Product positioning - standout and win mind shares

Average consumer sees 3,000 to 5,000 advertising messages per day

Our brains cannot deal with such an overload of information:

  • Too many companies

  • Too many products

  • Too many brands

  • Too many options 


How do we navigate this flood of information? Categorization

  • By sorting information into familiar categories

  • Our minds can efficiently disregard what's deemed irrelevant.

  • When something does not fit into an existing category, it grabs our attention.


Each category forms a hierarchy, where products and brands are ranked.

  • Typically, the first product to enter a category occupies the dominant position, followed by the second entrant

  • All other products are compared against these standards and are considered less prominent


Strategic branding and product positioning aims to create own category to standout and win the mindshare or target customers


What is product positioning?

Positioning is not just about products; it's about perceptions.

Product positioning is an art to help brands standout from the crowd!

After studying competitors and market opportunities, we craft effective value propositions that standout. This influences consumer perception and captures mindshare.


Why top brands invest heavily on product positioning?

  • Competing on price is a bad strategy and a loosing proposition.

  • Consumer perception heavily influences purchasing decisions.

  • Buyers often pay premiums for products perceived as superior, illustrating the power of effective positioning.


Effective product positioning is about:

  • Crafting product values that resonate deeply with target audience

  • Capturing their attention by introducing new categories if it make sense

  • Steering their desires towards specific products

Products that defy existing categories attract attention and stand out amidst the noise.


Where do you stand vs. competitors

Successfully positioning a product involves understanding competitors and finding a unique hook that resonates with consumers

Attempting to directly challenge the market leader often proves futile, as consumers naturally compare new entries to established standards.

Successful brands typically:

  1. Aim to be the first or second brand in consumers' minds within a category.

  2. Differentiate themselves sharply from the market leader if entering as the second option.

  3. Innovate to create entirely new categories where they can dominate.


Let’s delve into practical Coca-Cola, Pepsi, 7Up case studies to illustrate these principles further.


Case Study: Coca-Cola

Situation

Coca-Cola is the most dominant brand in the cola industry. It faced daunting tasks of asserting itself as the definitive cola amidst fierce competition from local brands and alternative beverages.

Action

Embracing its legacy, Coca-Cola positioned itself as the original cola, emphasizing taste and tradition.

Coca-Cola also tries to get into the minds of consumers by connecting its original taste with the feeling of togetherness + happiness

Result

Extensive, clear and consistent marketing bolstered its global dominance.

This strengthens Coca-Cola global recognition and market leadership, setting the standard for cola beverages worldwide.


Case Study: Pepsi

Situation

Coca-Cola is the largest and most dominant brand in the cola category. Facing the giant, Pepsi needs to win the mindshare of consumers and be a strong number 2 in the cola category.

Action

Positioning itself as the youthful and fun alternative, Pepsi partnered with famous artists and launched the "Pepsi for Every Generation" campaign

Pepsi also tries to create a new category of its own by introducing the first-ever nitrogen-infused cola, claiming that it is more frothy, foamy, smooth

Result

By conducting thorough market research, Pepsi tailored messaging that resonate with unique segments intimately and win their mindshare. This helps Pepsi carve out its niche as a vibrant competitor to Coca-Cola, differentiate itself sharply from the market leader and secured a significant share of the cola market globally.

Case Study: 7Up

Situation

7Up entered a market dominated by colas. The cola category already have strong No. 1 (Coca-Cola) and No. 2 (Pepsi).

If 7Up tries to compete in the cola category, it will be an uphill battle.

  • Less resources than the Top 2 players

  • Harder to get into consumer mindshare

  • Likely be disregarded and forgotten

Action

Rebranding as the "uncola," 7Up highlighted its lemon-lime flavor and caffeine-free appeal to differentiate from traditional colas.

Using the word uncola also helps consumers to get the concept and association to immediately. It is also easier to remember.

Result

By creating a new category within soft drinks, 7Up attracted consumers seeking a lighter, non-cola option, achieving notable market presence.

7Up became the No. 1 brand in this new uncola category that consumers remember it.

Key Takeaways on Positioning

Your positioning strategy shapes how consumers perceive your brand, influencing its success and market impact.

Here are the 7 key principles to effectively position your brand:

  1. Positioning shapes consumer perceptions; it's more about mindshare than products.

  2. Assess your brand's current position in consumers' minds relative to competitors before crafting your strategy.

  3. Build your narrative from existing consumer perceptions, using analogies to resonate deeply.

  4. Instead of directly challenging market leaders, consider repositioning to occupy a less contested niche.

  5. Address consumer needs or gaps overlooked by competitors by introducing innovative new categories.

  6. Consider pioneering new markets where your brand can set the standard, leading to significant profitability.

Effective positioning is pivotal for brands aiming to thrive in competitive markets. By strategically shaping consumer perceptions, brands like Coca-Cola, Pepsi, and 7Up have not just survived but excelled, leaving an indelible mark on their respective industries.

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