Why positioning is vital for companies : a case of TATA Nano.

This chapter talks about how and why positioning of a certain brand is critically important. Normally, we define positioning as the placement of a brand in consumer's mind. But it is not an easy task to do so.
Let's discuss a case about TATA Nano, a revolutionary car which was launched by TATA group in mid-2000's in India. The car was a small compressed hatchback with a 624 cc engine in it and it was priced just above iPhone. By the looks of it, it was a good value for money but yet, it was a failed product. The reason behind its failure was its positioning statement. They advertised their car with a statement “worlds cheapest car”, the word “cheapest” was its demise. People usually see this word as a negative connotation. That was the main reason behind its downfall. Customers will position negatively if there is a negative feeling in your statement.

For this, companies need to develop a competitive frame of reference. A framework which is renowned among all the marketers. For this, you need to identify your potential target market, whether you will be targeting the niche or going for undifferentiated selection of people.
Secondly, you need to focus on who are your direct and indirect competitors.  For example, if you are in a clothing business, so your direct competitors will be Khaadi or Sana Safinaz but your indirect competitors will be Hyperstar as well because they also sell clothes.
Thirdly, you have to focus on Point of parities (similarities) like to be in a category you need to have some sort of similarities among your competitors but at the same time, you also need to have differences (USP).

Brand mantra, a strategy made by companies to identify what a customer should feel about their brand. It is the mixture of both heart and soul. The sole purpose of this strategy is to have a good positioning in a consumers mind. There are three considerations regarding brand mantra: Communicate, simplify, and inspire. The three criteria or domains of this theory are Emotional modifier (feelings), Descriptive modifier (who is our target market) and lastly, Brand function (Nature of your product). For example, Nike brand mantra is (EM is Authentic), (DM is Athletic) and (BF is Performance).

A Brand audit is a phenomenon which tells us about the health of a brand. It consists of two parts, brand inventory, and brand exploratory. In the brand inventory, we discuss how to position our brand. The tools which are required in brand inventory are, creating a good brand element for e.g. Logo, slogan, taglines, jingles. Secondly, Create a good strategy for your IMC. Develop your direct competitor’s profiles and see how they are developing and using their business model. And lastly, focus on the creation of innovative brand mantra. Brand exploratory tells us how to develop your CBBE model and how the consumer will perceive your brand on the basis of brand awareness, favorability, and Unique associations.