Table assessing price & value competitiveness :

Importa nce WT 35% Quality dimensi on Competi B tors A 5 C X

PRECISSI 6 ON

25%
15%

RELIABIL 6 ITY
DURABIL 5 ITY

6
3

3
2

4
5

20%
5%

SERVICE
DELIVER Y

5
2

3
5

5
5

1
5

Weighted sector Actual prices

5.5

4.6

3.7

4.3

29K

21K

15K

22K

Market share % 27

45

20

What is the problem of X in marketing jargon?

The attribute where brand X lags against its its competitors is SERVICE. Service is given 20% importance where service for brand X has scored the least i.e. 1. Expected value of customer in service attribute is high but the perceived value for X is very very low comparatively.

Positioning in Market
Position in market is based on Customer Expected value v/s Perceived value. Positioning of brand X is WEAK in market and WRONG as it lacks in service attribute. The brand X is capable of having a very strong position in market. We can say brand X is in the premium segment.

 Brand A belongs to Luxury segment and STRONGEST amongst A,B,C. Brand B belongs to Premium segment along with brand X.

Brand C is the WEAKEST amongst A,B,C and is in Medium segment.

How do you solve? what strategy do u recommended ? Why?

Following strategies are to be adopted : 1. Improve on service by having a new specialized service team. Also market this amongst existing customers , prospective customers.

2. Start a parallel new brand with improved service and relaibility.

 By this 2 methods we can convert the negative image on customer over a period of time about the service of the product thus also increasing the reliability of the product.

This in turn will help improve the market share and profitability. Once set of customers realize that the service has improved they will definitely stay with brand X and will also help in gaining new customers.

What alternatives can be considered by X? Why should they be dropped?

The strategy that brand X should adopt is Having a new specialized service team and marketing it