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Basics of Product Positioning

  • Muskan
  • May 28, 2021
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As consumerism is growing so are the means to cater to those needs and wants, there are a plethora of companies available in the market in every niche almost offering the same product with the same features as other products available but what makes them different and varied is the one feature that they can point out about their brand which provides for a function at a specific expenditure to a set target group of customers that no other brand is providing. 

That's where the positioning of the product in the market comes into the picture.

What is Product Positioning?

Product positioning can be understood as a marketing strategy that is akin to differentiation and is used in a form to tell how your product is different from the others available in the market. This is basically telling why and how your product is one of its kind. In simpler words, It can be termed as a consumer’s perception of a brand against the competing brands providing similar services.

This marketing technique enables the brand to determine their niche, keep an eye on their competition and their strategies so as to continue with the differentiation, and choose a promotional strategy amongst the targeted audience of the product hence made. 


For example


Burger King and McDonald's both are companies of the same market category functioning but Burger King positions itself as the one to serve quality food whereas Mcdonald's is identified as a place to get quick and cheap meals. 

This is how positioning works by making two competitive brands finding their place and making themselves distinct in the same niche.


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Types of Positioning 

There are various ways in which the product needs to be positioned in the market against other products based on how that stands. Some major types of product positioning are:

1. Price 


The price of the product plays a crucial role in the probability of it being chosen by the customer. Depending upon the type of the product and according to the need and how efficiently it serves the purpose plays a crucial role in determining the price worth of the product by the customers. 

The luxury items are mostly categorized as such and are expensive whereas the essentials are usually low-priced with justiciable qualities and can serve the purpose easily. The prices with low products have a higher chance of customer preference majorly. 


2. Quality 

The quality and durability of the products is something which in some cases can combat the price wars. The quality assurance of the products sometimes surpasses the price barrier of the customer, they can utilize more of their purchasing power to get a product of the better quality ranking in the market. 


There is nearly the same kind of prices for the product but one’s reliant on their qualities the customer is likely to go for that. So this will not be wrong to say that a product is placed at a  lower price than other competitors.


Image Showing Types of Positioning  1. Price 2. Quality 3. Differentiation 4. Convenience 5. Customer Service 6. Targeted Customers

Types of Positioning

3. Differentiation


There are a lot of products available in the market which are of the same category. Differentiation is something that can help in determining the market position of their products based upon how efficiently they can put why they are distinct from the rival products. 

For example, Complan, Horlicks, and Bournvita are all health drinks for children, although they are broadly of the same category they claim to provide different qualities and benefits of their products. 

Complan claims to make the children taller. Horlicks position themselves as a drink which makes the children taller, stronger, and sharper. Bournvita brings out a scientific claim so as to say that it contains Vitamin D which is essential for the absorption of calcium. 


4. Convenience

This factor plays a crucial role in becoming the customer favorites. The hassle of the lifestyles enables the customers to go to the options which serve the function of convenience and availability for them. 


The mobile applications of the brands with a user-friendly interface, e-commerce businesses with quality assurances, and easy returns policies are the new positioning initial for the businesses. 

This also makes the businesses the part of the race by making them have a dedicated virtual space for the distant customers too to eradicate physical interaction and be able to sell to them as well. 


5. Customer Service

The efficacy and accessibility of the grievance redressal in terms of products and machines can serve as a good tactic to position the product in the market. This gives the customers an insight and trust that the brand is there to solve their issues if you are choosing them. 


Customer service with helpful conversations and friendly manners can be a crucial element in industries like the hospitality and education sector. Such industries are a product of healthy interactions and personal advantages.

6. Targeted Customers 

It gets crucial for the brand and the product to have a targeted group of customers and position their product among them, based on specific groupings. It could be on the basis of age, economic class, educational qualifications, and even profession. 


Telling the product’s and the brand’s application and relevance to that particular group can be a helpful tool to make the product gain attention among the particular group and be useful for them. 


As mentioned, there are various aspects and kinds of positioning in the market for a particular product of a particular brand. Product positioning is a thoughtful process but if done correctly it can serve considerable advantages for the organization in the long run.


Benefits of Product Positioning

As this strategy will pave the way for other strategies of targeting and retargeting the customers, related advertisements and promotional gestures etc. Apart from this there are a number of benefits of focusing on product positioning as an efficient marketing strategy. 


1.  Creates Competition

By positioning the product effectively, a positive brand image of the product can be made in the minds of the customers. This helps in building a loyal customer base which in turn can help in getting an edge over the competition in the market.

Insofar as that this positive image of the brand can help in formulating many more marketing tactics by giving free and promotional products. Constantly being a part of the competition will naturally call for the brand to adopt new techniques and keep a check on the required improvement. 


2. Improves Sales 


Positioning can help in improving the sales for the product by combining this with other analytics marketing tools. Once the product and brand have achieved a loyal customer base, the launch of new products by the same company gets easier, giving relevant offers, free samples, membership benefits, etc. can help in both retaining the loyal customer base as well as penetrating into the market of other customers. 


3. Understanding of Customer Needs 

Getting a specific position in the market for the brand is somehow a work of deep understanding of its targeted audience and their needs. Through correct combined practices with product positioning it gets easier for the companies to communicate to customers about their products and distinct features (other than mentioned) that they offer. 

Also, this can be used to understand what kind of products and the variant of the product the majority of the customers are looking for and hence can be thought through by connecting to the customer's needs and requirements so as to retain them.

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Examples of Brand Positioning 



Tesla is a luxury brand selling vehicles at a price that is considerably higher than their competitors. Yet is a renowned brand and their primary marketing and sales strategy is to leave the price out of their programs and focus on the quality and the features of their cars which are one of its kind in the market amongst other luxury cars brands, which are gas-powered and not electric like theirs. They are long-ranged, eco-friendly (as they are electric). Despite being a luxury brand this company displays its features via comprehensive advertising



Starbucks positions itself as an excessively perfect coffee store serving the high quality of rich coffee. They have also made strategic collaborations with other businesses to operate their coffee stores in their premises. Starbucks has also received huge social media postings by writing the name of the customer on the drinks as its brand culture and making it quite personalized. In this way, they were also able to convey that grabbing their coffee can be an enjoyable and pleasant experience for the customers. 



Walmart has positioned itself as the one roof store for all the needs kept at low and affordable prices for the general crowd. It can be considered as the place where large families on tight budgets shop, which is a predominant group in major cities. This focuses on bringing all the everyday products with ease and convenience to the price-sensitive customers, and this brand has positioned itself so well that it's a common practice for people to brag about huge discounts and deductions they were able to secure at Walmart!



Dove is really positioned among its competitors in the market. This basically is focused on providing its products by looking at the real beauty of women. Their campaign which was to stop the beauty test enabled their name emphasized as a brand that is against all the beauty standards and stereotypes made them gain popularity. Also, they claim that their products are suitable to all and are enriched with the goodness of the fusion of science and nature. 



Brand positioning is literally everywhere around. Naming Colgate as a substitute for the word toothpaste, naming Xerox for the word photocopy are some examples of successful brand positioning. This enables the brand to get its share of loyal customer base and a distinct image against other brands. 


However the position strategies need to be changed and revised regularly, the correct usage and understanding its significance with a bit of investment in it can provide for a success for the brand’s image and popularity amongst the targeted audience. 

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