Differentiation
&
Positioning
Prof. (Dr.) D K SAKORE
B.Tech, PGDM (IIMA), NET, Ph.D
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POP’s & POD’s
Both are essentially opposite in nature on key attributes /
benefits
Points of Parity (similar or equal) - the aspects of product
offerings that are largely similar to the offerings of the
like competitor i.e. where you can at least match the
competitors claimed benefits.
POP’s are the generic features and benefits that all the
players, brands, products (competitors) are giving
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POP’s & POD’s
Points of Difference - the aspects of product offerings
that are relatively distinct to the offerings of the
competitors
POD’s are the differential effects that no one else gives in
the market, on which some brands are consider to be
unique (or stronger than others)
While POPs may usually not be the reason to choose a
brand, their absence can certainly be a reason to drop a
brand
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POP’s & POD’s
POP is the point to reach to the market and stand in the
line of competitors, where as
POD is a point that leads the brand beyond the line by
being different from others
Eg. iPhone / Samsung
Eg. Honda Activa / Suzuki Access
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Differentiation
Attributes / benefits consumers strongly associate with a
brand , positively evaluate and believe that they could not
find to the same extent with a competitive brand
Strong, Favourable & Unique Brand Associations help in
creating Superior Customer Value
Gaining Competitive advantage through Differentiation is
the key to survival in today’s market
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Differentiation
Can be done along the following lines –
1) Product 4) Price
2) Service 5) Personnel
3) Channel 6) Image
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Product Differentiation
Marketing Strategy whereby businesses attempt to make
their product unique to stand out from competitors
Based on ingredients, features, packaging, form,
performance, durability, design, quality or benefits
Does not last long in the market
Can be copied soon by competitors
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Product Differentiation
Ingredients – Intel , Teflon coating, Himalaya
Features – Celerio automatic, Oral-B toothbrush
Packaging – Red Bull, Frooti, Paperboat, Kinderjoy
Form – Close-Up Gel, Fevistick, Good Knight Fast Card, Bingo
Durability – Duracell, Woodland Shoes, Amaron Batteries
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Product Differentiation
Performance – BMW, Domex, Dettol, Vim
Benefits – Head & Shoulder’s Anti-dandruff, Dove
Quality – Toyota, Bose, Michelin
Style/Design – Apple, Hidesign, Rayban, Fastrack
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Service Differentiation
More defendable than Product Differentiation
Depends on types of services & level of service provided
Credible promises are built around speed, convenience,
zero down time etc
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Service Differentiation
Ease of Ordering, Delivery, Installation, Customer Training,
Consulting, Repair & Maintenance
Ola, Domino’s, ATMs, Tata Sky, Maruti Customer care, Disney
Parks, Ikea
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Channel Differentiation
Includes Channel image, location, coverage, expertise and
performance
Hero Motocorp – 6500 touch points
Eureka Forbes – Personal Selling model
Amway & Tupperware use Agents
Dell – Online customized computers
Maruti Suzuki – NEXA outlets, True Value
Amazon, Big Basket
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Price Differentiation
Competing on the basis of Price
Offering lowest price in the market to gain business
rapidly
Eg. Nirma, Reliance Jio, Big Bazaar
Also suitable for Regional Brands
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Personnel Differentiation
Competence, courtesy, credibility, reliability,
communication, responsiveness
Singapore Airlines – efficient, McDonald’s – courteous,
IBM - professional
Recruitment & Selection, Rigorous Training and
Motivation
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Image Differentiation
Includes Corporate / Brand Image
(brand story, company culture, media stories)
Public perception of company/products
Provides Emotional power
Eg. Marlboro, L’Oreal , Mercedes Benz, UCB, Apple,
Starbucks, Nike, Rolex
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Positioning
Exercise
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Positioning
The act of designing the company’s offering and image to
occupy a clear, distinctive and desirable place relative to
competing products in the minds of the target market
Objective is to maximize the potential benefit to the firm
Helps in creating Superior Customer Value
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Positioning
Perception or image that the customers have of the
company and its products
This perception is the stimulus of customers attitude or
behaviour towards company's products
Customers positive perceptions will drive the business of
the company and negative perceptions will sink it
Company should manage its customers perceptions
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Positioning
Dangerous and ridiculous to allow customers to develop
their own perceptions about the company
Decide the perceptions it wants its customers to have
about the company/products and work consciously &
diligently to create the image in customers mind
Every fact and act of the company shapes customer
perceptions directly or indirectly
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Re-Positioning
Cadbury Dairy Milk – children to adults, dessert
Moov – Pain relief ointment to Back pain specialist
Nestle Milkmaid – convenient form of milk for tea/coffee
to ideal ingredient for a variety of sweets
Airtel – Premium to Mass (Youth)
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Hybird / Straddle Positioning
The kind of positioning where the brands are looking
for position itself in two categories simultaneously
BMW in USA – Luxury & Performance (entry in 1980s)
Mahindra Scorpio - Luxury of a Car with the thrill of an
SUV
Subway – taste & health
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Unique Selling Proposition (USP)
Unique – it clearly sets you apart from your competition,
positioning you as the more logical choice
Selling – it persuades another to exchange money for a
product / service
Proposition – it is a proposal or offer suggested for
acceptance
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Unique Selling Proposition (USP)
One feature or special benefit of a Product/Company
which makes it unique (& superior) from the rest of the
competing brands in the market
Very reason which motivates/persuades a potential buyer
to purchase your product (even though it might be
costlier than other products)
With a distinct USP, the company doesn’t even have to
bother about competition
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Unique Selling Proposition (USP)
Strong USP makes you stand apart and also plays an
important role in branding your product
Key to boost the sales of the product in advertisements
(also emails, website, social media etc)
People always remember the Number 1 Brand
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Unique Selling Proposition (USP)
But, USP alone cannot guarantee a product’s success
Superior product quality and at par service (before and
after-sale) are very important
Best USPs take a unique quality and explain how that
quality will benefit your customers, all in a few
memorable words.
