’s understanding of the product.

Some analyst argue that to successfully reposition a established brand name is almost impossible because repositioning of a brand can make the most loyal customer to switch brand.

Example: Levis' Jeans has been losing market share to newcomers such as The Gap, despite numerous campaigns designed to reposition the brand as trendy.

But, in some circumstances a repositioning is necessary to gain credibility if the brand is eroded..

Confused Brand Position

Company Has A New Competitive Advantage

A Change In The Company’s Strategic Direction

Arrival of New competitor

Reasons to RepositionRepositioning can be required as the market changes and new opportunities occur

Three stages of repositioning

Introductor Elaboration Fortification

This involves the introduction of a new or a repositioned brand, seeking to underline the brand’s value over others, and to broaden the brand proposition

• Which is not a repositioning at all since the firm maintains its initial strategy in the face of a changing environment.

Zero Repositioning

• Where the firm performs continuous adjustments to its positioning strategy to reflect the evolution of its environment;

Gradual Repositioning

• That corresponds to a discontinuous shift towards a new target market and/or a new competitive advantage.

Radical Repositioning

THREE TYPES OF REPOSITIONING

Phase I• Determining the Current

Status of the Brand

Phase II.• What Does the Brand Stand

for Today?

Phase III• Developing the Brand

Positioning Platforms

Phase IV

• Refining the Brand Positioning and Management Presentation

A four-phased brand repositioning approach can be followed to

achieve the intended benefits:

Benefits Of Repositioning: Value over others Relevant position “Up to date” image

The Risks Associated With Such Strategies Are:

Loss of focus Neglecting original customers Losing credibility for the brand Confusing the brand

POSITIONING AND REPOSITIONING OF “BATA”

INTRODUCTION  The Company was incorporated in India in the year 1931 as

Bata Shoe Company Pvt. Ltd. Bata India is the largest retailer and leading manufacturer of

footwear in India and is a part of the Bata Shoe Organization.

INITIAL POSITIONING Bata India was primarily known as a manufacturing

company.Bata has positioned itself as a one stop family store for all footwear and related products.

It has traditionally positioned itself as providing product lines catering to the middle class segment of the society.

NEED TO REPOSITION Bata wanted to change this image of production oriented

company to affordable, market driven, fashion conscious, lifestyle brand.

Bata India had to come in line with the changed retailing landscape with the arrival of malls and big retail chains.

Bata started gradually losing its position as market leader in the 1990's when its profit margins reduced drastically.

Bata has suffered due to an un-favorable impression of a perception drag and has been unable to connect with the youth

OBJECTIVES OF REPOSITIONING: To expand brand usages and awareness. To improve the brand image and uniqueness

REPOSITIONING Bata was repositioned as Bata shoe for every occasion. They are now concentrating on “products that the customer

wants rather than products that they produce”. The company has decided to be more visible in shopping malls,

open up to the franchisee model and also create the shop-in-shop experience in a multi-branded store.

The company recently introduced international styles and trends for women, men and kids, which have gone a long way in providing a trendy and contemporary image to the company.

Every Product Line Is Targeted Towards Particular Consumer

Hush Puppies: It is for every executive

North Star: for youth

Marie Claire: for women

Angry Birds: for children

Dr. Scholl: for those having foot problem

POSITIONING AND REPOSITIONING OF “AIRTEL”

INTRODUCTION Telecom giant Bharti Airtel is the flagship company of Bharti

Enterprises. Bharti launched Airtel as a post paid cellular service in Delhi

in November 1995.

POSITIONING OF AIRTEL

Airtel was positioned in the premium category, aimed at the elite class of the society. The tariff rates charged by the government were quite high. Cellular players has little choice but to impose high call charges on their customers.

Airtel was positioned as an aspirational and lifestyle brand .

TAGELINE'Power to keep in Touch'YEAR- 1995-1998

SIGNIFICANCE  The tag line 'Power to keep in Touch' used in the brand

was designed to make the user feel 'in control…powerful‘.

REPOSITIONING After some year company realize the need of reposition

REASON FOR REPOSITIONING Govt. reduced the tariffs and taxes which led to the

emergence of huge customer base.

Other players also started imitating strategies followed by Airtel.

During late 1990s many national and international players started entering into the Indian telecom market.

many domestic players also entered the segment. This increased the competition in the sector.

In the light of these changes, Bharti realized the need for repositioning Airtel to increase its market share.

REPOSITIONING Airtel has been constantly repositioning itself. Their

target customer base has been increasing to cover different segments whether its youth or senior citizens, urban or rural customers they have specialized packages for all. Airtel has spent lots of money in revamping the brand in order to appeal all segments of market.

'Touch tomorrow‘ YEAR: 1999-2001

Hence Bharti decided to ‘humanize’ the brand ‘ Airtel’ to gain competitive advantage.

Bharti launched its new ‘Touch Tomorrow’ campaign which aimed at strengthening its relationship with its customers and make the brand ‘softer’ to cater a wide variety of people across the society.

The new positioning was aimed at developing a strong relationship with the customers.

The Company adopted a three-tier brand architecture to expanded its ‘Touch Point’ network.

Special features like music download facility, SMS, permanent GPRS was introduced at a affordable priceBharti also created a new logo for the Airtel brand, which had red, black and white colors with 'Airtel‘

'Live Every Moment'YEAR: 2002-2003  In 2002, Airtel again repositioned its brand with new

tagline ‘Live Every Moment’ and changed its logo to create a brand identity that had a younger international look and feel.

SIGNIFICANCE: This tagline denotes that each and every person in

India lives every moment (emotions, feelings etc.) of the life with Airtel.

'Express yourself‘ YEAR- 2003-2008

Express yourself' was successfully launched taking the ownership of the entire space of communication and strengthening the emotion bond Airtel enjoys with its customers.

‘Get Closer to what you love’ Year- 2010 onwards

The idea now is that anyone can use Airtel to get whatever he loves. Whether it’s a feeling or an object, Airtel is the key to achieve it.

Airtel has an emotional connect with its customers. Airtel has invested lots of money in constantly changing itself to suit the different requirements of its customers and adapting itself to the changing environment.

Thank you