Product-positioning strategy and product-repositioning strategy with example minimum 600 words
Product positioning strategy aims at Positioning the product in the Minds of the consumers and on how they view products as well as how will organisation market its products or services. Taking a logical approach in selecting a positioning strategy can ensure a good choice. Positioning a product or service is nothing but help define it in the customer’s eye. Marketers attempt to create an image or identity for a product, brand or company and usually express positioning relative to other competitors in the market.
The Key strategy of positioning a product is focussing on ots competitive advantage with respect to its competition. Based on the Product’s USP, a product is positioned to counter its competitors for a better chance of success.
Functional positions solve problems and provide consumers with benefits. Positioning strategies are dynamic and are also dependant on competitor offerings change, the business environment changes or the positioning strategy proves to be marginal or unworkable, it is time to re-think the strategy. However, changing it too often can confuse customers, so make sure it is necessary.
An effective positioning ties a company’s product to a segment. The product is suitable for the customers of the target market but is singularly unsuitable for customers of other segments.
Unless there is lack of effective competition, a strongly positioned product would appeal only to a limited number of customers because it will have the benefits that the target market requires in an exaggerated form, while other benefits would hardly be provided.
So customers desiring benefits other than what the target market requires will not value the product. In an ideal situation, there would be a plethora of strongly positioned products, each serving a small set of customers.
Most companies want large number of customers for their products. To become attractive to a larger segment or multiple segments, the company provides an average level of all the benefits that the customers of the large segment or multiple segments desire from the product.
Repositioning involves changing target markets or the differential advantage or both. There are four generic repositioning strategies. The product may be acceptable in functional terms but fails because it lacks the required image. The communication emanating from the company is overhauled. It is not easy to effect such a repositioning. Because the company and its products do not change in any substantive way, it is very difficult for the company to believe that it is different from what it was earlier. And unless the company does not truly believe in its new image, it cannot communicate the new image effectively to its customers
The product is modified to make it more acceptable to its present target market. Customer requirements may have changed and the product has to be modified to be able to serve the new needs effectively. The company may have acquired new resources and competencies enabling it to modify the product so that it serves the target market better. The company targets different market segments with the same product. The company is able to locate a segment which has requirements, similar to the requirements of the segments it is serving. The company retains its value proposition and offers it to new segments. Both product and target market are changed. A company may decide to move up or down a market by introducing a new range of products to meet the needs of the new target customers.