Positioning. POSITIONING: The Value(s) to be delivered to the target segment via the marketing mix (4Ps).

Transcription

1 Professor Myungwoo Nam Session #6 Foundation of Marketing Positioning Positioning POSITIONING: The Value(s) to be delivered to the target segment via the marketing mix (4Ps). ANALYZING VALUE CREATION: WHAT VALUE TO OFFER? Functional Benefits + Emotional Benefits 1. Value = Price + Time 2. Positioning Map 3. Positioning Statement 4. Positioning Triangle 1

2 Positioning Map Luxurious Lancome Natural Plenitude Hi-Tech Nivea Ponds Functional Positioning Statement To (Target Customers), Brand X is the brand of (Frame of Reference (FOR) service/product category, or what the service/ product does from the customer s point of view), that is (Point of Difference (POD) why the brand fits into the customer s Frame of Reference better than competitive alternatives), because (Evidence service/product feature(s) that make the FOR and POD believable). This means (hook to the Emotional Customer Goal (ECG) how the brand fits into the customer s life and fulfills their real goal). 2

3 Brand Positioning Statements Palm Pilot: To busy professionals who need to stay organized, Palm Pilot is an electronic organizer that lets you carry your address book, schedule, and notepad in your pocket. It is superior to other organizers because only Palm Pilot allows you to backup your files and synchronize with your PC at the touch of a button, saving time and ensuring availability of a back-up copy of important information. BIC Disposable Razor: To men and women who lead active lives that sometimes result in shaving away from home, the BIC disposable razor offers you greater convenience than other razors because it is inexpensive and widely available. With BIC disposable razor, you can focus on the things you want to do and not on keeping track of your razor. Mountain Dew: To young, active soft-drink consumers who have little time for sleep, Mountain Dew is the soft drink that gives you more energy than any other brand because it has the highest level of caffeine. With Mountain Dew, you can stay alert and keep going even when you haven t been able to get a good night s sleep. 3Ds of Positioning: The Positioning Triangle Define Frame of Reference Brand A Differentiate Brand B Deepen ECG 3

4 3Ds of Positioning: The Positioning Triangle Define Frame of Reference Evidence Points of Parity Brand A Differentiate Brand B Deepen ECG Positioning Palm Pilot Palm Pilot positioning statement To busy professionals who need to stay organized, Palm Pilot is an electronic organizer that lets you carry your address book, schedule, and notepad in your pocket. It is superior to other organizers because only Palm Pilot allows you to backup your files and synchronize with your PC at the touch of a button, saving time and ensuring availability of a back-up copy of important information. 4

5 Positioning Palm Pilot Motorola Envoy Address book Calendar Wireless Mobile Phone Beeper Handheld PC Palm Pilot Electronic organizer Synchronized with PC Gizmondo! Gizmondo ( the ultimate gaming device ) High-performance gaming 400-MHz microprocessor 64-bit graphics Bluetooth MP3 player Digital movie player Camera SMS GPS $300 (versus $150 of Game Boy SP) Nintendo: Game Boy (168m sold since 1989) Sony: PSP 5

6 Positioning Decision #1: Define Define the Frame of Reference (FOR) Category as perceived by target customer Why is FOR important? Establish New Product category (Palm Pilot) Respond to (new) competition (Britannica) Spurt growth (7UP) How to establish FOR? Highlight Points of Parity (POP) NOTE: This is counterintuitive, but critical!! 7UP SITUATION IN UP THIRD IN SOFT-DRINK SALES BEHIND COKE AND PEPSI 7UP FACES COMPETITIVE THREAT Since 1965, Several New Lemon-Lime Brands Launched to Compete with 7UP: SPRITE by Coca-Cola TEEM by Pepsi UPPER 10 by Royal Crown FRESCA by Coca-Cola WINK by Canada Dry 6

7 7UP SALES (% CHANGE) 14% 12% 10% 8% 8% 6% 13% 6% 11% 4% 2% 0% 0% % INDUSTRY 7UP 7UP AWARENESS Top-of-Mind (Soft-drink Category) Top five brands were colas Aided Awareness 7UP is a Soft-drink 7

8 7UP BRAND PROFILES ATTRIBUTE % OF CONSUMERS WHO PERCIEVE BRAND POSSESSES ATTRIBUTE 7UP COKE PEPSI Good for Snacks Good for Meals For Active, Vital People A Drink My Friends Like For Mixing Good for Digestion A Good Buy A Big Bottle Thirst Quenching Good Tasting UP: circa 1969 Soft-drinks Evidence (un)cola With Food With People 7UP Colour Taste Fanta, Sprite, Evidence 8

9 7UP SALES (% CHANGE) 25% 24% 20% 20% 18% 17% 15% 10% 12% 11% 5% 0% INDUSTRY Achieved with no increase in marketing expenditures 7UP 3Ds of Positioning: The Positioning Triangle Define Frame of Reference Brand A Differentiate Brand B Deepen Customer Goal 9

10 Positioning Decision #2: Differentiate Differentiate with Point of Difference (POD) Different compared to what? Category Leader versus Followers (Miller vs. Bud) Miller Lite: Positioning Statement Miller Lite is a beer that appeals to young working class consumers because it offers the opportunity to drink beer without getting filled up, because it is light and has fewer calories. 10

11 Bud Light: Positioning Statement Budweiser Light is the light beer that appeals to year old upscale consumers because it has the taste that is synonymous with the heritage of Budweiser. BRAND POSITIONING 18.3 BEER MARKET SHARES Miller Lite Bud Light 11

12 Positioning Decision #2: Differentiate Differentiate with Point of Difference (POD) Different compared to what? Category Leader versus Followers (Miller vs. Bud) Be Different (and Stick with it!) Energizer versus Duracell (example of Me-too positioning) Be Choice Determining (i.e., important) Analgesics ( no water needed ) Evolve Differentiation as the Market Evolves FedEx Be Difficult to copy Benefits versus Features Deepen the positioning Ineffective Differentiation: Energizer Vs Duracell 49% DURACELL Market Share Bunny spot ENERGIZER

13 Positioning Decision #2: Differentiate Differentiate with Point of Difference (POD) Different compared to what? Category Leader versus Followers (Miller vs. Bud) Be Different (and Stick with it!) Energizer versus Duracell (example of Me-too positioning) Be Choice Determining (i.e., important) Analgesics ( no water needed ) Evolve Differentiation as the Market Evolves FedEx Be Difficult to copy Benefits versus Features Deepen the positioning 3Ds of Positioning: The Positioning Triangle Define Frame of Reference Brand A Differentiate Brand B Deepen Customer Goal 13

14 Positioning Decision #3: Deepen Think of it as laying a bridge Brand specific Emotional connection to Consumer Goal (ECG) Two options Brand Essence Category Essence Positioning Summary THE POSITIONING TRIANGLE FRAME OF REFERENCE Product Category Highlight Points-of-Parity to convey FOR POINT OF DIFFERENCE Key Product Benefit Best to have One key benefit Best to have an Abstract benefit Best to have a Choice Determining benefit Deepening the positioning The hook with Target Customers Emotional Goal 14