Cocept, Steps in Product positioning, Important cocerns, Cocept of Competitive advantage

1. Product Positioning &
Competitive Advantage
Made By:
Subheshwar Jha(BBA/4575/17)

2. Definition of Product positioning &
Competitive advantage.
 Product positioning is the process marketers
use to determine how to best communicate
their products' attributes to their target
customers based on customer needs,
competitive pressures, available
communication channels and carefully
crafted key messages.
 A competitive advantage is the attribute
that allows an organization to outperform
its competitors. A competitive advantage
may include access to natural resources,
such as high-grade ores or a low-cost power
source, highly skilled labor, geographic
location, high entry barriers, and access to
new technology.

3. Concept of Product Positioning and
it’s importance.
 Positioning is the act of fixing the locus of the product offer in the minds of
target consumers.
 The marketer decides how and around what parameters, the product offer
will be placed before the target consumers.
 The need for positioning arises out of the fact that a product cannot be
‘everything to everyone’ ; it can serve the needs of only some segments.
 Locating such segments and communicating the product promise to them is
the purpose of positioning.
 Products are positioned in different ways, depending on what they have to
offer and to whom they are offered.
 Normally, some unique features of the product, some special needs of the
market, or some noticeable gap in the competing offers, is picked up and the
and the product offer is positioned around them in a manner appropriate for
the target audience.

4. “Positioning Connects Product Offering
with Target Market”
While target market selection clarifies for whom the product is intended, and
marketing mix shows the way in which the 4P’s are to be aligned in the offer to
the target market, positioning acts as the bridge linking the product offer with
target market. Let us see a few examples.
 Maggi Noodles While introducing Maggi noodles, Nestle
positioned it as a “2-Minute noodles”. The promotion
campaigns were addressed at the young urban mother
who was always hunting for something handy to feed
her impatient, always hungry children. In fact Nestle found
in the young urban mother’s mind for such a product! This is the crux of
positioning. And nearly four decades now, Maggi is successfully sitting on
that spot.

5.  New Vespa Vespa scooter is back in India;
Peugeot launched the new Vespa 125 cc
gearless scooter. The company positions
the product like this: The new Vespa is
the perfect travel companion for the young
city women! In a male dominated two
wheeler world, lots of women are put
off from riding a scooter, but Vespa
shows a great way to get around city in
a safe, special, stylish way. Light,
effort-less to ride with automatic
transmission and electric
starter. Lightweight, Good-looking,
Female-friendly!’

6. Perceptual Mapping.
Perceptual mapping is a diagrammatic technique used by asset marketers that attempts
to visually display the perceptions of customers or potential customers. Typically
the position of a company's product, product line, or brand is displayed relative to their
competition. Perceptual maps, also known as market maps, usually have two dimensions
but can be multi-dimensional; they can be used to identify gaps in the market and
potential partners or merger targets as well as to clarify perceptual problems with a
company's product.

7. The Tasks in Positioning
1.Deciding the Locus: In Consumer’s mind, Where to Lodge your Brand ?
The marketer has to take into account the different positioning opportunity
available to him. He has to start with industry and competition analysis.
2.Analysing Competitor’s Positioning: Is there a Gap Somewhere ?
He has to size up his proposed offer against the competitor’s positions, and
identify the best possible slot for his product.
3.Fixing the Positioning Plank
The positioning plank basically takes its cue from the differentiation attributes of
the offer; it is an extension of the product claim/promise. The marketer has to
decide on which of the attributes his product offer is going to bet on.
4.Ensuring the Infrastructure/Competitive Advantage for Delivering the Promise
The firm has to put in place, the infrastructure and the competitive advantage
required for honouring the bet. It has to ensure that the required differentiators
that will support the positioning are efficiently built into the product.

