PositioningAs Popularized by Al Ries and Jack Trout In their 1981 book, Positioning: The Battle for your Mind, Al Ries and Jack Trout describe how positioning is used as a communication tool to reach target customers in a crowded marketplace. Regular use of the term dates back to 1972 when the same authors published a series of articles in Advertising Age called "The Positioning Era." Not long thereafter, Madison Avenue advertising executives began to develop positioning slogans for their clients and positioning became a key aspect of marketing communications. Positioning: The Battle for your Mind has become a classic in the field of marketing. The following is a summary of the key points made by Ries and Trout in their book. Information Overload Ries and Trout explain that while positioning begins with a product, the concept really is about positioning that product in the mind of the customer. This approach is needed because consumers are bombarded with a continuous stream of advertising, with advertisers spending several hundred dollars annually per consumer in the U.S. The consumer's mind reacts to this high volume of advertising by accepting only what is consistent with prior knowledge or experience. It is quite difficult to change a consumer's impression once it is formed. Consumers cope with information overload by oversimplifying and are likely to shut out anything inconsistent with their knowledge and experience. In an over-communicated environment, the advertiser should present a simplified message and make that message consistent with what the consumer already believes by focusing on the perceptions of the consumer rather than on the reality of the product. Getting Into the Mind of the Consumer The easiest way of getting into someone's mind is to be first. It is very easy to remember who is first, and much more difficult to remember who is second. Even if the second entrant offers a better product, the first mover has a large advantage that can make up for other shortcomings. However, all is not lost for products that are not the first. By being the first to claim a unique position in the mind the consumer, a firm effectively can cut through the noise level of other products. For example, Miller Lite was not the first light beer, but it was the first to be positioned as a light beer, complete with a name to support that position. Similarly, Lowenbrau was the most popular German beer sold in America, but Beck's Beer successfully carved a unique position using the advertising, "You've tasted the German beer that's the most popular in America. Now taste the German beer that's the most popular in Germany."

Consumers rank brands in their minds. If a brand is not number one, then to be successful it somehow must relate itself to the number one brand. A campaign that pretends that the market leader does not exist is likely to fail. Avis tried unsuccessfully for years to win customers, pretending that the number one Hertz did not exist. Finally, it began using the line, "Avis in only No. 2 in rent-a-cars, so why go with us? We try harder." After launching the campaign, Avis quickly became profitable. Whether Avis actually tried harder was not particularly relevant to their success. Rather, consumers finally were able to relate Avis to Hertz, which was number one in their minds. Another example is that of the soft-drink 7-Up, which was No. 3 behind Coke and Pepsi. By relating itself to Coke and Pepsi as the "Uncola", 7-Up was able to establish itself in the mind of the consumer as a desirable alternative to the standard colas. When there is a clear market leader in the mind of the consumer, it can be nearly impossible to displace the leader, especially in the short-term. On the other hand, a firm usually can find a way to position itself in relation to the market leader so that it can increase its market share. It usually is a mistake, however, to challenge the leader headon and try to displace it.

Positioning of a Leader Historically, the top three brands in a product category occupy market share in a ratio of 4:2:1. That is, the number one brand has twice the market share of number two, which has twice the market share of number three. Ries and Trout argue that the success of a brand is not due to the high level of marketing acumen of the company itself, but rather, it is due to the fact that the company was first in the product category. They use the case of Xerox to make this point. Xerox was the first plain-paper copier and was able to sustain its leadership position. However, time after time the company failed in other product categories in which it was not first. Similarly, IBM failed when it tried to compete with Xerox in the copier market, and Coca-Cola failed in its effort to use Mr. Pibb to take on Dr. Pepper. These examples support the point that the success of a brand usually is due to its being first in the market rather than the marketing abilities of the company. The power of the company comes from the power of its brand, not the other way around. With this point in mind, there are certain things that a market leader should do to maintain the leadership position. First, Ries and Trout emphasize what it should not do, and that is boast about being number one. If a firm does so, then customers will think that the firm is insecure in its position if it must reinforce it by saying so.

If a firm was the first to introduce a product, then the advertising campaign should reinforce this fact. Coca-Cola's "the real thing" does just that, and implies that other colas are just imitations. Another strategy that a leader can follow to maintain its position is the multibrand strategy. This strategy is to introduce multiple brands rather than changing existing ones that hold leadership positions. It often is easier and cheaper to introduce a new brand rather than change the positioning of an existing brand. Ries and Trout call this strategy a single-position strategy because each brand occupies a single, unchanging position in the mind of the consumer. Finally, change is inevitable and a leader must be willing to embrace change rather than resist it. When new technology opens the possibility of a new market that may threaten the existing one, a successful firm should consider entering the new market so that it will have the first-mover advantage in it. For example, in the past century the New York Central Railroad lost its leadership as air travel became possible. The company might have been able to maintain its leadership position had it used its resources to form an airline division. Sometimes it is necessary to adopt a broader name in order to adapt to change. For example, Haloid changed its name to Haloid Xerox and later to simply Xerox. This is a typical pattern of changing Name 1 to an expanded Name 1 - Name 2, and later to just Name 2.

Positioning of a Follower Second-place companies often are late because they have chosen to spend valuable time improving their product before launching it. According to Ries and Trout, it is better to be first and establish leadership. If a product is not going to be first, it then must find an unoccupied position in which it can be first. At a time when larger cars were popular, Volkswagen introduced the Beetle with the slogan "Think small." Volkswagen was not the first small car, but they were the first to claim that position in the mind of the consumer. Other positions that firms successfully have claimed include:y y y y y y

age (Geritol) high price (Mobil 1 synthetic engine lubricant) gender (Virginia Slims) time of day (Nyquil night-time cold remedy) place of distribution (L'eggs in supermarkets) quantity (Schaefer - "the one beer to have when you're having more than one.")

It most likely is a mistake to build a brand by trying to appeal to everyone. There are too many brands that already have claimed a position and have become entrenched leaders in their positions. A product that seeks to be everything to everyone will end up being nothing to everyone.

Repositioning the Competition Sometimes there are no unique positions to carve out. In such cases, Ries and Trout suggest repositioning a competitor by convincing consumers to view the competitor in a different way. Tylenol successfully repositioned aspirin by running advertisements explaining the negative side effects of aspirin. Consumers tend to perceive the origin of a product by its name rather than reading the label to find out where it really is made. Such was the case with vodka when most vodka brands sold in the U.S. were made in the U.S. but had Russian names. Stolichnaya Russian vodka successfully repositioned its Russian-sounding competitors by exposing the fact that they all actually were made in the U.S., and that Stolichnaya was made in Leningrad, Russia. When Pringle's new-fangled potato chips were introduced, they quickly gained market share. However, Wise potato chips successfully repositioned Pringle's in the mind of consumers by listing some of Pringle's non-natural ingredients that sounded like harsh chemicals, even though they were not. Wise potato chips of course, contained only "Potatoes. Vegetable oil. Salt." As a resulting of this advertising, Pringle's quickly lost market share, with consumers complaining that Pringle's tasted like cardboard, most likely as a consequence of their thinking about all those unnatural ingredients. Ries and Trout argue that is usually is a lost cause to try to bring a brand back into favor once it has gained a bad image, and that in such situations it is better to introduce an entirely new brand. Repositioning a competitor is different from comparative advertising. Comparative advertising seeks to convince the consumer that one brand is simply better than another. Consumers are not likely to be receptive to such a tactic.

The Power of a Name A brand's name is perhaps the most important factor affecting perceptions of it. In the past, before there was a wide range of brands available, a company could name a product just about anything. These days, however, it is necessary to have a memorable name that conjures up images that help to position the product.

