Act of designing the company‘s offering and image so that it occupies a distinctive place in the mind of the target segment.
Positioning involves :
1. Identifying the unique features of the product as well as the differences of the offer vis-à-vis the competitor‘s offer.
2.Selecting the differences that have greater competitive advantage and
3. Communicating such advantages to the target audience.
Eg. Himami positions Sona Chandi Chyavanprash on the two platforms of a health body and a sharp mind.
Ghari detergent –low price high quality..
Lifebuoy Active –from male soap to a family soap.
Identifying the Positioning Concept
Product Differentiation –Can be differentiated on the basis of form, features, durability and quality. Coke introduced Chota Coke at Rs 5 for rural. Hero Honda came out with the lower priced Dawn model of motorcycle for the rural buyer. Meswak, Neem and Babool toothpaste are herbal versions of the soap.
Service Differentiation –Service may be differentiated in respect of delivery, installation and maintenance. Reliance, a private LPG company, when pitted against the three well entrenched public sector undertakings created service differentiation on the basis of their distribution network and better refilling facility.
People –People who are widely respected and admired by consumers. Endorsement of Coca Cola by Aamir Khan (dressed as a villager) or of Sona Chandi Chyavanprash by
Sunny Deol. Courteous staff of HDFC Bank.
Image –Foreign brands image. Image is built by advertisements, symbols, logos, signs, colors and general reputation of the company.
Selecting the Positioning Concept
Critical factors that should be considered while positioning a brand are:
Attractiveness –Does it provide value to the customer?
Distinctiveness - Is it different from that of its competitors?
Pre-emptive - Is it very difficult for the competitors to copy it? Affordability - Can buyers pay for it?
Communicability –Can the product difference be clearly expressed?
Developing the concept
Deciding which positioning to promote : Lay stress on the generic benefit of the product. Eg. Sprite bujhaye only pyaas, baaki sab bakwaas.
Thanda matlab Coca Cola.
Deciding how many ideas/differences to promote –Positioning of two or three ideas would be a better proposition as rural consumers would think that they are getting more value for their money.