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The main theme of competitive positioning of strategy is about making your product/service different from such already available ones in the market and carving out a niche for them. The strategy is aimed at making the customers see what sets your offering different from its peers in the market and then develop a positive attraction for the same.
Competitive positioning strategy is important particularly for new businesses or launching new brands. It must be realized that the strategy needs a careful study of the market before its evolution and implementation. The important steps in this market study can be detailed as below:
a) Study of profile: The details of the size of the market, the major competitors, their positioning and their niche areas should be compiled. The ‘Life cycle stage’' indicating whether the entity at birth stage, growth stage, maturity stage or declining stage should be identified. The positioning strategy is dependent on both these aspects.
b) Segmentation of the market: A study should be conducted on the problems facing the industry /line of business and customers' needs and demands. These problems and needs can then be segmented into common categories .the segments in which customers' wants are more and market is unable to respond to the same, can be targeted.
c) Evaluation of Competition: The list of competitors who can compete with us in our chosen areas of business should be identified. An assessment can be made as to where the company/entity stands in comparison with the competitors.
d) Identification of Focus areas : Having already identified the areas where the customers needs and market supply are not matching ,an effort should be made to focus on such areas ,which can meet the true needs of customers.
e)Identification of value proposition : There are three core types of values that a company can deliver: (1) Operational Efficiency resulting in the lowest price, (2.) Product Leadership resulting in the best product and (3) Customer intimacy resulting in best solution and service. It is difficult to ensure catering to all the three. Depending on the company's ability and the focus area identification, the core value can be defined and concentrated upon.
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