7/12/2012
Positioning
Gurudas
Nulkar
MM | Gurudas Nulkar
Positioning
Gurudas
Nulkar
MM | Gurudas Nulkar
COMMUNICATION
27 tv ads
JUNGLE
15 text ads
42 web banners
27 mail ads
38 print advertisements
288 links HOW CAN
17 taxi ads CUSTOMERS
180 google ads
RECALL ?
120 street signs 12 hoardings
16 radio jingles
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Curves, Cheap, Small,
peppy, fun! Doubtful
image!
Babu! Oldie,
grunt,
Yawnnnnnnn
.
MM | Gurudas Nulkar
Competing in the Consumers mind
Differentiation Positioning
Creation of an
Identity
Branding
Making the
Connection
Positioning is not what you do to the product.
But what you do to the mind of the prospect
MM | Gurudas Nulkar
Story of Coffee
How can you sell
Coffee at 70 in a
place where it
already sells at
15?!
So whats the trick?
No-nonsense,
value for money,
Easy on wallet,
No ambience,
Quick
MM | Gurudas Nulkar
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SEGMENTING !
Not everyone
Buys Coffee!
Offer what
matters to the
chosen segment MM | Gurudas Nulkar
So lets segment the customers
Casual customers have time to Mixed age, non-loyal,
spend, short meetings, waiting for mobile, not spenders
someone, may not be for coffee
Meeting place over Coffee 35 to 55 years, A3 to C,
friends group, similar activities, light spenders, friends
regular periodic meet-ups
Coffee snobs enjoy the 40 to 75 years, educated,
experience, ambience spenders, sociable
Teens & Collegians dont really 18 to 25 years, need
come for a coffee music, space, faraway
feeling, money & time
Executives want to meet
Mixed age, just need the
undisturbed, work to conduct
space, can pay more
MM | Gurudas Nulkar
Caf Coffee Day
Music & brightly lit
TV playing youth channels
Chill-out interiors
Associations with Channel V
Teens, collegians & singles
A hangout where you also
get coffee
MM | Gurudas Nulkar
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Barista
Stylish and somber ambience
Facilities like internet
Tie-ups with Crossword &
Planet M
Targeted the mobile
executive
European Caf
MM | Gurudas Nulkar
Whats wrong with differentiation?
Ad for Caf Coffee Day
The best Coffee chicory combos served!
Our cups are cleaner ! (& sos the floor)
Relax on our sofas!
Oh Yeah?
Hear the latest music !! Is all that worth
the extra 50
bucks?
MM | Gurudas Nulkar
PSYCHOLOGICAL
PHYSICAL DIFFERENTIATION
DIFFERENTIATION
Price Value
Product Features are actual, physical
Benefits have to be perceived
MM | Gurudas Nulkar
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Why does this work?
Dont give me facts, Ive made up my mind!
First one to occupy a position is hard to get out
In the mind, odds favor the first
MM | Gurudas Nulkar
Concept of positioning
How would you buy a wristwatch? In my
Budget?
Wear it to
office?
Looks good
on me?
MM | Gurudas Nulkar
Concept of positioning
Consumers think in just a few dimensions
Dimensions change with segments
Dandruff Price Features
Price Size Brand
Looks
MM | Gurudas Nulkar
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Positioning
Act of designing companys products to Help Focus on
occupy a distinctive place in the minds of Value Proposition
the target market
How do you want your
Always with respect to the
brand to be thought
competition
about in its category
MM | Gurudas Nulkar
Good times
Delicious butter
30 minute Pizza
Confidence to do it
Buys anything
Pure for sure
Daring cola
Longer car
MM | Gurudas Nulkar
King of Good Times!
King of Bloated tummies
The mind accepts information which
matches prior knowledge
MM | Gurudas Nulkar
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Must you always position?
The consumer will do it by himself!
Rupa Frontline
MacroMan
Lux Cozi Jockey
Amul Macho Hanes
Dollar club
Scott Dixy
MM | Gurudas Nulkar
Positioning - basics
Simple comparison of physical attributes with
competitors does not create competitive differentiation
Customers attach less importance to physical attributes,
or perceive them differently, than the firm expects
Customers attitudes toward a product are often based
on social or psychological attributes not suitable to
objective comparison
e.g., aesthetic appeal, spottiness, status image in car
market
MM | Gurudas Nulkar
For a great Positioning.
