Professional Documents
Culture Documents
Markstrat3
Strategic Issues
September 14, 2002 Filename: \MarketStrat3\MarkstratPositioning˙4.tex 1 September 14, 2002 Filename: \MarketStrat3\MarkstratPositioning˙4.tex 2
2
September 14, 2002 Filename: \MarketStrat3\MarkstratPositioning˙4.tex 7
The "Perceptual Map" is a valuable tool for The "Perceptual Map" is a valuable tool for
visualizing brand positioning visualizing brand positioning
SUL SUL
I
Pr I
Pr
SOLD Hi SOLD Hi
-20 +20 -20 +20
Si Need 1 Si Need 1
SALT SALT
SIBI
SUSI
Ot Key SIBI
SUSI
Ot Key
SAMA Ot Segment ideal Point SAMA Ot Segment ideal Point
Perceptual positioning Perceptual positioning
SIRO SIRO
-20 of Brands -20 of Brands
3 3
There are two key ways to re-position brands in Positioning with advertising requires setting
Markstrat "Perceptual Objectives"
20 Perceived
Performance
Perceived
Performance
10 Si
9
5
Advertising 0
Perceived
Economy
5 11
Perceived
Economy
R&D -10
-20
-20 -10 0 10 20
4 6
9
September 14, 2002 Filename: \MarketStrat3\MarkstratPositioning˙4.tex 5
Impact of physical characteristics on base cost The budget required to complete an R&D
project is a function of several factors
Base
The HIGHER the cost
• Design R&D
requested
• Max. Frequency experience
characteristic • Power
the HIGHER the • Autonomy to find out more:
base cost
Requested characteristic
feasibility
R&D accuracy study
physical
characteristics
budget required
Base vs.
The HIGHER the cost
for completion
requested • Volume on-line
speed query
characteristic • Weight
the LOWER the • Diameter Requested
base cost base
Requested characteristic
cost
11 12
6M:147 Marketing Management Positioning products in MS3 6M:147 Marketing Management Positioning products in MS3
September 14, 2002 Filename: \MarketStrat3\MarkstratPositioning˙4.tex 12 September 14, 2002 Filename: \MarketStrat3\MarkstratPositioning˙4.tex 13
There are two possible outcomes of any R&D A completed R&D project may be used to
project modify existing brands and/or introduce new
brands
Project submitted to R&D: Performance
weight design volume
max.
power Minimum base cost is calculated
freq. at an early stage in the project.
17 6 85 35 70 Minimum base cost = $110
Bu
Case A Case B
Requested Base Cost = $80 Requested Base Cost = $130 Si
(requested base cost is below minimum, but the R&D will try Pr
to develop the project at the minimum base cost) Hi
Budget required for completion is also
calculated at an early stage in the project
Economy
Budget required for completion = $ 800 Budget required for completion = $ 550
(at base cost = $ 110) (at base cost = $ 130) New Brand
"SAMY"
Case A1 Case A2 Case B1 Case B2 New SAMA
Budget allocated by team for this period: Budget allocated by team for this period: Ot more performance
$ 1,000 $ 300 $ 1,000 $ 300
13 14
MA
SA
Obsolete Inventory Base cost B
B
MA MA
SA SA inventory disposal Current
A1
MA
transfer cost A1
MA MA SA
SA SA cost reduced product
(new experience curve)
Brand
withdrawal TRADING
TRADING
COMPANY 100 KU 225 KU Cumulative production
COMPANY
15 16
The MDS study measures brand perception ... which are more or less influenced by the
along three composite dimensions... various brand attributes
VODITE market
SONITE market
Influence of brand characteristics on MDS dimensions
Influence of brand characteristics on MDS dimensions
in P0
in P0
Perceived Efficacy Perceived Flexibility increases
Perceived Economy Perceived Economy increases increases if Max. Freq. increases if Weight decreases
increases if Max. Freq. increases if Price decreases
Product
Product charac.
charac. Autonomy Max. Freq. Diameter Design Weight Price
Composite Weight Design Volume Max. Freq. Power Price Composite
dimensions
dimensions
very moderate
moderate moderate strong slight
Economy slight slight slight Efficacy slight strong slight slight
17 18
Brand portfolio
New Decisions for Period Two
Perceptual objectives (on semantic scales or MDS)
19
September 14, 2002 Filename: \MarketStrat3\MarkstratPositioning˙4.tex 20
Keep the
same name
select a new
click here to display all completed R&D project
R&D projects and their features
20 21
To convey the right message to the market, you You can initiate up to five R&D projects per
can set perceptual objectives for each of your period and per product type (five Sonite and five
products Vodite)
2
On which dimensions
do you want to communicate?
3
Input the coordinates
of the point that you
want to reach on the map
22 23