POSITIONING

Selecting an Overall Positioning strategy

Colours on the table make easier to understand it. There are shown ways of achieving competitive
advantages in green (winning value proposition); then in red representing losing value proposition; and
finally, the yellow cell shows the position in which at best a marginal proposition.

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5 value winning propositions

More for more

 This situation is given when the company provides the most upscale
product/service and they charge a higher price so that they cover the higher
cost of the upscale product. It is not only about quality, but also prestige, status,
etc.; all of them trying to make the consumer much more important. Starbucks
coffee or Pandora are examples of more-for-more. Pandora does not sell only
jewellery, it is also about the experience of having one of their bracelets and the
status it gives in front of others.
 As most of the things in this life, more-for-more has a vulnerable side also. It is
easy to find imitators that “sell the same quality for a lower price”. In the case of
Pandora, there could be a jewellery store that tries to imitate Pandora’s
products but selling them at a much lower price so that most people buy to them
instead the originals.

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5 value winning propositions

More for the Same.

 The company can attack its competitors by positioning its brand
above the others, that is, offering more for the same price. For
example, there is a case of More for the same
 Toyota introduced its Lexus line with a more-forthe- same (or even
more-for-less) value proposition versus Mercedes and BMW. With
the new Lexus, Toyota offered higher quality for a low price.
Surveys and advertisement were used to show up the great new
product. The last effect was that many Mercedes owners went to
buy a Lexus, increasing the repurchase rate grew..

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5 value winning propositions

The Same for Less.

 This value proposition could be very powerful.
Companies that use this positioning sell the same
products as many other department stores bought
setting their prices much lower, based on superior
purchasing power and lower-cost operations for the firm.
Their aim is to lure customers away from the heads of
the market, the principal brands.
 For example, inside jack and jones Brand, we can
find core section, that sells the same style of clothes but
for less money than jack and jones does.
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5 value winning propositions

Less for Much Less.

 There is almost always a market in which product offer less quality, duration…
and therefore their prices are much lower. Most people cannot afford the latest
model of the very best in all their purchases. Many times, consumers give up
searching the best model in exchange for a lower price. These consumers take
what is necessary for them and set aside the rest. A case like this can be
observed in flights. When travelling there are the ones that want all the
commodities in their flight and others that want to pay the smallest amount
possible, so that they buy the ticket from the cheapest company, the one that
does not offer the best service and that does not let each passenger carry more
than one small bag, but that they can use to reach their destination (that is, that
fulfils the main aim of travelers).
 “Less-for-much-less positioning involves meeting consumers’ lower
performance or quality requirements at a much lower price.”

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5 value winning propositions

More for Less.

 The winning value proposition: offer more for less. Even though in
the short run there are companies that achieve having this lofty
position, is very difficult to take them to the long run. The reason is
that offering more has higher costs, so that it makes difficult for the
company offering more for less, because costs are uncovered.
 After seeing the different value propositions, it is clear that each
company should adopt the positioning strategy that best fits with
their wants of their target markets and the needs they have
because each of them will draw to different target markets. “The
important thing is that each company must develop its own
winning positioning strategy, one that makes the company special
to its target consumers.”
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Developing a positioning statement

 Both company and brand positioning should be summed up in the positioning

statement, a statement that summarizes company or brand positioning using
this form:To (target segment and need) our (brand) is (concept) that (point of
difference).
 An example taken from the book of how should it looks like: “To busy
multitaskers who need help remembering things, Evernote is a digital content
management application that makes it easy to capture and remember moments
and ideas from your everyday life using your computer, phone, tablet,and the
Web.”
 The statement states the product’s membership in categories first and then
gives the point of difference with other members of the same category. When
placing the brand in its specific category you say that it has some similar points
with other products within the same category, but as you enter the point of
difference, there is shown the brand’s superiority

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Agenda

Tools for Competitive

Differentiation

Developing a positioning
strategy

Communicating the Company’s

positioning

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Communicating the Company’s Positioning

 Once the company has developed a clear positioning strategy, the

company must choose various signs and cues that buyers use to confirm
that the product delivers the promise made by the company.

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Thank you
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