Brand Positioning& Repositioning

Positioning is arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target customers. (Kotler &et al,2010)

Positioning Possibilities
Attribute positioning Benefit positioning Use or application positioning User positioning Competitor positioning Product category positioning Quality or price positioning (Kotler& et al, 2010)

Positioning in the market place

1. ATTRIBUTE POSITIONING - Positioning on attributes/Features of the product Examples: Dove soap -Contains moisturizing cream Gillete Razor -Thinner Blade edges
-Low resistence coating -Redisigned Precision Trimmer
-

Positioning

Positioning in the market place

2. BENEFIT POSITIONING Positioned as a leader in certain benefit Honda Economy and reliability BMW Ultimate driving machine Volvo Safety and Durability.

Positioning

Positioning in the market place

3. USE / APPLICATION POSITIONING. Positioning for some use or application Nestle Maggi Noodles
Positioned as a snack item Between meals Fast to cook, good to eat

Nestle Milkmaid
Positioned as a base for dessert preparation.

Positioning

Positioning in the market place

4. USER POSITIONING Positioning the product as best for some user group. Adidas/Nike
Taps into the self identity and motivation of serious sports people.

Red and white cigarettes

Positioned for people who are bold and brave Give bravery awards.

Positioning

Positioning in the market place

5. COMPETITOR POSITIONING Product claims to have better performance than competitors

Avis/Rent a Car-Hertz Pepsi-Cocacola

Directly or indirectly refer competitors.

Positioning

Positioning in the market place

6. PRODUCT CATEGORY POSITIONING Positioning as a leader in certain category.

Example: Suave Shampoo -just as good as all other expensive shampoos -All benefits at a lower price

Positioning

10

Positioning in the market place

7. QUALITY OR PRICE POSITIONING Positioning as offering the best scooters

What is it that makes Stella Artois worth the premium price to so many beer drinkers? Like Ferrari buyers (okay, maybe with a little less conviction), Stella Artois loyalists will tell you this: Its not the price, its the Stella experience. Or maybe the higher price helps to create that experience. - Principles of Marketing, By Philip J. Kotler, Gary Armstrong
Positioning 11

UK Marketing Slogan-Reasurringly expensive..

Exhibit 9.4

Steps in the Positioning Process (1 of 2)

1. Identify relevant set of competitive products. 2. Identify the set of determinant attributes that define the product space in which positions of current offerings are located. 3. Collect information from a sample of customers and potential customers about perceptions of each product on the determinant attributes. 4. Analyze intensity of a products current position in customers minds.

Exhibit 9.4

Steps in the Positioning Process (2 of 2)

5. Determine products current location the product space (product positioning). 6. Determine customers most preferred combination of determinant attributes. 7. Examine the fit between preferences of market segments and current position of product (market positioning). 8. Select positioning or repositioning strategy.

Choosing and Implementing a Positioning Strategy

Identifying a set of possible competitive advantage on which to build a position. Selecting the right competitive advantage Effectively communicating and delivering the chosen position to a carefully selected target market. (Kotler &et al 2010)

Competitive Advantage
A product differentiation strategy must meet the VRIO criteria Is it Valuable? Is it Rare? Is it costly to Imitate? Is the firm Organized to exploit it?

if it is to create competitive advantage.

Product Differentiation by Hospitality companies or Visitor Destinations

Physical attribute Differentiation Service Differentiation Personnal Differentiation Location Differentiaition Image Differentiaition (Kotler& et al, 2010)

Physical Attribute Differentiation

Five Star Hotel Casa Santo Dominigo in Antigua,Guatemala- was bulit into the ruins of a monastry,sixteenth century monastry partially distroyed on earth quake.