Have distinct segment preferences
Understand what & how segment buys
What problems can you solve for the buyer?
Understand competition positions
MM | Gurudas Nulkar
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For a great Positioning.
Make an Unmistakable message, clear communication
Amul : Taste of India
Ye andar ki baat hai
Live like a MacroMan
Bade araam se
Ye to bada toing hai
Clear communication for commodity
MM | Gurudas Nulkar
For a great Positioning.
Company positioning & product positioning Both must be
consistent
GE : Innovation at work
Regional Positioning can be different :
McDonalds : In US eat on the go, In India experience
Skoda EU & India
Create an inside culture to match your position
IBM The solution to your problems is IBM
BMW The ultimate driving machine
MM | Gurudas Nulkar
Steps in positioning
1. Determine consumers perceptions about product
2. Identify competitors positions
3. Determine consumer preferences in the target
segment
4. Check competitor positions
5. Select position
6. Monitor positioning strategy in the life cycle
MM | Gurudas Nulkar
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Positioning
Points of Difference (POD)
Attributes and benefits that consumers strongly associate
with the brand
Should create a favorable association
Important
Distinctive
Superior
Communicable
Affordable distance
MM | Gurudas Nulkar
Positioning
Points of Difference (POD) EXAMPLE
Cadbury dairy milk Kutch meetha ho jai affordability
Toblerone Unique taste
Fererro Rocher Premium style, classy design, international
taste
MM | Gurudas Nulkar
Positioning
Points of Parity (POP)
Belong to the category
Attributes not necessarily unique to the brand
Benefits, utility, performance that connect
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Positioning POD POP
Low price v/s high quality Powerful v/s safe
Taste v/s low calories Strong v/s refined
Nutrition v/s good taste Abundant v/s exclusive
Effective v/s mild Technically high v/s simple
MM | Gurudas Nulkar
Watch out negative correlations
Functionality and price: products and/or services with many
features but at a low pricecomputers, automobiles, home
appliances.
Easy and completeness: products that are easy to use and contain
everything the consumer wants in the productscomputers, home
entertainment products.
Fun to drive and good mileage: for cars, this is an ongoing challenge
along with safe and good gas mileage and large and good gas
mileage.
Safe and scaryamusement rides, movies, television shows, books.
Simply to use yet not complicated-computer and game programs.
MM | Gurudas Nulkar
Types of positioning
Positioning variants
Product features & benefits full featured, only as per
utility, stripped down
Price - economy, competitive, premium
Utility Utility for future, just for today, basic
Distribution channel convenience, exclusive
Storage & movement convenient, dedicated
Services no frills/self help, full service & warranty,
buy as you want
MM | Gurudas Nulkar
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Renewing positions in the Life Cycle
Positioning a
commodity service
MM | Gurudas Nulkar
Repositioning your competitors
Medicine
breath
In Wise you find
Potatoes. Veg Oil. Salt.
In Pringles you find
Dehydrated Potatoes, Mono &
Diglycerides , Ascorbic acid ,
Hydroxy-anisole
MM | Gurudas Nulkar
Repositioning your competitors
MM | Gurudas Nulkar
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Repositioning your competitors
Most American Vodkas seem Russian.
Stolichnaya is different, it IS Russian!
MM | Gurudas Nulkar
COMPETITIVE POSITIONING
MM | Gurudas Nulkar
Perceptual Maps
Multidimensional scaling technique
To determine the perceived relative image of a set of objects
The purpose of MDS is to transform consumer judgments of
overall similarity or preference into distances represented in
multidimensional space.
Obtain important product attributes exploratory survey
Obtain ratings on these attributes quantitative study
Plot them on XY axis
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Simple Positional Maps
Identify buyers dimensions
Plot the various brands on X & Y Axis
Plot various competing products
MM | Gurudas Nulkar
Simple Positional Maps
Premium
Formal, Casual,
Corporate youthful
Cheap
MM | Gurudas Nulkar
Simple Positional Maps
Premium
Formal, Casual,
Corporate Trendy
Private
Labels
Local
Brands
Cheap
MM | Gurudas Nulkar
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Simple Positional Maps
Premium
Formal, Casual,
Corporate Trendy
Cheap
MM | Gurudas Nulkar
Exercise : Positioning
Choose any product category
Identify key competitors
Draw a Positional Map
Offer 2 products for the market, with 2 separate
positioning
MM | Gurudas Nulkar
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