Positioning based on competition involves defining your brand or product in relation to your competitors. This strategy focuses on highlighting the unique aspects of your offering that differentiate it from others in the market. By doing so, you can create a distinct image in the minds of consumers, making your brand more memorable and preferable.

1. Competitive Analysis: Understanding your competitors' strengths and weaknesses.
2. Unique Selling Proposition (USP): Identifying what makes your product unique.
3. Perceptual Mapping: Visualizing your position relative to competitors.
4. Differentiation: Emphasizing the unique features or benefits of your product.

Objective: To gather detailed information about your competitors.

Steps:

• Identify Competitors: List direct and indirect competitors.
• Analyze Competitors: Study their products, pricing, marketing strategies, strengths, and weaknesses.
• SWOT Analysis: Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis for each competitor.

Example:

Objective: To pinpoint what makes your product stand out.

Steps:

• List Features and Benefits: Identify all features and benefits of your product.
• Compare with Competitors: Highlight features that competitors lack.
• Customer Feedback: Use customer feedback to identify valued features.

Example:

Objective: To visualize your brand's position relative to competitors.

Steps:

• Select Attributes: Choose two key attributes (e.g., price and quality).
• Plot Competitors: Place competitors on the map based on these attributes.
• Identify Gaps: Look for gaps where your product can fit.

Example:

Objective: To emphasize the unique aspects of your product.

Steps:

• Highlight Unique Features: Focus on features that competitors lack.
• Communicate Benefits: Clearly communicate the benefits of these features.
• Consistent Messaging: Ensure all marketing materials consistently highlight these points.

Example:

Objective: To practice positioning your product based on competition.

Task:

1. Choose a product you are familiar with.
2. Identify three main competitors.
3. Conduct a SWOT analysis for each competitor.
4. Identify your product's USP.
5. Create a perceptual map using two key attributes.
6. Develop a differentiation statement.

Solution:

1. Product: Eco-friendly Water Bottle
2. Competitors: Competitor A (Brand X), Competitor B (Brand Y), Competitor C (Brand Z)
3. SWOT Analysis:
   • Competitor A:
     • Strengths: Strong brand recognition
     • Weaknesses: High prices
     • Opportunities: Expanding into new markets
     • Threats: New entrants in the market
   • Competitor B:
     • Strengths: Innovative product features
     • Weaknesses: Limited distribution network
     • Opportunities: Partnership opportunities
     • Threats: Technological advancements
   • Competitor C:
     • Strengths: Affordable pricing
     • Weaknesses: Low quality
     • Opportunities: Improving product quality
     • Threats: Price wars
4. USP: Made from 100% recycled materials, customizable designs, and lifetime warranty.
5. Perceptual Map:

   | Quality \ Price | Low Price       | Medium Price    | High Price      |
   |-----------------|-----------------|-----------------|-----------------|
   | High Quality    | Competitor C    | Your Product    | Competitor A    |
   | Medium Quality  | Competitor D    | Competitor B    |                 |
   | Low Quality     |                 |                 |                 |
   

6. Differentiation Statement: "Our eco-friendly water bottle is made from 100% recycled materials and offers customizable designs with a lifetime warranty, providing both sustainability and personalization for our customers."

Positioning based on competition is a powerful strategy that requires a deep understanding of your competitors and a clear identification of your unique selling points. By conducting thorough competitive analysis, identifying your USP, creating perceptual maps, and developing a strong differentiation strategy, you can effectively position your product in the market and stand out from the competition.