Positioning of a Product in a Marketplace

Positioning

Perceptual mapping is a method by which a product can be positioned in the marketplace. It allows marketers see where the competition is positioned, which is valuable for a couple of reasons. One is that the product can be positioned in a blind spot, an area on the map where there are few competing products. The other is that the marketing team understand which competitors represent the most direct threats, and why.

The product we are mapping is a line of Coca-Cola mixed drinks. These included Coke & Rum, Whiskey & Coke and other such mixed beverages. Such products are known in Europe and are particularly common in Germany in the same premixed format that we are charged with launching. In North America, however, there is little knowledge of these products. Consumers are only familiar with drinks they have mixed themselves. Moreover, consumers are familiar with the Coke brand, which means that we are not starting with an entirely clean slate.

The option does exist to develop an entirely new brand name for these products. The downside to this would be that we would not be able to leverage the Coke name. We could, however, leverage the brands of our alcohol partners. If we do decide to use the Coke name, we will leverage the power of that brand. However, that brand also has a well-established brand image.

The Coca-Cola brand is one of the most iconic in U.S. business and has value around the world. The brand is positioned at the higher end of cola. Cola is positioned at the lower end of the soft drink category in terms of prestige, however. Soft drinks are at the lower end of beverages, and are certainly below the brand status of the alcoholic beverages we are using as partner beverages. Thus, we are bound to some extent by the perceptual characteristics of the Coca-Cola brand. We are trying to leverage the power of the brand, so we must understand where that brand lies on the perceptual map and gain a sense of how far we can move it.

The established Coca-Cola brand image is just one constraint for the positioning of this product. As the product is a mix of hard liquor and cola, there are restrictions on the distribution and sale of such products. These will vary depending on the state, but hard liquor products are not legal for sale in corner stores or grocery stores in many jurisdictions, even if they are of moderate alcohol content. That the product may be more difficult to acquire is a constraint on the positioning as well.

Another constraint on the positioning of this product is the overall poor quality of the beverage. The craftsmanship often associated with alcoholic beverages -- found even in the marketing campaigns of mass-produced brands -- does not translate to soft drinks. Consumers are unlikely to perceive a mix of cola and alcohol as anything other than a party beverage.

The competitive environment that must be mapped is that of the entire alcoholic beverage category. There can be little doubt that consumers make product decisions-based to some extent on price. This spectrum can be considered the Y axis, and consists of Value at the low end and Prestige at the high end. There is a definite equating in the minds of consumers that price = quality with respect to alcoholic beverages.

The best way to break down alcohol target markets is by price, but the secondary means is by demographic. Drinks are often marketed to consumers based on age groups and socioeconomic status. This spectrum, the X axis, can be categorized with Youth/Party on one end of the spectrum and Mature/Pleasure on the other. This reflects that party-oriented beverages appeal to the 21-25 demographic primarily. This demographic is more concerned with the utilitarian aspects of alcohol than the craftsmanship of, say, a single malt scotch. Older demographics skew towards less consumption, but of more complex, sophisticated beverages.

With this mapping framework, we can establish quickly that the Coca-Cola brand has strong mass-market, mass-production, "common" associations. The main benefit of the product is convenience (i.e. not having to buy different beverages and mix them yourself), so the positioning is definitely low end. The price will probably reflect that -- Coca-Cola is not liable to lend its name to a product that will not sell well so it needs a price point to encourage sales. Certainly, the product's inherent lack of sophistication and core benefit that plays on consumer laziness puts it squarely in the utilitarian category.

As we can see with this map, the Coca-Cola mixed drinks occupy the lowest left hand side of the map. They are more youth/utilitarian oriented than everyday beers, which span a wider age and income demographic. They are more value oriented than many alcopops in that they have a less prestigious brand (Coke) than the standard alcohol brands like Bacardi, Smirnoff or Jack Daniels that are associated with the leading brands. We can see where those brands (basic booze) sit -- higher on the sophistication and quality spectrum -- than where Coca-Cola would fall. The mixed Coke drinks may be able to transcend the Coke image a little bit, but given that the entire point of using Coke as the brand is to capture some of that brand's strength, we do not want to stray too far from Coke's positioning. Remember that while Coke has a premium position in sodas, that is being a big fish in a small pond in terms of prestige. In the overall beverage category, Coke is not a prestigious brand, but a well-priced common drink with no prestige value.

This positioning is consistent what we have identified in Germany and other European markets where such products are long-established. The target market is young, unlikely to be affluent but not necessary poor, and interested in the utilitarian aspects of the beverage. Success depends on ease of availability and competitive pricing. In those markets, the brand is often a beer brand, as many of these beverage are beer-cola blends rather than spirits (which are less traditional in Germany).