Ries and Trout favor descriptive names rather than coined ones like Kodak or Xerox. Names like DieHard for a battery, Head & Shoulders for a shampoo, Close-Up for a toothpaste, People for a gossip magazine. While it is more difficult to protect a generic name under trademark law, Ries and Trout believe that in the long run it is worth the effort and risk. In their opinion, coined names may be appropriate for new products in which a company is first to market with a sought-after product, in which case the name is not so important. Margarine is a name that does not very well position the product it is describing. The problem is that it sounds artificial and hides the true origin of the product. Ries and Trout propose that "soy butter" would have been a much better name for positioning the product as an alternative to the more common type of butter that is made from milk. While some people might see soy in a negative light, a promotional campaign could be developed to emphasize a sort of "pride of origin" for soy butter. Another everyday is example is that of corn syrup, which is viewed by consumers as an inferior alternative to sugar. To improve the perceptions of corn syrup, one supplier began calling it "corn sugar", positioning it as an alternative to cane sugar or beet sugar. Ries and Trout propose that selecting the right name is important for positioning just about anything, not just products. For example, the Clean Air Act has a name that is difficult to oppose, as do "fair trade" laws. Even a person's name impacts his or her success in life. One study showed that on average, schoolteachers grade essays written by children with names like David and Michael a full letter grade higher than those written by children with names like Hubert and Elmer. Eastern Airlines was an example of a company limited by its name. Air travel passengers always viewed it as a regional airline that served the eastern U.S., even though it served a much wider area, including the west coast. Airlines such as American and United did not have such a perception problem. (Eastern Airlines ceased operations in 1991.) Another problem that some companies face is confusion with another company that has a similar name. Consumers frequently confused the tire manufacturer B.F. Goodrich with Goodyear. The Goodyear blimp had made Goodyear tires well-known, and Goodyear frequently received credit by consumers for tire products that B.F. Goodrich has pioneered. (B.F. Goodrich eventually sold its tire business to Uniroyal.) Other companies have changed their names to something more general, and as a result create confusion with other similar-sounding companies. Take for instance The Continental Group, Inc. and The Continental Corporation. Few people confidently can say which makes cans and which sells insurance.

The No-Name Trap

People tend use abbreviations when they have fewer syllables than the original term. GE is often used instead of General Electric. IBM instead of International Business Machines. In order to make their company names more general and easier to say, many corporations have changed their legal names to a series of two or three letters. Ries and Trout argue that such changes usually are unwise. Companies having a broad recognition may be able to use the abbreviated names and consumers will make the translation in their minds. When they hear "GM", they think "General Motors". However, lesser known companies tend to lose their identity when they use such abbreviations. Most people don't know the types of business in which companies named USM or AMP are engaged. The same applies to people's names as well. While some famous people are known by their initials (such as FDR and JFK), it is only after they become famous that they begin using their initials. Ries and Trout advise managers who aspire for name recognition to use an actual name rather then first and middle initials. The reason that initials do not lead to recognition is that the human mind works by sounds, not by spellings. Most companies began selling a single product, and the name of the company usually reflected that product. As the successful firms grew in to conglomerates, their original names became limiting. Ries and Trout advise companies seeking more general names to select a shorter name made of words, not individual letters. For example, for Trans World Airlines, they favored truncating it simply to Trans World instead removing all words and using the letters TWA.

The Free-Ride Trap A company introducing a new product often is tempted to use the brand name of an existing product, avoiding the need to build the brand from scratch. For example, AlkaSeltzer named a new product Alka-Seltzer Plus. Ries and Trout do not favor this strategy since the original name already in positioned in the consumer's mind. In fact, consumers viewed Alka-Seltzer Plus simply as a better Alka-Seltzer, and the sales of Alka-Seltzer Plus came at the expense of Alka-Seltzer, not from the market share of the competition. Some firms have built a wide range of products on a single brand name. Others, such as Procter & Gamble have selected new names for each new product, carefully positioning the product in a different part of the consumer's mind. Ries and Trout maintain that a single brand name cannot hold multiple positions; either the new product will not be successful or the original product bearing the name will lose its leadership position. Nonetheless, some companies do not want their new products to be anonymous with an unrecognized name. However, Ries and Trout propose that anonymity is not so bad; in fact, it is a resource. When the product eventually catches the attention of the media, it will have the advantage of being seen without any previous bias, and if a firm prepares

for this event well, once under the spotlight the carefully designed positioning can be communicated exactly as intended. This moment of fame is a one-shot event and once it has passed, the product will not have a second chance to be fresh and new.

The Line Extension Trap Line extensions are tempting for companies as a way to leverage an existing popular brand. However, if the brand name has become near generic so that consumers consider the name and the product to be one and the same, Ries and Trout generally do not believe that a line extension is a good idea. Consider the case of Life Savers candy. To consumers, the brand name is synonymous with the hard round candy that has a hole in the middle. Nonetheless, the company introduced a Life Savers chewing gum. This use of the Life Savers name was not consistent with the consumer's view of it, and the Life Savers chewing gum brand failed. The company later introduced the first brand of soft bubble gum and gave it a new name: Bubble Yum. This product was very successful because it not only had a name different from the hard candy, it also had the the advantage of being the first soft bubble gum. Ries and Trout cite many examples of failures due to line extensions. The consistent pattern in these cases is that either the new product does not succeed, or the original successful product loses market share as a result of its position being weakened by a diluted brand name.

When Line Extensions Can Work Despite the disadvantages of line extensions, there are some cases in which it is not economically feasible to create a new brand and in which a line extension might work. Some of the cases provided by Ries and Trout include:y y y y y

Low volume product - if the sales volume is not expected to be high. Crowded market - if there is no unique position that the product can occupy. Small ad budget - without strong advertising support, it might make sense to use the house name. Commodity product - an undifferentiated commodity product has less need of its own name than does a breakthrough product. Distribution by sales reps - products distributed through reps may not need a separate brand name. Those sold on store shelves benefit more from their own name.

Positioning Has Broad Applications The concept of positioning applies to products in the broadest sense. Services, tourist destinations, countries, and even careers can benefit from a well-developed positioning strategy that focuses on a niche that is unoccupied in the mind of the consumer or decision-maker.

Recommended Reading Al Ries and Jack Trout, Positioning: The Battle for Your Mind The bestselling marketing classic on which this summary is based. Covers the full details of positioning principles. Ries and Trout write in an easy-to-understand manner, using successes and failures of real products as examples to help the reader internalize the principles and develop an intuitive feel for them.

DIFFERENTIATION, ONE OF THE TWO MAIN ROUTES TO MARKETING STRATEGY(Ramaswamy) In marketing strategy and competitive advantage, we seen that there are only two basic routes to marketing strategy, the price route and the differentiation route. In their search for market leadership, companies take to either of the two routes; they try to achieve either a low cost position/cost leadership, or a differentiated position through which they can offer superior value to the consumer. Differentiation Helps the Firm on Non-Price Plank The major attraction and the major benefit in resorting to differentiation is that it takes the firm away from a total price-based competition. In other words, it allows the firm to fight on the non-price plank, with all the benefits associated with it. So, differentiation is a crucial decision for a firm and forms an integral part of its marketing strategy. Through differentiation, firms move to a position wherein they can claim a premium in the market. Differentiation can be Achieved Through Multiple Sources and in Multiple Ways

Companies can achieve differentiation using the product, or distribution methods, or promotion steps. Actually, right from the firms collaboration, or plant location, to its after-sales service, practically anything can be used to differentiate an offer and make it distinct. In fact, companies can differentiate through every activity that they perform, provided they excel in it.

Modi Xerox used its collaboration with Rank Xerox as its differentiation. Garden Silks has differentiated through its emphasis on design. L& T, the engineering firm, recruits engineers with excellent qualification and claims superiority in executing projects. DuPonts leadership in chemical technology lends its products a highly differentiated position. Caterpillar Tractor, the leader in earthmoving equipment, made a mark through its distribution channel and service. Eureka forbes, the leader in vacuum cleaners in India, has used personal selling as the sole means of reaching the customer and built up a distinction through this feature. IBM differentiated along technology and service, Coke and Pepsi differentiated through brand power and rolls through superior engineering.

