Positioning strategy is about where you compete and how you compete. The brand could be a product, service or the organisation. Positioning is normally done for a particular product and only uses two features from the product to analyse its position. It is usually best to rely on positioning approaches when they are part of a broader analysis which, in turn, helps to ensure that the whole marketing mix (personal sales, sales promotion, general advertising, public relations and sponsorship) is positioned for competitive advantage.
A positioning strategy has two components. The first is to know who you are targeting and the second is to differentiate the brand. The positioning statement has a creative platform that can project its image, such as Reds ' building your brand, selling your products' or Outsurance statement "You always get something out"
Once you have done some market research you may find that you need to reposition the brand because: 1. the target market is too small, declining or too competitive. 2. the quality and features of the brand have no appeal. 3. product cost are too high.
There are several re-positioning options Introduce New Brand A new brand could be a fighter brand (cheap clone to maintain a foothold in the mass market), such as a new shampoo, or it may even be more specialised like a scientific instrument with slightly less features but targets a new segment that only needs the basic instrument. A new brand could be an update of the old one with new features and sold with a new name.
Change Existing Brand The company can change the size or packaging to bring costs down to hold its position in the market. The just noticeable difference in a product such as a snack bar from 200 grams to 170 grams may go unnoticed. The packaging is the same - a new design and slightly smaller pack can save a huge amount in costs.