8. The Tasks in Positioning
5.Developing the Value Proposition.
A value proposition is the statement of the benefits and satisfaction the
product offer is promising. It includes 3 distinct elements:
#For whom the product is meant
#A distinctive claim on the value of it is offering
#An explanation on how the firm is capable of delivering the claims
6.Communicating the Value Proposition to Target Consumers.
A major task is to communicate to the target audience the distinction the
product claims. It has to ensure that the product offer and the value
proposition are properly carried to the consumers.
7. Monitoring How the Positioning is Faring in the Market.
One has to monitor the performance of the offer and see whether the
positioning is working well in the market. The test takes place in the market
and only the performance of the brand can prove whether it is positioned
rightly or not.

9. Issues in Product Positioning
 Where is the new offering going to compete ?
 Which product function/customer need is it trying to meet ?
 What other product categories serve this need ?1 In other words,
What are the substitute products that serve the same need ?
 What are the company’s competencies to fight there ?
 Where is the real gap ? Where can such a new offer be most
welcome and wanted by the consumers ?

10. Concept of Competitive Advantage
 Competitive advantage is the leverage that a business has over its
competitors. This can be gained by offering clients better and greater value.
Advertising products or services with lower prices or higher quality interests
consumers. Target markets recognize these unique products or services. This
is the reason behind brand loyalty, or why customers prefer one particular
product or service over another.
 Value proposition is important when understanding competitive advantage. If
the value proposition is effective, that is, that the value proposition offers
clients better and greater value, it can produce a competitive advantage in
either the product or service. The value proposition can increase customer
expectations and choices.

11. 2 ways of achieving Competitive Advantage
 Michael Porter defined the two ways in which an organization can achieve
competitive advantage over its rivals: cost advantage
and differentiation advantage.
 Cost advantage is when a business provides the same products and services as
its competitors, albeit at a lesser cost.
 Differentiation advantage is when a business provides better products and
services as its competitors.
 In Porter's view, strategic management should be concerned with building and
sustaining competitive advantage.

12. Case Study On MDH Spices.

13. Product Positioning Of MDH Spices.
 MDH was the first Indian spice company to begin
marketing their spices in small, attractive and easy
to use packets.
 It has also done well with a media ad campaign
that features an elderly, charismatic actor.
 Currently, the company is focused on examining
consumer buying behavior to predict trends, then
using this knowledge to develop new products.
 Depicting a family function or a particular situation
which a normal family people faces in every day
life provided them to connect with them.
 Moreover presence of an elderly person named
Dharampal Singh assuring the good quality of the
product connected well with the people.

14. Competitive advantage of MDH over it’s
Competitors.
 First mover advantage : MDH was one
of the first companies to realize the
scope of ready-made masalas and they
pioneered the idea of grinding spices
and selling it in packets. This first mover
advantage has helped them establish
their presence in the spices market
globally.
 Leadership: The old man in a turban
who appears in all packets and ads of
MDH even today is Mahashay Dharampal
Singh the 84-year-old promoter of the
company.It is his vision and attention to
detail that has taken the company to
success. He makes it a point to visit the
company every day even at this age and
personally oversee operations.

15. Competitive advantage of MDH over
it’s Competitors.
 Strong Market Presence: MDH which is valued at Rs
300 crore is a market leader with around 82 % share
in the global market. The company has around 45
varieties of blended and whole spices, and exports to
around 50 countries. The company manufactures and
grinds spices in five factories across India, employing
around 1,500 people. The company has a strong
distribution channel of around, 1,000 distributors
and over 800,000 retail dealers.
 Quality: MDH has always been conscious of retaining
the Indian-ness in their spice blends and thus source
their whole spices from authentic vendors only. They
also follow stringent quality norms in the griding and
drying of the spices and ensure that the smell and
texture are retained during packaging.
 Low pricing: A packet of MDH masala is priced
between Rs 35 to Rs 50 making it the cheapest
ingredient in a recipe. This makes the masala
affordable to everyone.

16. 1.Is Positioning over at one stroke ?
2.Is Positioning an after thought ?
3.How Positioning is different from Differentiation ?
4.Is Positioning a synonyms of Advertising ?
5.Can an offer be Repositioned ?