PRODUCT POSITIONING AND REPOSITIONING

1. INTRODUCTION:
1.1 Positioning:

All marketing strategy is built on STPSegmentation, Targeting, and Positioning. A company discovers different needs and groups in the marketplace, targets those needs and groups that it can satisfy in a superior way, and then positions its offering so that the target market recognizes the company's distinctive offering and image. If a company does a poor job of positioning, the market will be confused. If a company does an excellent job of positioning, then it can work out the rest of its marketing planning and differentiation from its positioning strategy. We define positioning as follows: Positioning is the act of designing the company's offering and image to occupy a distinctive place in the mind of the target market. The goal is to locate the brand in the minds of consumers to maximize the potential benefit to the firm. A good brand positioning helps guide marketing strategy by clarifying the brand's essence, what goals it helps the consumer achieve, and how it does so in a unique way. The result of positioning is the successful creation of a customer-focused value proposition, a cogent reason why the target market should buy the product. The word positioning was popularized by two advertising executives, Al Ries and jack Trout. They see positioning as a creative exercise done with an existing product: Positioning starts with a product. A piece of merchandise, a service, a company, an institution, or even a person..But positioning is not what you do to a product. Positioning is what you do to the mind of the prospect. That is, you position the product in the mind of the prospect. There is a great number of different definitions of positioning in scientific literature of marketing. The concept of positioning seeks to place a product in a certain position in minds of perspective buyers. Marketers use a positioning strategy to distinguish their offerings from those of competitors and to create promotions that communicate the desired position. Boone and Kurz (2001) Scientists Etzel, Walker and Stanton (1997) refer to marketing as a managements ability to bring attention to a product and to differentiate (position) it in a favorable way from similar products. The purpose of positioning is to create a unique and favorable image in the minds of target customers, Bhat (1998). The author Fill (2006) states, that positioning, therefore, is the natural conclusion to the sequence of activities that constitute a core part of the marketing

strategy. Market segmentation and target marketing are prerequisites to successful positioning. Product positioning refers to the decisions and activities intended to create and maintain a certain concept of a firms product in the customers mind. Positioning is developing a specific marketing mix to influence potential customers overall perception of a brand, product line, or organization in general (Lamb, Hair, McDaniel 2004) To sum up position of a product is customers perceptions of a products attributes relative to the attributes of competitive products. Buyers make a large number of purchase decisions every day. To avoid constant reevaluation of numerous products, buyers tend to group, or position products in their minds to simplify buying decisions. Rather than allowing customers to position products independently, marketers must try to influence and shape customers perceptions of different products. 1.2 Positioning characteristics

The goal of product positioning is to keep your product on top of your customers mind when theyre considering a purchase. To be successful, product positioning must achieve three objectives: Differentiate your product from the competitors Address important customer buying criteria Articulate key product (or company) characteristics 1.3 Points-of-Parity and Points-of-Difference:

Once the competitive frame of reference for positioning has been fixed by defining the customer target market and nature of competition, marketers can define the appropriate points-of-difference and points-of-parity associations. Points-Of-Difference: Points-of-difference (PODs) are attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand. Strong, favorable, and unique brand associations that make up pointsof-difference may be based on virtually any type of attribute or benefit. Examples are FedEx {guaranteed overnight delivery), Nike {performance), and Lexus {quality). Creating strong, favorable, and unique associations as points-of-difference is a real challenge, but essential in terms of competitive brand positioning.

Points-of-parity (POPs), on the other hand, are associations that are not necessarily unique to the brand but may in fact be shared with other brands. These types of associations come in two basic forms: category and competitive. Category points-of-parity are associations consumers view as essential to be a legitimate and credible offering within a certain product or service category. In other words, they represent necessarybut not necessarily sufficientconditions for brand choice. Consumers might not consider a travel agency truly a travel agency unless it is able to make air and hotel reservations, provide advice about leisure packages, and offer various ticket payment and delivery options. Category points-of-parity may change over time due to technological advances, legal developments, or consumer trends, but they are the "greens fees" to play the marketing game. Competitive points-of-parity are associations designed to negate competitors' points-ofdifference. If, in the eyes of consumers, the brand association designed to be the competitor's point-of-difference is as strong for a brand as for competitors and the brand is able to establish another association as strong, favorable, and unique as part of its point-ofdifference, then the brand should be in a superior competitive position. In other words, if a brand can "break even" in those areas where the competitors are trying to find an advantage and can achieve advantages in other areas, the brand should be in a strongand perhaps unbeatablecompetitive position. While other luxury-goods makers slumped in 2000, Coach saw its sales zoom ahead by adding style and fashion to its legendary rugged bags and briefcases. 1.4 Developing a Positioning Strategy:

To create a position for a product or service, Trout and Ries suggest that managers ask themselves six basic questions: 1. What position, if any, do we already have in the prospects mind? (This information must come from the marketplace, not the managers perceptions.) 2. What position do we want to own? 3. What companies must be outgunned if we are to establish that position? 4. Do we have enough marketing money to occupy and hold the position? 5. Do we have the guts to stick with one consistent positioning strategy? 6. Does our creative approach match our positioning strategy?

