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TM 12-1 Copyright © 1999 Addison Wesley Longman, Inc. New Product Development  Proactive versus reactive strategies  The pioneering advantage  Opportunity.

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Presentation on theme: "TM 12-1 Copyright © 1999 Addison Wesley Longman, Inc. New Product Development  Proactive versus reactive strategies  The pioneering advantage  Opportunity."— Presentation transcript:

1 TM 12-1 Copyright © 1999 Addison Wesley Longman, Inc. New Product Development  Proactive versus reactive strategies  The pioneering advantage  Opportunity identification  Positioning strategies  Consumer-driven engineering

2 TM 12-2 Copyright © 1999 Addison Wesley Longman, Inc.

3 TM 12-3 Copyright © 1999 Addison Wesley Longman, Inc. The best choice for positioning strategy

4 TM 12-4 Copyright © 1999 Addison Wesley Longman, Inc. Pioneer Advantage 1. Inherent Advantage Risk Aversion Standard of Comparison Brand Attitude Accessibility Set Size Effect Direction-of-Comparison Effect 2. Enabling Advantage Experience Curve Positioning Advantage Channel Distribution Advantage 3. Spurious Correlation Third Variable Problem

5 TM 12-5 Copyright © 1999 Addison Wesley Longman, Inc. A pioneering brand that is still popular

6 TM 12-6 Copyright © 1999 Addison Wesley Longman, Inc. The most likely scenario for pioneering advantage The pioneering advantage Inherent advantage Enabling advantage Spurious effect Speed up new product development at all costs Speed up only if product can be positioned and marketed effectively because you know more about the category than your competitor Take your time

7 TM 12-7 Copyright © 1999 Addison Wesley Longman, Inc.

8 TM 12-8 Copyright © 1999 Addison Wesley Longman, Inc.

9 TM 12-9 Copyright © 1999 Addison Wesley Longman, Inc. Opportunity Identification  Sales potential  Penetration  Scale  Input  Reward  Risk

10 TM 12-10 Copyright © 1999 Addison Wesley Longman, Inc. Positioning I. Positioning Strategies 1. Positioning a Leader 2. Establishing a Strong Alternative Position A. Doing the Opposite B. Turing Disadvantages in Advantages 3. Positioning by Attributes/Benefits 4. Positioning by Price 5. Positioning with Respect to Use or Application 6. Positioning by the Product User 7. Repositioning the Competition II. Perceptual Mapping III. Preference Regression

11 TM 12-11 Copyright © 1999 Addison Wesley Longman, Inc. Positioning a Leader Standard of Comparison - The real thing - Coke is it We invented the product - Xerox copiers - Polaroid cameras - Zippo lighters “We’re Number 1” could imply: - low price - high availability - insecurity Marketing Myopia

12 TM 12-12 Copyright © 1999 Addison Wesley Longman, Inc. Establishing a Strong Alternative Position Look for a gap and fill it Do the opposite - Volkswagon - 7-up1929: Mixer and headache remedy 1967-70: The Uncola (20% sales increase) Turn disadvantages in advantages - Avis: We’re no. 2 - we try harder - Smuckers: With a name like Smuckers, it has to be good

13 TM 12-13 Copyright © 1999 Addison Wesley Longman, Inc. Positioning by Attributes/Benefits... Toyota Volvo BMW Bounty Viva Crest Aim

14 TM 12-14 Copyright © 1999 Addison Wesley Longman, Inc. Positioning by Price... Nieman-Marcus Bloomingdales Saks Fifth Avenue Sears Michelob Budweiser Busch S.T. Dupont lighters cost $1,500 and down Joy - the costliest perfume in the world Piaget - the world’s most expensive watch High Price is not only for luxury items: - Whitney’s Yogurt - Orville Redenbacher’s - Eukanuba

15 TM 12-15 Copyright © 1999 Addison Wesley Longman, Inc. Positioning by Price...

16 TM 12-16 Copyright © 1999 Addison Wesley Longman, Inc. Positioning by Price...

17 TM 12-17 Copyright © 1999 Addison Wesley Longman, Inc.

18 TM 12-18 Copyright © 1999 Addison Wesley Longman, Inc.

19 TM 12-19 Copyright © 1999 Addison Wesley Longman, Inc.

20 TM 12-20 Copyright © 1999 Addison Wesley Longman, Inc. Positioning with Respect to Use or Application... Campbell’s Soup for Lunch AT&T Reach out and touch someone Gatorade Arm & Hammer Baking Soda Industrial Products

21 TM 12-21 Copyright © 1999 Addison Wesley Longman, Inc. Positioning by Use...

22 TM 12-22 Copyright © 1999 Addison Wesley Longman, Inc. Positioning by Product User... Marlboro Country Miller High Life, the champagne of beers Johnson & Johnson baby shampoo

23 TM 12-23 Copyright © 1999 Addison Wesley Longman, Inc. Positioning Malaysia Airlines as the most popular airline originating in southeast Asia

24 TM 12-24 Copyright © 1999 Addison Wesley Longman, Inc. Repositioning the Competition... For the millions who should not take aspirin… if your stomach is easily upset… or if you have an ulcer or if you suffer from asthma, allergies, or iron-deficiency anemia.. It would make sense to check with your doctor before you take aspirin. Aspirin can irritate the stomach lining, trigger asthmatic or allergic reactions, cause small amounts of hidden gastrointestinal bleeding. Fortunately, there is Tylenol. Royal Doulton - The china of Stoke-on-Trent, England vs. Lenox - The china of Pomona, New Jersey Samovar: Made in Schenley, Pennsylvania Smirnoff: Made in Hartford, Connecticut Wolfschmidt: Made in Lawrenceburg, Indiana Stolichnaya: Made in Leningrad, Russia Borden’s Wise: Potatoes, Vegetable oil P & G’s Pringles: Dehydrated potatoes, mono- & diglicerides, ascorbic acid, butylated hydroxy-anisole Listerine: Medicine Breath Scope: Fresh Minty Breath

25 TM 12-25 Copyright © 1999 Addison Wesley Longman, Inc. A perceptual map Diet Pepsi Diet Coke Tab Fresca Pepsi New Coke Dr. Pepper Coke Classic Cherry Coke Sprite 7Up Not Fruity Not Sweet Sweet Fruity

26 TM 12-26 Copyright © 1999 Addison Wesley Longman, Inc. Perceptual Maps...

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