Positioning a second buy: Lessons from nano

Abstract

Brand positioning is finding a vacant space by differentiating from the competitors' products. This position will be normally attractive to a given market segment in terms of the benefits sought, price, or some feature of the brand which matches the demographic or psychographic character of the segment. Usually a brand does not become attractive to multiple segments. However, some of the brands are attractive to multiple segments which are diametrically opposed in their characteristics. This research paper examines the phenomenon through a case study of Nano by assembling data from users belonging to different segments. The study allows extensive theorization based on evidences from two tangentially different segments. Findings indicate that though there is a major benefit (economy) targeted to the principal segment there are other benefits (ease of use) attractive to another segment. The major position (status) of the other segment is not violated due to the members’ ownership of a principal benefit brand (a status car) prior to the second buy of the brand in question. In fact the principal benefit of the secondary segment is enhanced by the given brand since it is a second buy. The findings are of managerial implications too and are applicable to many products like mobile phones, personal computers etc.