1.5

Positioning strategies:

1.5.1 Positioning by Product Attributes and Benefits A common approach to positioning is setting the brand apart from competitors on the basis of the specific characteristics or benefits offered. Sometimes a product may be positioned on more than one product benefit. Marketers attempt to identify salient attributes (those that are important to consumers and are the basis for making a purchase decision). For example, when Apple first introduced its computers, the key benefit stressed was ease of usean effective strategy, given the complexity of computers in the market at that time. 1.5.2 Positioning by Price/Quality Marketers often use price/quality characteristics to position their brands. One way they do this is with ads that reflect the image of a high quality brand where cost, while not irrelevant, is considered secondary to the quality benefits derived from using the brand. Premium brands positioned at the high end of the market use this approach to positioning. Another way to use price/quality characteristics for positioning is to focus on the quality or value offered by the brand at a very competitive price. For example, Big Bazaar advertisement. Remember that although price is an important consideration, the product quality must be comparable to, or even better than, competing brands for the positioning strategy to be effective. 1.5.3 Positioning by Use or Application Another way to communicate a specific image or position for a brand is to associate it with a specific use or application. For example, Harpic 1.5.4 Positioning by Product Class Often the competition for a product comes from outside the product class. For example, airlines know that while they compete with other airlines, trains and buses are also viable alternatives. Amtrak has positioned itself as an alternative to airplanes, citing cost savings, enjoyment, and other advantages. Manufacturers of music CDs must compete with MP3 players; many margarines position themselves against butter. Rather than positioning against another brand, an alternative strategy is to position oneself against another product category. 1.5.5 Positioning by Product User Positioning a product by associating it with a particular user or group of users is yet another approach. An example would be the Valvoline ad shown in Exhibit 2-18. This campaign emphasizes identification or association with a specific group, in this case, people who receive pleasure from working on their cars.

1.5.6 Positioning by Competitor Competitors may be as important to positioning strategy as a firms own product or services. As Trout and Ries observe, the old strategy of ignoring ones competition no longer works. (Advertisers used to think it was a cardinal sin to mention a competitor in their advertising.) In todays market, an effective positioning strategy for a product or brand may focus on specific competitors. This approach is similar to positioning by product class, although in this case the competition is within the same product category, for example, TVC of Amar Clove Gel. When positioning by competitor, a marketer must often employ another positioning strategy as well to differentiate the brand. 1.5.7 Positioning by Cultural Symbols Aaker and Myers include an additional positioning strategy in which cultural symbols are used to differentiate brands. Examples are the Jolly Green Giant, the Keebler elves, Speedy Alka-Seltzer, the Pillsbury Doughboy, Buster Brown, Ronald McDonald, Chiquita Banana, and Mr. Peanut. Each of these symbols has successfully differentiated the product it represents from competitors 1.6 Repositioning

One final positioning strategy involves altering or changing a products or brands position. Repositioning a product usually occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions. Repositioning is often difficult to accomplish because of entrenched perceptions about and attitudes toward the product or brand. Many companies attempts to change their positions have met with little or no success. For example, Kmart (the store) and Aurora (the Oldsmobile) have both attempted to reposition themselves to a level of higher quality, appealing to younger and more wellto-do customers. Both have met with limited success. (Kmart is in bankruptcy and the Oldsmobile line will be discontinued). Nutri-Grain Barsoriginally positioned as a convenience snack (Good food to go)have been repositioned as a breakfast substitute (Respect yourself in the morning). Buick has repositioned in an attempt to reach a younger market (using Tiger Woods, in his twenties, as a spokesperson), while La-Z-Boy is attempting to move away from its blue-collar image and to a more affluent one. Sears has changed its positioning so often in recent years that consumers may not know exactly what image the company is trying to convey. One extremely successful effort at repositioning was employed by Rolling Stone magazine. In an attempt to change advertisers image of the type of person who reads Rolling Stone, the company embarked on an extensive advertising campaign directed at potential advertisers.