Another Example
Chez Panisse, Berkeley-Use Natural/Organic Food to Differentiate themselves

Service Differentiation
Sheraton, Shangri-La Provide In room Check in Service.-An example

Personnal Differentiation
Singapore Airlines enjoy an excellent reputation because of the grade of its flight attendants

Location Differentiation
Hotels Facing The Central Park in Newyork, have a competitive advantage.E.g: The London NYC, Hotel differentiates itself through Location

Image Differentiation

A Difference is worthwhile if:

Important Distinctive Superior Communicable Preemptive Affordable Profitable (Kotler & et al, 2010)
Positioning 24

Criteria for Succesful Positioning

Clarity:Value proposition which they are going to serve to target customer or customers. Consistency: first year quality of service, second year product performance. Credibility: believeability and trustworthiness Competitveness: Unique Selling Proposition

Perceptual Mapping
Marketing research technique in which consumers views about a product are traced or plotted (mapped) on a chart. Respondents are asked questions about their experience with the product in terms of its performance, packaging, price, size, etc. (BusinessDictionary.Com)

 A perceptual map is a visual representation of how target customers view the competing alternatives in a Euclidean space which represents the market The map has the following characteristics:
Pair-wise distances between product alternatives directly indicate how close or far apart the products are in the minds of customers A vector on the map indicates both magnitude and direction in the Euclidean space. Vectors are usually used to geometrically denote attributes of the perceptual maps The axes of the map are a special set of vectors suggesting the underlying dimensions that best characterize how customers differentiate between alternatives

Repositioning
Changing a brand's status in comparison to that of the competing brands. Repositioning is effected usually through changing the marketing mix in response to changes in the market place, or due to a failure to reach the brand's marketing objectives. (businessdictionary.com)

Need for Repositioning

Changing Customer Needs Growing Market Needs Meet Customer Requirements Loss in Customer Sales Stagnant Product Benefits Emerging new technologies

Four Phased Brand Repositioning

Phase 1-Determining the Current Status of the Brand Phase 2-What does the Brand Stand Today? Phase 3- Developing the Brand Positioning Platforms: Where can we Take it tomorrow to Grow the Brand? Phase 4-Refining the Brand Positioning and Management Presentation

Customer Feedback- Improving the Brand

Capitalize on the Customer Feedback Finding ways to fill the voids Match customer requirements

Case Study

References
Arora.R,(2006), Product Positioning based on search, experience and credence using conjoint analysis[Online],15,285-292 Available from http:// www.emeraldinsight.com[acessed on 7-10-2013] Boyed.H, Walker.O, Larreche.J(1995),Marketing Management,A Strategic Approach with A Global Orientation,Second Edition.United States Of America,Von Hoffman Press.Inc Fuchs.C,(2009), Evaluating the effectiveness of brand positioning strategies from a consumer perspective[Online],44,1763-1786 Available from http://www.emeraldinsight.com [accessed on 6-10-2013] Gensch.D, Javalgi.R(1988), Issues and advances in Product Positioning Models in Marketing Research[Online],10, 929-949, Available from http://www.sciencedirect.com [accessed on 7-10-2013] Gruca.T,Klemz.B(2003),Optimal new product positioning:A genetic algorithm approach[Online],146,621-633 Available from:http://www.sciencedirect.com[accessed on 4-10-2013]

References
Kaul.A,Rao.V,(1995), Research for Product Positioning and design decisions: An integrative review[Online], 12, 293-320 Available from http://www.sciencedirect.com [accessed on 7-10-2013] Khan.I,(2005), Samsung Mobile Repositioning From Cheap to wow[Online] Available from http://www.slideshare.net [accessed on 8-10-2013]
Kotler.P,Bowen.J,Makens.J(2010),Marketing for Hospitality and Tourism,Fifth Edition.New Jersey, Pearson Publishing. Kotler.P, (2002). Marketing Management Milleniumum Edition, Fifth edition. United States Of America, Pearson Custom Publishing.[Online] Available from http://http://dl.ueb.edu.vn/bitstream/1247/2250/1/Marketing_Management__Millenium_Edition.pdf [accessed on 5-10-2013] Rhim.H,Cooper.L,(2005),Assessing Potential Threats to incumbent brands:New Product Positioning under price competition in a multisegmented market[Online],22,159-182 Available from:http://www.sciencedirect.com[accessed on 6-10-2013]