Product Positioning Strategy Example

Product positioning is a part of market positioning.  Market positioning defines how your business, product, and brand fit into the market. All three should work together seamlessly and create the overall “image” about you, and your business. These help define your overall market positioning, and from there you can create a working strategy:

Brand Positioning
Product Positioning
Business or Organizational Positioning

Pretty easy huh? In other words, all 3 of these positioning strategies should be taken into account for overall market positioning success. A good market positioning strategy takes all these aspects, with the customer’s needs first. Your business should cater to that target customer.

Let’s start with the product, since that’s usually the “idea” that gets Entrepreneurs and businesses going.

Product Positioning

Product positioning is how your product fits into the market. Why will customers buy your product? What value does your product offer? Is there additional values that enhance your product positioning? Can your product be positioned to compete? Further, do you have the resources in place to compete on pricing?

Disruptive Products vs Streamline Products

Start by asking yourself is your product disruptive, or is it streamline? Disruptive products disrupt traditional markets, and are known to be “out of the box” or “never heard of”. There’s alot of risks associated with positioning these products, so it’s important to prove your concept first. Streamline products are similar to other product positioning in the market, but they need a competitive advantage to survive: the competitive advantage is usually given by product positioning as added value, and less costs.

It’s very likely you’re a streamline product, so I’ll use that example in our product positioning strategy.

Product Positioning Strategy Example

Start by defining each component of your product positioning provided in this example:

Pricing Example

Is your product a luxury item (Macy’s is an example of product positioning in the luxury market), direct cheap (example here would be a goodwill or value store, such as Ross or Marshall’s), or in the middle (Target’s product positioning is in the middle of the market).

Quality Example

What’s the overall quality of your product? How is your product positioning against the other products quality in your market? Total quality is a much used and abused phrase. But is your product well produced? Do you back your quality claim with money back guarantees?  Warranties?  Do you charge for those warranties?

Service Example

How does your strategy position your product in terms of service?  Do you offer the added value of customer service and support? Is your product customized and personalized?  Does the customer’s name appear when they log into your site?  How you deliver service to the customer is an important part of customer segments and customer relationships.

A good example of product service is support forums. Many companies are converting to these as means of service, and allow customers to help solve one anothers problems.

Distribution Example

What’s your strategy to help customers obtain your product? The channel or distribution is a very important part of product positioning.  You need to make it easy for customers to find your product, and it needs to be easy to deliver your product.

Product distribution channels can include partners, teams, and affiliates.  As well as internet marketing strategies.

Packaging Example

Packaging makes a strong statement. Make sure it’s delivering the message you intend.  Also, your product packaging is very important in appealing to customers.  Does it visually appeal to them?  How well is your product positioning against other’s in terms of your packaging?

Product Positioning is really just a competitive strategy for your product or service. What’s the one thing you do best? What’s unique about your product or service? Identify your strongest strength and use it to position your product.

A large part of your success as an Entrepreneur involves defining your product positioning, and developing a strategy around this. Developing a product positioning strategy can be challenge for any business. Especially a new business or start up; but this can apply to businesses repositioning themselves in the market as well.

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