7 Effective Product Positioning Strategy

Last Updated on December 19, 2022 by DesignerPeople

A lot of companies are busy focusing on developing a product and its unique features. But do you ever study how your product is going to get perceived by its customers and the way it is going to get received in the market. I am sure many are confused! Product positioning strategies are adopted to create products own space in the market along with customers window of the mind.

In reality, your product has its own life, and product positioning is defined as the place or position a product resides in the consumer’s mind concerning the completing product. To survive the cut-throat competition product has to gain a competitive advantage with its USP hence creating a distinct identity of the product in the market is called product positioning.

WHY PRODUCT POSITIONING STRATEGY?

The significant reasons for executing this strategy is to understand where your product is existing today in the market. Where it is supposed to lie ideally, basically, it is a strategy to take your product from point A to point B.

WHEN TO DEFINE PRODUCT POSITIONING STRATEGY?

Many business people have versatile product knowledge, but they lack in understanding how the product should ideally be perceived by customers when it is in the market. If you don’t know your brand then how you accept your customer to believe about your product. How are you going to communicate a brand message with them? How are you going to create coherent marketing communications plans? To make it happen, one has to start framing and executing strategy even before the product design and development begins.

The process of developing an image of a product in the minds of the consumers is known as positioning. Product positioning helps to create the first impression of brands in the minds of the target audience. In simpler words, positioning helps in creating a perception of a product or service amongst the consumers.

Such as the brand “Bisleri” stands for purity and brand “CEAT Tyre” stands for better grip.

When framing the positioning strategy of product, it is essential to analyze the category which is vacant in the market. Hence brand can adapt that gap and utilize its potential such as in the below case.

Example: Colgate and Pepsodent are two leading oral care brands in India. When Colgate entered the market, it was focusing on family protection. When Pepsodent came into the market, it aims at 24-hour protection and basically for kids. Colgate changed its focus from family protection to kids teeth protection which was a positioning strategy adopted due to competition in the market.

STEPS TO PRODUCT POSITIONING:

1.Know and understand your target audience

source: mindinventory.com/blog/how-to-identify-target-audiences-for-mobile-app/

One cannot work out any process without identifying their target audience. One has to gain their tastes, preferences and needs as no two people can think in the same line. Try to know what are your client expectations and their pain points. Without tracking and understanding the target audience, it is impossible to gain relevant strategies and outputs. Make sure products must fulfill the demands of the individual.

2.Identify the product benefits and features

source: convertful.com/landing-page-elements-features-benefits/

Any product brought into the market should have unique characteristics which should be worth the value. Marketers must be aware of the benefits of the products. As it rightly said “you cannot sell products if you are not convinced about its features”.

Example: A salesperson in the Coca-Cola company will prefer and use Kinley water bottle because they firmly believe in the brand. While marketer selling Nokia mobile will also use a Nokia handset so that his customers will generate faith and confidence in him.

3.Unique selling propositions

source: smgnewengland.com/2017/02/28/create-effective-usp/

The brand has to get distinct features to gain a competitive advantage over competitors. Brand USP’s will act as brand communication for the target audience. Marketers and brand owners should know product value and its benefits. Understand how the product can satisfy customers pain points and act as the best solution to them.

When we talk about Dabur chyawanprash we know it is to strengthen the body’s internal defence mechanism. Protects against germs and infections because the brand has successfully installed the image in the minds of customers, which is done through a print, electronic and digital platform.

BMW positioning as pleasure of driving, KFC as finger-licking good.

Communicating the USPs to the target audience also plays a very crucial role to let consumers and prospects know what brand is offering for them to decide what is best.

4.Know your competitors

source: retoolmarketing.com/know-target-personas-pain-points/

One should never underestimate competitors, always keep track of what competitors are offering. What new elements they are adding in existing features each detailing should be observed and analyzed.

Then try to provide benefits which your brand is offering, focus on benefits which are distinct and different compared to competitors. Make your target audience aware that your product is better than others and gain an extra edge.

5.Promoting the brand

source: strawberrybranding.com/blogs/promotion-of-the-brand-to-the-best-yes-at-the-minimum-cost/

Select a sufficient and correct theme for advertisement, which will act as an intelligent brand promotion strategy. Include catchy and creative tagline/punchline. Make sure advertising should not be confusing; it should be simple and should communicate the core features and benefits of the product.

6.Sustain the positioning statement of the brand

source: lenakhalid.com/importance-positioning-brand-youre-just-starting/

When a brand is establishing and communicating its product positioning statement in the market, then marketers must continue to live up to the expectations of the end-users and prospects.

One should not compromise on quality or price to gain customers, and it is imperative for the brand to treasure its distinct values.

Examples: Mercedes car cannot remain the same if it reduces its price below a certain level. As it’s a car known for its elite status and hence it cannot hamper that category made in the market.

Rado watch will lose its importance if it is available in the market with the price of sonata and maxima watches. Rado watches are known for being a premium class.

Also Read : How Product Shape Design Influence Your Sales?

PRODUCT POSITIONING STRATEGIES:

The manufactures and brand design choose the Product Positioning Strategies according to the unique features and manufactured products. Choosing the correct strategy for the product is a very crucial task on which the success of the brand is dependant. There are around 8 types of approaches below,

1. Competition Strategies
2. Reducing Competition Strategies
3. Product benefits strategies
4. Product Attributes strategies
5. Product Categories
6. Usage Occasions Approach
7. Pricing Approach

1.Competition Strategies

It is a long term process wherein a company strives hard to gain a competitive advantage over competitors in their industry. The research is conducted on the strengths and weaknesses of self-brand as well as competitors. The strategy will incorporate actions which will withstand the market’s competitive pressures, focuses on attracting customers and assisting in cementing the company’s market position.

