How to do a Product Positioning Exercise

1. How to do a Product Positioning Exercise By Assoc. Prof. Dr. Amran Rasli

2. Position is that one thing. . . . • That one descriptive sentence or slogan the company is known for. • That one specific idea that first comes to mind about the product. • That one characteristic that sets the service apart from competitors. • For Volvo that one thing is “Safety.” • McDonalds is “A fun place for kids.” • In Jakarta, Indonesia, Bluebird is “The safest way to travel by taxi.” • And everyone knows, Avis tries harder. Key idea: identify a specific attribute to set the company, product or service apart from competitors.

3. The Product Positioning Exercise • Everyone should attend the meeting prepared to discuss your customers.  If you don't have enough data on the customers, who they are and why they bought, then discussions with the customer must take place first. If you don't yet have customers for the product then you need to come prepared with market research and market validation interviews with potential customers.  If you haven't talked to your customers (existing or potential) then the meeting is a wasted exercise. If there is a current positioning for the company and/or the product, you ideally want to forget your existing positioning during this exercise.  However, that positioning was probably developed through trial and error, so the background for the positioning should be used, but it is important for people to try to think beyond the current positioning.

4. The Objectives 1. Define the primary customer - It is a good idea to start broad and then narrow it down.  It is important to note that your primary customer may be the same or different from the person who is using the product. For example, in enterprise software, you have many users, but your primary customer is the person driving the purchase of the product. But if you are a website, your primary customer is your users, even though your advertisers may be paying the bill. 2. Define secondary customers -- Define secondary users and buyers of your product . 3. Define the problem - What is the problem you are solving.  What is the real area of pain for the primary customer listed above.

5. The Objectives 4. Define the secondary problem or other symptoms of the problem - A significant problem will have an impact in multiple areas.  List all the areas affected by the problem and how they are affected. 5. Emotions - List the emotions of the customer as they think about the problem.  What is the primary emotion associated with the pain? 6. Market characteristics - Breakdown the characteristics of your primary customer.  What do they buy?  How do they buy it?  What are their hot buttons?  What do they worry about when they think of their competition?  What keeps them up at night.

6. The Objectives 7. Channels - Describe the other companies that the customer works with in solving similar problems.  Decide if these companies are good partners for you.  What is their primary business?  How are their sales people compensated?  What is their biggest pain at this moment.  What can your product offer them? 8. Elevator pitch - Describe the customer, their pain, and how you solve it differently then anything else on the market.  Provide just enough information for the listener to want to know more.  Target the message to your primary customer and bring their emotions into the pitch. 9. Competitors - List your competitors and their strengths and weaknesses in comparison to your offering. identify specific attributes that set your product apart from competitors

7. The Process • Start the meeting by sharing the most current discussions with customers and potential customers.  Anyone who has had these conversations, whether they are formal market research, or casual conversations, should share that information with the rest of the group so that everyone has an equal understanding of the target market. • Walk through the nine objectives above, in the order they are listed.  Again, start broad and narrow the objective down by the process of elimination.   • Generally, by then end of the meeting, everyone should feel like the exercise was worth while and that they have a new focus for their job.  If this is not the case then additional market validation should be done and the group should reconvene.  

8. The positioning statement Step 1: Make a list of all significant competitors and write a sentence defining their position in the market. Step 2: Next define the current position of your company, product or service, as it really exists in the minds of consumers. Step 3: Now identify a specific attribute about your product that can differentiate it from the competition in a way that some consumers will find desirable. Don’t write just one. Come up with several. Then pick the best, and if one doesn’t stand out as best, then test several. It’s fine if that one thing only appeals to a segment, even a small segment, of your customers. It’s better to be specific than general. And you can amplify other attributes in the ad campaign. So don’t try to be all things to all people. All at once. It must be simple. A word or two is great. A sentence or two max.

9. Examples • “The innovative leader in banking services, financial products and convenient technology.” • “South Africa's only international bank.” • “Pizza Shack is the fun place for the whole family to enjoy a wide menu of delicious European and American dishes prepared with fresh ingredients.”

10. Rules and Checklist Keep it simple. Succinct. And see if your positioning statement pass this check list: * Is it true? * Is it easy to understand? * Does it differentiate the product in an attractive manner from the competition? * Is it expressed the way people will express it in their own minds, their own words?

11. Change ???? • Lay's potato chips was once positioned as "Thinner, crispier and tastier." More recently, as mentioned earlier, they have made the marketing decision to seek market share among lunch munchers with, "Let's do lunch," which positions the product as a lunch companion.