1.

Positioning based on product characteristics

Using product characteristics or benefits as a positioning strategy associates
your brand with a particular feature beneficial to customers.

For example, in the automobile industry — Toyota’s position in the market is

reliability, Porsche’s position is performance, and Volvo’s position is safety.
Brands consistently communicate a unique benefit or characteristic of the
product with consumers.

2. Positioning based on price

Positioning your products or services on price is competitive pricing. Usually,
with a pricing positioning strategy, a brand aims to be the cheapest or
cheapest market, and value becomes their position.

For example, Supermarket chains often have a house brand with very low-
price products in many product categories.

Their lower logistical and distribution costs allow them to price their
products lower than the competitors, so price-sensitive buyers will often
purchase them without knowing the price because they know it is often the
cheapest option.

Brands can also position based on price if they find a market gap at a specific
price point. Being the only option in a certain price range becomes your
market position. Often brands extend their product lines to fill a gap in the
market.

3. Positioning based on quality or luxury

Often the price and quality of a product align, certainly in the consumer's
mind, as the high price is often associated with high quality. However,
positioning a product based on its high quality or ‘luxury’ is different from
positioning based on price.

Often these brands do not communicate their price point; instead, high
quality or prestige is the focal point of communication to create a desire, so
customers want the product regardless of the price.

Note that luxury does not always mean better quality; however, customers
still believe it is better because of their reputation due to their long-term
brand luxury positioning strategies.

For example, a $200,000 Rolls Royce car, the epitome of luxury, is likely to
have a lower build quality than a $30,000 Hyundai.

4. Positioning based on product use or application

Associating your product with a particular usage is another way to position
your brand in the market.

For example, meal replacement supplements are of use to anyone wanting a

quick, convenient meal on the go or just lacking time.

There are also meal replacements explicitly designed for people who want
high performance in the gym or playing a sport, so they are often high in
calories and have added vitamins and minerals.

Other firms create meal replacements for people on a diet, so they are low in
calories and would not provide much energy for somebody’s workout.
Performance supplements of target males and the diet low-calorie option
target females: both meal replacements, but different positioning.

5. Positioning based on the competition

Competitor based positioning focuses on using the competition as a
reference point for differentiation.

Brands highlight a key difference their product/service offers in their

marketing to make it seem favourable and unique compared to other
marketplace options. The product or service becomes unique.

However, brands can also use the competition as a reference point to follow
a similar strategy.

Suppose a particular brand has a large market share. In that case, their
positioning strategy must be attractive to many customers. Hence, you try
and convert some of their customers by offering a similar product with
similar benefits at the same price point.