2
2.1

EXAMPLE: CADBURY DAIRYMILK IN INDIA

Cadbury in India

Cadbury India began its operations in India in 1948 by importing chocolates. It now has manufacturing facilities in Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and sales offices in New Delhi, Mumbai, Kolkata and Chennai. The corporate head office is in Mumbai. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two decades, Cadbury has worked with the Kerala Agricultural University to undertake cocoa research. Cadbury was incorporated in India on 19 July 1948. Currently, Cadbury India operates in four categories: chocolate confectionery, milk food drinks, candy and gum category. It has five companies owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkata and Chennai). It products include Cadbury Dairy Milk, 5-star, Perk, Gems, Eclairs, and Bournvita. It is the market leader in Chocolate Confectionery business with a market share of over 70%. The Brand Trust Report, India Study, 2011 published by Trust Research Advisory ranked Cadbury in the top 100 most trusted brands list. 2.2 Symbol of Cadbury Dairy Milk

Cadbury dairy milk is synonymous with the chocolate. Dairy Milk has always tried to keep a strong association with milk, with slogans such as "a glass and a half of full cream milk in

every half pound" and advertisements that feature a glass of milk pouring out and forming the bar. 2.3 Packaging of Cadbury Dairy Milk

Cadbury use the various attractive colors. It uses three colors in the packaging Purple, White and Coffee. Purple color is stand for happiness and trustworthiness while white color is indicates the milk and creaminess and coffee color indicates the chocolate. Dairy Milk has more milk and chocolate than others brands. Cadbury dairy milk is always positioned in the mind of consumers as celebrate the happiness with Cadbury dairy milk. 2.4 Design of the Cadbury Dairy Milk

Cadbury Dairy Milk is used the unique design of the chocolate. Chocolate shape is rectangle and it is divided in to small squares so that it is easy to share with other persons which also position in the minds of the customers.

2.5

Different positioning and repositioning steps taken by Cadbury in India:

2.5.1 Real Taste of Life Cadbury came with the many chocolate like Dairy milk, 5star, gems, Perk, Temptation and one of the snacks is Bytes. In the early 90's, chocolates were seen as meant for kids, usually a reward or a bribe for children. In the Mid 90's the category was re-defined by the very popular `Real Taste of Life' campaign, shifting the focus from `just for kids' to the `kid in all

of us'. It appealed to the child in every adult. And Cadbury Dairy Milk became the perfect expression of 'spontaneity' and shared good feelings. 2.5.2 Khanewalon Ko Khane Ka Bahana Chahiye In the late 90's, to further expand the category, the focus shifted towards widening chocolate consumption amongst the masses, through the 'Khanewalon Ko Khane Ka Bahana Chahiye' campaign. This campaign built social acceptance for chocolate consumption amongst adults, by showcasing collective and shared moments. 2.5.3 'Kuch Meetha Ho Jaaye with 'Pappu Pass Ho Gaya The 'Kuch Meetha Ho Jaaye' campaign associated Cadbury Dairy Milk with celebratory occasions and the phrase "Pappu Pass Ho Gaya" became part of street language. It has been adopted by consumers and today is used extensively to express joy in a moment of achievement / success. The interactive campaign for "Pappu Pass Ho Gaya" bagged a Bronze Lion at the prestigious Cannes Advertising Festival 2006 for 'Best use of internet and new media'. The idea involved a tie-up with Reliance India Mobile service and allowed students to check their exam results using their mobile service and encouraged those who passed their examinations to celebrate with Cadbury Dairy Milk. The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for The Best Integrated Marketing Campaign and Gold in the Consumer Products category at the EFFIES 2006 (global benchmark for effective advertising campaigns) awards. Every time they are coming with the some new advertisement and in every advertisement are giving new reason to buy dairy milk. About their cost strategy, from so many years their price has not changed only they are launching new products under the same brand name Cadbury. Cadbury Dairy Milk has launched its new ad campaign under the broad umbrella of 'Kuch Meetha Ho Jaye'. The umbrella, initiated six years ago, has rolled out several sub-campaigns over the years - each with a separate message. What started off as a message that encouraged people to celebrate the small joys of life ('Dil Ko Jab Khushi Chhoo Jaye, Kuch Meetha Ho Jaye') and moved on to the celebrating overt

