MARKETING MANAGEMENT

ANU PRASANNAN17|5|2013

QUESTION:

How much of positioning in the market today is driven by product positioning and how much is left for brand positioning? Give at least five examples of both type of positioning.

POSITIONING

“In marketing, positioning is the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.”

Re-positioning the competition

• 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.

• Re-positioning involves changing the identity of a product, relative to the identity of competing products.

• De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product

Example #1

• 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.

EXAMPLE #2• 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.

FREE RIDE TRAP

• 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

Product vs. BrandA product is something that is made in a factory

A brand is something that is bought by a customer.

A product can be copied by a competitor.

A brand is unique.

A product can be quickly outdated. A successful brand is timeless.

Product positioning• Product positioning is a marketing strategy that aims to

make a brand occupy a distinct 'position,' relative to the competing brands, in the mind of the customer.

• Firms apply this strategy either by emphasizing the distinguishing features of their brand (what it is, what it does and how, etc.) or try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.) through advertising.

• Once a brand is positioned, it is very difficult to reposition it without destroying its credibility.

Example #1• Tide detergent powder is positioned on

bringing incomparable whiteness - it makes clothes whiter than white.

• In that the marketer is basically stating that in a crowded market with multiple brands offering whiter/cleaner clothes Tide is and always will be a superior in cleaning the clothes.

Example #2

• In the classic example of Avis claiming "No.2, We Try Harder," the point was to say something so shocking (it was by the standards of the day) that it cleared space in your brain and made you forget all about who was #1, rather than making some philosophical point about being "hungry" for business.

Example #3

• Swatch. The most famous example I can think of is

Swatch. Created as a defense against low priced Japanese quartz watches that swamped the market, instead of competing on price, [parent company] SMH positioned the product as the famous "fashion watch," thereby creating a whole new market, much larger in size than the original watch market.

Example #4

• Hyundai. Another fantastic example is Hyundai, a company

that understands how to consistently move upstream through intelligent product positioning.

Hyundai is increasingly creating havoc in the market for their competitors and finding ways to innovate, and develop value propositions that resonate with their customers and prospects.

Example #5• “Dabur Chyawanprash “to strengthen their

body’s internal defense mechanism and fight against germs, infections and stress. That’s the image of Dabur Chyawanprash in the minds of consumers.

#6 .A Rado watch would lose its charm if its price is equal to a Sonata or a Maxima Watch

#7• 7-Up.

The famous positioning of 7-UP as the "Uncola" perfectly positioned that product for those who did not want to consume cola drinks. For those who do (a confirmed Coca-Cola fanatic), the positioning of 7-UP had no appeal.

#8• "To the passionate car enthusiast, the all new

911 Carrera is the sports car that defines who we are.

Porsches statement

The ad also says "ignites passionate drivers" and it "defines the purest expression of who we are." This are completely status types of comments to touch on that Esteem aspect of Maslow. 

#9

• Wal-Mart has positioned themselves as the go-to store for the masses.

• An amazing marketplace, Walmart carries everything from food to tires. And all for less money, a position that telegraphs to consumers that you can get everything you want here – you don’t need to shop around.

Volkswagen is a good example of great product positioning.

• The company announced the goal of becoming the biggest automaker in the world. That positions them as a car that’s reliable and a company that’s permanent.

• Buyers feel comfortable knowing they will always be able to get parts, and the cars will retain their value. VW’s ads position themselves by showing 20-somethings driving the cars, which appeals to the Millennial Market, the Net Generation, who will be buying cars now and for many years.

BRAND POSITIONING

• Brand positioning is at the very core of brand building.

• A clear and concise brand positioning provides a single voice to tell your brand’s story.

“BRANDS”

Example #1

When you think Volvo, you might think safety? The fact that you remember the brand name and have a positive associations with that brand makes your product selection easier and enhances the value and satisfaction you get from the product?'

Example # 2• Kit Kat’s(NESTLE) target market is men and women

of all ages.• The brand is youthful in nature, and focuses on the

consumer segment who love chocolate, and are willing to indulge themselves with chocolaty snacks.

• What draws consumers to this brand is its association with “breaks” due to its tag line “Have a Break, Have a Kit Kat”.

• It’s low prices, constant over the past 100 years, allows it to target the mass consumer market, as opposed to other high-end chocolate brands such as Godiva,5-star,etc

Example #3•  Need to keep it fresh. Look at Coca-Cola.

– Its image is as fresh today as when it started. It’s not luck. It’s careful nurturing and development of the brand.

– Can exploit brand equity with brand extensions, if there is value.

Example #4

•  Mercedes promises well-built, prestigious, safety, performance.

Example #5

• 3.    Co branding/Dual branding:

"Intel inside."

• Brand equity is the value a brand adds to the product.  

# 6

• There is a Domino's Pizza commercial (1985) successfully positioning the brand at the desirable benefit level.

• Domino positions its brand very successful in customers' minds.

Example #7

• The Pepsi Challenge is a good example of a position-driven brand marketing campaign. Position-driven brand advertising is all about positioning a brand, relative to a leading brand in the brand category. Two keys to brand positioning are:

• brand awareness (or increasing brand awareness) in a particular brand category, and

• differentiating the brand so customers will remember it.• Coke is the current and historic leader of the cola brand

category.

CONCLUSION

In fact, the brand becomes one of the benefits, because it embodies trust, an anticipation of predictable quality and performance, and most of all, a feeling that this is an identity you want to be associated with as a customer.

• A brand's name is perhaps the most important factor affecting perceptions of it. Brand positioning of products drives the market around three fourth of the total and the rest through the other positioning strategies

• 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.

• The brand positioning drives the market more than that of the product positioning in today’s scenario.

• The brand position is the specific niche in the market that the brand defines itself as occupying