PRODUCT LENDS MAXIMUM SCOPE FOR DIFFERENTIATION Though differentiation can be achieved through a large number of ways as explained above, the maximum scope for exploiting differentiation remains with the product. While all the 4Ps of marketing are important elements from the point of view of strategy, the other Ps normally go as elaborations of the offer, while the product forms its core. Product differentiation is of vital importance in product management and has great potential in forging successful marketing strategies. 1 tangible product attributes and functions and 2 intangible characteristics and emotional associations. Through a series of examples we shall see how differentiation on the above planks are made. 1. tangible product attributes and functions y y y y y y ingredients/formula functional values additional features packaging design superiority product quality/ technology/ operational efficiency/ service

Differentiation based on ingredients/ formula

Close-up with gel; hlls close-up was putt on the market with a distinction. It was a toothpaste based on gel. While the other toothpastes then available used calcium carbonet as carier , close-up used glycerine. A paste with glycerine as base could be coloured nicely; it could also be given better flavour. Close-up gel came in bright red colour; and blue and green variants were added later. Another special feature of close-up was that it served as a mouthwash as well. In other words, it combined the properties of toothpaste and a mouthwash. Such strong product differentiation helped HLL to secure for Close-up a market share of over 15 per cent during the early growth stage itself. Colgate, the leader

in the industry, was compelled to copy this differentiation as its market share fell at the hands of the new brand. TTK Prestige with Teflon: TTK group launched the prestige range of frying pans as non-stick cookware. It claimed for the new range, the distinction that the coating used was Duponts Teflon, the best material available for ensuring the non-stick property. Promise with clove oil: in the latter half of the 1980s, Balsaras Promise toothpaste was creating waves in the Indian oral care market. Its differentiation was the special ingredient, clove oil, which was a traditional herbal remedy for tooth/gum complaints. Vatika with herbal ingredients: Dabur Vatika claimed distinction as a hair-oil carrying a blend of several natural, herbal ingredients traditionally used by Indian women for hair care. The ingredients included oil, brahmi, lime, mehandi. Etc. New Ariel with Carezyme: P&G introduced the New Ariel Microshine (an extension of its Ariel microsystem), a new technology detergent, incorporating Carezyme and OD Base. Carezyme is P&G proprietary formula, which gives the detergent certain unique properties and helps it perform far beyond conventional cleaning. P&G had launched Ariel microsystem in 1990 in India and gained some market share in the premium detergents market. The company was then trying to strengthen its position by new product offers supported by new formulate/ingredients. Differentiation Based on Functional value Videocon computer controlled fridge: the fridge had its differentiation on a variety of new functions. videocons 450-litre, 6 door refrigerator. Computer controlled. A fully front control makes operation easier. Quick Freezing Corner and the Deodoriser can be activated at the touch of a finger. Quick Freezing Corner: a stream of cold air chills foodstuff quickly, preserving taste and freshness. Deodoriser: Eliminates odour. Partial Freezing. Preserve food stuff at a temperature of -3 C, without actually freezing them; making it easy to slice meat and fish . Fresh-Vegetable Compartment. Keeps vegetables fresh for days without any protective covering or wrapping. The Videocon 6 door nofrost. Its big. Its new. Its right for you. Roti Chef: Roti Chef a newly launched kitchen gadget for making chappathi, used speed and ease of cooking as the differentiation plank: It is an instant chappathi maker, which does the spreading and roasting in a jiffy.

Differentiation Based on Additional Features The mega feature as a differentiator: companies in the television, audio and refrigerator industries in India, for example, came withmega sized products, and used the mega Feature as part of their differentiation effort. In television sets, BPL, Videocon, Onida, Philips, Optonica, and Bush have introduced large screen models. The screen sizes first went up from 21 inches to 29 inches, and then to 33 inches. Philips started the trend with

its 29 inch model. In audio, BPL came out with its D1000 digital fidelity system. The speaker of this new system was 34.65 inches tall. In refrigerators, godrej initiated the mega trend, with the introduction of its 300-litre Sumo model. This followed by a 390litre, double door model, which was way ahead of all other refrigerator brands in terms of size. BPL followed with its two-door 230-litre model, three-door 230-litre and four door 350-litre frost-free models. Then, it brought its 390-litre model, which had two compressors, one for the freezer and the other for the main section. BPLs four-door refrigerator model,BR- 3504, came with four different temperature zones, a deodorizer, a humidity filter and a special high-energy efficient compressor. All these companies differentiated their products on the theme of bigness. Aristocrat suitcase with wheels: when the manufacturers of Aristocrat moulded luggage introduced suitcases with wheels, it was a case of offering a unique convenience to the ground on its wheels. The feature did amount to a distinctiveness. Differentiation Through Product Design Product design has a lot to do with product success. Quite naturally, product design becomes a good avenue for product differentiation. a well-designed product makes real difference to the customer. It ensures product reliability and durability. In addition, it enhances user comfort. Kinetic Honda: in the first half of the 1990s, the two-wheeler industry withnessed a recession. Countering the effect of recession and scoring over competition was a real challenge for any two-wheeler firm during that period. When the industry growth rate was negative, kinetic Honda came up with excellent performance. Kinetic Hondas market research revealed that most existing brands of two-wheelers were not adequately user-friendly. Starting was the main problem. Kinetic Honda brought in the new-wave scooter, which had electronic ignition and could do away with the kick-start routine. The users, especially women, found this improvement a blessing. The new model contained a whole range of other features too, such as automatic gear shifting , choke, built-inindicators and a streamlined aerodynamic body design . Kinetic Honda made these features, especially the kick start as its differentiation plank. Not only did the company succeed in marketing its two-wheeler in the years of recession, it even embarked upon a programme of expansion.

Differentiation Based on quality/ Operational Efficiency/ Technology/ Service Microsoft excels through service: Microsoft, the computer software major, makes its offer distinct through many efficient service programmes. For example, the company strives to sort out 99 percent of the customer complaints through telephone from three technical support centers. Microsoft is keeping designated service providers for this purpose; they are hired computer engineers. When a Microsoft engineer cannot answer a call directly, the customers problem. Microsoft compensates the service providers on a per call basis, with guaranteed minimum number of calls per day. With this arrangement,

Microsoft has been able to set its service standard in this matter at a very high level. The standard set is to answer 90 percent of service calls within 60 seconds. 2. Intangible Characteristics and Emotional Associations So far, we have seen differentiation built among the various tangible, functional attributes of the product. Now, let us see how differentiation can be built around intangible characteristics and emotional associations. Dinesh Suitings, for example, is not differentiated on a utility plank. Its differentiation is built around prestige. In its advertising campaigns, it builds an aura around the brand just by using Sunil Gavaskar as the model. The brand and the prestige of the model are nicely combined in the ads. The punch line reads: Dinesh Suitings.the world in your stride. Reid & Taylor: in the same product category of suitings, Reid & Taylor uses the same approach for differentiation, with even more telling effect. Here James Bond is the prestigious endorser. The ad message links the prestige of bond and the brand: Reid & Taylor the legend of cloth James Bond.the legend of a man Luxury suitings.Bond with the best Ray Ban: similarly, Ray Ban Sunglasses does not build a differentiation on the functional characteristics of its glass. It projects aesthetics, instead, and claims,.Ray Banfor exhilaration! It is the lifestyle that is played up.

The Task is to Locate Attributes that will Make the Product Distinct The examples provided above reveal that the major task involved in differentiating a product is to identify certain product attributes that can attract buyers. The attribute may be real or psychological. It may be centering on the productits quality, use characteristics, etc. or, the image and prestige dimension. The success depends on the way the attributes are built in and communicated. The name of the game is to make the product distinct. Effective product differentiation requires a through understanding of the distinctive attributes of competitors products. In addition, it requires a through appreciation of the expectations of the buyers and their motives in respect of the product under consideration. Enhancing Value, the Aim; Product Attributes, the tool No firm can build up differentiation around its product offer all of a sudden. A lot of customer/competition analysis and product planning lies at the root of the differentiation task. The major questions are: y what is the value the customer would seek from the offer?

y y y y y

To give him that value, what attributes should our product have? How are the competing products placed in this respect? How do we provide the attributes one better than the competitors? In short, what unique attributes should we develop to make our offer absolutely distinctive and satisfying to the customer? In other words, the firm looks for product gaps/satisfaction gaps and tries to fill these gaps in its attempt at differentiation.

