Positioning and Repositioning

Positioning and repositioning Before positioning companies has to do segmentation and targeting. Segmentation is dividing the market into segments upon some set of criteria and evaluating the profitability of each segment   Targeting is selecting one or more segments and going after them Positioning is how do you want your brand to be considered by consumers when compared to other competing brands. Positioning is based on product features such as color, price, fluffiness, quality of service, innovative approach, etc.Re-positioning is when you want your brand to be considered/associated with different features. For example, KIA cars has repositioned themselves from being some brand into being a cool brand .. Cadillac has repositioned themselves from being classical car for the rich and old into more affordable elegant car †¦ Oldsmobile has tried to reposition themselves as â€Å"not your father's car† but it was unsuccessful repositioning. Re-positioning is quite lot mor e difficult and expensive compared to initial positioning.You know the saying ‘only one chance to make first impression' also applies to the world of branding. Repositioning Strengthens Lifebuoy’s 107-Year Heritage 12-02-2002  : Lifebuoy is no longer a carbolic soap with cresylic perfume. It is now a milled toilet soap with a new health fragrance. The new formulation has an ingredient, Active-B, which offers protection against germs, which can cause stomach infection, eye infection and infections in cuts and bruises. The new health perfume has been selected after one of the most extensive perfume hunts in the industry.The new milled formulation offers a significantly superior bathing experience and skin feel. The new formulation, new health perfume and superior skin feel, along with the popular red colour, have registered conclusive and clear preference among existing and new users. Lifebuoy is already used by about 600 million consumers, with about 2 million tablets sold every day. The relaunch strengthens this equity by repositioning the brand. Lifebuoy was previously targeted at the male user with an individual-oriented â€Å"success through health† positioning.The new Lifebuoy is targeted at today’s discerning housewife with a more inclusive â€Å"family health protection for my family and me† positioning. Introducing the new Lifebuoy Introducing the new Lifebuoy, Mr. Sanjay Dube, Category Head – Mass Market of HLL’s Detergents Profit Centre, said, â€Å"Launched in 1895, Lifebuoy, for over a 100 years has been synonymous with health and value. The brick red soap, with its perfume and popular Lifebuoy jingle, has carried the Lifebuoy message of health across the length and breadth of the country, making it the largest selling soap brand in the world.It is to maintain its leadership, and further strengthen its benefits of health to larger sections of consumers, that we have researched and developed this new mix. We have repositioned Lifebuoy and have made a deliberate shift from the male, victorious concept of health to a warmer, more versatile, more responsible benefit of health for the entire family. â€Å"The significant changes in formulation have registered a clear consumer preference. The new perfume has been selected after one of the largest perfume tests in the industry to ensure a universal appeal without alienating the 600 million loyal users.We are confident that this mix will deliver an enjoyable bath experience and also deliver on the core Lifebuoy properties of health and value. This will restore the brand’s growth by expanding its consumer base, † Mr. Dube added. Lifebuoy Range Lifebuoy is among HLL’s power brands, which the company is focussing on, selected on the basis of their absolute size, brand strength, brand relevance, competitive advantage and potential for growth. The new Lifebuoy range now includes Lifebuoy Active Red (125gm, 100 gm and 6 0 gm) and Lifebuoy Active Orange (100gm).Lifebuoy Active Orange offers the consumer a differentiated health perfume while offering the health benefit of Lifebuoy. At the upper end of the market, Lifebuoy offers specific health benefits through Lifebuoy International (Plus and Gold). Lifebuoy International Plus offers protection against germs which cause body odour, while Lifebuoy International Gold helps protect against germs which cause skin blemishes. In 2001, HLL’s soaps & detergents turnover was Rs. 295 crores, which is approximately 39% of the company’s net turnover of Rs. 10972 crores. HLL’s power brands in soaps registered an overall growth of 5. 3% in 2001. HLL has been significantly increasing investment behind its power brands, in innovation, quality improvement and marketing. These have been backed by major sales initiatives. In rural India, the focus is to further extend reach, which has resulted in direct coverage of about 46% of the rural populatio n as of now. In urban markets, the objective is to improve customer service.Dedicated sales teams have been formed to service key accounts and wholesalers in larger towns and cities. A cell has been set up to attend to the modern trade, comprising chain stores. Repositioning Strengthens of Maggie positioning Maggi noodles is a brand of instant noodles manufactured by Nestle. Maggi has been the highest sold noodles in India. It is a product of Nestle Brand. It took several years and lots of money for nestle to establish its noodles brand in India Maggi was invented in Europe by a person named Jullius Maggi.In India it was launched in 1980s by Nestle group of companies. Maggie had merged with Nestle family in 1947. Maggie has faced lot of hurdles in its journey in India†¦. The basic problem the brand faced was the Indian psyche. i. e Indians used to be conservative about the food habits so noodles faced a lot of problem in promoting sales. Initially nestle tried to to position th e Noodles in the platform of convenience targeting the working women. However, the sales of Maggi was not picking up despite of heavy Media Advertising.To overcome this NIL conducted a research,which revealed that it was children who liked the taste of Maggi noodles and who were the largest consumers of the product. so they came up with Maggi- 2 minute noodles with price of Rs. 2. 10 with a close of 100% margin. NIL shifted its focus from working women and targeted children and their mothers through its marketing. NIL's promotions positioned the noodles as a ‘convenience product', for mothers and as a ‘fun' product for children. The noodles' tagline,  Ã¢â‚¬ËœFast to Cook Good to Eat' was also in keeping with this positioning.They promoted the product by   1. Distributing free samples. 2. Giving gifts on return of empty packets. 3. Dry sampling-distributing Maggi packets 4. wet sampling – distributing cooked Maggi. 5. Availability in different packages 50gm,100 gm,200gm,etc.. and 6. Effective Tagline Communication. Through its ads, NIL positioned Maggi as a ‘fun' food for kids which mothers could prepare easily. Taglines like ‘Mummy, bhookh lagi hai' (Mom, I'm hungry), ‘Bas 2-Minute,' and ‘Fast to Cook Good to Eat' effectively communicated the product's benefits to target consumers.These ads had become so popular that the tagline ‘Bas 2-Minute' immediately reminded Indian consumers of Maggi noodles even several years after the ads were taken off the TV. Maggi's first product extension was Maggi instant soups launched in 1988. With the launch of Maggi soups, NIL had become a pioneer in the organized packaged soup market in India.. since then Maggi has been successful in India and launched ketch ups sauces and soups in India, which was very successful in grasping market.Though NIL tried to extend to other ready to eat products like pickles, cooking aids and paste, It was unsuccessful so dumped those products. Ma ggi is competing with Heinz Sauces and Ketchup, Knoor Soups, Kissin Sauces and Ketchup, Top Ramen, Sunfeast Pasta Wai Wai and 2 PM in corresponding categories of products and variants. Market position of Maggie: 1. No. 1 in instant noodles and sauces. 2. No. 2 in healthy soups. 3. Market share of noodles- 80% 4. current sales-5. 5crores boxes in India. Repositioning