occasions ('Pappu Pass Ho Gaya') has, for the past four years, been about occasion-led celebration. 2.5.4 'Aaj Pehli Tareekh Hain' Never mind the slowdown and the salary cuts; the pay day is always a reason to celebrate. Cadbury 'pays' a tribute to the salaried employees by giving them another reason to celebrate the payday. 2.5.5 Meetha Me Kya Hai. Cadbury Dairy Milk has found yet another occasion to provide consumers with a reason to consume their chocolates - dessert time - when the palate craves for something sweet after a sumptuous dinner. This campaign was known as Meetha Me Kya Hai. As is tradition, in most Indian households, something 'meetha' or sweet is offered as dessert after the evening meal. In a commercial for the dairy milk chocolate, Ogilvy India has used this insight to increase consumption of the chocolate in homes, as opposed to impulse purchases only, which seems to be the current trend. 2.5.6 Shubh Aarambh Though the core target group, consumers in the age group of 15-35 years, has been retained from the previous campaign ('Aaj Pehli Tareekh Hain') that was launched about a year ago, Shubh Aarambh is driven by an effort to refresh the take on 'Kuch Meetha Ho Jaye'. Specifically, there is a shift from the notion of celebrating happy occasions with chocolate to the concept of anticipating the occurrence of something good after consuming the chocolate. Maintaining the universal appeal of the brand, the campaign is aimed at consumers across SECs and is supposed to have a balanced appeal across all tiers.

RELEVANCE OR SIGNIFICANCE FOR MARKETERS:

There is no product in the world that does not have a position. Product positioning is about visibility and recognition and what product represents for a buyer. In markets where the intensiveness of rivalry and competition are increasing and buyers have a greater choice, identification and understanding of a products intrinsic values become critical. An offering with a clear identity and orientation to a particular target segments needs will not only be purchased, but can warrant a larger margin through increased added value. Numerous organizations are trying to manage their positions occupied by their products and are using different positioning strategies to move to new positions in consumers minds and so generate an advantage over their competitors. Earlier positioning was very important in markets that are very competitive and where mobility barriers are relatively low. Nowadays these market characteristics can be applied almost to every industry or business, and to any economy. No product, of those which have survived, can be imagined without clear, distinct and intensive positioning. 3.1 Why is positioning important?

Product positioning is a crucial ingredient in the buying process and should never be left to chance. Its your opportunity to influence the markets perception of your products. Failure to proactively address product positioning is unlikely to end well. With or without your input, customers will position your productprobably based on information from your competitors, which will not flatter you. Clear, concise, meaningful product positioning also helps you cut through the relentless advertising and marketing noise of the marketplace. In your customers mind, product positioning gives your messages some context so they can be better heard and accepted. Whether you are trying to pick out a name for your company, create designs, develop a website or define your pricing strategy, the aspiring entrepreneur must always remember that the foundation of a great brand boils down to one thing; POSITIONING. Positioning is how the target market defines the brand in relation to its competitors. In other words, its the brands identity! When defining a brands positioning, one should consider how the positioning makes the brand unique and, more importantly, if these unique qualities are perceived as added values by the target audience. So what if you have the only clothing line that uses teal ink imported from Dijibouti! Although this is a point of differentiation, does anybody in your target audience actually care about this? If so, thats great! You may just have found your positioning. If not, you are simply being different for the sake of being different and this really offers no added benefit to your brand or the customer. Here are a few helpful tips for those of you who have great ideas and dont want to end up being just another generic-named clothing line with a few cool designs. Remember, branding takes

time and positioning is just the first step on the road to developing a relationship with your customers.

When contemplating your brands positioning, you have to see who everybody else already is before you can figure out who you want to be. By scanning the competitive landscape you can see what niches are already being satisfied and also if there are any unmet needs your brand can take advantage of. So what if you have a fantastic idea for a new skate/surf apparel line. If there are already a million other people with the same idea that are 10 steps ahead of you, how will you compete? There is a good chance, although not guaranteed, that your brand will be seen as an imitator rather than a fresh new company. This isnt to say that you should back away from ALL niches with established competition. On the contrary! Having some competition allows the customers to know what they can expect from you. It is up to you, however, to show the customer how you are different from Company A and Company B if you choose to go ahead with your skate/surf line in a competitive market. The key here is to decipher what your brand can offer as added value if other people have similar product offerings and knowing when to fold em if you think competition is too high. The purpose of an environmental scan is to help you realize what you are getting yourself into before you invest your life savings into a brand that Joe

Shmo down the street started 10 years ago. Once you know whats out there you can be that much more prepared to take on the wonderful world of apparel design! There are a variety of strategies one can utilize when determining positioning. Whats great about this is if someone has a similar concept as me, lets say a flavored water beverage, I can still use my specific positioning as a point of differentiation. For example, Company A is positioned as a diet drink focusing on low calories while my flavored water leverages the drinks electrolytes and is positioned as an exercise supplement. These are basically the same products, more or less, but each focus on very different positioning giving each a competitive advantage and unique identity.

