Discuss the following positioning strategies: (a) Customer benefits, and (b) Different product class
Discuss the following positioning strategies: (a) Customer benefits, and (b) Different product class
Positioning Strategies:
(a) Customer Benefits Positioning
In this strategy, the product is positioned by highlighting the specific benefit it offers to the customer. The focus is on what value the product delivers.
- The marketer identifies the most important benefit customers seek.
- The product is communicated as the best solution for that need.
- Example: Colgate positions itself as a toothpaste that provides cavity protection. Dove soap positions itself as providing moisturising benefits (not just cleansing).
(b) Different Product Class Positioning
In this strategy, the product is positioned differently from its usual product category to create a unique identity.
- The product is compared to a different category to distinguish it.
- This creates a unique perception in the consumer's mind and reduces direct competition.
- Example: 7-Up positioned itself as "The Uncola" — not a cola drink — differentiating itself entirely from Pepsi and Coca-Cola. Margarine is positioned as a healthy alternative to butter (a different product class from regular cooking fat).
Marking Scheme
- 11.5 marks for customer benefits positioning: 0.5 mark for correct definition, 0.5 mark for real example, 0.5 mark for explaining the mechanism/how it differentiates.
- 21.5 marks for different product class positioning: 0.5 mark for correct definition, 0.5 mark for real example, 0.5 mark for explaining why a brand repositions to avoid direct competition.
Hint
For each strategy follow the pattern: What it means → How it works → One real brand example. Do not just name the strategy; explain the logic behind it.
Quick Oral Answer
Customer benefits positioning highlights the key value delivered to the customer (e.g., Dove positioning on moisturising, not just cleaning). Different product class positioning places a brand in a new category to avoid direct competition (e.g., 7-Up positioning as 'The Uncola' to separate itself from cola drinks).
Analysis & Explanation
Positioning decides where a brand sits in the consumer's mind relative to competitors — customer benefit positioning works within the existing mental category, while different product class positioning escapes it entirely.
Concept
- Customer benefit positioning links the brand to a specific, tangible, or emotional benefit that matters to the target segment (e.g., Colgate → cavity protection, Dove → moisturising); the benefit must be concrete and provable, not a vague claim like "best quality".
- Different product class positioning is a high-risk, high-reward strategy that asks consumers to reconceptualise which category the product belongs to; it works best when the existing category carries strong negative associations (e.g., margarine repositioned from "fake butter" to "healthy eating").
Common mistakes
- Giving only the definition without a named brand example — examiners specifically look for real examples.
- Confusing positioning (the strategic decision) with advertising (the communication of that decision) — students often conflate the two.
Real-world
- 7-Up's "Uncola" campaign is a textbook different-product-class repositioning used to escape direct competition with Coca-Cola and Pepsi.
Common Mistakes
- 1Explaining only one strategy in depth and giving a vague one-liner for the other — both strategies must receive equal, detailed treatment for full marks.
- 2Citing a real brand example (e.g., 7-Up) without explaining the mechanism behind the strategy — the example alone is not enough; the underlying logic must be stated.
- 3Confusing customer benefits positioning with a general USP claim — customer benefits positioning specifically communicates the functional or emotional benefit delivered to the buyer, not just a product feature.
Previously Asked
Explain 'differentiation' as a market positioning strategy with an example.
What is benefit-based positioning? How is it different from competitor-based positioning?
Describe any two strategies a company can use to position its product in the minds of consumers.
Interesting Facts
The 7-Up 'Uncola' campaign launched in 1967 is one of the most studied cases in marketing history — it grew 7-Up's market share by over 10% in three years purely through repositioning without changing the product formula at all.
Dove's 'customer benefit' positioning around moisturizing was so effective that the brand conducted a 40-year longitudinal study showing its moisturizing bar caused measurably less skin dryness than regular soap — turning a positioning claim into scientific fact.
Positioning was formalized as a marketing concept by Al Ries and Jack Trout in their 1972 Advertising Age articles, later expanded into the book 'Positioning: The Battle for Your Mind' — still considered the definitive text on the subject over 50 years later.
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Frequently Asked Questions
What is the difference between positioning and segmentation?
Segmentation is the process of dividing the total market into distinct groups of consumers with similar needs or characteristics. Positioning is what comes after — it is the act of creating a specific image or perception of your product in the minds of the chosen target segment. Segmentation answers 'who are we selling to?' while positioning answers 'how do we want those people to think about us?'
Can a product use more than one positioning strategy at the same time?
Yes, brands often combine positioning strategies. For example, Apple positions itself on customer benefits (ease of use, design quality) while also positioning against the PC category in a different product class sense. However, for exam purposes, each strategy should be explained distinctly with its own example. Mixing strategies in one answer without clarity can confuse the examiner.
Why did 7-Up use 'The Uncola' positioning instead of competing directly with cola brands?
Competing head-to-head with Coca-Cola and Pepsi on their own terms — taste, refreshment, brand heritage — would have been nearly impossible for 7-Up given those brands' market dominance. By positioning itself as 'The Uncola,' 7-Up redefined the comparison category entirely. It attracted consumers who were looking for a non-cola alternative while still occupying valuable mental shelf space in the beverage category. This is a classic example of competitive repositioning through a different product class strategy.