Differentiation and Positioning

Product position

Product position is the way the

product is defined by consumers on
important attributes—the place the
product occupies in consumers’ minds
relative to competing products

– Perceptions
– Impressions
– Feelings
 Positioning
• Meant to differentiate the brand from the competition
in the mind of the prospect

• It is the act of designing the company’s offering and

image so that they occupy a meaningful and distinct
competitive position in the target consumer’s minds
» ~ Philip Kotler

• To succeed, the first step is to position or ‘situate’ the

brand in the target consumer’s mind in such a way that
in his or her perception of the brand it is distinctive and
offers a persuasive customer value better than its
competitors
» Ries and Trout
 How does it work
• Positioning ‘s goal is to locate the brand clearly in the
minds of consumers to maximize the potential benefit to
the firm

• Good brand positioning helps guide marketing strategy

by clarifying the brand’s essence, identifying the goals it
helps the consumer achieve, and showing how it does so
in a unique way: e.g. –
– Moov, the pain relieving ointment from Paras Pharma,
succeeded in a market dominated by established brands
that promised relief from head/body ache & sprains by
positioning itself as the backache specialist 5
 Positioning examples….
• Dove: One-quarter moisturizing cream

• Clinic All-Clear: The dandruff-control shampoo

• 7 up: The Uncola

• Avis car rental : We are number two

 Whirlpool Intellifresh
• Whirlpool’s latest offering Intellifresh– a range of intelligent refrigerators
– has it all to become an intrinsic part of your kitchen.

• The new TVC promotes the range as an ideal addition to the household
with its innovative Adaptative Intelligence (AI) Technology. The campaign
is a quirky take on how the Intellifresh refrigerator is a couples’ new best
friend.  The brand ambassadors point out to the freshness of food that
stays for days on with the help of Intellifresh refrigerator.

• The Intellifresh range of refrigerators with three IntelliSensors (one

outside the refrigerator and one in each compartment) helps in sensing
load, weather and usage pattern . The AI microprocessor collects the
data from these sensors and intelligently adapts the cooling
temperatures across all compartments, ensuring freshness for longer.
The entire process has no need for manual intervention.
PERCEPTUAL POSITIONING MAPS
 Perceptual Map of Beer Market

Heavy Popular
Full Bodied Heavy with Men
•
Old Milwaukee Budweiser
• Beck’s •
Meister Brau Special • Heineken
• Miller • Occasions
Blue Collar • Dining Out Premium
Good Value
• Coors
Stroh’s
Budget Premium
• Michelob
• Coors Popular
Pale Color
Miller • Light with
Lite
On a
• Women
Old
Budget Milwaukee Light Light Less Filling
Light
Perceptual Map of Women’s Clothing Retailers in Washington, D.C.,
Showing the Ideal Points of a Segment of Consumers

Washington 1990 Women’s fashion market

Women’s-wear fashionability
Conservative versus current

The Limited

Neiman-Marcus
versus very latest

Saks
Bloomingdale’s Macy’s
Nordstrom

Hit or Miss
Dress
Garfinkels Barn TJ Maxx
The Gap Sassafras
Casual Corner
Britches L&T Marshalls Loehmann’s
Hecht’s
Kmart Woodward & Lothrop
Sears
JC Penney
Talbots

Women’s-wear value for the money

Worst value Best value
Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990.
 Choosing a Differentiation and Positioning Strategy

• Identifying a set of possible competitive

advantages to build a position

• Choosing the right competitive advantages

• Selecting an overall positioning strategy

• Developing a positioning statement

Identifying Possible Value Differences
and Competitive Advantages

Competitive advantage is an advantage over

competitors gained by offering consumers
greater value, either through lower prices or
by providing more benefits that justify higher
prices
 14

