Positioning -­‐
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Functional positions o Solve problems/ provide tangible benefits to customer Symobolic/ emotional positions o Status (Aston Martin, Gucci) o Self – definition (Apple, Virgin) o Belonging, Social success (Harley Davidson, MTV) o Basic emotions/ Moods (Corona, Hallmark) Experiential Positions o Sensory/ sensual stimulation (GTI, Cadbury) o Cognitive stimulation (Scrabble) WEEK 7 Levels of product strategy decisions Product mix strategies -­‐
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Product breadth decisions Consistency or diversity Business units to be added/ deleted Example of Mitsubishi has millions of business units through all areas, air conditioning, electronic, cars, plants, military, etc. Product line strategies -­‐
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Product line depth and width decisions Product line extensions / pruning Role of brands in line extensions Product line extension – adding new items in the same product category -­‐
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Upward stretch – adding items to the higher end of the market (eg: Toyata Lexus, BMW acquire RR) Downward stretch -­‐ adding items to the lower end (eg: BMW introducing 1 series, or Benz introducing A class) Two – way stretch -­‐ adding items to both ends Same – Level stretch – adding items at similar price / quality point Product line pruning – removing items from the product line. Eg, P&G, 32 Head shoulder products fulfilling one need. Individual product or brand strategies Vs Umbrella Branding strategies -­‐
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Product / brand decisions Product strategies Brand strategies Multibrand strategies: using individual brand names within the product line. For example, Dove, Vaseline Stlves, they are all targeting the same needs. The advantage of here is it helps saturate the market, different brands can be positioned at different price, quality, identity levels. Family brand, umbrella brand strategy: to use the same brand name for different products. For example, Nivea family or Virgin brand family, the advantage of here is it helps to save promotional cost, new product introduction is easier. Core – expected augmented potential product Potential offer: for Ford self parking system and ipod connectivity Augmented offer: Navigation system in the car, (differentiation starts here) Diffusion of innovations theory