This report will describe the concept of positioning, effective positioning and its relation to segmentation. It will analyse the positioning of Absolut vodka in its market share. In this report the relevant positioning criteria will be identified and appropriate positioning maps to support the analysis will be used. In addition, suggestions on how to improve and develop the Absolut’s positioning will be given as well. In order to apply the relevant academic theory to the positioning of Absolut Vodka brand the definition and idea of positioning concept needs to be identified. Adcock, Halborg and Ross (2001) provide the positioning definition made by Ries and Trout that say that it is ‘what happens in the mind of customers.’ Brassington and Pettitt (2003) write that positioning ‘means thinking about a product in the context of the competitive space it occupies in its market, defined in terms of attributes that matter to the target market.’ It is possible to state that positioning is the identification of position of certain brand and its total image among different other brands in the minds of target audience. Positioning includes the evaluation of competitive advantages and brand’s niche.The main purpose of positioning is to achieve sustainable view in the minds of consumers about the brand as the best one in particular sphere. It is known that all offered services and products are taking their place with main goal to satisfy customer’s wants and needs. Consequently, in case with effective positioning goods and services have to ‘promise the benefit the customer will receive, create the expectation, and offer a solution to the customer’s problem’, according to http://www.marketing91.com. Effective positioning needs to be unique and realistic, it has to be related to current position, should be long term and yet updated and improved during the time period. Also, product needs to be in the mind of customers’.
According to Wind (1980), there are six principles for product positioning. Firstly, positioning can be based on product one and only feature. Also, positioning may be related to product’s benefit that may satisfy consumer’s wants and needs. Besides, positioning can be based according to usage and/or occasion. Additionally, products can be based on competitors and on product class. Another principle that company can use to position product is to base it on user category. Segmentation
In order to run business successfully it is essential to understand the concept of market segmentation. Backer (2003) argues that ‘positioning is easy. Market segmentation is difficult. Positioning problems stem from poor segmentation’. Company needs to work only with segment that has been chosen.
Absolut Facts (Appendix 1)
Speaking about Absolut Vodka, the first question that comes up is: “Why such unsophisticated drink has become so successful and popular?” when Russian vodka was the most recognised product, occupying the whole niche in industry, when Absolut’s bottleneck was too short for barman to handle and the whole bottle caused the negative associations with pharmacy jars. The answer to the question is: an excellent positioning strategies and advertising actions. Position
Absolut possess itself as premium vodka that is not just an alcoholic drink, but lifestyle. It is shown as a beverage for the sophisticated and upper-end people; it is ‘for status buyers who are not open to snob appeal, but open to wit’. Absolut targets people ‘under 35’, those who are ‘ferociously hip’. Absolut has created the conditions, when people are ready to pay premium price (price is 15% higher than most expensive vodka brands) to join the ‘bohemian’ coterie that appreciates the high quality vodka. Due to great positioning and advertising actions the brand itself is now associated with art, music and singers, luxurious clubs that represent the Absolut diction. ‘Once marketers identify the position they would like to occupy...