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
MM | Gurudas Nulkar

Gurudas Nulkar 2012 1

 7/12/2012

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

Gurudas Nulkar 2012 2

 7/12/2012

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
spend, short meetings, waiting for
someone, may not be for coffee
Meeting place over Coffee
friends group, similar activities,
regular periodic meet-ups
Coffee snobs enjoy the
experience, ambience
Teens & Collegians dont really
come for a coffee
Executives want to meet
undisturbed, work to conduct
MM | Gurudas Nulkar
Mixed age, non-loyal,
mobile, not spenders
35 to 55 years, A3 to C,
light spenders, friends
40 to 75 years, educated,
spenders, sociable
18 to 25 years, need
music, space, faraway
feeling, money & time
Mixed age, just need the
space, can pay more

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

Gurudas Nulkar 2012 3

 7/12/2012

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

Gurudas Nulkar 2012 4

 7/12/2012

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

Gurudas Nulkar 2012 5

 7/12/2012

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

Gurudas Nulkar 2012 6

 7/12/2012

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

Gurudas Nulkar 2012 7

 7/12/2012

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

Gurudas Nulkar 2012 8

 7/12/2012

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

MM | Gurudas Nulkar

Gurudas Nulkar 2012 9

 7/12/2012

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

Gurudas Nulkar 2012 10

 7/12/2012

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

Gurudas Nulkar 2012 11

 7/12/2012

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

MM | Gurudas Nulkar

Gurudas Nulkar 2012 12

 7/12/2012

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

Gurudas Nulkar 2012 13

 7/12/2012

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

Gurudas Nulkar 2012 14