Positioning of a product can also be done on the basis of its Use or Application. A washing machine was developed for residential use but it is also being used to wash chemicals and minerals nowadays. Thus it has found a further application for itself.
The best example of positioning by use or application are mobile phones and telecom companies and the way they are positioning themselves. Each mobile phone as well as telecom company positions itself through offering some USP’s, differentiating points, Uses and applications which makes the customer buy their brand. Vodafone might sell 3G whereas BSNL might sell lesser prices on Long distance calls. The more the competition increases in the telecom, the more we will see application based advertising.
There are numerous products in the market which have multiple applications. Scissors,blades and multi use kits are some examples. Depending on their uses and applications, they are positioned accordingly. A brand like Horlicks which was mainly developed for medical purposes positioned itself in the minds of retail customers as a health drink thereby expanding its consumer base from medical to retail.
How to apply Positioning by use or application to your business? Point all the differentiating features and pointers in your product. For this, you might need to conduct a competitor analysis as well. Once you are through with the listing of features, look at the competitors who are offering the same features.
Whichever features of yours are better then the competitor, can be used to position your product by use or application. If in case you don’t find any differentiating features, then you have learned something new and you need to find out ways to differentiate.
Summary – A product can expand its consumption by developing its uses and applications. The product has to be positioned accordingly in the minds of the customer.