Competitor Benchmarking to Product Positioning: Crafting Winning Strategy

Authored by Priya Ranjan Mohanty, Product Marketing Expert

 When you buy a product—be it a new phone, a pair of shoes, or even an online subscription—what made you choose that specific product? Was it how it was marketed? Was it because it seemed better than others? Behind every product we buy, there’s a lot of thought and strategy from marketers to make it desirable. That’s where product marketing comes in.

A good product isn’t enough. It needs to be packaged, positioned, and promoted in a way that connects with customers. This article explains how understanding your competition (competitor benchmarking) and finding the right way to showcase your product (positioning) can make all the difference.

Let’s explore this concept with lots of real-world examples to see how brands either nailed it—or completely missed the mark!

Understanding Competitor Benchmarking (Looking at the Competition) Imagine you’re opening a coffee shop in a neighborhood where Starbucks, Dunkin’, and a local café already exist. The first thing you’d want to know is what these places are offering—what’s their menu, how do they price their drinks, and what makes people keep coming back. This is called competitor benchmarking—essentially, studying the competition to understand what they do well and what they lack.

By doing this, you can:

• Find a gap in the market: Maybe no one is offering organic, single-origin coffee.

• Learn from their mistakes: If Starbucks gets complaints about long waiting times, you could promote quick service as your selling point.
• Borrow smart ideas: Dunkin’ does well with combo offers—maybe you can create your version with coffee and pastries.

Example:

When Microsoft launched Surface Pro, it realized that most tablets were marketed either as entertainment devices (like the iPad) or low-end productivity tools. Microsoft saw a gap—it positioned Surface Pro as the perfect hybrid between a laptop and a tablet, ideal for both work and play. This unique positioning allowed it to compete with traditional laptops and high-end tablets, carving out a new niche in the market.

Positioning: Why Where You Appear Matters More Than What You Are Once you know your product’s strengths, it’s time to decide how to position it in the minds of your customers. Positioning is all about controlling how people perceive your product—where it fits in their lives and why they should care about it.

Let’s look at two examples, one good and one bad, to understand positioning better:

Good Positioning Example: Rolls-Royce and Private Jets

Rolls-Royce makes luxury cars, but it doesn’t position itself alongside Ferraris or Lamborghinis. Instead, Rolls-Royce focuses on a different kind of elite lifestyle—private

jets, yachts, and exclusive events. You’ll often see Rolls-Royce showcased at private jet shows, rubbing shoulders with CEOs and celebrities.

Why it works: Rolls-Royce isn’t selling speed—it’s selling prestige and exclusivity, and it carefully places itself in environments where luxury means refinement, not speed.

Bad Positioning Example: Google Glass

In 2013, Google launched Google Glass, a wearable smart device that looked like futuristic glasses. While it was a technological marvel, the product was poorly positioned.

Google marketed it as an all-purpose gadget for everyone, but it was expensive, looked awkward, and raised privacy concerns because of its built-in camera.

Why it failed: Google Glass tried to appeal to both tech enthusiasts and everyday users, but it didn’t fit either group. For consumers, it was too weird and intrusive, while businesses weren’t given clear use cases to adopt it. The product was pulled from the consumer market after facing backlash, only to re-emerge later as a specialized tool for industries like healthcare and manufacturing.

Why Positioning Is So Important: Be in the Right Place at the Right Time Imagine if Ferrero Rocher chocolates were sold at a roadside convenience store—would you still find them luxurious? Probably not. This is why luxury brands carefully choose where they appear. The product itself doesn’t change, but the environment shapes how we perceive it.

Similarly, tech companies like Apple position themselves not just as gadget makers but as lifestyle brands. Apple’s retail stores feel more like art galleries, with minimalist designs that create a sense of sophistication.

Example of Artificial Demand:

When OnePlus first entered the smartphone market, it introduced its phones with an invite-only purchase model. Customers could only buy a OnePlus phone if they received an invite, which were deliberately kept limited. This strategy gave the product an air of exclusivity and scarcity, making people feel special if they managed to secure an invite.

The scarcity created FOMO (Fear of Missing Out), driving people to actively seek invites from early users and communities. Even though the phone itself was priced affordably, the limited access made it highly desirable. The buzz generated from the invite system played a critical role in building the brand’s cult following in its early days.

The Wrong Way to Position a Product: Examples to Avoid

Even the most well-intentioned product ideas can miss the mark if their positioning is misaligned with customer expectations or market realities. Let’s explore a couple more:

Segway Personal Transporter:

Segway was hyped as a revolutionary mode of urban transportation. However, it was poorly positioned—as both too advanced for everyday use and too awkward for most commuters. While it promised to change the way cities function, it never became a mainstream solution. Instead, Segway found limited success among niche markets like mall security and tourist rentals. The high price and strange design alienated both city commuters and the average consumer.

Lesson: Positioning must match real-world behavior. A product, no matter how innovative, won’t succeed if people can’t see how it fits into their daily routines.

BlackBerry Storm:

BlackBerry dominated the business smartphone market with its physical keyboards and secure messaging, but it lost ground with the rise of touch-screen phones. In a rushed attempt to compete with the iPhone, BlackBerry launched the Storm, a touch-screen phone that tried to position itself as both a BlackBerry-style business tool and a consumer-friendly phone. Unfortunately, it did neither well. The phone suffered from buggy software, a poorly executed touchscreen experience, and an unclear target audience.

Lesson: Trying to appeal to multiple audiences with conflicting needs can result in satisfying none. BlackBerry lost both its loyal business users and failed to attract mainstream consumers.

How to Nail Positioning: Practical Tips for Marketers

So how can you ensure your product is positioned the right way? Here are some practical steps:

Find Your Product’s Unique Value:

What makes your product better or different? Maybe your coffee shop offers eco-friendly cups or locally sourced beans.

Speak Your Customer’s Language:

Use words that resonate with your audience. For example, tech companies like Zoom position themselves as the go-to tool for remote work, while Google emphasizes speed and simplicity.

Don’t Be Everything to Everyone:

It’s tempting to appeal to all types of customers, but it’s more effective to pick a niche. For example, Crocs embraced its identity as ugly but comfortable shoes—and found massive success.

Use the Right Channels:

If you’re selling luxury watches, don’t advertise on discount websites—advertise in high-end fashion magazines. Just like Rolls-Royce stays in the private jet ecosystem, your product needs to be visible where the right customers are looking.

Conclusion: Benchmarking + Positioning = A Winning Formula

Creating a successful product marketing strategy is like cooking a great dish—you need the right ingredients (understanding your competitors) and the right presentation (positioning your product). When you study the competition, you find out what works and where the gaps are.

When you position your product correctly, you create a lasting impression in the minds of your customers.

Brands like Rolls-Royce prove that success isn’t just about what you sell but how and where you sell it. So, the next time you’re thinking of launching a product, ask yourself:

What makes us different?

Where do our customers expect to see us?

How can we present our product in the best possible way?

 By mastering these elements, you’ll be well on your way to crafting a product marketing strategy that not only stands out but wins hearts—and customers.

 DISCLAIMER: The views expressed are solely of the author and Adgully.com does not necessarily subscribe to it.