Positioning is a marketing approach that involves building a brand or product identity in the eyes of target buyers. Coca-Cola decided years ago to introduce a new product: the first cola drink. Such innovation has contributed to the successful position of the organization as the pioneer in the market. A successful product positioning strategy addresses essential consumer values and criteria. Hence, it establishes the product or company’s distinguishing features rather than what is presently accessible on the market.
Differentiate from the competition in a successful product positioning strategy by establishing a distinct voice in order to attract clients who are tired of hearing the same old narrative. For example, the company Kioni has been crafting the best wallets for customers seeking high-quality, fashionable wallets. Its products are the most advanced because of Kioni’s commitment to innovation and excellence. The company specializes in creating wallets with the highest quality materials that people love.
When evaluating your positioning strategy, your product package design is as important as the product itself. Apple, for example, uses silicon chips and hardware components similar to those found in their competitors’ devices. Apple’s design presentation is unique – elegant and iconic. This company’s marketing messages have been successful thus earning millions as returns. Market your people rather than your products. Promoting the people behind the items may be more effective than promoting the products (Išoraitė, 2018). Consider current trends in the produce industry, which put a premium on local sourcing. A peach is just a peach, unless it’s a peach produced locally from a tiny family-owned orchard a few miles down the road.
Advantages of Market Follower
As a result of the lack of innovation expenses from the market followers, this results in high earnings profits. For example, Apple invented the multi-touch smart phone, but Samsung now dominates that industry in terms of overall revenue. Therefore, various market follower tactics are in use in today’s corporate world (Chen et al., 2018). Many companies may benefit from promotional initiatives carried out by a market leader. If the current market leaders are promoting a new product, the followers will watch the market’s reaction to the product at that time. This way they won’t be able to match the market’s present needs if you receive a positive response, or even a negative response.
Discuss The Factors to Consider When Pursuing Market Follower Strategy
Imitation can be intentional and take many forms, such as counterfeiting, reverse engineering, or adopting best practices, or it can be unintentional, such as when rival companies react to the same external shock, yet it may significantly reduce your profit margins if you are a product maker. The difference might be that the new product is constructed of inferior materials or lacks the service or promise that your brand can provide. Nonetheless, there is a sizable market for mimics since many seek to purchase products at a lower price because they cannot afford the higher one (Colback, 2020). Counterfeiting sells originals through distribution, advertising, and other lead segments. Moreover, product packaging and Counterfeiters’ items differ slightly from those of the leaders. As a result, the leader’s consumer trust declines since people can find cheaper alternatives to the expensive pieces.
Therefore, it can be concluded that every company needs a well-formed positioning strategy. The main purpose of this policy is to distinguish the organization from competitors in the market. Moreover, it promotes the acquisition of customer loyalty by the brand, which will encourage them to trust. Another advantage of the positioning strategy is the comparative costlessness and profit growth. In addition, proper positioning enables the company to justify the pricing policy.
Chen, C.-H., Ishida, J., & Mukherjee, A. (2018). An entry game with learning and market competition. ISER DP, 1043.
Išoraitė, M. (2018). The competitive advantages theoretical aspects. Ecoforum Journal, 7(1), 1-6.
Colback, L. (2020). The role of the corporation in society. Financial Times. Web.