MARKET NEEDS /

ATTRACTIVENESS

COMPETITORS

STRENGTHS /

WEAKNESSES

ORGANISATIONAL

STRENGTHS /

WEAKNESSES

1. Strategic Investment

2. Defining the Target Segment(s)

3. Crafting the Value Proposition

4. Creating the Mix to Deliver the Value Proposition

5. Communicating the Value Proposition

Positioning

Product Positioning Process

• Defining the market in which the product or brand will compete (who the relevant buyers are)

• Identifying the attributes (also called dimensions) that define the product 'space'

• Collecting information from a sample of customers about their perceptions of each product on the relevant attributes

• Determine each product's current location in the product space • Determine the target market's preferred combination of attributes

(referred to as an ideal point) • Examine the fit between:

– The position of your product– The position of your competition – The position of the ideal point

• Position

Perceptual Mapping

• STEP 1: Sample from Target Market• STEP 2: List of Relevant Attributes• STEP 3: Ranking of Attributes (Top 2)• STEP 4: Rate Existing Brands• STEP 5: Consumer Ideal Point• STEP 6: Overlay Brands & Ideal Point

Perceptual Mapping of Motorcycles

Step 1: TG Sampling

• 18-24 Male, College Student, MHI > 50,000, Living in a City, High peer pressure

• Random Sampling

STEP 2: List of Relevant Attributes

• Power• Price• Style• Fuel Efficiency• Cost of Maintenance

STEP 3: Ranking of Attributes (Top 2)

• Price• Style

STEP 4: Rate Existing Brands

LOW PRICE

HIGH PRICE

LOW

STYLE

HIGH

STYLE

B

HHT

YE

STEP 5: Consumer Ideal Point

LOW PRICE

HIGH PRICE

LOW

STYLE

HIGH

STYLE

IP

STEP 6: Overlay Brands & Ideal Point

LOW PRICE

HIGH PRICE

LOW

STYLE

HIGH

STYLE

B

HHT

YR

IP

POPs

• Points-of-parity (POPs) – Associations that are not necessarily unique to the brand but may be shared by other brands

• Considered to be hygiene factors in any product by the consumer

• Absence could drive rejection

POD

• Point of difference (POD) is a term used to describe the individual factors which make a product different from its competitive set

• The key point of difference of a company is synonymous with its unique selling proposition (USP)

• Critical in defining its competitive advantage• Must be attributes or benefits that consumers

strongly, uniquely, and positively associate with the company's brand

Types of Positioning• Functional positions

– Solve problems – Provide benefits to customers – Tide Surprisingly White

• Symbolic positions – Self-image enhancement – Ego identification – Belongingness and social meaningfulness – Pepsi on Youth

• Experiential positions – Provide sensory stimulation – Provide cognitive stimulation– Red Bull Energy in a Bottle

Checks for a Good Positioning

• Have we established a frame of reference?

• Are we delivering on the points of parity?

• Are the points of difference compelling?

Defining the Positioning

• BPS: Statement on how the marketer wants the consumer to perceive the brand

• 4 Elements:– Target Audience– Frame of Reference– POD– RTB

BPS Format

• "For (target audience), (company name) offers (competitive frame of reference) that provides (greatest competitive advantage).”

• "For low income housewives, Wheel offers the wash of an expensive-like powder within her budget."