Innovation and differentiation: key strategies for winning product positioning

Product positioning is a key element of any company’s marketing strategy. This is the way in which a company differentiates itself from its competitors and communicates the unique value of its product or service to potential customers. In this article, we explore the key strategies for successful product positioning, with a focus on innovation and differentiation.

What is product positioning?

Product positioning is the process of creating a unique and distinctive image of a product or service in the minds of potential customers. This involves determining how a product differs from its competitors and communicating this difference clearly and convincingly. Product positioning can be based on a variety of factors, such as the product’s characteristics, price, quality, brand, reputation, chosen distribution channel and shelf position.

The importance of innovation in product positioning

Innovation is a key element of product positioning as it enables companies to differentiate themselves from their competitors by offering something new and unique. Innovation can take different forms, such as the introduction of new functionalities, improvements in product design, the use of new technologies, etc. Innovation can help companies stand out in a saturated market and attract new customers. Ikea has established itself as a pioneering brand in innovation, particularly through its investment in the ‘smart home’. One of the advances in this area is the mobile application “IKEA Home smart”. Thanks to this application, users can remotely manage and control a wide range of the brand’s smart products, such as lamps, coffee machines, air purifiers and blinds. For example, they can change the colour of the lights, adjust the volume of the music and open or close the blinds, allowing them to create the ambience they want in an instant.

Differentiation as a positioning strategy

Differentiation is a product positioning strategy that involves highlighting the unique characteristics of a product or service in relation to its competitors. Differentiation can be based on various factors, such as quality, design, functionality, brand, etc. Differentiation can be based on various factors, such as quality, design, functionality, brand, etc. For example, the Michel et Augustin brand, with its top-of-the-range products and by incorporating humour into its food packaging, has been able to stand out from its competitors thanks to a differentiation strategy based on humour and authenticity, which has given its products a unique and recognisable character.

How to develop a winning product positioning strategy

Developing a winning product positioning strategy requires a structured and methodical approach. Here are the key steps to follow to create an effective product positioning strategy:

Identify your target market:

The first step is to identify your target market, i.e. the consumers to whom you want to sell your product. You need to understand their needs, preferences, buying behaviour and motivations. To do this, you can use tools such as market research, surveys, focus groups and data analysis.

Analysing the competition :

The second step is to analyse the competition, i.e. the similar products offered by other companies in the market. You need to understand the strengths and weaknesses of your competitors, as well as the competitive advantages of your product. To do this, you can use tools such as SWOT analysis, Porter’s Five Forces analysis and value analysis.

Defining your value proposition :

The third step is to define your value proposition, i.e. the unique benefits your product offers consumers. You need to identify the key features and benefits of your product, as well as the emotions and values it conveys. To do this, you can use tools such as the positioning map, the BCG matrix and the personas method.

Choosing your positioning strategy :

The fourth step is to choose your positioning strategy, i.e. how you want to differentiate yourself from your competitors and communicate your value proposition to consumers. There are several types of positioning strategy, such as functional positioning, emotional positioning, differentiated positioning, niche positioning and leadership positioning. You need to choose the strategy that best suits your product, your target market and your company.

Developing your marketing mix:

The fifth stage involves developing your marketing mix, i.e. the key elements of your marketing strategy that will enable you to implement your positioning strategy. The marketing mix comprises the 4 Ps: product, price, promotion and distribution. You need to define the characteristics of your product, set a competitive price, choose the appropriate distribution channels and develop an effective communications strategy.

Measuring and adjusting your strategy:

The final stage involves measuring and adjusting your positioning strategy on the basis of the results obtained. You need to monitor key performance indicators (KPIs) such as sales, market share, brand awareness and customer satisfaction. You also need to be ready to adjust your strategy in line with market developments, trends and consumer preferences.

Various tools exist to help you measure the impact of your strategy. For example, the EasyPicky solution allows sales staff to simply activate the camera on their smartphone or tablet to browse the shelves of a shop and collect all the necessary field data. In an instant, you get all your key performance indicators, directly integrated into your CRM or other internal tool. This solution enables you to control, organise and optimise the presence and visibility of your products in-store in real time.

By following these steps, you can develop a winning product positioning strategy that will enable you to differentiate yourself from your competitors, meet the needs of your target market and maximise your sales results.

Examples of successful product positioning strategies

Here are a few examples of successful product positioning strategies from well-known brands such as Mondelez, L’Oréal and Danone:

Mondelez is a global food company with many well-known snack brands such as Oreo, Lu and Milka. Mondelez differentiates itself from its competitors by positioning itself as a company offering moments of pleasure and sharing. The brand emphasises the quality and flavour of its products, as well as the emotional experience they provide for consumers. For example, the Oreo brand positions itself as a fun and playful snack, with creative advertising campaigns that encourage consumers to “twist, lick and dip” their biscuits.

L’Oréal is a cosmetics and beauty products company with many well-known brands such as Maybelline, Lancôme and Garnier. L’Oréal differentiates itself from its competitors by positioning itself as an innovative beauty company that is easily accessible in all types of outlets. The brand focuses on the research and development of high-quality products, as well as on diversity and inclusion in its advertising campaigns. For example, the Maybelline brand positions itself as a make-up brand with advertising campaigns featuring models of different ethnic origins and morphologies.

Danone is a global food company with a number of dairy and bottled water brands, including Activia, Evian and Volvic. Danone differentiates itself from its competitors by positioning itself as a company committed to health and well-being. The brand emphasises the quality and naturalness of its products, as well as their positive impact on consumer health. For example, the Danone group has innovated with the Activia brand, which is positioned as a probiotic yoghurt that helps improve digestion.

Product positioning is a key element of any company’s marketing strategy. To create a winning product positioning, it is important to focus on innovation and differentiation, identifying key differentiators and communicating a unique value proposition to potential customers. By following these key strategies, companies can stand out from the competition and create a unique and distinctive image in the minds of potential customers.