kapil kohli 016401528802 icici bank dehradun

branjan@amity.edu

BRAND POSTIONING

by-
sweena juneja
MAB-RM
A0116209018

Contents-
Introduction
Meaning
Research strategy by reliance
Positioning by reliance
Difficulties in positioning
Introduction(1)
Reliance is gearing to be a major player in the Indian Retail Revolution. They are aggressively working on
a pan-India network of retail outlets in various formats. State-of-the-art technology, a seamless supply
chain infrastructure and unmatched customer experience, is what the initiative is all about.

Reliance Retail, the 100% subsidiary of Reliance Industries, entered the retail foray involving a minimum
investment of Rs 25,000 crore. They plan to achieve a target of Rs 10-billion revenue by 2010 employing
5,00,000 people. Hinting at an impending IPO, Reliance retail, has renamed “Ranger Farm” to Reliance
Fresh Ltd, having hived the name of their most popular format. The company’s name will sound familiar
to the investors once the company plans to tap the capital markets by facilitating brand recall.

The first of their format is Reliance Fresh, a convenience store. These stores, range from 2,000 to 5,000
sq feet, provide customers with a variety of fresh fruits, vegetables, staple foods and other products in a
world-class ambience. They aggressively partnered farmers by following a farm-to-folk strategy to ensure
fresh fruits and vegetables at affordable prices. They chose Hyderabad to test waters, as the city offers
real estate at a price that does not quite pinch. They selected the cream crowd from pioneers in
organized retailers to head the organization. With such a strong foothold, they ventured and their cash
counters clicked Rs 3.5 to Rs 6.5 lakh per day and some outlets at prime locations are averaging Rs 5 lakh
per day.

Vegetable vendors and small retail shop-owners are accusing Reliance of directly hitting their business.
Reliance Fresh will not compete with local vendors due to political reasons, and their inability to create a
robust supply chain. This is different from their original plans. In states like Kerala, West Bengal and
Orissa, where they face opposition, they have changed their retail strategy by introducing large
supermarkets, where they will not trade in fruits and vegetables. This is a critical factor in assessing the
impact of retail giants on the unorganized segment. These Reliance Super stores are large supermarkets
with an area of 4,000-10,000 sq ft and will stock grocery, stationary, pharmaceutical products and
apparel only.

In the foods business, they have consciously segregated its vegetarian and non-vegetarian items by
having a separate brand - Delight for the latter, with a separate distribution centre. This may be a smart
move as vegetarians are sensitive to these issues. Seeing huge opportunities, they have introduced own
brands like ‘Dairy Pure’ for milk, ghee, (the only other major player being Amul) and ‘Reliance Select’ for
other categories like staples. This will optimize margins and streamline supply chain because of bulk
procurement.

Reliance Fresh will also retail FMCG, home, consumer durables, IT, pharmaceuticals, and auto
accessories, in different formats like hypermarkets, supermarkets and discount stores; however, food will
be a major account. Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz (apparel), Reliance
Footprint (footwear, handbags, accessories), Reliance Wellness (health), Reliance Jewels, Reliance
Timeout (books and gifts) and Reliance Super (mini mart) are various formats that Reliance has
introduced.

There are 491 Reliance Fresh stores and this figure is likely to touch 1,400 by the end of next fiscal,
currently spanning 2.2-million sq. ft. In addition, Reliance Retail has entered into an alliance with Apple
for a chain of Apple Specialty Stores branded as iStore, Bangalore. With Marks and Spencer they are
exploring apparel, gourmet food and cafes. Diversifying into various categories gives them an
opportunity to tap the growing segments with immediate effect and further minimize potential losses.

After the successful launch of consumer-good super market Reliance Fresh and Consumer Electronic and
Digital, Reliance Mart (1,50,000-3,00,00 sq. ft.) is the company's hypermarket format. Around 23 percent
of the hypermarket floor space will be allocated to garment brands, while the rest will stock footwear,
home goods and other products. Luxury products will cover a floor space of 11 percent. Reliance Retail
Limited (RRL) announced a Joint Venture with Pearle Europe for the launch of a chain of optical stores.
This will bring a world-class range of private label frames, lenses and sunglasses. The optical industry is
on the brink of major growth and has few organized players. Even the Tatas have ventured in this
segment.

Reliance has bought properties ranging from Rs 1,000 per sq ft to as high as Rs 22,000 per sq ft or more
for their expansion. Reliance now plans the franchisee route for further expansion. Faced with expensive
real estate costs and delays in retail space acquisition, the company is co-opting existing small retailers in
all formats other than Reliance Fresh and Reliance Hypermarket. This is yet another success formula for
giant retailers.