Differentiation and positioning

Choosing a Differentiation & Positioning Strategy

• Identifying a set of possible competitive

advantages to build a position by providing
superior value from:
1. Product differentiation
2. Service differentiation
3. Channel differentiation
4. People differentiation
5. Image differentiation
 1. Product differentiation
ACOUSTIC ART The BeoLab 20
• Product diffn.: generate economic value by offering a
Since 1925,that
product Bangcustomers
& Olufsenprefer over competitors’ product.
has e.g.
been synonymous
Harley Davidsonwith
the• Product
art of acoustic perfection.
attributes
To this day they
–Product still–calibrate
Features the shape of a golf club head; Mercedes Benz
and tune every loudspeaker
and “Crumple Zones”
–Product
model by hand.
Complexity – multiple functions on a watch; Kabab
Factory – “Display Kitchen”
–Timing of Introduction – being the first to market
–Location – locating next to a freeway exit; Convenio at petrol
pumps
15
 1. Product
differentiation

16
 2. Service differentiation
• Service diffn. tries to create competitive advantage by
creating a service envelope (in product mktg.) or superior
service…
SERVICE QUALITY
– e.g. Domino’s –> 30PARAMETERS:
minute deliveries Narayan
(Zeithaml et al. 1990)Hrudayalaya –>
‘industrializing services’ to
Reliability; Assurance; bring the cost
Tangibles; down ofand
Empathy; major surgery
• Bases for service diffn.
Responsiveness
– Speed of delivery (Domino’s)(“FedEx: When it
absolutely, positively has to be there overnight”)
– Availability (Tata trucks maintenance/spares; Enterprise rent-a-
car free pick-up)
– Loyalty programs (Star Alliance)
– After sale service and training (Zappos)
– Warranty/guarantee – (McDonald satisfaction guaranteed)
(Hyundai USA – 5 yr or 100,000 miles warranty program)

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 3. Channel differentiation
• When channel is configured to provide a
competitive advantage thru –
– Coverage/ Expertise / Performance (in delivery,
installation, customer training, consulting, repair)
• e.g. Eureka Forbes became No. 1 in India for domestic
vacuum cleaners by pioneering direct selling
• Amway; Avon; Domino’s; Amazon (Direct marketing)
• Ikea; Walmart ; Big Bazaar – Mass merchandising thru
direct purchase from mnfrs. & deliver EDLP
• AMUL – supply logistics driven coverage
• ITC eChoupal; HUL Project Shakti
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 4. People differentiation
• Cos. may gain a strong comp. adv. thru better-
trained people.
– Singapore Airlines enjoys an excellent reputation in
large part because of its fight attendants
– The McDonald’s people are courteous
– The IBM people are professional
– The Disney people are upbeat. 
• People differentiation thru => Competence,
Courtesy, Credibility, Reliability,
Responsiveness,
(The SIA Girl) Communication skill
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 5. Image differentiation
• An effective image establishes the product’s character
and value proposition, it conveys this character in a
distinctive way and it delivers emotional power
beyond a mental image.
• For image differentiation to work, it must be
conveyed through every available communication
vehicle and brand contact, including logos, media,
special events and atmosphere
– Body Shop – Anita Roddick; Shahnaz (Cosmetics); Bang &
Olufsen
Ranked the best resort in Asia , Travel + Leisure, USA in the 2013 World’s Best Awards.

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(Tanishq_wedding_2013)
Choosing the Right Competitive
Advantage

Difference to promote should be:

Important Distinctive Superior

Communicable Preemptive Affordable

Profitable
 Selecting an Overall Positioning
Strategy

Value proposition
is the full mix of
benefits upon
which a brand is
positioned
POSITIONING & REPOSITIONING
EXAMPLES
"Our differentiation is being simple and digital“- HDFC Bank
• “Our service differentiation is based on being
simple and digital”, says Santhanam.
Examples include, the userfriendly mobile
banking interface to an evolved net banking
system that offers over 250 transactions to
ensure that a customer can fulfil all his
banking needs.
• New age technologies like AI (artificial
intelligence) and machine learning are being
put to use to both enhance the bank’s
existing services, as well as offer new ways to
transact, adds Santhanam. For instance, the
chat bot, deployed on the bank website last
year, has handled close to 8 million queries
with an accuracy rate of about 85%. The
bank’s Onchat bot on Facebook Messenger
has more than 6 lakh active users monthly.
 Anchor by Panasonic unveils new brand positioning campaign;
Conceptualised by Leo Burnett India

