Introduction
Brand positioning, product differentiation and understanding competitors are three distinctive marketing strategies for launching a new brand in the market dominated by one brand.
Through these strategies, organizations aim at make continuous improvement in their product marketing strategies for sustaining in the industry, with a sizeable market share. By the analysis of the marketing strategies followed by competitors, firms can identify their competitive advantages and thus exploitation of opportunities can be done in time.
Brand positioning
A new brand of product gets market acceptance only when the consumers aware about the brand. On the basis of product information, the consumers express their attitude towards such brand and through this they create a brand image. A positive attitude of consumers is necessary for secure market position of the brand. Consumer preference for a particular brand depends upon experience of the consumers with such brand. “The target position means deciding on the target image of a brand and how the consumers should compare it to other competitive brands.” (Slovenija).
Example for Brand positioning market strategy
Revlon
Revlon Group of Companies’ trade name “The Dream Merchant” is best suited for a cosmetic company. By adopting accurate marketing strategies, the company attained market leadership in the cosmetic industry within a short period. Their product ranges from cosmetics, toiletries and fragrances. The marketing strategy for Revlon products is brand positioning for which they adopted separate brand names for each of its product lines. Their advertising strategy is mainly based on product presentation through international celebrities and super models and it is highly helpful for attracting different customer groups. (Lewin, Modi and Block).
In order to exploit the new natural product trend in beauty cosmetics, Revlon has introduced naturally extracted products in their product line. A new trade mark has been made as “Revlon beyond Natural” as its natural product trade mark. New variety shades have been introduced with these natural products for ensuring its customer loyalty. Its product brand names are highly effective for attracting new customers. (Whtas New. 2007).
In each line of products, Revlon has introduced product differentiation with variety colour combinations. In case of lips cosmetics, lip stick, lip gloss and lip liner are produced with different range of colours. Its hair care products follow the brand theme of “beautiful hair colour at home.” which is also customer attractive. (Products. 2007).
Through these products positioning strategy, Revlon has attained market leadership in the cosmetic industry with high growth rate.
Product differentiation Strategies
Product differentiation from competitors’ products is necessary for sustainable growth in a competitive market environment. Differentiation on product can be established through ways such as variety feature, top quality, variety styles and designs etc.
Example for product differentiation strategy
7-Up
The product lifecycle of 7 UP started from 1929 onwards. Through adequate marketing strategy 7 UP had attained market acceptance and became a market leader. The main strategy followed by the 7 UP is nationalized distribution channels and presenting the product as healthier than similar products. The increasing competition from other soft drink products such as Coco- Cola and Pepsi had forced 7- Up to follow a new strategy. In 2006, 7- Up changed its marketing strategy with changes in the product formula and presents a label of 100% natural flavors to its product. The company introduced, diet 7-up and cherry 7-up as a product differentiation strategy. (Business Service Industry: 7-Up Bottles a New Taste. 1997).
The major policy of 7 -Up is successful market segmentation and product differentiation. The soft drink industry is in the market maturity stage of the product lifecycle. Price competition becomes more intense in this industry. In order to sustain its market share 7 -Up has followed strategies of maintain brand preference with suitable product differentiation. For this advanced packaging and advertising methods are followed. It helps the product appealing to special market segments.
Understanding competition
The competitor’s analysis is important for formulating proper marketing strategy in a competitive industry. Through competitor analysis the strength and weaknesses of competitors can be analysed for exploiting the competitive advantages of the firm. Competitors’ analysis is highly followed by automobile companies.
Example for strategy of understanding competition
Ford
Ford is an automobile branded company which analyses the changing market needs regularly and makes improvement in their product quality and manufacturing efficiency. Global manufacturing strategy has followed by the company to create a competitive advantage in the industry. By putting high skills in management and following better planning they are able to improve their competency in time and cost management. The business process management techniques help to bring about quality assurance, productivity growth and better financial results. (The BPM Imperative. 2008).
Global manufacturing strategy followed by Ford is a competitive advantage of the firm. In the automobile industry, Ford Motor Company is the only one which follows global power train strategy. In their new product, Ford-150 they established a network of flexible engines and transmission plants and it helps them to meet the changing market needs with competitive product features. (Global Manufacturing Strategy Gives Ford Competitive Advantage. 2008).
By understanding the competition in the market, Ford has made adequate changes in its products and services and thus it sustains its market share constantly. Along with the changing customer needs the company implements necessary arrangements in its product design strategy and the related services.
Conclusion
Branding is an effective tool for making product differentiation for a particular firm. Good branding has the objective of communication with the customers about the business ideas and mission. A good branding would confirm credibility of the particular firm’s product. It will be an effective motivation for the buyers since it creates customer loyalty towards such brands. Before framing brand strategies the needs and wants of customers has to be understood clearly. The brand strategy has to be followed in each stage of business. Brand loyalty is the result of total experiences and perceptions of customers with a particular product.
Bibliography
Business Service Industry: 7-Up Bottles a New Taste. (1997). Journal Record, 1. 2008. Web.
Global Manufacturing Strategy Gives Ford Competitive Advantage. (2008). Web.
LEWIN, Jerry., MODI, Umesh K., and BLOCK, Paul. The Dream Merchant. [online]. Group of Companies: Modi Revlon Limited. 2008. Web.
Products. (2007). [online]. Revlon. Web.
SLOVENIJA. Brand Positioning. [online]. Gfk. 2008. Web.
The BPM Imperative. (2008). [online]. Action Technologies: Powering Knowledge-Worker Productivity. Web.
What’s New. (2007). [online]. Revlon. Web.