Locating customer benefits/ product attributes We have seen that the aim of differentiation is to enhance the value of the offer to the customer. the marketing man as to identify the assess the customer benefits that are to be incorporated in the product. It is obvious that no product can carry the entire spectrum of benefits. The firm has to decide how far it can accommodate customers expectation in its offer. Value addition and product differentiation are concurrent processes: in fact, it is the awareness about the requirement of customers value that enthuses the firm to continuously upgrade a generic product to different levels of augmentation to suit different segments of the market. This way, value addition and product differentiation are concurrent processes; value addition is the end purpose; identifying the attributes to be provided incorporating them in the product, and differentiating the product from competitors product is the route In short, effective differentiation requires careful evaluation of the benefits sought by the target audience and incorporating the benefits in the product offer. As mentioned earlier, various market research techniques are available to assess and measure the benefits sought by a specific consumer group in a particular product in a given context, and to construct a comparative profile of benefits perception. The profile while indicate the relative weightage given by consumers to different benefits, which are linked to different product attributes. In the chapter on market research, we are covering techniques like perception mapping, which are widely used to study consumers perception regarding different combinations of customer benefits/ product attributes. Conditions for differentiation to succeed For differentiation to be rewarding, the differentiation claim must be real and satisfying to the user, and be also sustainable. The claim has to be backed up by product performance. The customer using the product has to be convinced that the differentiation claimed is true and that it is actually delivered. Taking the prestige cookware example cited earlier, the cookware should prove a non-stick vessel it the kitchen. And, the Teflon should work and work better than other similar products in the market. In the caterpillar example, the spare parts should actually reach the customer in any part of the world within 24 hours of the request. Caterpillar should have lined up the infrastructure like dealer network, strong points, transport arrangements and inventories to honors its differentiation claim.

The differentiation should be perceptible The differentiation claimed may be real or psychological, matter-of-fact or subtle. The main requirement is that the consumers must perceive the products as intended by the firm. In other words, the differentiation claimed has to be readily perceivable. Moreover, it is not enough if a few consumers perceive the difference. To be of real marketing significance, a differentiated product has to be seen as different and distinct by a sufficiently large segment of consumers. Should be Rooted in Competitive Advantage

Product differentiation is no easy game. For differentiation to succeed, the firm must have built up the required competitive advantages. Channel and technology clout, unique production process, flexible production facilities, and advanced R&D set-up for product innovations capacity to develop such avenues. Earlier, we mentioned that brand image is the differentiation plank for a product like Coca-Cola. It fights on the power of its name, the sway it holds on minds of millions of consumers round the globe. But to achieve this dominant image, the company has carried out a sustained marketing effort, supported by heavy investments, over a long period of time. Similarly, Hindustan Leaver has spent over 100 years and huge investments to build a brand like Lifebuoy. It means that only if a firm is committed to brand development, it can build brands that can serve as a source of competitive advantage and fight on their differentiation strength. When we take service as the differentiator, Maruti is a good example to cite. Maruti has built up an extensive service network in India, consisting of over 180 dealer service workshops and 1,2oo authorized service stations spread out in 470 towns and cities. No other car company operating in India can claim a dealer-cum-service spread anywhere near this. Channel/service clout is a competitive advantage for Maruti and it uses it to differentiate and strengthen its product offer. It can boast of a Maruti service station in every nook and corner of the country, including sparingly populated areas, and promise that the Maruti vehicle will be attended to in all places. The point to be remembered is that product differentiation as a strategy can work only if the product-claims are sustained. And, one can make sustainable product claims only with the support of the relevant competitive advantages.

What is positioning Positioning is a platform for the brand it facilitates the brand to get through to the target consumers . Positioning is act of fixing the locus of the product offer in the minds of the target consumers. In positioning, the firm decides how and around what parameters, the product offer has to be placed befor the target consumers. The significance of product positioning

can be easily understood from david Ogilvys words; the results of your campaign depends less on how we write your advertising than on how your product is positioned. Main concern in positioning A product cannot be everything to everyone; hence, the importance of positioning The need for positioning arises out of the fact that a product cannot be everything to everyone and has to be something to some segment. Normally some unique feature of the product, some special needs of the market or some noticeable gap in competing offers is picked up hand the product is positioned around that feature/or a combination of features for a particular target audience Identifying such features and using them imaginatively as the plank on which to project the product is the essence of positioning. A product can be positioned for an exclusive well-to-do segment of the market; it can be positioned for men for children; for the fun living distinctiveness convenience economy uniqueness novelty or usage it can also be positioned against a competing brand. Positioning means putting the product in a predetermined orbit Positioning is the specific task of taking the product to a chosen orbit in the minds of the target consumers. If the positioning decision is faulty, the product suffers heavy losses. It may take a long time and enormous effort to reteive a wronglt positioned product. While repositioning a successfully positioned product at a latter stage in the light of the changes in its lifecycle may be easy, it will not be all that easy to reposition a wrongly positioned product. In fact the varience that ocures between the position intended by the marketing man and the position assigned by the consumers is a problem inherent in positioning. This has to be talked at the very outset and in case it could not be anticipated and handeld in advance it must be handled as a course correction as soon as possible after the launch. Marketing savvy companies quickly find out the consumers perception of the position. If it is at variance from what is intended by them, they rectify the gap .

Positioning connects product offering with target market While target market selection clarifies for whom the product is intended, and marketing mix shows the way in which the 4Ps are to be aligned in the offer to the target market, positioning acts as the bridge linking the product offer with the market. Consumers mind a geometric perceptual space; the product/ brand seeks a locus in the space through positioning In positioning, the consumers mind is viewed as a geometric perceptual space, with different product categories and brands occupying certain positions therein. These positions held by products/brands change as the available space within the consumers mind and how to retain it is the question in positioning. By making what kind of

propositions, say, in a bathing soap, can a firm secure a position? Where lies the gap in the mind?What are the attributes which the consumer seeks and which will help fill that space? Does the firms product possess those attributes? Or, is it possible to replace an existing brands position in the consumers mind by offering a better value proposition? We can seek a position in the consumers mind through several routes/propositions. We may seek a position placing our brand against another ongoing brand, or we may place it against certain expectations the consumer nurtures. In other words, we will be placing our brand against some frame of references as seen by the consumer. In our endeavour at meeting the desired position, we might have already endowed our product/brand with certain differentiation value. Now, we want this product to be perceived by the consumer in a particular way. This perception in a particular way is what positioning is all about. Through positioning, we are launching the product to a particular trajectory in the consumers mind. The consumer has a frame of reference as far as the given product category is concerned; and he will evaluate any new offer against this reference. The issue is: in this frame of reference, where do we want our brand to fit in. While positioning a brand, the firm has to reckon competitorsespecially the leaderspositioning As a part of the positioning task, the firm analyses the competitors positions, sizes up its own offer and identifies the best possible proposition for its product. In particular, the firm has to reckon the leaders position. It is difficult to dislodge the leading brands position from the consumers mind; coca-cola is synonymous with cola, Xerox with photocopying and walkman is practically a generic name for personal stero. So, any newcomer to these business has to study the positioning of these leading brands and then decide how it should position its offer. One problem marketers usually face in positioning is that it is difficult to dislodge a position that is deeply ingrained in the consumers mind. Al Ries and Jack Trout , who championed the positioning theme through their book positioningThe battle for your mind, discuss the subject at length. If somebody asks you which is the highest mountain? One may not remember. Through a series of such questions, the authors drive home the point that the the first mountain, the first company, the first product to occupy the position in mind is hard to dislodge. To illustrate further, throughout the world, among computer customers, IBM holds a dominant position. Others brands cannot enter the market without relating themselves in some way to IBMs position. In the chocolate market of India, Cadburys have created a dominant position and way any newly entering brand has to necessarily reckon with it . one cannot wish away the leaders position. Because, the consumer will ask himself, is it tastier than Cadburys? The point is that wherever there is a dominant brand/competitor, the other brands have to reckon with its position. Positioning is not Over at One Stroke; it has to be Monitored and Adopted Positioning is not over at one stroke. One has to monitor the brands performance and see whether the positioning is working well. The test takes place in the market and only the performance of the brand can prove whether it is positioned rightly or not. The firm may intend a particular positioning, but the market may perceive it differently. And

sometimes, the very assumptions of the firm in positioning the brand might have gone wrong. Such drawbacks will come to the fore only by a constant evaluation. As we shall see in the complan example it is not easy to get right positioning. Even if the positioning is right at the launch and clearly growth stage, it needs monitoring and correction through the growth stage. Brands even successful onesmay need repositioning. Product positioning and value proposition For product positioning to succeed, it must be based on an identifiable, meaningful and compelling value proposition. What is the value you propose to give the consumer through your product? What is it that the consumer gains by possessing your product? A value proposition is the assertion/statement of the benefits and satisfaction that the product is offering. In fact, the first rule in positioning is that it should state the value proposition and thereby appeal to the target consumers.

