Competitive positioning is got to do with identifying how you will “differentiate” your offering and create value for your market. It is about carving out a spot in the competitive landscape and focusing your company to deliver on that strategy (Marketingmo, n.p). In marketing strategy, positioning is the practice by which dealers try to build an identity or image in the brains of their targeted market for its brand, product or organization.
The concepts of positioning focus on the emotional or rational benefits that consumer will feel or receive by using a product. A successful concept of positioning must be qualified and developed before a positioning statement can be formed. The idea is shared with the targeted audience for optimization and feedback (Levi, 2007, p.9).
In 2007, Allen’s faced an immense competition in the Jellies market of Australia. It was a time to strengthen Allen’s competitive position, to re-create is relevance in clients’ lives and establishes the product as a category leader.
Allen’s had to keep away from vanishing further. It required to strengthen its competitive position and finds a way of protecting its role in the lives of consumers and category. The old technique of inspiring playfulness was not working. Allen’s wanted a new indulgent of the consumer and category. It also needed to make this perceptive central to the product, and it required linking the brand with consumers in a way that it had not done before (Atkinson, 2010).
In order to attain this, Allen’s had to reduce switching to competitive goods by inducing a profound and strong link with parents. The objective of Allen’s was to identify a distinguishable and clear function in the category and in the lives of the consumers. Nastle found that lollies had the ability to attract wide-eyed amazement and the excitement that children feel while entering into a lolly supermarket for the first time (Insidestory, n.p. 2011).
Nestlé’s Allen’s product has been undergoing some key changes, with fresh packaging, the start of a lollies’ natural line and latest ads pushing the name of Allen (Alarcon, 2006). The company has just launched its fresh Naturals line of Allen in competition to All Natural Confectionary Company of Cadbury.
Rather than leaving its market positioning to chance, Nestle has to establish a strategy. What the company is ultimately determined for is to have mindshare of the market and to be recognized for something. This is normally easier for customer product lines than for the B2B companies, since positioning a solitary product against three to five opponents is an easier job than positioning a mid-size business-to-business company with several offerings in plentiful markets.
In order to protect its revenue, Allen’s communication had to ensure that people maintained faith with the product and reduced range, therefore reducing the risk of shifting to competitive products. Therefore, it will require communication to boost product equity, thus giving Allen’s a differentiated and clear role in driving greater customer connection with the product and improving the overall product health (Thompson, 2010).
If Allen’s had to find an apparent role in the lives of the consumers and the category, then it is important to understand the category and the feelings towards parenting. Lollies represented an exciting counter-point to creating sturdy feelings of child-like amazement, wide-eyed excitement and amazement in both kids and adults alike.
The category was deteriorating to adapt into child-like amazement. Parents never associated any product with this sentiment; Starburst’s delivered outrageousness and rebellion; NCC reduced guilt; Allen’s was trusted and traditional; Own-brand equated to value. Child-like astonishment looked to be a genuine opportunity for Allen’s. It was actually a remedy to childhood loss – a lolly formed moment that could let kids to be kids once more. There is no other product, which appeared well positioned to go behind it.