POSITIONING: Fundamentals and Paradigms

What is Positioning?

Positioning is defined as a process by which a firm markets its

product or brand to occupy a distinctive position in the consumer’s
mind.

The 13 MP camera is a swivel one, which allows

you to rotate it (up to 206 degrees).
 POD @ Metabical

Company
(Metabical)

POP
Competitor Consumer

POD @ Compt
 PERCEPTUAL MAPPING: What it is?

Perceptual mapping is a diagrammatic technique used by asset marketers that attempts to visually display the perceptions of
customers or potential customers. Typically the position of a company's product , product line , or brand is displayed relative to
their competition.[1] Perceptual maps, also known as market maps, usually have two dimensions but can be multi-
dimensional; they can be used to identify gaps in the market and potential partners or merger targets as well as to clarify
perceptual problems with a company's product.
 Doing Positioning

Developing & Communicating a Positioning Strategy

Who are the targets

What market I am
Deciding on the Competitive What is the nature of
Competing in
Frame of Reference for positioning competition
Eg. Starbucks

Defining the appropriate

Category POPs
PODs & POPs Competitive POPs
Consumers
Don’t know
Announcing benefits
Establishing Category Membership Comparing to exemplars
Relying on the product
Consumers know descriptor
But not convinced
Maintain consumer
DESIRABILITY &
Choosing & Creating POPs & PODs DELIVERABILITY criteria

Addressing negatively
Correlated PODs & POPs.
Cornerstones of Positioning strategy:
The strategic questions
 Who Am I?

 What Am I?

 For Whom Am I?

 Why Me?
 Positioning

Paradigm 1: Classical Positioning Emergent Category dynamics

The development of competitive trends

The Reinforcement of competitive trends

 (refer to the Rethinking Positioning write up)
Paradigm 2: Disruptive Positioning
Category Identity

Position against vulnerabilities of CI

Category Structure
 Disruptive
Positioning

Reverse Breakaway
positioning Positioning

A firm creates
A firm creates differentiation differentiation from its
from the rest of the category category by “borrowing”
by offering a value associations from a different
proposition that defies both category, which has the
competitive and eventual effect of stretching
consumption trends in the the boundaries of its own
category. category
 Breakaway positioning
 Through breakaway positioning, a product escapes its category
by deliberately associating with a new one.
 By manipulating the marketing mix a firm can change the way
the customers frame a product , therefore the way they
respond to it.
 A breakaway product instead of being framed as simply an
alternative to others in its category, customers perceive it as
altogether different product.
 This strategy allows the product to shift backward on the life
cycle curve, moving from doldrums of maturity into a thriving
growth opportunity.
The consequences of a successful Breakaway
Positioning strategy

 A change in consumer purchase criteria

 A change in consumption patterns

 The attraction of new consumers into the category

 A change in the firm’s competitive set.

 An expansion of category boundaries.

 Reverse Positioning

 Assumes that although consumers do want something more than the

baseline product , they don’t necessarily want an endless parade of new
features

 Once a product is returned to its baseline state, reverse positioners

supplement the stripped – down product with one or more carefully
selected attributes that would typically found in a highly augmented
product

 This combination of attributes allow the product:

a. to assume a new competitive position within the category
b. move backwards from maturity into a growth position on the life
cycle curve
 IKEA

 IKEA has long been celebrated in the business

press for its innovative marketing and
phenomenal growth

 Cheap and stylish inventory

 Top stores compete by carrying enormous and varied inventories

 Key factor in the stores high performance is its brilliant reverse

positioning
 No in- store sales assistance

Limited Variety

IKEA STORE
(before No Delivery Option
reverse
positioning)
Most of the furniture require
assembly

Durability
 Stores have an airy, ultramodern
look

Company operated day care

center for children
IKEA STORE
(After reverse
positioning)
Customers can stop for lunch at a
delightful cafe

Customers can purchase items

besides furniture like toys and
house wares
Benefits for IKEA

 IKEA has become the 7th largest furniture stores in the U.S.

 It has doubled its market share, and

 tripled its U.S. sales from $600mn to $1.7 bn over the past 8 years
Stealth Positioning
Stealth positioning conceal the true nature of their products by affiliating them
with a different category.

Skeptical Thinking .

You may have a great product, but the category turns off potential customers.

By using stealth positioning, companies can, in effect, sneak products into the
market and gain acceptance that might otherwise prove elusive.

stealth positioning and deceit.

AIBO
Similar stealth strategy for household robot category.

Sony positioned the product as a lovable but otherwise useless pet.

Market test of a flawed technology.

Sony gathered invaluable consumer feedback to guide continued development of

its robots.

Next-generation robot :QRIO.

THANK YOU