Positioning
Positioning is the strategic placement of a company or brand in a clearly
desired position measured against that of the brand’s competitors. Positioning
as part of the luxury branding mix is different from brand positioning already
discussed in this chapter, which is a source of brand equity and brand value.
In this context, Positioning refers to the choices that a brand makes, which
determines where and how it competes in its market. In the consumer goods
category, this would mean defining and targeting a specific or several market
segments, which would act as a guide in designing other elements such as
pricing and product features.
Positioning on this level deals mostly with products, services and pricing.
Since luxury brands have a clearly defined and highly specific market, the
positioning strategy serves mostly as a strategic tool for external competitor
intelligence and sector benchmarking. It is also a guide for evaluating inter-
nal product decisions such as product extensions and diversification.
Positioning is applied through positioning maps. This could be done inter-
nally through mapping products and services together on a positioning map.
It allows the products to be compared and contrasted in relation to one other
and those of competitors. On the external level, positioning could be done
through using market indicator factors such as appeal and pricing as labels for
the positioning map. The most feasible competitive position, which enables a
brand to distinguish their own products from the offerings of their competi-
tion is then selected and executed.
In the development of positioning maps, two or multiple axes are used
depending on the length and breadth of the brand’s portfolio. After determin-
ing the number of axes, they are labelled with relevant factor indicators.
These factors could be represented through ‘pricing’ as one variable and
‘quality’ as another variable. Other possible labels include ‘design’ as one
variable and ‘image’ as another. The individual products are then mapped out
next to each other and gaps are usually identified at this stage. These gaps
could be regarded as possible areas for new products or product re-launches.
An example of a positioning map is shown in Figure 5.24.
It is highly essential for luxury brands with low market awareness to have
a well-crafted positioning in terms of product, services and branding. This is
one of the fastest routes of appropriate placement in the market. The Tom
Ford brand can be used to illustrate the dimensions of positioning. Tom Ford,
the former Creative Director of Gucci has recently launched two products.
The first is an eyewear range branded Tom Ford Eyewearand the second is a
fragrance and cosmetics co-branding venture with Estee Lauder branded the
Tom Ford Estée Lauder Collection. Since Tom Ford is a household personal-
ity in the luxury fashion arena with a clear image that needs no introduction,
the recognition level of products associated with his name is likely to be high.
However, on the branding sphere, there is some message disparity regarding
chapter 5 167the art of creating and managing luxury fashion brands