Positioning

The best decision Vijay Mallya has made so far

Vijay Mallya has finally made a wise decision. He has decided to get rid of Kingfisher Red. As I have mentioned earlier, the biggest mistake that Vijay Mallya made was to buy Air Deccan. You cannot have a low cost airline and a premium airline run by the same company. Jet made the same mistake and so did Vijay Mallya. While branding, we have to give up something to get something. We cannot be everything to everybody.

Like I said, Cinthol is not going anywhere.

In one of my earlier blogs, I had discussed Godrej’s strategy of changing the positioning of its Cinthol soap for the thir time to “soap for the youth.” As mentioned earlier, Cinthol was introduced in the market in 1952 as the first deodorant “soap for men” and later it was repositioned as a “family soap.” Sometime back, it roped in Hrithik Roshan to again reposition it as a “soap for the youth.” Godrej had also come out with a snazzy high tech type of commercial with Hrithik Roshan to change its positioning. I had stated that this was a bad idea.

What is positioning? Lets understand from an accountant.

Sunce we have been talking about positioning and branding with respect to Bajaj Auto’s new branding strategy, I thought an example to explain the concept of positioning would help.

Bajaj Auto’s branding strategy. What does management theory say?

Yesterday, in my post I had suggested that analyzing the new branding strategy adopted by Rajiv Bajaj of Bajaj Auto would be a great learning experience. I had suggested that we will analyze it from two perspectives. First, I will discuss it from the point of view of what management theory says.

Should Bajaj be dropped?

We all know by now that Rajiv Bajaj takes radical decisions. After deciding to exit the scooter market, he is taking another radical decision to restructure the company’s branding strategy. Unfortunately, Rahul Bajaj did not agree with Rajiv on his strategy to exit the scooter market and now he does not agree with Rajiv on the new branding strategy.

Go Air is repositioning. Is it a good idea?

Go Air is changing its positioning from a no frills (low cost) airline to something in between a no frills and full service airline. I think even Jet Light is also taking this positioning. Now is this a good idea? The term that is being used by both is “value” carriers.

Big TV vs Airtel DTH Ad campaign

Big TV has taken the Airtel DTH’s teaser campaign and turned it into its own. They have taken the red chair to promote their own products. Now is this a good idea?

Blue Ocean or Positioning or Finding a Gap

I recently read an article about Renee Mauborgne’s book “Blue Ocean Strategy: How to create uncontested market space and make competition irrelevant.” I have not read the book but what her concept seems to be based on the concept of positioning or finding a gap in the marketplace which Al Reis and Jack Trout have explained it very well in their books. She uses the example of Cemex, a Mexican cement company which basically positioned cement as a gift item because of the desire of Mexican to build cement houses and were able to increase its sales tremendously. This is just positioning for a particular segment of people. Similarly, the example of Nintendo Wii and Sony’s Playstation 3, I think all about positioning and finding a gap in the market.

Mallaya needs to let go Deccan

According to me, the options available to Vijay Mallaya were just two when he bought Air Deccan which are as follows:

Should Indian Express invest in reviving its print media business?

It seems that Indian Express (IE) is going through restructuring so that it can raise funds to revive and grow uits print media business.