Differentiation & Positioning
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Transcript of Differentiation & Positioning
7/30/2019 Differentiation & Positioning
http://slidepdf.com/reader/full/differentiation-positioning 1/23
PRODUCTDIFFERENTIATION
&
POSITIONING
7/30/2019 Differentiation & Positioning
http://slidepdf.com/reader/full/differentiation-positioning 2/23
Differentiation helps the firm fight on a non-
price platform
Product Differentiation – Provides customer with
a reason to buy
Differentiation should add value
Differentiation can be achieved through multiple sources
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Differentiation & Branding
It is differentiation that builds brands.
Differentiation is a promise & a brand delivers it
While differentiators create brands,
over time,
Brand itself becomes a differentiator
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PRODUCT DIFFERENTIATION
Product Differentiation can happen on two planks:
Tangible Product Attributes & Functions
Intangible characteristics and emotional associations
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TANGIBLE PRODUCT DIFFERENTIATION
Based on Ingredients & Formula
Eg. Marie DigestiveColgate Active SaltDabur Vatika – Henna conditioning
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Based on Functional Value
Apex UltimaVideocon computer controlled fridge3M Scotch Magic Tape & Glue
TANGIBLE PRODUCT DIFFERENTIATION
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Based on Additional Features
Size as a differentiator
Cell Phones
Aristocrat –
Suitcase withwheels
TANGIBLE PRODUCT DIFFERENTIATION
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Based on Packaging
Mango Frooti
Kurkure
Gluestick by Fevicol
TANGIBLE PRODUCT DIFFERENTIATION
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Based on Design Superiority
Apple MacBookBajaj Pulsar Scorpio by M&MJaguar bathroom fittings
TANGIBLE PRODUCT DIFFERENTIATION
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Based on Product Quality/ Technology / OperationalEfficiency / Service
Domino's PizzaLG – No waiting policyLG – Foodguard technology
TANGIBLE PRODUCT DIFFERENTIATION
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Intangible Differentiation
Intangible attributes/ emotional associations & beliefs
around which product can be differentiated
• Prestige/ Status
• Sentiments
• Beliefs
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PRODUCT DIFFERENTIATION
Intangible Characteristics &
Emotional Associations
Used when tangible differentiation does not exists or
used by all players
Depicts prestige
Generally done for premium range products
Depict emotions
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Intangible Differentiation
Eg. – RaymondsEg. Dinesh Suitings
Eg. – Rayban
Eg. TATA Salt
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Challenges for Product Differentiation
Distinctive Attributes
Enhance value of product
Giving customer the value he seeks for
Locating customer benefits / Product Attributes
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PRODUCT DIFFERENTIATION
Cond it ions for Dif ferent iation to succeed
Differentiation should be perceptible
Differentiation should add value to consumer
The promise must be delivered
Differentiation should be rooted in Competitive Advantage
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PRODUCTPOSITIONING
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Positioning is the act of fixing the locus of the product
offer in the minds of target consumer
A product cannot be ‘Everything to Everyone’
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Al Ries & Jack Trout – Positioning is what you do
to the product in the minds of the consumers
Sengupta – The aim of product positioning is to
create a perception for our brand in the prospect'smind, so that is stands apart from the competing
brands
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Tasks involved in Positioning
Analyzing competitor’s positioning: Is there a gap?
Fixing the positioning plank
Ensuring Infrastructure/ competitive advantage todeliver the promise
Developing Value PropositionCommunicating the value proposition to Targetconsumers
Monitoring the positioning
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Perceptual
Maps
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POSITIONING
Positioning is not over in one stroke, it has to be
monitored & Adapted
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Repositioning
Eg. Lifebuoy, Milkmaid, Philips,Complan
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POINTS OF DIFFERENCE
&
POINTS OF PARITY