Product Positioning


By
Nadia Farook
S2 MBA
Institute of Management in Kerala
Thiruvananthapuram
E-mail:
nadi_far2003@yahoo.com
 


Today's business world is characterized by changing consumer wants leading to shorter product life cycles. The product of a firm is prone to cut throat competition. One way to avoid competition is by positioning the product effectively that helps the firm to compete on a non price plank. Positioning helps the marketer to reach the target market and putting the product in the predetermined orbit.

A good positioning helps the firm to emerge as the market leader as it is evident from the success story of Vicks Vaporub. In early 1950s Richardson Hindustan Ltd. identified the need for a cold remedy in the market. At that time Amrutanjan was the market leader in the balm market. The company tried to carve out a separate niche and they decided to position it exclusively as a rub for colds. Realizing the fact that children's were the prime concern of parents. Vicks Vaporub was positioned as a rub for Childs cold. The product was clearly distinguished from balm was much stronger and hence suitable for adults and being a mild formulation Vicks Vaporub is more suitable for children. In few years Vicks Vaporub became the largest selling brand for cold remedies and the success can be attributed to its proper initial positioning.

The positioning method largely depends on the nature of the product.

It varies between daily use items and industrial products. The product positioning largely depends on customer value. If the product is wrongly positioned then it would backfire and a firm should work on to successfully reposition a wrongly positioned product.

When Titan came with their Tanishq brand Jewellery. It was positioned to the high income urban group and priced higher and the models were highly western. But the norms for gold in India were 22 carat. There was a contradiction of the positioning as to why the high income group should go in for low carat gold. The product failed to generate the expected sales volume. Titan worked on their positioning at this juncture  and introduced a new collection of 22 carat and it was positioned to high income and upper middle income group and the models was made more Indian and with this repositioning the Tanishq business accounts for about 20% of Titans corporate revenue.

Some considerations for successful product positioning are

1. Relate and link your positioning to your differentiation theme because differentiation is a prelude to positioning

2. Consider the customer value proposition. (if the customer value and your positioning does not match then there are chances of failure)

3. Analyse your competitor's positions and identify the possible position for your product

4. Ensure that the positioning appeals to the target consumers

5. Monitor the positioning as the product picks up. If there is any variance then go in for repositioning

6. Communicate effectively to the target market through proper channel to the target market the positioning you have chosen.

Successful product positioning helps the firm to put the product in the right orbit and ensures longer product life cycle.
 


Nadia Farook
S2 MBA
Institute of Management in Kerala
Thiruvananthapuram
E-mail:
nadi_far2003@yahoo.com
 

Source : E-mail April 2, 2005

 
 
 

 

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