Given their economies of scale and huge resources, excellent business acumen, and governmental
support, the ever-strategic Reliance Fresh has become an ambitious and strong force to reckon with.
They are able to provide their merchandise at cheaper rates than any other retailer, and have signed real
estate deals at breakneck speed for mega projects across India. Reliance and Future Group are the early
birds at making a dent in the large profit from the retail sector in India, at excellent real estate rates for
properties in prime locations.

The retail sector employs around 40 million people in India. Trade/retailing contributes to 14 percent of
the service sector. The fact that about 4 percent of the population is employed in the unorganized retail
trade makes it vital to the socio- economic equilibrium in India.

Organized retailing and supply chain integration displace labor in a labor-surplus society. These chains
negate a large and growing proportion of added value away from producers to companies. Bulk
procurement decreases producer’s margins. By controlling both ends of the chain, the company can buy
cheap and sell dear, thus severely undercutting the small retailers and creating a monopolistic situation.

In addition, retail trade also has a sky rocketing effect on the real estate prices. Markets, wholesale sales
and retail form one axis of the economy, while productive sectors like agriculture, textile, and industries
form the other. Ambitious MNCs are trying to control both the axes of the economy on the pretext of
privatization, liberalization, and globalization.

Therefore, Reliance Fresh along with other domestic corporations have a moral standing. Along with the
support of the government, they must pave a path for an efficient retail market (no monopoly) in India
and help maintain a socio-economic equilibrium. This will remain the biggest challenge for Reliance who
leads the way as a corporate citizen. The growth must be through value creation. This will help the Indian
retail sector to remain fresh in a hygienic and ethical market.
In marketing, positioning has come to mean the process by which marketers try to create an image or
identity in the minds of their target market for its product, brand, or organization.
Re-positioning involves changing the identity of a product, relative to the identity of competing products,
in the collective minds of the target market.

De-positioning involves attempting to change the identity of competing products, relative to the identity
of your own product, in the collective minds of the target market.

The original work on Positioning was consumer marketing oriented, and was not as much focused on the
question relative to competitive products as much as it was focused on cutting through the ambient
"noise" and establishing a moment of real contact with the intended recipient. In the classic example of
Avis claiming "No.2, We Try Harder", the point was to say something so shocking (it was by the standards
of the day) that it cleared space in your brain and made you forget all about who was #1, and not to
make some philosophical point about being "hungry" for business.

The growth of high-tech marketing may have had much to do with the shift in definition towards
competitive positioning. An important component of hi-tech marketing in the age of the world wide web
is positioning in major search engines such as Google, Yahoo and Bing, which can be accomplished
through Search Engine Optimization , also known as SEO. This is an especially important component
when attempting to improve competitive positioning among a younger demographic, which tends to be
web oriented in their shopping and purchasing habits as a result of being highly connected and involved
in social media in general.

Definition-
Brand positioning refers to “target consumer’s” reason to buy your brand in preference to others. It is
ensures that all brand activity has a common aim; is guided, directed and delivered by the brand’s
benefits/reasons to buy; and it focusses at all points of contact with the consumer.

Brand positioning must make sure that:

Is it unique/distinctive vs. competitors ?

Is it significant and encouraging to the niche market ?

Is it appropriate to all major geographic markets and businesses ?

Is the proposition validated with unique, appropriate and original products ?

Is it sustainable - can it be delivered constantly across all points of contact with the consumer ?

Is it helpful for organization to achieve its financial goals ?

Is it able to support and boost up the organization ?

In order to create a distinctive place in the market, a niche market has to be carefully chosen and a
differential advantage must be created in their mind. Brand positioning is a medium through which an
organization can portray it’s customers what it wants to achieve for them and what it wants to mean to
them. Brand positioning forms customer’s views and opinions.

Brand Positioning can be defined as an activity of creating a brand offer in such a manner that it occupies
a distinctive place and value in the target customer’s mind. For instance-Kotak Mahindra positions itself
in the customer’s mind as one entity- “Kotak ”- which can provide customized and one-stop solution for
all their financial services needs. It has an unaided top of mind recall. It intends to stay with the
proposition of “Think Investments, Think Kotak”. The positioning you choose for your brand will be
influenced by the competitive stance you want to adopt.

Brand Positioning involves identifying and determining points of similarity and difference to ascertain the
right brand identity and to create a proper brand image. Brand Positioning is the key of marketing
strategy. A strong brand positioning directs marketing strategy by explaining the brand details, the
uniqueness of brand and it’s similarity with the competitive brands, as well as the reasons for buying and
using that specific brand. Positioning is the base for developing and increasing the required knowledge
and perceptions of the customers. It is the single feature that sets your service apart from your
competitors. For instance- Kingfisher stands for youth and excitement. It represents brand in full flight.

