ENTREPRENEURSHIP I
A
competitive advantage is an advantage
over competitors’ gained by offering
consumers greater value, either by
means of lower prices or by providing
greater benefits and service that justifies
higher prices.
 Positioning
is how
your target market
defines you in
relation to your
competitors.
 To
make your product stand out in a
crowd
• You are competing with all the noise out their
competing for your potential customers’
attention
• If you can stand out with a unique benefit, you
have a chance at getting their attention.
 Positioning
is how
products are
perceived in the
minds of consumers
 How
a company sees
itself and sees it
products are not
always the way that
customers and
potential customers
view the products.
 When
positioning
your product, it is
important to focus on
how your target
market perceives
you…. After all they
are the consumers
most likely to
purchase your
product
 Key
tip: you can never
make everyone
happy, but you MUST
make your target
market happy in
order to SURVIVE!
 Is
our product the first in its market? If
not, how are our competitors positioned?
 Do we have enough money to position
our products similarly to the market
leader & thus take over as the market
leader?
 If not, we must find an unoccupied
position in the market out target market
currently cares about.
 Product
Attributes
 Benefits
 Usage
Occasions
 Users
 Against
a Competitor
 Away from a
Competitor (Quality)
 Product Classes

For example, Krispy Kreme
doughnuts were originally
available to consumers only at
Krispy Kreme bakeries. In the
early 2000’s, the company
decided to alter its
distribution (Place) strategy to
include supermarkets and gas
stations. While that decision
radically increased sales
potential by making the
product available to more
consumers, it also changed
how the target market
perceived the Krispy Kreme
brand.
 Think
about it: do you
view a sandwich that
you buy at a gas
station differently
from a sandwich that
you purchase at a
casual dining
restaurant?
 Product
• What does the customer want from the
product/service? What needs does it satisfy?
• How and where will the customer use it?
• How is it differentiated versus your competitors’
products/services?
 Place
• Where do buyers look for your product or service?
• If they look in a store, what kind? A specialist
boutique or in a supermarket, or both? Or online? Or
direct, via a catalogue?
• How can you access the right distribution channels?
• Do you need to use a sales force? Or attend trade
fairs? Or make online submissions? Or send samples
to catalogue companies?
• What do your competitors do, and how can you learn
from that and/or differentiate what you do from
them?
 Price
• What is the value of the product or service to the
•
•
•
•
buyer?
Are there established price points for products or
services in this area?
Is the customer price sensitive? Will a small
decrease in price gain you extra market share? Or
will a small increase be indiscernible, and so gain
you extra profit margin?
What discounts should be offered to trade
customers, or to other specific segments of your
market?
How will your price compare with your competitors?
 Promotion
• Where and when can you get across your marketing
messages to your target market?
• Will you reach your audience by advertising in the
press, or on TV, or radio, or on billboards? By using
direct mail? Through PR? On the Internet?
• When is the best time to promote? Is there
seasonality in the market? Are there any wider
environmental issues that suggest or dictate the
timing of your market launch, or the timing of
subsequent promotions?
• How do your competitors do their promotions? And
how does that influence your choice of promotional
activity?


Ever wonder about the laundry detergent product
category? Why do several companies produce the
majority of laundry brands? For example, Procter &
Gamble markets Tide, Gain, Era, Cheer, Ivory, and
Bold. . . among others. How does P&G differentiate
these brands? How many different messages can you
develop about laundry detergent?
Using the Web and a little research at a retail outlet
that sells laundry detergent, conduct an analysis of
the P&G brands of laundry detergent. What are the
distinguishing features of each brand -- and are they
clearly communicated to the consumer? What are the
target markets for each brand? Are the positions
different enough to avoid cannibalization?