Value propositionexamples We can understand the concept of value proposition better by examining how companies make value propositions in positioning their products. South west airlines, USA The claim: south west Airlines offer the best prices with dependable service and reasonable amenities. The company is making a very distinctive claim and offering certain value to the consumer. Now, the company has to support/ substantiate these claims so that the consumer is convinced of the soundness and credibility of its proposition. It is here that the differentiation attributes of the product offer come in.you are guaranteeing the proposed value through the special and unique attributes of your product/brand. The claim has to be justified by differentiation attributes: let us see how south west Airlines justifies the claim it makes: ..South West Airlines offer the best prices with dependable services and reasonable amenities because we dont charge the customer anything for amenities(no fills, lowest price). It is clear that the value proposition made by a product becomes convincing when it is explained and justified by the cifferential attributes of that product. In fact, these two elements together the claim supported by the product differentiation plankilluminate the positioning theme of the brand. And to whom? The positioning exercise is still not over. The firm has to specify to whom the offer is addressed. To the two elements, when the target market factori.e. to whom this offer is addressed to is also added, the product positioning statement becomes complete. Let us see how south west Airlines clarifies this part. It adds, for the short distance travelers.

Let us see how the total value positioning looks like, with the three components, the target market, the claim and the supporting justification based on product differentiation, in place: for the short distance travelers, we (SWA) offer the best prices, with dependable service and reasonable amenities, because we do not charge the customers anything for amenities(no frills, lowest price). Citibank For the business traveler The most convenient bank, Because you can access your money from wherever you are.. all our branches are computer linked.

Avis For business people who rent cars, Avis is the company who will provide the best service Because the employees own the company. Home Depot For do-it-yourselfers, Home Depot offers the best prices Because we are the largest building supply company.

Communicating the value proposition to target consumers We saw at the beginning of this that by positioning the firm is trying to secure a place for its product in the consumers mind. So a major task is to communicate to the target audience the distinction, which your product offer claims. In fact, once the value proposition is decided, the crux of the positioning job lies with marketing communications. Market segmentation and marketing targeting decides its target market. In fixing positioning, the firm bridging the product with the target market. All the other Ps, namely price, place (channel) and promotion, support the positioning task, with the brunt of the responsibility taken up by marketing communications/promotion. In a well- orchestrated product strategy, advertising and promotion are the extended stages in the total product positioning exercise. The burden of marketing communications in general, and advertising in particular, is to see that the product offer and the value proposition that goes with it, is properly carried and delivered to the consumers attention. In fact, quite often, product failures are traced to inept communicated properly to the target audience. It is the job of advertising to communicate effectively the positioning, which the firm seeks. The media, the message, the source, the headlines and the display all have to be blended appropriately so as to effectively communicate the position one is seeking in the mind of the consumer. An effective ad is one that clarifies successfully the positioning of the brand. Extending the logic further, one can even say that if from an ad we cannot isolate the three components, target market, value proposition and the supporting product differentiation,

the ad is deficient. It may also imply that the marketing team is not clear about positioning of the product and hence their to the ad agency is deficient. In either case, advertising fails in its basic purpose. The burden of advertising is to see how best and how imaginatively and convincingly the product positioning can be taken to the target audience.

Product positioning and Brand positioning It is essential to understand the relationship between product positioning and brand positioning. Though in discussions, the two terms are synonymously and interchangeably used, technically they are different. Product positioning denotes the specific product category/product class in which the given product is opting to compete. And brand positioning denotes the positioning of the brand viz-a-viz the competing brands in the chosen product category. Let us understand this distinction better through the example of Maruti Omni. Example of Maruti Omni Way back in the 1980s, when Maruti Udyog decided to launch one more vehicle in addition to the Maruti 800 car, it came out a vehicle, much more spacious than the Maruti 800 car. It had the looks of a van; it could comfortably seat six passengers; it had five doors, substantial luggage space and taller roof; and it ran on petrol. Product (category) positioning of Omni: the initial question to be answered was: As what should this vehicle be positioned? A car? A multi-purpose van? In other words, which was the product category in which this new vehicle was to be positioned? If positioned as car, this vehicle would be competing with the then existing brands like ambassador and fiat in addition to its own Maruti 800. if positioned as a van, it would be competing with the other brands like Matador and Tempo. Omni positioned as a multi-purpose van: Maruti decided to position the vehicle as a van and it was named Maruti Omni. Brand positioning of Omni: once the product category positioning was decided, the next question was how should the brand positioning of M aruti van be done viz-a-viz the competing brands in the van category. The new van had seek its position on its distinctive advantages. The company had to analyse how the competing brands were perceived on the different attributes special to this product category. In the van market, the Maruti van had to compete with other brands like Matador and Tempo. All those attributes, which the consumer considers important and looks for in a van had to be analysed and the consumers perception of the existing brands on those attributes had to be assessed. And then,Maruti vans desired locus/positioning viz-a-viz the competing brands had to be decided.

One analysis by the company taking two major attributes, passenger space and price,that mattered much in this category (based on consumer perception) showed that Maruti van could be positioned as the high spacelow price brand in the market. This is brand positioning. Omni positioned as the low priced, spacious, brand in vans: Maruti Omni was positioned as the low priced, spacious van. But in the market, as time passed, Maruti Omni could not acuire a dominant position viz-a-viz the brands. The major competing brands were more spacious, though higher priced. At this juncture, Maruti decided to take a fresh look at the positioning of Maruti Omni. Repositioning of Omni as the most spacious, lowest priced, family car: while trying tosort out the problems faced by in Omni in the van segment, the company found that the consumer had acquired a different perception about the functionality of the Maruti Omni. Many people had started using it as a good substitute for car. For middle class homes, it ideally served as a family car. More analysis by the company followed. The finding was that it was advantageous to position it as a car. The company found the positioning theme, the most spacious family car at the lowest price. And in the new position, Maruti Omni was in the product category of cars, competing with brands like Ambassador, Fiat and Maruti 800. As part of the positioning of Maruti Omni as a spacious family car, the company ran an ad campaign. In this campaign, Maruti stressed as the value proposition the most spacious car for the family. The valu proposition was supported and justified by product attributes.details are given below: Maruti Omni Repositioning y Its surprising that most cars dont have the fifth door. Sure, you might call it the boot-bath or the dicky, but in this car it is definitely a point of entryespecially for a whole gang of excited kids, or the Mrs. shopping bonanaza! y In other words , it opens wide into wide inner space. And when you combine so much space with the superb Maruti features of styling, performance, fuelefficiency and driving pleasure, youll admit its a total car. No wonder its called the Omni. Omni space: versatile y y On a rough calculation, there is 7.5 cubic meter of space on those four wheels. Remove the rear seat and the omni doubles up as a cargo carrier, a picnic hatchback, an out-of-town roadster. And to you, its still the family car, the office car, and the knock-about-town car. In fact, with so much space, its versatility depends on your imagination. The benefits of a car and the advantage of more space. Space that translates into more headroom, more legroom, more luggage room and more people-room too.

y y

Omni ; designed for driving comfort

y

Its a pleasure to drive. The instrument penel is sleek, with easy-to-read displays. The articulated steering column is positioned just right; seats are adjustable, with control levers and gear shaft at hand-touch distance.and of course, plenty of breathing space.

The high-performance Suzuki engine y Technically, its described as a 3-cylinder 4-strike, 800cc engine. y Designed for over 150,000 kms of trouble-free operation, after which it can be rebored. The Maruti plus points y Features for safety and stability are standard to omni. What is important is that such features are found in more expensive cars. y A MacPherson strut independent suspension in front and a leaf spring type in the rear. y 30-cm diameter drop-center wheels contribute to safe, stable cornering, and tight turning ability. y Synchromesh forward gears and a duel braking circuit. y Electrophotric paint desposition that ensures non-corrosion of the cars framework. y A coolant system that eliminates the daily chore of filling water in the radiator. y Beyond doubt a very good car. Better still, the most spacious on the road. Issues in product (category) positioning and brand positioning It is evident that for any product, before entering the market, it has to sequentially carry out the two exercises, product (category) positioning and brand positioning. As already mentioned, in the first step, the product category where the new wntrant should enter and compete, i.e. against what all products it has to compete, has to be decided. In this step, it is broad function that the product is trying to serve that matters. This choice of product category will decide the nature of the competition the product is going to face. Once product category positioning is decided, the position for the new entrant against competing brands in the chosen product category has to be analysed and fixed. In short, the issues that are raised in product category positioning and brand positioning are different. The questions to be raised are evident from the Maruti example. Issues in product positioning y y y y Where is the new offer going to compete? As what? Which other product categories serve this need? In other words, what are the substitute products that serve the same need? Where is the real gap, where is such a new offer most welcome and wanted by the market? What are the companys competencies of fight here?

