POSITIONING STRATEGIES: TYPES AND REAL EXAMPLES - DUDAS - 2025

The positioning strategies are plans or processes studied brand differentiation, operating on symbolic levels of consumer awareness, in which associations and meanings, even individual words really have a weight.

A market positioning strategy is based on business data and seeks to compose the precise chain of words to balance the concepts of differentiation, distinction and similarity, in a unified brand message.

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It is a long-term effort to solidify the identity of a company and its products or services, in a unique space within the minds of the target audience. It is an organized attempt for a brand to differentiate itself from the rest and influence the way its target audience perceives them.

The positioning strategies of a company focus on how it will compete in the market. An effective positioning strategy considers the strengths and weaknesses of the organization, the needs of customers and the market, and the position of competitors.

The purpose of positioning strategies is that they allow a company to highlight specific areas where they can outshine and beat their competition.

Positioning

Marketers have a better chance of achieving a strong market position when they have a strategy and then build a brand around it. The goal is to establish a single thing that is known to the consumer's mind.

Creating a brand strategy is like drawing a map, and positioning is determining the location and destination (the goal).

Positioning refers to the place that a brand occupies in the mind of the customer and how it distinguishes itself from competitors' products.

Positioning is closely related to the concept of perceived value. In marketing, value is defined as the difference between a potential customer's evaluation of the benefits and costs of one product compared to others.

Types

By product characteristics or customer benefits

This strategy basically focuses on the characteristics of the product or the benefits for the customer.

For example, if you say imported items, you are basically illustrating a variety of characteristics of the product, such as its durability, economy, reliability, etc.

In the case of motorcycles, some emphasize fuel economy, some emphasize power, looks, and still others durability.

Even, at any given time, a product is positioned with two or more product characteristics at the same time.

This is seen in the case of the toothpaste market. Most toothpastes insist on "freshness" and "fight against cavities" as product characteristics.

By price

Suppose you need to buy a pair of jeans. When entering a store, you will find jeans with different price ranges on the counters, from $ 30 to $ 200.

When you look at the $ 30 jeans, you will tell yourself that they are not of good quality. Basically due to perception, since most of us perceive that if a product is expensive, it will be a quality product, while a product that is cheap is of lower quality.

This price-quality approach is important and is used heavily in product positioning.

By use or application

This can be understood with the help of an example like Nescafé coffee. For many years it was positioned as a winter product and was mainly advertised in winter. However, the introduction of cold coffee has developed a positioning strategy also for the summer months.

This type of positioning by use represents a second or third positioning for the brand. If new uses for the product are introduced, this will automatically expand the brand's market.

By class of users

Another positioning strategy is to associate the product with its users or a class of users. Casual wear brands, such as jeans, have introduced "designer labels" to develop a fashionable image.

Johnson and Johnson repositioned their shampoo, from being used for babies to being used by people who wash their hair frequently and therefore need a mild shampoo. This repositioning resulted in a new market share.

By cultural symbols

In today's world, many advertisers use deep-rooted cultural symbols to differentiate their brands from those of their competitors.

The essential task is to identify something that is very meaningful to people, that other competitors are not using, and associate the brand with that symbol.

Air India uses a maharaja as its logo. With this they try to show a welcome to their guests, giving them a royal treatment with great respect, and also highlighting the Indian tradition.

By competitors

In some cases, the referring competitor may be the dominant aspect of the company's positioning strategy, whether the company uses the same positioning strategy as that used by the competitor, or uses a new strategy based on the competitors' strategy.

An example of this would be Colgate and Pepsodent. When Colgate entered the market, it focused on family protection, but when Pepsodent entered the market, it focused on 24-hour protection and basically for children.

Colgate shifted its focus from family protection to dental protection for children. This was a positioning strategy adopted due to competition.

For costs

Walmart is the largest retailer in the world because it has aligned its operations to adopt a cost positioning strategy.

Following this strategy, it focuses on eliminating any useless procedures within the company, transferring these savings to customers.

Walmart is successful because savings in its operating costs allow stores to offer lower prices to their customers.

To remain cost competitive, Walmart constantly invests in upgrading equipment, software, and employee training. It also does so in applications and procedures to further streamline operations and remain the leader in its market.

For flexibility

Consumers adopt companies that can change products and services based on their needs. However, most companies find changes challenging to their operation and product design.

The ability to manufacture to respond to change has created a new level of competition.

A flexible positioning strategy is another way for companies to differentiate themselves from their competition. They can produce a wide variety of products, introduce new products, or quickly modify old products and respond immediately to customer needs.

DigiFilm and Filmback are two companies that make products for cameras and films. DigiFilm quickly realized that consumer needs were changing and became the leader in providing digital cameras, cloud storage for photos, and portable photography technology.

