VIEWS: 0 PAGES: 41 POSTED ON: 11/3/2012
PRODUCT POSITIONING IDC4U7 Product Positioning Product positioning refers to the place a product or service occupies in a consumer’s mind re important attributes relative to competitive products. For example: is this the fastest and most expensive car on the market? Are bell bottom jeans still trendy? Product Positioning Brand Essence is the “heart and soul” of the brand, its timeless quality. Some people refer to the brand essence as the brand mantra, while for others, the brand’s mantra is synonymous with the brand’s tagline or slogan. Product Positioning Brand Essence Disney’s brand essence: Fun family entertainment Nike’s brand essence: Authentic athletic performance Starbuck’s brand essence: Rewarding everyday moments Positioning Strategies Value refers to the relation of price to quality. It could be a low price for good quality, but it could also be a premium price for the best! Can you think of any examples of a premium product ? Positioning Strategies Product Attributes refers to those attributes of the product that are most important to the target market. For example, German designed cars are traditionally positioned as safe. The safety-conscious driver would purchase a German designed car. Positioning Strategies Benefits and Symbolism refers to the benefits of the brand as well as the psychological meaning of the brand to the consumer. Brand benefits can be functional, emotional, experiential or self-expressive. Positioning Strategies Benefits and Symbolism Starbucks is all about high-end coffees and the experience of their environment. The Nike swoosh is a symbol recognized all over the world and represents cutting edge design and celebrity. A self-expressive benefit of the Mercedes brand is that it communicates that the driver has status and money. Positioning Strategies Competition. Either direct such as Cola Wars or differentiated such as 7-up is the Uncola (less competitive and a smaller market) Positioning Strategies Market Leadership. Identify themselves as above the rest or leaders in the industry. Eg. Apple, Nike Positioning/Strategy - Derrick Rose w/ Adidas Nike’s Hyperdunk, Hyperize, and Zoom Kobe IV’s are shoes that can frequently be seen out on the court. What do these shoes all have in common? -- The Hyperdunk is the world’s lightest basketball shoe and was broadcasted to the world when Kobe wore them during the Olympics. Since then, Nike has come up with the Hyperize, very similar to the Hyperdunk in terms of weight as well as Kobe’s signature shoe, the Zoom IV’s. Nike Hyperdunk Commercial Examples of Successful Positioning Apple - for the way they've positioned the Mac as the "un-PC" and 7-Up's un-cola stance. It's a brilliant means of getting people to self-identify with a lifestyle, which is traditionally the most effective means of influencing the consumer market. Positioning/Strategy - Derrick Rose w/ Adidas As a direct competitor to Nike, Adidas played on this phenomenon by releasing their own shoe which could steal the thunder away from the Hyperdunks. Grabbing emerging all star point guard Derrick Rose from the Chicago Bulls, Adidas desired to position its product and capture those who wanted a more lightweight shoe from the Adidas brand. In essence, the main question is, why would consumers chose the Adidas shoe over Nike’s shoe? Positioning/Strategy - Derrick Rose w/ Adidas Derrick Rose Gets Faster Positioning/Strategy - Derrick Rose w/ Adidas Consumers choose Adidas not only because Derrick Rose endorses Adidas, not just because of Adidas’ new design of a lightweight shoe, and not just because of its awesome looks, but also because Adidas also offers a variety of shoe constructions that can increase not only speed, but perhaps overall play. Positioning/Strategy - Derrick Rose w/ Adidas A lightweight shoe “leads to” quickness, the techfit powerweb calf sleeve retains energy which allows you to jump higher, and the speedwrap anklebrace provides a player with 5x more support which ultimately allows the player to “be fearless.” Google - Successful Positioning You'd have to say Google is one of the top five success stories. How many companies become a verb? Examples of Successful Positioning FedEx. They came into the package delivery market with "When it absolutely, positively needs to be there overnight." Suddenly nothing less than overnight shipping was acceptable. The entire shipping business had to shift to meet the expectations that FedEx created. Examples of Successful Positioning Tiffany's! Aside from their little blue box that every girl wants, they collaborate with famous contemporary designers to raise their brand positioning. Bringing in outside designers allows them to extend and modernize their brand without moving away from their essence; timeless design. Examples of Successful Positioning Can you think of any others? An Example of Unsuccessful Positioning Blockbuster may be a case where over reliance on positioning lead to failure. In September 2010, the company filed for bankruptcy protection in order to reduce its debt to $100 million from $900 million. The reasons for its downward slide are generally attributed to failure to adapt to changes in technology and consumer needs which were exploited by upstarts Netflix, Redbox, Vudu, and Hulu as well as non- traditional competitors like YouTube, Vimeo, video on demand, and the DVR. Case study – Chocolate Milk Chocolate Milk How can dairies put more “zip” into sales? Perceptual Map A perceptual map is a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands relative to its own and then take marketing actions. Your challenge as a marketing manager: Try to position chocolate milk to make it more appealing to adults POSITIONING THE PRODUCT • Product Positioning Using Perceptual Maps Positioning Chocolate Milk for Adults • Finding a New Position for Chocolate Milk in the Minds of Adults: Nutrition • Packaging “Adult” Chocolate Milk Product Repositioning Involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. Product Repositioning Brand repositioning is necessary when one or more of the following conditions exist: •Your brand has a bad, confusing or nonexistent image. •Your organization is significantly altering its strategic direction. •Your organization is entering new businesses and the current positioning is no longer appropriate. Product Repositioning •A new competitor with a superior value proposition enters your industry. •Competition has usurped your brand's position or rendered it ineffectual. Product Repositioning •You are broadening your brand to appeal to additional consumers or consumer need segments for whom the current brand positioning won't work. (This should be a "red flag." This action could dilute the brand's meaning, make the brand less appealing to current customers or even alienate current customers.) A perceptual map to suggest a strategy for positioning chocolate milk to reach adults Oldsmobile Example Example of a Successful Repositioning PEZ was first marketed as a compressed peppermint candy for adults. Let’s take a look at how they repositioned themselves in the marketplace: http://www.pez.com/history/ Example of a Successful Repositioning Old Spice - one of the better advertising campaigns of the last decade to change consumer perception to match their new line of bath and shower products. The result was a general public who went from thinking of Old Spice as something old men used, to a fresh and exciting young product. Extending the Product Life Cycle through Repositioning …..Cadbury Read this article on MyClass Repositioning …..Gatorade Read this article on MyClass Product Differentiation Product differentiation is a strategy that involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products. 80/20 Rule The 80/20 rule is a concept that suggests 80 percent of a firm’s sales are obtained from 20 percent of its customers. Your team activity is….. STP STRATEGY Pick a S/E product. 1. Briefly describe the product 2. Provide a segment-by-segment analysis. 3. Develop your positioning strategy. Provide justifications for your decisions. 4. Identify a differentiated, undifferentiated and concentrated segmentation strategy 5. Prepare a perceptual map showing your product with the competition. 6. See details on assignment sheet.
Pages to are hidden for
"PowerPoint Presentation"Please download to view full document