• “Anchor Electricals’ Indian heritage and products coupled with

Panasonic’s Japanese technology and innovation empower us
to provide our customers with a vast range of high-quality
electrical products. With the “Naye India ke Badhte Load ke
Liye” campaign, we plan to position Anchor by Panasonic as a
brand that is familiar with modern India’s expectations from its
electrical devices and showcase how the customers benefit
from our offerings…….
•
The ‘Naye India ke Badhte Load ke Liye’ positioning accurately
sums up the need gap that Anchor by Panasonic is trying to fill
with its high-quality wires and cables, and MCBs.”
 Kia looking at premium positioning to
establish brand
• South Korean carmaker Kia Motors wants to position itself as a
premium brand when it makes its market debut in India around
the second half of 2019. A late entrant into the country, Kia
hopes to stand out in a crowded market with products that are
more aspirational than its well-established rivals.

• "We will position ourselves at a slight premium because we

cannot compete with Maruti and Hyundai on cost," Han-Woo
Park, President of Kia Motors told Autocar India on the sidelines
of Auto Expo 2018. Kia believes design will be a key
differentiator for the brand, enabling its models to appeal to a
different set of customers.
‘The Future is exciting. Ready?’, says Vodafone in
new global brand positioning
• The brand focuses on the theme of optimism about
the future and positions Vodafone as a modern
contemporary, inspiring and future-fit brand, using
the new tagline, "The Future is exciting. Ready?“

• This new positioning, part of its rebranding across 36

countries, is designed to underline Vodafone’s belief in
new technologies and digital services playing a
positive role in transforming society and enhancing
individual quality of life in the years ahead.
DTDC launched its New Brand Campaign; reiterates its
Brand positioning of ‘Going beyond the Parcel’

• The new brand campaign with Sourav Ganguly at its helm brings out the
credentials of DTDC’s vast network, its extensive service offerings with a
commitment to go that extra mile to ensure that every customer’s parcel
reaches its desired destination on time with utmost safety & security.
Therefore, DTDC is not just in the business of ‘Delivering value’ but a
business that ‘Goes Beyond the Parcel’.

• “Every parcel brings with it, a bagful of emotions for the customer in the
form of anticipation, excitement, love, relief or aspiration. And for our
business partners it often serves as a medium to realize their pride &
ambition. DTDC is not merely in the business of transferring things
efficiently from point A to point B. By delivering all these and more to the
remotest of corners in the country at affordable rates, we are helping
realizing aspirations, beyond any boundaries!”
 Samsung will continue its efforts to differentiate its
smartphones by adopting cutting-edge technologies

• In order to expand the sales of premium smartphones, Samsung would

strengthen product competitiveness by differentiating core features and
services, such as the camera and Bixby, and reinforce the sell-out
programs and experiential stores. In addition, Samsung plans to continue
optimising its mid to low-end lineup and enhancing productivity in order
to achieve qualitative growth of the smartphone business.

• "Samsung will continue its efforts to differentiate its smartphones by

adopting cutting-edge technologies such as foldable OLED displays," the
South Korean giant said. It will also drive forward new businesses related
to Artificial Intelligence (AI) and Internet of Things (IoT) by strengthening
the ecosystem based on Bixby and building on Samsung's 5G technology.
 The Vanca Woman
• The Vanca’s segmentation and targeting have been focused on the Vanca Woman
profile. . “We tried to identify who this ‘Vanca Woman’ is… we did a lot of
brainstorming and identified certain key attributes….The Vanca Woman is
between 18-40 years, is independent and working, likes to party, and is socially
very active, Based on this customer profiling we started creating wardrobes
according to her roles: workplace wardrobes, evening wear wardrobes, party
wear wardrobes and so on. It’s a long term campaign,” assures Sinha.

• From a positioning perspective, the brand has pitched itself as “European Fashion
for the Beautiful You”. Products have been designed to appeal to the aspiring
target market at a reasonable price and by being available on the major
marketplaces, the brand has made itself available to Tier II and Tier III towns as
well. The thrust of their promotional strategy is online and they have not
ventured into any significant offline channel. Thus, the focus of their online
promotions has been on encouraging traffic to the site.
 Piaggio plans premium positioning for Vespa scooters