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Unique Selling Proposition (USP)
• Concept developed by advertising executive Rosser Reeves in
his book - Reality in Advertising (1961)
• USP consists of three elements :
1. Each advertising message should make a proposition to
potential customers that they will get a specific benefit if they
purchase this specific product.
2. The proposition must by unique because it either is not
offered, or cannot be offered, by your competition.
3. The proposition must be persuasive enough to cause a
significant amount of consumers to purchase the product.
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Examples of USP
One of the most famous Unique Selling Propositions that
Rosser Reeves created -
M&M - "The milk chocolate that melts in your mouth, not
in your hand.“
Gillette – The Closest Shave a man can get
Hallmark: When you care enough to send the very best
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Examples of USP
BMW – the ultimate driving machine
Target - "Expect More. Pay Less."
DeBeers - A diamond is forever.
In use since 1948. The USP here is that diamonds, being almost
unbreakable, last forever and thus are the perfect symbol for eternal love.
As a result, diamonds became by far the most popular choice for
engagement rings. It's no surprise that Advertising Age magazine named
this the best slogan of the 20th century.
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Examples of USP
Avis - We're number two. We try harder.
This USP does a remarkable job of turning what seems like a negative
quality into a benefit. Avis was in the unfortunate position of being the
second-largest car rental company, while Hertz claimed the #1 spot. The
campaign was so successful, Avis' market share went from 11% to 35%
in just four years.
FedEx - When it absolutely, positively has to be there overnight
2 benefits - gives its customers the guarantee that it will deliver their
packages safely and on time
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Value Proposition
Cogent reason why the target market should buy the
company’s product / service rather than competitors
(Cogent – clear, logical and convincing)
The whole cluster of benefits the company promises to
deliver to the customers
The ideal value proposition is concise and appeals to a
customer's strongest decision-making drivers.
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Value Proposition
• In a nutshell, a value proposition is a clear statement that
a) explains how your product solves customers’ problems
or improves their situation (relevancy),
b) delivers specific benefits (quantified value),
c) tells the ideal customer why they should buy from you and
not from the competition (unique differentiation).
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Value Proposition
To (target segment and need) our (brand) is (concept) that (point
of difference)
Domino’s Pizza – a good hot pizza delivered to your doorstep
within 30 minutes of ordering at a moderate price
Mountain Dew – To young and active soft drink consumers
who have little time for sleep, Mountain Dew gives you more
energy than any other brand
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Value Proposition
Subway - A fresh, healthy & customized nutritious sandwich
meal made quickly at an affordable price
Nike - A technically superior product, made of the best
materials and with the latest technologies available, positioned
as the most fashionable in the industry and endorsed by top
athletes and sport stars
Tata Indica : More Car per Car (More spaciousness without
extra costs)
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Value Proposition & USP
Both USP and value proposition go hand in hand and neither
can exist without the other
USP is always a part of Value Proposition
A company cannot sell just on the basis of USP, it has to have
a value proposition along with it.
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Value Proposition & USP
Volvo is just an automobile manufacturer like Audi, BMW,
Toyota, Volkswagen and others. However, it delivers more in
value because its USP is safety.
Walmart's USP has been " Always Low Prices . Always ".
So it's value proposition is shop everything under one roof
(with the USP) while saving more money as compared to any
other shop.
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Marketing as a Value Delivery Process
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Market Potential
The estimated maximum total sales of all suppliers of a
product in a market during a specific time period
Market potential is the entire size of the market for a
product at a specific time
It represents the upper limits of the market for a product.
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Market Share
Percentage of total sales that a company can expect to get
from the total market
Can be in terms of volume or value
Eg. Xiaomi has 29.7 % market share in smart phones in
India
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Enjoy and Celebrate Life
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