In fact, these are the issues the film agitates in target market selection too. The linkage is only natural because in product positioning. The film is actually bridging the product offrer with the right target market. Issues in brand positioning In deciding the brand positioning, the issues are: y Which are the competing brands in the chosen product category? y What are the unique claims/strengths of the various brands? y What position do they enjoy in consumers evaluation and perception? y According to the consumer rating of the competing brands,is there a wide gap in expectations-performance? What kind of a product/new attributes/new functions will attract the consumer? y What is the most favoured position..and yet vacant? y Can the new brand claim the needed distinction and take the position and satisfy that need? MAIN ELEMENTS IN THE POSITIONING TASK Relate and link your positioning to your differentiation theme. Differentiation and positioning are to be employed in alignment; differentiation is actually the prelude to positioning. Find out the positioning gaps in the product category and the attributes that can fill them in the minds of the consumers. Analyse your competitors positions and identify the possible position for your product. In a particular, evaluate the leaders position; the leading brand that occupies a special position in the consumers mind(cadburys in chocolates); other brands have to necessarily relate themselves in some way to the leaders position; they cannot ignore the position of the leader, nor wish it away. Decide the locus you seek in the minds of the consumers and the attributes of your offer with you will secure it. Relate and link your positioning to your target consumers (for whom is it intended?) and ensure that the positioning appeals to them. Segmentation/targeting and differentiation/positioning are to be handled in a composite manner. Communicate effectively to the target market the positioning you have chosen. Link your positioning to your value proposition; ensure, it actually emanates from your value proposition. Monitor the positioning as the product picks up. Check whether any variance occurs between your intended positioning and the actual position the consumer assigns to it in mind. Tackle the variance; go for a new positioning, if required.

WHAT IS POSITIONING ( Subroto sengupta)

Defines positioning Product position refers to a brands objective (functional) attributes in relation to other brands. It is a characteristic of the physical product and its functional features. Position, on the other hand, refers to a brands subjective (or perceived) attributes in relation to competing products. This perceived image of the brand belongs not to the product but rather is the property of the consumers mental perceptions and in some instances, could differ widely from a brands true physical characteristics. We will go later to the question but let us now turn to a very important thoughtthat the perceived image of the product belongs not to the product but rather is the property of the consumers mental perceptions. This suggests that the advertisers main concern should be with that subjective perception of his brand as seen by the target consumer. Creating the desired perception and occupying a particular point or space in the target consumers mind is the essence of positioning or repositioning strategy . MULTIPLE DEFITIONS Can we wrap up what has been said so far with a neat and tidy definition of positioning? this is not entirely easy. Positioning is a comparatively new marketing concept, unlike consumer segmentation, for instance, which is an old friend and clearly stands for the same idea to most of us. The debates there are on ever newer criteria for segmentation: demographic; usage volume; loyalty patterns; degree of liking for the brand; brand benefit; social class; life style; attitudes, interests and opinions; personality characteristics; and like. In contrast, positioning, to this day, appears to be both a confused concept, and there are almost as many definitions as there are writers on the subject. To some, positioning is the proposition or benefit of the product. To others it is its image, or perhaps its status in the market relative to the brand leader. And some equate it with brand personality A few, indeed, believe that it is no more than old wine in new bottles; a mere rehash of the ideas of market segmentation and product differentiation.

The position of a brand is its perception among target consumers. This perception is based on its functional attributes and benefits (tasty, aromatic, sporty, roomy etc) as well as on the nonfunctional or emotional associations it as acquired mainly from its advertising (reliable, traditional, smart, prestigious, modern, contemporary, stodgy, lively) similarly, because it is a perception, it is colored by the target consumers own attitudes, beliefs and experience, thus leading to the fact that different segments may perceive the same brand in different ways. Another key aspect of a brands position is the ways it is perceived in relation to competitive brands among which we include similar products to product line of the same company; for example, surf, sunlight and wheel washing powders, all marked by Hindustan lever. Position then, represents the essence of the brand as perceived by the target consumers, in a multibrand market. In that sense position subsumes the physical or functional characteristics of the brand, sometimes referred to as product position( as in the article from the journal of advertising research quoted earlier), and non-functional or emotional values. For our purpose, we will not draw any distinction between product position and position and will use the terms interchangeably. Since we are mainly concerned with brands this text will usually refer to brand positioning product and brand for our purpose will also be used interchangeably, except when the context makes it clear that by and so to a comprehensive definition. 1. The position of a brand is the perception it brings about in the mind of a target consumer. 2. This perception reflects the essence of the brand in terms of its functional and non-functional benefits in the judgment of that consumer. 3. It is relative to the perception, held by that consumer, of competing brands, all of which can be represented as points or positions in his or her perceptual space and together, make up a product class. Note that the brand is not passive but active. It acts to bring about that perception. Note that position represents the while or overall perception of the brand in that consumers mind that it is always a relative concept. Consumers perceptual space In marketing terms, there is no such thing as a product or service which exists by itself in space, independent of the consumer. For a product to exist, it must find a place in an individual consumers perception of the world of products around him or her. And this perception is subjective, governed by the individual consumers values, beliefs, needs, experience and environment. This is the core thought behind brand positioningthe idea that each brand (if at all noticed) occupies a particular point or space in the individual consumers mind, a point

which is determined by that consumers perception of the brand in question and in its relation to other brands. The spatial distance between the points in that consumers mind reflects the subjects perception of similarity or dissimilarity between products and brands. The everyday phrase, poles apart, is a simple example of how consumers position products in their mind; for example, an electric shaver v. a cut-throat razor. Positioning is how a product appears in relation to other products in the market Brands can be positioned against competing brands on a perceptual map. A perceptual map defines the market in terms of the way buyers perceive key characteristics of competing products. The basic perceptual map that buyers use maps products in terms of their price and quality, as illustrated below:

POSITIONING: OF WHAT STUFF IS MADE? Product Class Consumer segmentation Perceptual mapping Brand benefits and attributes

In what is probably one of the earliest academic references to positioning, as we now understand it, Prof. Volney Stefflre described techniques that could be used to measure consumers perceptions of judged similarity between brands and products and thus give them a position in a given market. Addressing a symposium on the application of the sciences to marketing in 1966, stefflre described research, which showed, that brands and products which were judged to be highly degree of competition and substitution. His work has been credited as being among the first applications of multidimensional scaling to marketing a subject, which we shall presently discuss. Stefflre pointed out, in the work referred to earlier, how these techniques could be used to prospect for holes or blank spaces for new products or brands in a product class. They help a multi-product firm to develop new products that would . Position themselves in the market in a manner that makes them substitutable for and competitive with competitors brands while not cannibalizing the firms own related products. Shortly afterwards, Norman L Barnett, writing in the Harvard business Review in January-February 1969, talked of the nrrd to go beyond market segmentation; that is ,go beyond our understanding of homogeneous consumer groupings and shift the focus to consumers perception of products Positioning of brands is how close each brand is to every other brand. Thus brand positions constitute a framework or market structure According to Bernett, new product introduction becomes the search for a position in the market, which is preferred over the products currently available. Four components The definition that we have given in the previous chapter points to the four basic components of the positioning concept: 1. Product class or the structure of the market in which our brand will compete. 2. Consumer segmentation 3. Consumer perception of our brand in relation to competitors, which leads to perceptual mapping. 4. The benefits offered by the brand. These benefits may also be expressed as attributes or dimensions along which brands are fitted to represent consumer judgments. These four components of the positioning concept are so closely interwoven that they must be taken together when we consider the positioning of a brand.