3.2

The Role of Product Positioning in Consumer Buying Decision Process:

The Consumer buying decision process is characterised by five stages: Problem recognition, information search, evaluating of alternatives, purchase, and post-purchase evaluation. Problem recognition is when a buyer becomes aware of a difference between a desired state and an actual condition. Therefore the buyer is lacking a product and they realize that they need or want this product. Information search is when a buyer has discovered their problem and needs to search for information to help them solve the problem. This may be performed internally or externally. Internal search is when the buyer searches their memory from previous knowledge or experience. External search is when the buyer finds information from other sources, such as friends or public sources. Evaluation of alternatives describes the buyer considering the possible products found from the information search. The buyer evaluates each product based on both objective and subjective criteria. Purchase is the stage where the consumer has chosen a particular product from the evaluation stage, and chooses a brand based upon style, price, reputation, and etcetera. Post evaluation is when the buyer evaluates the product to ensure it meets their particular needs. This consists of looking over the criteria used in the evaluation stage again, plus some others. Product positioning influences the evaluation of alternatives and purchasing stages. The nature of product positioning is to distinguish one brands product from the others, so we may assume that product positioning only influences choice between similar products. Therefore product positioning is not a factor in the information search. Product positioning has an effect on the buyers evaluation of alternatives and purchasing. It is these two stages where the consumer compares the products offered by different brands, and possibly chooses one. As the consumer compares products, product positioning will help the consumer determine the differences between the products, and help them select the product which best meets their evaluation criteria.

When a consumer wants to purchase a product, they perform a level of problem solving to determine which product and brand to purchase. A large factor in the problem solving is the consumers level of involvement with the product. The level of involvement depends on the consumers interest in the product, the cost of the product, how visible the product is to others, and the importance of the product. Level of involvement therefore affects the decision making process of the consumer, which is tern should affect brand positioning. Companies need to know what the consumer involvement levels are for their products so they understand what problem solving techniques the consumer may be using. There are three main types of problem solving techniques used: routinised response behavior, limited problem solving, and extended problem solving. The extended problem solving occurs for high consumer involvement products, where consumers spend more time contemplating their decision. For these products, a product with strong positioning and reputation is likely to stand out over others. Routinised response behavior and limited problem solving is used for products with less consumer involvement, where price and availability may be more determining factors then the brand reputation. Understanding how the consumer purchases a product, a company can develop an appropriate level of brand positioning through a marketing mix.

LEARNING VALUE:
Positioning plays a key role when reaching the desired place in the mindsets of potential and existing consumers. Most scientists of the field of marketing define product positioning as arrangements for a product to occupy a clear, distinctive, and desirable place in the minds of target consumers, relative to competing products in the market. The position of a product is formed by customers perceptions of a products attributes relative to the attributes of competitive products Product positioning is an inseparable and most important part of the STP model. If the first two steps (segmentation and targeting) contain flaws or are inadequately or incompletely performed, successful product positioning is doomed to fail. Summarizing the opinion of various scholars, it is obvious that product positioning is a complex, continuing and chain process. While positioning a product marketers should at least (there can be more) go through the following steps: Identify and analyze competitive products in the market, Identify the determinant attributes and measure their significance to the user, Select positioning or repositioning strategy, Compose the positioning map, Determine the desired position of the product, Identify the current position of the product and other competing products according to determinant attributes, Create positioning statement.

1. 2. 3. 4. 5. 6. 7.

BIBLIOGRAPHY:
Books: Kotler, P. & Keller, K. V. & Koshy, A. & Jha, M. (2009) Marketing management (13th ed.). Noida: Dorling Kindersley. Belch, G. E. & Belch, M. A. (2003) Advertising and Promation: An Integrated Marketing Communications Approach (6th ed.). Tata McGraw Hill Publishing Company Limited: New Delhi Websites: http://www.otmmarketing.compositioning/ (30/09/2011, 8:45 pm) http://www.icmrindia.org/free%20resources/casestudies/Airtel%20positioning% 20and%20repositioning.htm (30/09/2011, 9:10 pm) http://www2.nortel.com/go/news_detail.jsp?cat_id=-9252&oid=100200792 (02/10/2011, 10:20 am) http://www.google.co.in/url?sa=t&source=web&cd=8&sqi=2&ved=0CGMQFjAH&u rl=http%3A%2F%2Fwww.ktu.lt%2Flt%2Fmokslas%2Fzurnalai%2Finzeko%2F56 %2F1392-2758-2008-1-5697.pdf&rct=j&q=significance%20of%20product%20positioning&ei=46ObTs_LN8Xq rQfg95GTBA&usg=AFQjCNGFGHXo0jePiSxDpvaYYXC_VW0RKQ&cad=rja (02/10/2011, 11:00 am)