Positioning

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Positioning Branding

• Presented by
• Pankaj Jain Brajesh Mishra

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Summary and Learnings

• Positioning got its attention when in 1972
  Jack Trout and Al Ries wrote a series of articles
  entitled The Positioning Era for the trade
  paper Advertising Age.
• Today positioning has become the buzzword of
  advertising and marketing, all over the world.
• Positioning starts with a product .A piece of
  merchandise ,a service ,a company ,an institution
  or a person. Perhaps yourself.
• But it is not what you do to a product.
  Positioning is what you do to the mind of the
  prospect.
• that is ,you position the product in the mind
  of the prospect.

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• LEARNINGS Even as an individual you need to
  manage perceptions of others, about yourself how
  they feel and believe about youso it does not
  matter in which stream you will be into
  (Marketing,HR,Finance etc.) you just have to do
  positioning
• Shahrukh Khan Romantic,talented,monogamus

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Vocabulary

• Brand
• Perception
• Positioning
• Brand value
• Mind share

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Brand.

• A name, sign or symbol used to identify
  items or services of the seller(s) and to
  differentiate them from goods or services of
  competitors.

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GOOGLE. SEARCH.
BMW. DRIVING.
INDIA. DIVERCITY.
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Positioning

• When you listen ward Mercedes-Benz
• The first ward that comes to your mind is
  prestige
• Here Mercedes-Benz is a brand which has been
  positioned in our minds in such a way that
  whenever we listen to it, we start thinking of
  prestige (Naam,Rutva and status) it is called
  Positioning.

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Definition.

• Positioning is not what you do to a product.
  Positioning is what you do to the mind of the
  prospect.
• Positioning is ,how you differentiate yourself
  in the mind of your prospect.
• e.g.
• Mysore Sandal -Purity and natural fragrance.
• Margo- Herbal(neem).
• Lifebuoy-Hygiene.

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How these companies positioned themselves

• Mercedes-Benz prestige.
• BMW driving.
• Volvo.. Safety.
• Starbucks high-end coffee..
• Rolexhigh-end watches.
• Google .Search.
• Red bull energy drink.
• FedEx overnight (delivery)

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FedEx
See how FedEx , the American courier has
positioned itself as a fastest and most accurate
(overnight) courier giant ,which is impossible to
be stopped!
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Why positioning?

• There are two kinds of products commodities and
  brands. A commodity is a product that is same as
  those made by every other company. As a result
  the only way to sell a commodity is by selling it
  cheaper than your competitor.
• A brand on the other hand, is (at least
  perceived in that way!) a product that is unique
  and different. A customer can buy Tata Indica for
  a lot less money than a Mercedes Benz, but most
  Mercedes customer wont buying tata or any other
  vehicle simply because its not a
  Mercedes-Benz.
• so, you need unique brands to make money.

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Why positioning?

• The mind rejects much of the information
  offered to it due to over-communication (Per
  capita consumption of advertising in America
  today is about 200 a year) from each side. In
  general , the mind accepts only that which
  matches with its prior knowledge or experience.
• In todays communication jungle out there,
  the only hope to score big is to be selective, to
  concentrate on narrow targets, to practice
  segmentation. In a word positioning

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Why positioning?
You narrow the focus

• Starbucks narrowed its focus to high-end
  coffee and became the world's largest coffee
  chain.Dell Computer narrowed its focus to
  personal computers "sold direct" and became the
  world's largest PC manufacturer.BMW narrowed
  its focus to "driving" and became the
  largest-selling European luxury carin the
  U.S.Focus is the key to successful brand
  building in today's ultra-competitive marketplace

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The Oversimplified Message

• Today the best approach to take, in our over
  communicated society is to simplified message.
• you simplified the message, then simplified it
  some more if you want to make a long last
  impression.
• -Al Ries and Trout

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Volvo owns a single word in the minds.
Volvo. Safety.
Volvo has successfully simplified and
Communicated this message.
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You differentiate or die

• Advertising has entered a new era where
  creativity is no longer the key to success ,today
  a company must create a position in the
  prospects mind. A position which is unique and
  based on companys strengths and on realities.You
  dont lie you only exaggerate.
• Camlin (marker)-Permanent.

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Beers

• Heidelberg - the working mans beer.
• Bud - the athletic beer
• Bud Lite - the party beer
• Millers Lite - the fun and great test
• Coors - the environment beer
• Coors light - the fastest beer

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Cigs

• Marlboro - the rugged male
• Virginia slims - the independent female
• Camel - cool and
  sophisticated
• Benson hedges - intellectual

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So is positioning always beneficial?

• Xerox first made photo copy machine sold them
  world wide, as the time passed Xerox become
  synonymous to photocopy.
• When it launched its
• Xerox data system", fax machine,
• and PC all were disastrous and
• Xerox lost billions of dollar
• since it could not change or
• reconstructed minds of prospects.

Xerox. Photocopy.
Same happened with IBM Dalda
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Repositioning Reconstruction of perceptions.

• Companies like IBM, Bajaj and Xerox did it.

Company Traditional image Repositioned image
IBM Computer hardware Services hardware
Xerox copier Hardware software
Bajaj Scooters motorcycles
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Positioning makes brands and brands give
value to companies
BRAND VALUE bil BRAND VALUE bil
65.3 32
55.8 30.9
57 29.3
51.5 29.2
33.6 23.5
6 Toyota7 Intel8 McDonalds9 Disney10
Mercedes-Benz
1 Coca-Cola2 Microsoft3 IBM4 GE5 Nokia
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• Top brands of the world

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HUMAN TOUCH
In the end, have a..

• In the automobile market where technology and
  innovations are key to success see how a company
  trying to differentiate itself from its
  competitors.

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References

• BOOKS- Positioning the battle for your
  mind
• by Al Ries Jack Trout
• Marketing Management
• by Philip Kotler and Kevin
  Keller
• And of course Google.com!
• You may get this presentation on my blog i.e.
  brajeshsudarshan.blogspot.com

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Recommended readings
Author Books
Al ries 22 immutable laws of branding
Jack trout The new positioning
Michael porter Good to great
C.k.prahalad The fortune at the bottom of the pyramid
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Feedbacks are welcome.

• pankaj_jain47631_at_yahoo.com
• mishrabraj_at_rediffmail.com

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THANK You.
Question please.