POM: Session 12 Marketing Strategy - Positioning

What is Positioning?

As defined by Philip Kotler, Positioning is the act of designing a company's offering and image to occupy a distinctive place in the minds of the target market.

A good positioning not just give the company that competitive advantage but also help company in realizing the customer focused value proposition. These are the target market customer attributes carefully studied and incorporated in the company’s marketing efforts.

Mahindra & Mahindra's new SUV, TUV300, when recently launched to a segment of consumers interested in lifestyle products (target market), they emphasis on ruggedness, luxury and comfort. They roped in the actor of movie 'Bahubali' as brand ambassador to clearly condition the desired attributes in the minds of consumers. 

Positioning Strategies

Decision regarding positioning takes the careful investigation and analysis of the following: 

Step I - Determining Competitive Frame of Reference

Frame of Reference

Frame of reference is the setting around the product. It defines the competitors and target consumers. Usually, the strategy aims at identifying one or two competitors and present their position better than them. For example, Tide always positioned with Rin, Ariel with Surf.

Identifying Competitors

Identifying competitors also refers to identification of category. The category membership includes all potential and current competitors as well as substitutes. For example, Coke can have number of competitors depending upon the category membership:

Identifying Target Customers

The positioning is reflected in the minds of consumers, hence it very important to identify the target market benefits and define the uses of product in their minds. The target audience must clearly know that the product is for them. For example, Starbucks is for young, Rolex is for achievers and Zara is fashionable. Company can use qualitative research to identify the important attributes consumer use when choosing between brands. 

Analysing Competition

The competitors can be analysed on the parameters of awareness, product quality, availability, technical assistance provided and the employees. Different companies have different combinations of these factors. A company that is very good in quality and have a good name in market may not distribute extensively.

For the companies entering into new markets, the first task is to identify and associate a category which is very new. For example a product like ipod or ipad.

Step II - Defining Optimal POD and POP

Point of Difference

These are attributes that are strongly associated with the brand in the minds of consumers. POD is also known as USP or unique selling propositions. A firms may have one or number of such point of differences. The differences can be based on functional benefits, emotional benefits and psychological benefits. Hettich kitchen fitting focus on kitchen design that are more space saving and functional. Hero motors differentiate on mileage of it's two-wheeler.

Differentiation Strategy

The differentiation strategy should be focused on customer advantage. Ideal firm develops differentiation in such a way that enhances the overall ability to perform in one or more ways. Also the differentiation should be leverageable and can use as a springboard to new advantages. Overall a firm may choose a differentiation that is important, distinctive, superior, communicable, preemptive, affordable and profitable.

The extent to that a company can differentiate and position itself as providing superior customer value, it gains competitive advantage. The differentiation can be created in products and services, distribution strategies, people and overall image.

Point of Parity (POP)

This describes the category the company or brand wants to serve. It's put larger frame of reference in the minds of consumer. These are the associations that are not necessarily unique to the brand but may be shared with other brands.

Category points-of-parity are associations’ consumers view as essential to be a legitimate and credible offering within a certain product or service category. They represent necessary conditions but not necessarily sufficient for brand choice. For example, a cafe or a fast food restaurant. However, it may change over time due to technological, legal, or consumer trends. 

Competitive points-of-parity are associations designed to negate competitors’ points-of-difference. The brand should be in a strong competitive position.

Dettol and Savlon both are antiseptic is their POP. No-sting property of Savlon is it's POD.

Multiple Frame of Reference

When a brand identifies more than one actual or potential competitive frame of reference it is has multiple frame of reference. For example, Cafe coffee Day can position itself as a cafe (frame of reference local cafe), or a quick-serve restaurant (frame of reference any fast food joint like MCD) or as a retail coffee brand (frame of reference coffee brand like Nescafe).

Straddle Positioning

Occasionally a company will try to straddle two frames of reference. Straddle positioning is a situation one a brands POD in one segment becomes POP in other segment and visa-versa. For example, Honda Mobilio's positioning as spacious MUV yet stylish car. It is a stylish car in MUV segment and spacious for normal cars. 

Step III – Choosing POP and POD

The selection of POP and POD is driven by the needs of category membership and the necessity of competitive differentiation. Marketers must decide the levels of brand attributes, benefits and value by using quantitative research. Consumer centric positioning aims at identifying POP and POD using perceptual maps. These maps are drawn looking into consumer perceived positioning by plotting them in a graph. The dimensions of the graph can be any two dimension. For example – price and quality. The relative and absolute position of a firm can be identified on these two dimensions (attributes). 

Step IV – Establishing Brand Mantras

Brand Mantra are heart and soul of the brand. This is what the company communicate to its consumer about the brand promise or brand essence. According to Kotler, the designing of brand mantra should done keeping in mind that it should be communicate, simple and Inspirational. The brand mantra can broaden the frame of reference. For example Britannia Little Hearts biscuits promotes as “a treat to your heart” acts as emotional modifier. These can also be used to change the position according to markets/ consumer’s taste & preferences. For example – Dabur Honey as substitute for sugar for health conscious people. In case of Dove, the mantra, “superior moisturizing” help them grab a new category.

Kevin Keller in his paper, Brand Mantras: Rationale, Criteria and Examples, has defined the core brand promise that combines functional benefits with emotional and descriptive modifiers.