• Unveiling the Vespa, Ravi Chopra, chairman and

managing director of Piaggio Vehicles, said: “Our
foray into the Indian market activates a whole new
segment of style and fashion-conscious consumers
who are looking for a premium lifestyle offering
reflecting their personalities and attitudes. We
would like to leverage this sizeable untapped market
segment that shows tremendous potential for
growth in the coming years.”
How heritage brand Rooh Afza is repositioning itself

• This classic summer ‘sharbat’ has always been

a family summer drink. Now the effort is to
change the brand positioning to a drink that
can be consumed in all seasons and attract the
youth
Pantene repositions itself as the brand that helps women 'shine'

• Pantene will now be positioned as the brand

that helps bring out a woman's inner shine,
with the help of her outer shine (on using the
shampoo). The idea is to bring out the best in
women, both internally and externally.
 Of seas and cities: Nautica’s repositioning aims to make the brand more modern

• Nautica was founded in 1983, which makes us a

33-year-old brand. It was necessary for us to
become introspective to maintain relevance,
and we began with a consumer segmentation
across five different countries. This made us
realize it is necessary to enhance our heritage
for our consumers, and provide fashion with a
current sense of style that is in sync with trends.
 Hyundai Motor India repositioning itself as a modern premium
brand

• The company has identified three pillars —

creativity, innovation and quality — to help
transform into a modern premium brand. And
as the company gears up to introduce more
products, it is focusing more on quality.
Sun Pharma bets on M.S. Dhoni to boost sales for Revital H

• Sun Pharma decided to reposition Revital H as

a ‘fit and healthy’ brand. Dhoni emerged as
the popular choice as brand ambassador on
the basis of consumer research conducted by
the company
 Live Young, Live Free….
• M&M’s
“As leaders in campaign
the SUV segmentsteers message
in India, over time of rugged
we have built ayet safe
strong portfolio
of brands
ride with differentiated positioning & brand values. But one thing that holds
all these brands together is the unique Mahindra DNA of making tough, rugged and
• Targeted
stylish vehicles.”at those who seek a multitude of experiences
“…our
andconsumer insight reveal
an alternate andthat lifestyles in India
adventurous are changing
lifestyle beyond— SUVs are
the
getting more popular and people are using them more and more not just for safe
ordinary
mobility and&mundane..
in the cities towns but also to get out into the countryside with their
Mahindra Live Young, Live Free.
friends and family on long road trips, to visit exotic destinations they have always
wanted to go to such as- Leh or Kanyakumari; pursue their passion for off-road
thrills and so on.”

“Our new TVC ‘Live Young Live Free’ has a strong emotional connect which cuts
across segments and exhorts people to join this movement of sorts. It is a testimony
to the human spirit which aspires to the freedom to pursue one’s passion.” (Vivek Nayar,
CMO) (Business Line, 2013)

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• Kellogg's to position itself as a holistic snacking brand soon

• To focus on brand positioning, after sales service: KIA President

• Indian Express undergoes a brand refresh, targets ‘The Indian Intelligent’

• Relaxo rebrands after 40 years for a new India

•
Gionee ramping up brand position in India

• Bharti AXA Life Insurance launches new brand positioning

• ‘We prefer to increase the fly cruise market from India’

 A Positioning Success Story
Vicks Vaporub

• Whereas balms were multi-purpose ointments used for colds,

aches, sprains etc., Vicks Vaporub was positioned specially as
a rub for colds – for children

• Positioned for use on the ‘nose, throat, chest, all over the
back’

• The rationale behind this was demonstrated in advertising as

the famous two-way action: (a) the inside action and the (b)
outside action
• Nutralite is a table margarine. World over margarines
are used as a substitutes for butter. Margarines are fat
derived from either animal products or vegetable oils.
The veggie margarines are used as a healthy
alternative for butter. The organized branded butter
market in India is estimated to be around Rs800
crore . The market is dominated by Amul. Nutralite
brand achieves relevance owing to the changing
lifestyles of urban Indian consumer. The affluent laid
back lifestyle has created lot of lifestyle diseases and
prompted the urban Indian consumer to be health
conscious. The increasing incidence of heart problems
and diabetes has paved the way for the emergence of
health foods. Nutralite is positioned directly as a
healthy alternative to butter.
 Dilmah

• https://www.youtube.com/watch?v=8Jzv_XmL
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• https://www.youtube.com/user/DilmahRealTe
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