On the other hand, Filmback was slow to realize that traditional cameras and films were being replaced by new technology.

DigiFilm's ability to be flexible and change its products, operations, and delivery methods enabled them to prosper, while Filmback closed its doors in 2009.

Real examples

Simple vs. Bank of America

Traditional banks have many branches and were slow to create easy-to-use mobile applications. Simple doesn't have branches, but it focused on its large mobile app at a time when most banking apps were clunky and complicated.

Simple, focused on younger and more tech-savvy customers, they possibly created the first bank of the 21st century.

Delta vs. Jetblue

When airlines like Delta stopped serving peanuts and reduced legroom, Jetblue entered the market touting its gourmet snacks and ample legroom.

Although they did not have international flights or a frequent flyer program, they broke into the market by focusing on friendly service, snacks, and legroom.

Their brand pushed to communicate hospitality and the fun of flying. On the other hand, large airlines like Delta continued to convey their message to business travelers.

Chipotle vs. Taco bell

For years, Taco Bell had the largest market share for Mexican fast food restaurants. Consumers searched Taco Bell for years for cheap Tex-Mex food.

Chipotle entered the market competing for quality rather than price. Chipotle has differentiated itself with a great brand. From witty banter on your soda glasses to a trendy urban setting, the entire experience works to build brand equity.

Gillette vs. Dollar shave club

Gillette has become one of the most recognized brands in professional and male razors. Dollar Shave Club entered the market by attacking Gillette on price.

Their name shows that they are inciting consumers at a low cost. However, it also competes on quality.

They further differentiated themselves by creating messages that are far from Gillete's professional ads. The comedic takes have made the company a major player in the grooming industry.

Lyft vs. Uber

Lyft and Uber are sharing apps that have incredibly similar offerings, but radically different branding.

Uber was a pioneer in its market. It started with just the executive black Lincoln Towncars, with its jet black branding and sleek logo. They were exclusive, cold and luxurious.

Over time, their offerings became more diversified and products like Uberx and Uberpool allowed anyone to call for a ride and be picked up by a Prius for very little money.

On the opposite side of the spectrum came Lyft. Originally the cars were adorned with a bright pink fuzzy mustache. Passengers were told to sit up front and chat with their drivers. The drivers were classified as "funny and interesting."

Lyft came in knowing they had to be different. Although they followed much of what Uber had pioneered. They took their brand and culture in the opposite direction.

This helped make them different. No Uber. This not only made them easier for consumers to identify, but ultimately benefited them, as Uber was criticized by the press for its cold, hostile and relentless gloss.

Target demographics

Products are designed to appeal to a specific demographic. Several characteristics of a demographic group are age, gender, education, language, and income level.

For example, Telemundo is a Spanish-language television network that offers programming to Latino and Hispanic customers in the US.

A strategy that does a good job of targeting one market segment offers more value to the consumer. It also establishes a stronger position vis-à-vis competitors.

All of this leads to more compelling communication and a greater likelihood of keeping your customers.

Low price

Price is an important consideration for most consumers. If a business can convince consumers that they are getting more value for their money, they will buy the product.

A lower price strategy will require compromises on product quality or narrowing the range of offerings. For example, a car manufacturer may offer a lower price in exchange for a smaller engine and cloth upholstery instead of leather.

Fast food restaurants are famous for their menus, with many items selling for just $ 0.99. Consumers with limited budgets will buy these lower priced deals. They will do so because they believe these items represent good value for money.

High price strategy

Consumers perceive that higher priced products are of superior quality and worth their price.

However, to create this perception in the mind of the consumer, the company must focus its advertising on how its features and benefits are superior to those of its competitors.

Burger chain Five Guys has created the impression that their burgers and fries are of better quality than McDonald's and Burger King. As a result, Five Guys may charge higher prices, and people will queue up to pay.

Distribution

Companies can create the perception of better value by restricting the distribution of their products.

Golf equipment manufacturers have certain clubs and balls that are only available in professional stores and are sold at higher prices.

The golfer believes that the products must be of higher quality because they are not available at Target or Walmart.

References

1. Smartling (2018). Market Positioning Strategy Guide. Taken from: smartling.com.
2. Hitesh Bhasin (2018). Positioning Strategy. Taken from: marketing91.com.
3. Wikipedia, the free encyclopedia (2018). Positioning (marketing). Taken from: en.wikipedia.org.
4. Jim Woodruff (2018). Examples of Positioning Strategy in Marketing. Small Business - Chron. Taken from: smallbusiness.chron.com.
5. Harris Roberts (2018). 7 Examples of Great Brand Positioning Strategy. Figmints. Taken from: figmints.com.
6. Aashish Pahwa (2018). Brand Positioning: Characteristics, Types, Examples & Ideas. Feedough. Taken from: feedough.com.