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									   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.

								
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