Positioning based on quality or price is a strategic approach where a brand or product is positioned in the market by emphasizing its quality, price, or a combination of both. This strategy helps consumers perceive the product in a specific way, influencing their purchasing decisions.

• Definition: Emphasizing the superior quality of a product compared to competitors.
• Objective: To attract customers who prioritize quality over price.
• Examples: Luxury brands like Rolex, Apple, and Mercedes-Benz.

• Definition: Highlighting the affordability or cost-effectiveness of a product.
• Objective: To appeal to price-sensitive customers.
• Examples: Budget brands like Walmart, IKEA, and Southwest Airlines.

• Definition: Balancing both quality and price to offer value for money.
• Objective: To attract a broader customer base by providing good quality at a reasonable price.
• Examples: Brands like Toyota, Costco, and Uniqlo.

Brand: Apple

• Strategy: Apple positions its products as high-quality, innovative, and premium.
• Message: "Think Different" – emphasizing innovation and superior technology.
• Outcome: Apple attracts customers willing to pay a premium for perceived quality and innovation.

Brand: IKEA

• Strategy: IKEA positions its products as affordable and functional.
• Message: "Affordable solutions for better living."
• Outcome: IKEA appeals to budget-conscious customers looking for stylish yet affordable furniture.

Brand: Toyota

• Strategy: Toyota balances quality and affordability, offering reliable vehicles at competitive prices.
• Message: "Let's Go Places" – emphasizing reliability and value.
• Outcome: Toyota attracts a wide range of customers seeking dependable cars at reasonable prices.

Task: Identify whether the following brands use quality-based, price-based, or a combination of both strategies.

1. Rolex
2. Walmart
3. Toyota
4. Gucci
5. Costco

Solution:

1. Rolex - Quality-Based
2. Walmart - Price-Based
3. Toyota - Combination
4. Gucci - Quality-Based
5. Costco - Combination

Task: Create a positioning statement for a new smartphone brand that aims to offer high quality at an affordable price.

Guidelines:

• Identify the target audience.
• Highlight the unique value proposition.
• Emphasize the balance between quality and price.

Solution: Positioning Statement: "For tech-savvy individuals seeking premium features without breaking the bank, [Brand Name] offers cutting-edge technology and superior build quality at an affordable price, ensuring you get the best value for your money."

1. Overemphasizing Price: Focusing too much on low prices can lead to perceptions of low quality.
2. Ignoring Target Audience: Not understanding the needs and preferences of the target audience can result in ineffective positioning.
3. Inconsistent Messaging: Inconsistent or unclear messaging can confuse customers and weaken the brand's position.

1. Balance Quality and Price: Ensure that the product delivers on the quality promised, even if positioned as affordable.
2. Understand the Market: Conduct thorough market research to understand customer preferences and competitor positioning.
3. Clear Communication: Develop a clear and consistent message that highlights the unique value proposition.

Positioning based on quality or price is a powerful strategy that can significantly influence consumer perceptions and purchasing decisions. By understanding the key concepts, analyzing practical examples, and avoiding common mistakes, brands can effectively position themselves in the market to attract their desired audience. This foundational knowledge prepares you for the next topic, where we will explore positioning based on product category.