1. product class A product class or product market can be defined as the set of products and brands which are perceived as substitutes to satisfy some specific consumer need. The term, product category, is also used interchangeably with product class and product market. Research in India has shown that as middle-income and organized sector blue-collar families earn more and move up on the social ladder, they are faced at bonus time with the choice of buying TV set or a fridge. Such examples, however, merely point to the fluid nature of product market boundaries; they do not do away with cannot put the positioning concept to work unless we get to grips with its very first component the product class: which other brands must our brand contend with in order to lodge itself in the target consumers perceptual space? In other words, what is the structure of the market or set of substitutes amongst which our brand is to be positioned? Consumer judgements of similarity and substitution can form the basis for defining a product market or product category and are likely to be more reliable than categories defined by industry classification.in India, low-cost detergent powders would undoubtedly be grouped with higher-priced powders in the category of washing powders.there is little doubt, however, that these low-cost powders such as Nirma, Wheel and Hippolin have also been positioned by consumers against the traditional (oil based) laundry soaps and bars and have been perceived by them as substitutes for such laundry soaps. it is not difficult to presume that a telegraphic message is, in some ways, positioned against and competes with a long distance telephone call. However, research into consumers judgements of similarity may show that telegraphic deliveries compete more that is, are perceived as a closer substitute of speedpost or courier services than of trunk calls. If we consider the product class of chocolates, cadburys, Amul and Campco are clearly positioned against one another. If we consider the product class of festival season gifts, consumers may position a decorative box of chocolates against packaged and branded halwa and even, perhaps, a poket transistor. For instance, ponds cold creams compertable position seems to have been suddenly challenged by a brand from another product class altogether. The first appearance of lakmes Wnter Cre Ltion ad may well have come as a rude shockbeing described as a reasy cold creamby this violator of traditional boundaries which claims to boot,that it is oldcream + moisturizer in oneand is o much more than cold cream.

2.consumer segmentation one cannot think of positioning a product or a brand expect in relation to a particular target segment. You position a Bank fixed Deposit for those investors who prize security along with a moderate return. You position an un-fixed Deposit for similar investors but who, in addition, would prefer easy liquidity for their deposits without undue loss of return. if you wanted to broaden the market for Bank Fixed Deposits by appealing also to those investors who favour high returns and are willing to shoulder risks, your only hope is to position Bank Fixed Deposits in terms of a portfolio of investments in which highreturn and high-risk investments are balanced with moderate-reyurn, no-risk investments, plus tax benefits. In fact, either management judgement or research can led to defining yet another segment of investors as thos who want the best of both the words-a high return with low or manahed risk. Unit trusts Mastershare was positioned for just such a segment, followed by Canara Banks Canshares and State Banks Magnum shares. What, you may wish to debate, is the difference in the positioning of these three brands of investment? What is the distance between them as perceived by investors?

3.PERCEPTUAL MAPPING when marketers and advertising professionals began to display their interest in the perceptions of target consumers segments, the next natural step was to measure those perceptions. This constituted an open invitation to mathematical psychologists to move inwhich they did! Today, you cannot play the positioning game without perceptual mapping what perceptual mapping does is to represent consumer perceptionsin (uaually) twodimensional space so that the manager can readily see where his own brand is positioned in the mind of his prospect and in relation to other brands. The concept of the consumers perceptual space forms the theoretical basis of positioning. It is this concept which distinguishes positioning and sets it apart as a major contribution of marketing theory and practice. Perceptual mapping helps to make this concept operational. Although the judgments of managers, sales staff or the trade may be used to plot brand positions in the consumers perceptual space, it is not advisable to substitute them for consumer judgments, which can only be obtained through field research. Consumers are asked to rate a set of brands along given attributes or benefits or they may be asked merely to judge, by pairs, how similar or dissimilar the brands are.

4.BRAND ATTRIBUTES AND BENEFITS The physical existence of a brand is no assurance that it has a position in the target consumers mind. To enter that coveted territorythe consumers perceptual spaceand to secure a position there the brand must satisfy his question: whats in it for me? it must offer a benefit which is of importance to him. This is elementary. So, when we talk of brand attributes, we must remember that these are the manufacturers views of the brand. The consumers frame of reference requires that those manufacturers claim or brand attributes be translated into consumer benefits in order to map consumer perceptions. Thus, when we talk of positioning a brand with reference to an attribute or when we ask a consumer to rate a brand along an attribute, we must reinterpret that attribute as a meaningful consumer benefit. Blue detergent powders gradually edged out the perceived importance of blues in the Indian washing products market. The comeback of Robin Blue for the modern housewife as Robin Liquid might be linked in the manufacturers viev to the fact that it has features or attributes such as a flouresecer and ultramarine but these attributes can enter the housewifes frame of reference only if she can be persuated of their benefits to her; washing powder take away the dirt but robin liquid gives clothes that extra coat of white and in advertising terms these becomes the whiteness dip After washing clothes with powders, give them that dip in robin liquid for extra whiteness. In a sense, robin liquids advertising had to modify the housewifes frame of reference by increasing the saliance of extra whiteness of clothes above and beyond what detergent powders can do- cleaning clothes but leaving them some what off- white With this positioning strategy, robin liquid achieved a trial rate of 25% among the target segement in madras, where it was test launched, after just 12 exposures over TV. In culcutta, the percentage of trial among target households was 14% after the same numbers of exposures. It may be noted that madras consumers were some what more familier with liquid blues than in culcutta. Where we are- where we should be It is not enough that we plot the existing positions of brands along crtain dimensionsbrand attributes and benefits. This, by itself, is a passive act. It tells us where we are but not where we should be and neither can we judge whether we are where we should be. For this we need to plot not only consumer perceptions but also the preferences of a given consumer segment in a particular category or product market. Consumers can express such preferences only in terms of benefits: to what degree they are obtaining a specific benefit from existing brands; how important this benefit is to them; whether there is some benefit which they are missing; whether they would prefer to obtain a specific benefit in greter or lesser measure. Such preferences are also termed ideal points when plotted on a perceptual map.

The techniques of obtaining such preferences from consumer through research and locating their preferred position (or ideal poits) will be examined in chapter 11. Let us consider at this stage the purposes of plotting such preferred or idealpositions. And let us consider by way of example, the premium toilet soap market . Look at the hypothetical map showing consumer perceptions of some of the prominent brands of premium toilet soaps in India. premium, as defined for ratail audit purposes, includes soaps priced in 1988 above Rs 4.50 for 100 g. lower-priced soaps (like lux and hamam) fall into the popular category. The dimensions of the map are based on a market analysis done by Response.

The pursuit of Differential AdvantageCORNERSTONES OF POSITIONING STRATEGY POSITIONING IS THE PURSUIT OF DIFFERENTIAL ADVANTAGE. Brands can create franchises of loyal consumers only when they are seen to be different in some way which is persuasive for the target segment. Recall that famous article by Prof. Levitt, Marketing success through Differentiationof Anything. There is no such thing as a commodity, he argues. All goods and services are differentiable. We know that as brands tend to become physical similaras the better mousetrap is followed by a dozen me-too mousetraps more and more on non-functional factors to distinguish his brand. Persuasive differentiation becomes an increasingly difficult task. One of the major contribution of positioning theory to marketing strategy has been to bring out the concept of distance and dissimilarity between brands in the perceptual space of the prospect and to uncover the many opportunities for such perceived differentiation based upon the capabilities of the product and its antecedents. Positioning puts in the hands of the brand manager an entire array of differentiating strategies. He must judge which of these strategies can help him locate a niche in the market where his brand may be perceived by his target segment as unique and where it will hold a competitive advantage. These strategies revolve around different aspects of the brand which can be expressed as four questions posed on its behalf. The four strategic questions are: 1. who am I? 2. what am I? 3. for whom am I? 4. why me ? the answers to these would determine the brands position in the prospects mind. Lets take a closer look at the four questions. 1.WHO AM I? This question concerns the corporate credentials of the brand. The prospect is urgued to think of the brand in terms of its origins, its family tree, the stable from which it comes; the idea being that this can give the brand a competitive advantage. Positioning by corporate identity We see this most often with durables when a tried and trusted corporate identity or sourcewhich has become a household name for some products like Philips for radios and lampsis used to imply the competitive superiority of never products bearing that name: Philips Mixies; Philips Electric Irons; Philips Refrigerators. This can be such a strong positioning element that companies who market each brand