There are various positioning errors, such as-

Under positioning- This is a scenario in which the customer’s have a blurred and unclear idea of the
brand.

Over positioning- This is a scenario in which the customers have too limited a awareness of the brand.

Confused positioning- This is a scenario in which the customers have a confused opinion of the brand.

Double Positioning- This is a scenario in which customers do not accept the claims of a brand.

Postioning strategies of reliance retail- reliance fresh (2)

The term positioning has two connotations: a vertical and a horizontal one. In terms of the vertical
connotation, the term refers to the order in which your product ranks relative to the products of your
competitors in the minds of your customers in your industry niche.

In terms of the horizontal connotation, the term refers to the qualities and attributes your product
represents in the mind of your customers, again relative to your competitors.

One cannot directly control the ranking that the product or service enjoys in the minds of the customers,
one can influence how the product is positioned in terms of qualities and attributes. That is, by properly
positioning the product relative to the competitors in the mind of customers, one will have much more
control over how the brand is perceived in the marketplace. You will then effectively have a guide or map
for how to execute your branding strategy.

Example of brand positioning strategy-

Identify the key differentiators of the product. then determing: why would customers buy from me?
What makes my product different? What is the unique value it adds? the product to be positioned to
have four to five unique traits.

The positioning process is an indepeth sutdy of the market and is done by conducting a research.

Our brand positioning research approach and goals...

refine highly differentiating advertising themes, appeals and messaging...

employ the most appropriate market segmentation approach through market segmentation research...

understand customer needs to discover high-impact brand positioning opportunities through staged
qualitative, behavior research, market research ethnography, and quantitative research. ...

use Creative Branding Research -- driven by positioning research results -- to identify high-potential
brand power, and creatively deliver a brand promise.

Positioning Base Research

Prior to conducting primary positioning research, we first take time to gauge your brand landscape. For
client companies, we evaluate positioning assumptions and prior market structure studies, market
segmentation information, branding research, client and competitive advertising, and competitive brand
name architecture. We build hypotheses regarding the strength of comparative brands, their brand
equity, acceleration of brand power, and how the market decision-makers -- consumers and B2B
decision-makers and firms-- view the marketplace.

As a part of the Positioning Base Research, we conduct far reaching interviews with client management,
field sales, product development and customer service staff. We talk to sales people in the channel
about their own brand preferences and their perception of customers. We cap off Positioning Base
Research with qualitative market research where we reach a small sample of client customers and those
competitor-loyal customers. The purpose here is to refine hypotheses about how customers see and
define the marketplace.

Positioning Qualitative Research

We employ a unique qualitative methods. Our typical starting point is a small sample round of depth
interviews. In the beginning stages of a positioning study, this is an optimum method of qualitative
market research. Here, we use a non-directive design and style, combined with projective interviewing
techniques to uncover buyer perceptions of the brand choices, and their differentiation qualities. We do
not bombard respondents with a laundry list of questions, but rather, let them talk freely in a wide
ranging manner about their buying and use experience, and market perceptions. The focus here is to
uncover the language about the choice dimensions on which buying decisions are made. Positioning
relies upon a solid segmentation and market definition analysis.

We may continue the qualitative exploration with a larger sample using an online qualitative time-
extended method which combines both qualitative and quantitative assessments. If certain conditions
exist, we may add focus group discussions to the qualitative market research work.

Positioning Quantitative Market Survey

Brand Screening Survey:

Test hypotheses developed from the Positioning Qualitative Research. These pertain to segmentation,
strength of segment dimensions, and category perceptions and buyer attitudes.

Screen positioning concepts using concept statements and appeal ratings to assess qualities of
positioning distance, or differentiation power. (See... Concept Testing)

See our Strategy Newsletter article discussion about finding and owning a market space as the basis of
successful brand positioning. The issue is "How do we find and own a market space and build or rebuild
a brand?"

Positioning Research Methods

Qualitative Research: Online Depth Interviews...

Once hypotheses about brand positioning and market opportunities are articulated from our initial
limited round in our Positioning Base Research, and initial depth interviews, we may expand the
qualitative exploration to a broader set of Time-Extended Online Depth Interviews. This method engages
each participating respondent over a period of one week or more thinking about and reporting their
perceptions in a running dialog. We have successfully used this innovative tool and process with many
high profile clients. While primarily qualitative, our online implementation has some important
quantitative features for segmentation and attitude measurement.

The Value of the Qualitative Step

We believe sound qualitative research is a vital component in decision-oriented marketing research. It is

especially useful in developing hypotheses about consumer motivations. These help us understand from
the consumer's perspective and in the consumer's own language. Qualitative research, which is
characterized by free-ranging, open-ended interviews among a limited number of respondents, is
primarily an exploratory motivational technique. We use it here to identify important marketing
variables and to suggest the relationships among those variables, to focus the creative process and lay
the design groundwork for the later quantitative screening research stage.

