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Advertising professionals realize that the heart of any campaign is the product and the position it holds in people's minds. Products and their brand names are newsmakers themselves. Wendy's hamburgers, Apple computers, and California raisins (particularly when they sing and dance) are objects of our attention and interest. Positioning is companys competitive strategy.
For example, the product Nyquil was conceived as a superior daytime cough suppressant. Unfortunately, it made people drowsy. Determined to recoup product development costs, the side affect of drowsiness was then transformed into a powerful positioning strategy. Nyquil became "the night time, coughing, sniffling, sneezing so you can rest" medicine. Nyquil created and owned the nighttime cold remedy market.
Besides strategy of positing the differentiation is quite significant for new product strategy. Mover, I can mark that the positioning strategy is the part of strategy of differentiation. Competitive strategies of a differentiation strategy provide defenses against competitive forces (Appendix 2). RIVAL COMPETITORS - Buyers develop loyalty to brand they like best BUYERS - Mitigates bargaining power of large buyers since other products are less attractive SUPPLIERS - Seller may be in better position to withstand efforts of suppliers to raise prices POTENTIAL ENTRANTS - Buyer loyalty acts as entry barrier SUBSTITUTES - Better positioned to fend off threats of substitutes based on customers attachment to differentiating attributes. Marketers should strive to create a significant perception of difference between their product and the offerings of competitors. This becomes particularly important, and of course a more difficult job, when competitive products or services have virtually identical features that offer like benefits.
Great examples of effective product differentiation include Wal-Marts Always the low price, Fed Exs Absolutely, positively overnight, UPS's We run the tightest ship in the shipping business, Stouffers Nothing comes closer to home, or Midas Mufflers Guaranteed for as long as you own your car. The similar situation with a perfume manufacturer who could use the product name, packaging, and advertising to create a certain distinct mood or feeling about each of its product lines. It can carefully target each line to a specific audience. Think of Shalimar The Gardens of Shalimar have inspired thousands of lovers. And one perfume. Or Liz Claiborne's Vivid A spirit that will not be denied.
Similarly, a cola bottler or brewer of beer may use a USP to identify its product with a fun and appealing lifestyle that creates a positive product differentiation. To gain the advantage of high rank, the company must first climb the ladder and probably knock off the brands above to do it. How? Let's look at a few examples of perceptual positioning strategies that worked. Tylenol used the same "perceptual positioning" strategy when it was an unknown pain killer in a marketplace dominated by Bayer aspirin. Tylenol didn't claim to "stop headache pain, " thus going head-to-head with Bayer.
Instead it found a small weakness -- the problem aspirin caused while it was curing a headache. Tylenol discovered a small but significant number of users said aspirin caused stomach irritation. Doctors said it sometimes caused "hidden stomach bleeding" (magic words to a marketers' ears! ) A pizza maker attacked "store-bought" pizzas with an ad stating they contained "casein -- an ingredient in glue!" Stolichnaya Russian vodka ads emphasized its competitors' vodkas were manufactured in Pennsylvania, Indiana, and Connecticut. By emphasizing its competitors' U.
S. origins, Stoli made many consumers feel they were getting an inferior product -- just because it wasn't real Russian vodka -- like Stoli! Remember that perceptual positioning requires an attack on the competitor you want to knock off the ladder. Don't just compare -- Attack!
Most attacks simply point out a fact consumers may have overlooked. ("Did you know that... ?" ) Most take a concerned, matter-of-fact approach. Some of the most successful deliver the knock-out punch with humor. A good example of a company, which has defined and then focused their entire company, is Tim Hortons. It has very successfully captured three high-ranking attributes (fast, fresh and friendly) within the coffee shop category.
It is at the core of their brand identity. When defining the formula, it does not matter what the CEO says the companys positioning is, successful positioning is dependent upon what the customer says the positioning is. In the case of Tim Hortons, we have an excellent example of alignment between the "street reputation" and the companys brand image. They have developed visible symbols that reinforce their three words. (Appendix 1).
The results of focusing their entire company on three words is self-evident - 52. 6 % national market share in the coffee and baked goods segment, 10. 4 % 1998 sales increase, 8 % 1997 sales increase. Even when the Specialty Coffee Shops came in, Tim Hortons held their strategic direction and simply became better at what they were already known for instead of copying what the competition was doing. Tim Hortons became faster with their drive-thru, fresher with a no smoking policy, and friendlier with their "True Stories" campaign. Worked Cite: Fang Liu Anthony Pecotich Culture, Language and Advertising in China: A Preliminary Explication of the Chinese Context Thorson, Esther (Ed). 1989. Advertising Age: The Principles of Advertising at Word. Lincolnwood, IL: NTC Business Books.
Jan Welborn-Nichols (2003) Market Positioning Gary Witt, Ph. D. (1998) POSITIONING: THE NEGLECTED MARKETING STRATEGY Appendix 1. VISABLE SYMBOLS
ATTRIBUTE # 1 - Fast
ATTRIBUTE # 2 - Fresh
ATTRIBUTE # 3 - Friendly
1.
Drive Through
Coffee - 20 minute maximum
Slogan "Friend Along the Way"
2.
Timed Lines
No Smoking
Friendly Staff
3.
Production Lines
Clean Washroom
Smiling Staff
4.
Increased staff Rush Hour
Slogan - "Always Fresh"
Snowplow Driver Ad
5.
Site Selection
Clean Tables
True Stories
6.
Quick Lunch
Fresh Donuts
Meeting Place for Friends
7.
Fresh Lunches
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Research essay sample on Positioning Strategy Three Words