Example: Amway is a brand who multitasks in marketing strategies to sell various ranges of products in health, beauty and home care market. Amway conducts active market research which helps the company to understand occurrences within the market and to bring out new ideas that take advantage of opportunities and reduce problems. By competition analysis, marketers within Amway can determine how well products are satisfying customer requirements and which areas of competitor brands are pleasing to customers.

2.Reducing competitors strategies

The competition will always remain in the market, eliminating it ultimately is a very challenging job smarter companies nullify the effect of competitors to stay at prime in the market.

A brand can reduce competitors by using specific strategies such as:

• By correctly identifying the pain points of customers and catering them productively.
• By building a niche to have more space for your business
• Enrich your brand with innovations
• Get the significant step of pricing correct
• Focus and provide exceptional customer service

Examples: Apple is a brand who focus majorly on innovation and is always ahead of competitors strategies. It wiped out Smartphone giants like Nokia and Blackberry from the market due to lack of innovation.

3.Product benefits strategies

The strategy company focuses on communicating and defining the product unique feature and benefit,that the product offers to the targeted customers. In this strategy, the companies emphasize on the different elements of product benefits.

Product features include economy, durability, availability, or reliability, which is illustrated in this type of product positioning. The strategy will help to gain business goals which can be entering into a new market and expand the business. Selling more to existing clients or winning business over other brands in the market.

Lead a message which will communicate product benefits to target audience this way marketers can speak directly with its customers to buy their products. Features cannot always be the benefits of the product hence proper understanding of features and benefits should be focused.

Example: When we buy an umbrella, its features can be unbreakable, cloth quality or wind-resistant construction but benefits of which is staying dry even in strong winds.

4.Product attribute strategies

The positioning made based on specific product attribute to compel target audience it is product attribute strategy. Product attributes can be accessibility, reliability, comfort, design, affordability, reparability and many more. Positioning defines how strongly the key message resonates and communicates with the customers and what compelling posting it holds in the mind of the consumer.

Example: Parle is a brand which we all are familiar with, and we know it has been decades; it is positioning itself as an affordable brand. Irrespective of whatever categories of the product line they introduce.

5.Product categories

By differentiating it from other product is based upon a group is a very effective way to resonate the critical message and attributes in the targeted audience. A product position with two or more characteristics at the same time.

6.Usage occasions based approach

Marketers position their product based on its usage situation by the targeted audience with a motive to expand the market. Introducing new and distinct uses of the same product will automatically extend the dimensions of the product, gain the market share and will lead to more sales.

Occasion-based positioning identifies opportunities for growth based on the occasion when the product is used. Categories, like beverages, the same consumer can have a variety of needs and experience based on the situation. Such as you get up in the morning and you drink coffee and orange juice. At lunch, you sip iced tea or a soft drink in the noon maybe diet soda or another coffee. For dinner, you may have juice or drink water. Throughout the day, the same person experiences many different needs and choices. This then makes beverage choices based on those needs.

7.Pricing based approach

It is majorly seen customer often perceives the relationship between price and quality. If the rate is higher, the quality of the product will be more excellent. The Marketers use this Price quality approach to position the products and can quickly gain higher margins of profit.

In this concept, the marketers play with human perception and the thinking of associating quality with price.

Example: A company like Maruti Suzuki in Indian automobile market, they have Maruti 800 and Maruti Omni in A segment with 2-2.2 lakhs, Wagon R and Maruti Zen in lower В segment with 2.2-3.5 lakhs, Maruti Alto Vxi in upper В segment with 3.5-5 lakhs, Maruti Suzuki Baleno in С segment with 5-7 lakhs, Maruti Grand Vitara XL-7 in high-end SUV segment and Maruti Baleno Altura in Estate segment.

IMPORTANCE OF PRODUCT POSITIONING STRATEGIES:

1. To make entire organization market-oriented
2. To cope with market changes positioning strategies are very useful.
3. Product positioning helps to realize consumers expectations
4. Promotional programme is designed based on what advantages are communicated, and appropriate means are selected to promote the product.
5. To win customer attention and interest
6. Helps to attract different types of consumers
7. Brands competitive strength increases with effective product positioning strategy.
8. Product positioning will assist a company in introducing a new product in the market.
9. To communicate varied and new features which are added later in the list.

The active product positioning must achieve the following objectives:

1. Identifying customer buying preferences
2. Define and articulate key product attributes
3. Differentiate the manufactured from competing for product lines.

Consumers’ preference is expected to be shaped by brand positioning, and it is the practical key to build consumer loyalty. Building a great brand requires an immeasurable amount of work and brand positioning is an essential task for marketers. As it has consumers’ perceptions and choice are its central feature. It is necessary to plan a product positioning strategy so that the brand can gain a customer perspective and can plan accordingly.

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Author: Megha Malik

As a passionate entrepreneur and creative brand consultant with experience of 14 years in digital, branding and packaging industry, it is my honest effort to put my experiences and knowledge of industry towards readers. A chartered accountant by degree but a marketing personality in blood has motivated her to take in designing industry as a career. With her fun-loving personality and sharp branding skills, she is a great motivational speaker on her YouTube channel, an active member in various business channels offline as well as online. Do connect me personally via my LinkedIn and I love to share my expertise with you.