under a different name,e.g.Hindustan Lever(Surf,Sunlight and Wheel detergent powders; Lifebouy , Pears, Lux, Rexona, Liril bath soaps) nevertheless introduce the corporate credential as a byline: A quality product of Hindustan Lever The Tata oil Mils Company Ltd (TOMCO) endorses its brands(e.g.Hamam, Jai, OK, Revel,501) with the words, A TATA Product . so does the Godrej Company. Positioning by Brand Endorsement When a brand has proved very successful the marketer can exploit the strength of that name for entering another product category. After the phenomenal success of Nirma Washing Powder seemed logical to give the next entry-a detergent bar-the same brand name. The third entry of this company-a toilet soap-also bears the same brand name. The popular toilet soap market in India is very competitive with strongly entrenched brands like Lux, Rexona, Hamam.Nirma bath soap enters this market with a credible, competitive answer to the consumers query,Who are you? Do I Know you? C Merle Crawford refers to this positioning strategy as parentage. Parentage.. because of where it comes from, who makes it, who sells it, who performs it, etc. the three ways of parentage positioning are brand (Cadillac or citizen printer), company (Data General/One or Kodak diskette), and person. In such situations, marketing management has to find the right balance. How much of parentage positioning will give the new brand a good start against competition? How much will swamp its identity and prevent the prospect from recognizing a new and different offering? This can be quite a thorny dilemma as you will find from this account of a new toothpaste brand launched in 1984 as an extension of the Forhans range. For some time, Geoffrey Manners (who make and market the Forhans range) had noted with concern that their flagship brandForhans Regularwas attracting fewer and fewer of younger, urban consumers with modern tastes. At one time this was the No.2 brand in India after Colgate. With the launch of Forhans Fluoride the total market share of the company had increased but they still felt the absence of a brand which would carve out a niche within the broad spectrum favouring Colgate(about 50% market share). The positioning concept of the new brand was expressed as follows: A high quality foaming toothpaste for modern, young people;it has a pleasing minty teste and also gives the reassurance of care of the gums . From this positioning concept arose the name: Forhans Freshmint. Getting down to bress tacks, the company had to decide How much of forhans? How much of freshment?freshmint is what differentiated tha brand from its parent ; The parentage positioning dilemma was this had the name forhans over the years acquird a highly therapeutic and stodgy image whtch whold detract from the mordenity

and taste appel of the new brand? Yet hcould the brand position it self not as a pimply little me-too to colgate but as a strong contender for those young urben men and women who could opt for a brand that tasted as good as colgate appealed to thire sense of modernity and also promised them a meaningful difference compared to colgate? The name forhans was already well known and had a widely accepted association with gum care if the power of this name did not back the new brand would it be easy to challenge colgate with a brand which was totally unknown? Should forhans be played up?played down? The first testing ground to resolve this dilemma was the pack design. Eventually, after many designs, it was felt that the pack represented the optimal answer to the question: Who amI? the ad which launched Forhans si seen in the samje exhibit.

2 what am I?

The positioning strategies around this question relate to the products functional capabilities. They offer the brand manager considerable scope for perceived brand differentiation. What am I? differentiating strategies can be group under; (a)category- related positioning (b)benefit-related positioning (c)positioning by uses occasion and time (d)price-quality positioning

Category-related positioningan important differentiating strategy when an existing product catogery is too crowded is to take the same basic product and position it in another catogery, provided the attributes the product can match consumers exceptions from that category. Your brand will then be preicieved by prospects in a different light. This is reffered in to the jargon as macropositioning or inter-set positioning. If you are marketing a skimmed milk powder for instance the same basic product can be positioned as; (1)reconsitituted milk as we see in the hypothetical akul home dairy concept if this position is already occupied you can position your brand as; (2)a whitener for tea and coffe as in the Akul Specialad- considering the growing interest in physical fitness you can position it as:

(3) Akul Weight-Watcher, the health-giving, low-calorie milk for the diet conscious Again, following international trends you might decide to enter the breakfast foods category and position your milk powder as: (4) Akul Instant Breakfastremember we are talking of the same physical product in four different incarnations. What are the implications of such category-related positioning or repositioning? Once you have chosen the category in which to slot your brand , you should be prepared for suitable modifications in the product and other elements of the marketing mix. If a milk powder has to be positioned as a whitener for tea or coffe you will take great care over its instant solubility. You may also introduce a creamier variety. For the Home Dairy position, it should be readily soluble in hot and cold water without leaving lumps. As an instant breakfast you may need to add vitamins and other nutrients and possibly, flavours. It must also offer good taste. Thus, once the category positioning decision is taken, the smart marketer will try to modify the functional features of his existing brand to mesh more closely with that position. If it is a brand he will design it from scratch so as to make it a perfect match The packaging form for Home Dairy may be a mental can. For the whitener it may be serving-size sachets. For instant breakfast it may be a glass jar. Distribution modifications may be needed as well. The weight-watcher product may also fit on chemists shelves for example, and certainly in the emerging health-food outlets. The category-related positioning decision determines the product market in which you will operate. It defines your competition. You will wish to choose a category where there are no strong competitors making your brand a me-too. You may choose to enter a long haul category because you believe it has a future, like instant breakfast or a food for the diet conscious. In an ad for a capital issue which appeared in November 1988, a new company, the Amrit Protein Foods Ltd, announced as its objective: A complete line of fitness foods: Health and fitness are making big headlines these days. And to meet the growing demand for new generation fitness foods, Amrit Protein will manufacture a wide range of products: Soya Milk, Soya Milk Beverages, Soya Dessert, and High Quality Soya Paneer. Somebody evidently believes that there is a long-term future for beverages and foods positioned in the categpry of fitness foods.

With this positioning decision, you are really making your bed and you must be prepared to lie it. Repositioning id indeed possible and may sometimes be unavoidable. But it is better to make a long-term decision in the first place. The Maruti van, initially, positioned and advertised as a van. It was to compete against Bajaj and Standard Vans. Later, it was renamed Omni and repositioned as the most spacious car on the Indian roads. Its competition was with the other cars like the Ambassador and Fiat and, indeed, the Maruti car itself. As a matter of fact, many consumers had already placed the Maruti Van in this position in their minds, as shown by their attitudes to it and the way they used it. Maruti Udyog Limited(MUL) was recognizing this fact in their new advertising.

Benefit-Related PositioningA well made product would usually offer more than one benefit. Promises of multiple benefits, however, tend to get lost because they leave in the consumers mind a vague and diffused imprint. Successful consumer products promise one or at most two benefits and brand franchises are created around those specific benefits. Thus we have the opportunity for differentiation of similar products based on benefit positions which have not yet been occupied. Consumers, who are similar in important ways, tend to cluster around the same benefits. This enables differentiation in a product market and has been well documented as Benefit Segmentation. Russel J Haley conducted a research among toothpaste users in the USA (1963) and divided them into segments, each desiring a specific benefit from their brand of toothpaste. He uncovered four such benefit segments and their respective brand choices: Economy : Cosmetic: Taste: Medical: Those who were looking for low price. Those who wanted white, bright teeth. Those to whom taste mattered the most . Those who were concerned about prevention of decay.

Each benefit seeking group or segment had certain common characteristics: Demographic, psychograpic, and also behavioristic. There is no published account of similar research on the toothpaste market in India. Judged by their advertising, the benefit positions occupied or sought by major brands would be approximately as follows: Benefit position Cosmetic: White, bright teeth Fresh breath Taste Brand Close-Up Colgate, Close-Up, Forhans Regular Colgate

Decay prevention Gum care and other therapeutic Decay prevention and tartar control

Colgate, Colgate Flourigard, Binaca Fluoride, Signal Forhans Regular, Promise, Neem crest

As you can see, colgate, the market leader by far, is positioned across a broad brand of benefits. Others are positioned by more specific benefits. A new differentiated positioning can be sought by offering a unique combination of benefits. This was the thinking behind Forhans Freshmint which offered the gum care benefit for Forhans, plus the minty taste associated with Colgate. The introduction of crest in the above table is pure speculation at this time (1989) on the part of the author. But since Procter & Gamble (P&G) are now formally in India, one may well expect this gifted brand to surface here.

Features of benefitsIn some texts, the phrase positioning by features and attributes is also used and is referred to separately from benefits. For example, wind in his book on product policy says: Positioning on specific product features: Positioning a product by its performance on specific product attributes is among the most common approaches to positioning, especially for industrial products product feature positioning can range from specific tangible benefits (such as chevette as the economy car or VWs Think small to more abstract features such as Avis We Try Harder) Positioning on benefits, problem solutions or needs: Strongly linked to product features positioning is benefit positioning, which is more effective