The main point here is the value of getting in-depth insight into the buyer belief and attitude structure,
and use this insight for business strategy development. For example, when scanning for strategic
opportunities they can uncover important consumer and business buyer attitudes, beliefs, and behaviors
that may precede an emerging trend. Non-directive techniques and projective research techniques are
especially useful in defining buyer motivations .

What about focus groups?

Customer discussion groups -- another term for "marketing research focus groups" -- can be useful in the
early stages of positioning strategy decision-making. For brand positioning research, we tend to prefer
in-person or online time-extended depth interviews, our preferred methods of getting inside the buyer's
mind which may offer equally rich, or better, marketing information at an overall lower cost.

We will recommend focus groups when the following conditions are important... (see more...)

idea generation among prospects and customers

when observing group interaction can provide insight about potential opinion leadership and word-of-
mouth activity...

little is known, or knowledge is stale, about the product or brand category, and hearing the category
language and buyer behavior range reported first hand is desired...

observing emotions as brand, products, or ads are revealed

While group discussions are very popular among qualitative techniques, there are many important "do's
and don'ts". It is critical that the researcher knows how, when and where they can be used, and where
they should be avoided. The January 2001 issue of the StrategyNewsletter updates the basics and some
new issues brought on by the advent of online focus groups, and other tech offshoots.

Content analysis to understand the brand language

Aside from market research focus group discussions and depth interviews, we might use other methods
to understand customer brand perceptions and screen your branding options. Content analysis is a
process of examining customer diary entries, articles by observers of behavior, advertising, and other
language used by advertisers, customers and suppliers in the product category. Content analysis can be
applied to marketing research data collected from a range of sources, open-ended responses to online
surveys, phone surveys, self-administered questionnaires, time-extended qualitative depth interviews,
standard depth interviews, competitive promotional literature, brand advertising. In content analysis we
examine word use, style, meaning, etymology, and core attitudes reflected.

Ethnography to 'watch' what people do

Our positioning exploration research may involve special observational qualitative methods such as
ethnographic studies. Photo ethnography, uses various methods, such as self-directed-video to watch
what people do in and around the product category. We make inferences from this data as to relevant
positioning dimensions at play. We watch as customers and prospects engage in store shopping, using
products in their home, and their interactions with other people when the product category or brand is
involved. A pet food company may employ a video ethnography study and ask pet owners to video tape
their pet.

Positioning by reliance-
Where a store situtes itself in the consumer market. done by keeping in mind the four marketing mix's -

• product

• price

• place

• promotion

Product-
Assortment- product positioning is described as the range of goods the company decides to keep in the
respective stores. i.e the range of stock or total slection a retailer carries. I.E as reliance fresh has
products ranging from veggies under the brand reliance to other milk products and so on.

assortment breath (width)- Refers to the number of different item categories or classifications offered by
a stores. Categories range from butter, cheese, reliance fresh ,veggies, pulses etc

Assortment Depth- indicates the quality of each item available in the assortment goods offered. the
quanity of each product varries from region to region on the basis of demand.

price-
prestige pricing- prestige pricing refers to setting different prices for different products offered to attract
customers from different income levals. prestige pricing in reliance fresh would be the grocery sold
under the name reliance is priced hiigher as compaired to the grocery products bought and sold by local
sellers.

price promoting- price promoting means advertising special price reductions for a product or group of
products to bring in shoppers and it can build traffic to buy other items as well. for reliance fresh bundle
discounts or basdket sales are advertised, special discounts etc are also facilitated.

place-
place positioning includes fixing the location of your store in a manner that it is easiliy accessible by
consumers and the area, rent etc is also kept in mind. place positioning is done by placing outlets in
differnt areas and forms which are as follows-

shopping malls

clustered outlets

independent outlets

novel type of location

promotion- To create a brand and to position it in front of customers it is necessary to advertise. this
theory arises out of the fact that people will accept your product as a brand when they are actually
aware of its existance. advertising is done through the following tools-

print ad's

t.v / radio

Sms

sales promotion

difficulties against positioning-

• DIRECT COMPETITION between two or more retailers using same kind of business format eg
relaince fresh and spencer

• INDIRECT COMPETITION between two r more retailers using different types of business formats
to sell the same type of merchandise eg- dept store v/s reliance store.

• VERTICAL COMPETITION between businesses at different levals of supply chain example reliance
fresh v/s wholesale outlets.

bibilography

1-www.wikipedia.com
1- www.relianceretail.com

2- research paper

rest is internal research data from reliance and own research.