What is product positioning? - useful information

Service Business

Appropriate product positioning is one of the most difficult tasks that the market puts in marketing departments. They must not only plan their activities in such a way that the target product takes a specific and desired place in the minds of consumers. If it is to be successful, it must also be higher in the minds of consumers than similar products from competing companies.

The global market and general access to information mean that the possibility of competition between enterprises is practically unlimited. As a result, there are hundreds of similar products available in virtually every sector. However, many people only associate some of the most popular brand names thanks to advertising, the rest are anonymous to them.

It is the above observations and the positive opinion that one thing is better than another that prove the power of product positioning.

Product positioning requires a lot of creativity

All the most recognizable brands, permanently existing in the global awareness, found a certain gap in the market which their product filled. Today, many sectors are already so packed with different brands that to enter them, you need to find a niche for your offer. Companies often expand or deepen such a gap for their own use. On the other hand, it is practically impossible to change a segment or operating strategy once a given product is already in the minds of consumers.

Product positioning can be divided into several categories, depending on the marketing tools used. The easiest way is to fill the price gap in the market. Usually, manufacturers choose one of three categories: lowest, regular and highest price. Often the most expensive assortment in a given segment is considered the best and the most exclusive. Rolex is clearly associated with the most expensive watches, just like in the Maybach automotive world. On the other hand, the world of fashion is dominated by names such as Dior and Chanel.

It is also easy to position the product first in a given market. Toyota became the first Japanese car importer. Beck's positioning as the first German beer and Corona as Mexican.

The Lexus brand, on the other hand, used two features: the most expensive and the first such product that comes from Japan. For some companies to be first, they need to create a place in the minds of consumers for their products. This was the case with the Gatorade sports drink, which was launched in 1969. It was similar with the Power-Bar energy bars and Red Bull energy drinks.

Product positioning - looking for a gap in the market

The appropriate strategy for product positioning was applied by the Japanese watch group Swatch. It is probably one of the most popular companies operating in this industry. So far, good timepieces have been associated mainly with Switzerland. This is where the watch manufacturer Quartz comes from.

The Asian concern, however, found a niche for its products, enclosing them in the word "innovation". Now watches no longer need to be precise and reliable, but they should express the customer. Swatch has become a permanent element of consciousness as a creative, original product for people who value courageous action and are not afraid to express themselves. The Japanese concern is currently the fastest growing company in the sector, which can be seen from the growing offer of new products. Product positioning may also consist in creating opposition to the market offer. Thanks to this, the new brand will be in contrast with the competition in a given sector. This can often be seen in the young / old example.

Many companies position their products this way. The best-known example is Lee, which, in opposition to Levi's brand, targeted its jeans offer at young people. As a result, Levi's had to start fighting with his "old" image.

Many companies follow a strategy of narrow specialization of their products. This was done by the well-known SubWay chain, whose success is selling a variety of sandwiches. In turn, GreenWay focused on specialties from vegetarian cuisine.

On the other hand, Starbucks is considered to be a specialist in the field of coffee, which resigned from selling additional products, such as hamburgers or fries. This procedure made the brand known as the world's most famous coffee shop chain.

Sometimes it makes sense to choose half of the market

On the other hand, some brands target only one gender. An example of such product positioning are the activities of the Dove brand, which is dedicated exclusively to women. The flagship example of a male product is the world-famous brand of American cigarettes Marlboro. Needless to say, it is dedicated to strong and determined men. Probably everyone associates the characteristic poster with a cowboy on a horse. However, Marlboro was not always such a recognizable brand. At the very beginning of its operation, in 1924, the slogan was "Mild as May" and the product was offered to women. It had a relatively low price and was not very popular.

Only the advertising campaign created by Leo Burnett ensured the company's current position on the market. It transformed the brand image, increased the price of the product, which automatically gave the impression of higher quality, and changed the target group. Marlboro has become a real male cigarette, and the introduction of new flavors and limited editions made it a desirable product.

As it is easy to see, all global and profitable brands are perfectly positioned among other products. They are recognized not only by the name, but also by the color of the packaging. Nobody will confuse Milka products with other chocolates on the market, just like Coca-Cola cans with other drinks. Their creators were able to find the right target group and give the brand character.

Thus, there is no risk that a given product will end up in the wrong place on the shelf in a given segment. Positioning the product has become the key to its marketing success and without it the brands known on the market would never exist. This means that you need not only to have a good idea for marketing campaigns for the product or services you have invented, but also to find a place for them on the market.