Saturday, October 20, 2007

How does Positioning matters for a product??



Failure to communicate is the single & most common reason for many of the problems in this world. If people only make some efforts & communicate their feelings & explain their reasons, most of the problems would get solved automatically.

In marketing, positioning is what a marketer does to the mind of a customer. Positioning is not to create something radically different but to manipulate what is already up there in the mind. This is done with the help of right communication which helps to retie the connections that already exists. In today’s era, we come across this truism – “Customer is the king”. But in reality, the goal of a marketer is to make customer feel like a king. To achieve this objective, the customer’s perception is the most important factor & positioning helps in building this perception in the customer’s mind.

Positioning is an organized system for finding a window in the mind. It is based on the concept that communication can only take place at the right time and under the right circumstances.
So, marketer aspires that customer should think of their product when they think about a product class. For e.g. when customer thinks about fruit beverages then “Dabur Real” should come into the mind of prospect. Marketers of “Kurkure” want the consumers to think about “Kurkure” when they think about snacks.

Positioning put forth the unique selling proposition which marketer wants to pitch to the customer for buying the product. A shampoo manufactures positions his product as per the different market segment needs – Shampoo appealing to customers with curly hairs, weak hairs, very hard hairs etc. One of the prime reasons behind doing this strategy is human psychology – “You taste what you expect to taste” or “You see what you expect to see”.

· Recently, Coca Cola has entered into fruit beverages category with the launch of “Minute Maid” juices. Minute Maid has been positioned as a fruit drink which is pulpy in nature. This positioning in turn makes this product earn a place in the mind of consumer which is very close to juices supplied by street vendors or made by a housewife at home.

· “Dettol Soap” has positioned itself as an antiseptic soap which kills germs & bacteria. (http://youtube.com/watch?v=SqtNjWa6Kfg&mode=related&search=) Dettol never communicate anything related to freshness as does “Liril” or soap for the fim stars as does “Lux”. So, this unique positioning helps Dettol to create a unique positioning in consumer’s mind.

· Similarly, “Emami’s Fair and Handsome” positioned itself as a fairness cream solution for men exclusively & it positions itself as an alternative to guys instead of using fairness cream meant for girls. (http://youtube.com/watch?v=5f0K9ynvzjU&mode=related&search=Advertisment)

The best way to achieve this is to clearly differentiate yourself from you competition in what you
are offering and clearly tell the consumer exactly what you are offering. Positioning has to be specific. The more specific, the better will be the positioning. People are more likely to trust specialists than generalists.

Positioning is not a macro phenomenon. With competition creeping in (thanks to the wave of globalization), positioning has potential to yield results at micro level also – e.g. local retail store. Traditionally, we have a habit of branding local store as “Jeevan Lal & Sons”. This kind of positioning helps little to store in winning new customers since customer cannot make anything about the store from name itself. On the other hand, there are organized player who are very clear in their communication & hence it’s now a necessity to understand the nuances involved (even with retailer’s name).

Positioning is not only about products & services. One can position himself/ herself as a person e.g. what people think about “Charles Shobraj”!!

Get your Marketing Mix elements right to become a strong brand. !!

Elements of marketing mix forms the foundation of a marketing strategy. From a brand perspective, it helps to create linkages across customer’s mind & ultimately helps the brand to be in the consideration set of customer. Traditional marketing mix consists of 4 P’s – Product + Place + Price + Promotion. In a more holistic approach, 3 addition P’s can be a part of marketing mix – People + Process + Physical (Transportation). Marketing mix establishes brand’s strategy in a more systematic & structured manner. Till mid 80’s, brands used to ride over the market on the basis of product attributes. For e.g. Sony was a clearly differentiated name in TV category comprising of players like Videocon, Texla. But in recent era, product attributes offer very less to differentiate in relation to competitors. The boundaries which are created on basis of product features don’t exist anymore among players like Samsung, BPL, Onida, Videocon. So, there is a desperate need to leverage out marketing mix elements to build up a strong brand. There are certain examples from Indian context where brands optimized at one or other marketing mix element to remain contemporary in market:

  • “Iodex” was a leader in pain relieving creams & thus became complacent with its position in the market. Iodex belongs to a stable of Smithkline Beecham but came under severe attack from a small company Paras. Paras came into the market with their product “Moov”. Moov exploited the Iodex’s weaknesses – Black color leading to stains (Grease like feel), glass bottle packaging. Iodex responded back by changing various product attributes – Green color, Pain reliever in same form. Although, Iodex is trying to gain the lost ground but some damage is already done being complacent.
  • Frooti has a higher brand recall than other carton drink brands & this success can be attributed to wide distribution network & consistency in promotion of brand (Same jingle is played in every ad – Mango Frooti, very very Juicy).
  • Maruti was a market leader in automotive with a product like Maruti 800 & thus never tried to be innovative. But arrival of competitors like Hyundai, General Motors, Skoda, Daewoo, Fiat has propelled Maruti to come with new models – more towards in premium category. Maruti is also leveraging their wide distribution network & schemes like resale of Maruti cars.
  • Amrutanjan brand is fighting hard to remain contemporary in pain relievers market. It launched a number of variants catering to different segments of market.

On the other hand, there are brands which failed since they couldn’t prioritize over which of the marketing mix elements needs to be leveraged. Certain examples are:

  • Royal Enfield (350cc) was a major player in the motorcycles market till late 70’s. With the advent of players like Hero Honda (100cc), market expanded but Royal Enfield became a niche player from a mass market player. Royal Enfield‘s product “Bullet” has associations with being a rugged & macho personality. Much of this kind of personality can be attributed to purchase of bike by military people. Bullet is not able to break through this image & also not able to expand the niche so created.
  • HMT watches were a big brand owing to Indian – made feature. But couldn’t keep it with times in terms of product attributes & promotions.
  • Sometimes, companies like multi national companies take consumer granted in assuming the acceptance of their product. It happened in case of Heinz India. When Heinz launched their product in Ketch-up category, there were already well established players like Maggy & Kissan (HLL). On promotions factor, there was a need to first create brand awareness & then start building up the brand on product attributes. Contrary to this, Heinz stressed over the product attributes in its advertisements (Ketch-up is thick). People had no clue about the brand name itself in India but company assumed that Heinz would make up to the consideration set (consisting of Kissan, Maggy) of consumers but that didn’t happen.

Heinz also priced their product at a premium in a category like Ketch-up where penetration is 3-4%. So, company couldn’t crack through the customer base of established competitors & was more successful in institutional market. Heinz couldn’t leverage on two P’s – Place & Promotion J