Positioning and Research and Development

Repositioning with Advertising

1. Identify desired position on perceptual map 2. Enter coordinates identified in the previous step in perceptual objectives for brand when doing MM - max two dimensions can be selected 3. Allocate an advertising media budget for the brand, makes campaign more effective, limit to how far and fast advetising can change perceptions. Between 10-15% of total advertising budget should be spent in advertising research 4.

Repositioning a Brand thru R&D

1. Identify the desireed position on the perceptual map or semantic scale chart 2. Estimate physical characteristics that correspond to this desired position 3. Develop an R&D project with the physical characteristics seen above 4. Introduce a new brand or modify an existing one

R&D Responses

All projects listed in section of Company Results - Normal budget for completion calculated by R &D EARLY ON, will show budget needed to finish

Prediction of Ideal Points

Averaged individual responses of the respondents, influenced by the actions of competitors - can use MDS studies to interpolate where ideal points will be located in a few periods time, probably need to look 2-3 period ahead of time

Changing Segment Needs

Can be seen as low-performance or having unnecessarily high number of features throughout periods, distance gets too great, time to act

Situations where repositioining required

Changing segment needs, Price Pressure, New Target Segments, Competitor Entry,

Multidimensional scaling

Each dimensino related with two or more physical attributes, as such interpolation between these multiple segments can be sed

Positioning Products using semantic scales

Graph for each dimensinon, shows relation between actual perceived "power"

Project Base Cost

How much it costs for the first 100,000 units of the new product, no upper limit. Can be reduced by either selecting the minimum cost of developemnt, but starting with the desired or ideal price of targeted customers can be effective. Alternatively 100k feasibility surveys work pre nice

Competitor Entry

In a competition less market can position your product a bit far away from desires, but a more specified comeptitor unit might change this

Budget Required for completion

Includes research necessary to develop a prototype and development work necessary to find potential suppliers and set up manufacturing processes Depends on requested physical characterisitcs, experience of the firm with comparable products and base cost requested

Brand intro, modi or withdrawal

May be used as soon as their completed, enter a brand name nt used in the past - facilitating it's positioning, Same product marketed under different name - multibrands targetted at the same segment is a good strategy to build barriers to entry of new brands by competitors When a brand is modified, prod department will immediately start producing the new version of the product - obsolete reserves are sold at a fixed value that is usually 80%

Price Pressure

Seen when there is disance between brand and ideal point along the price or econmy axis

Matching Product attributes with position

Some brands have physical attributes that can be used to ascertain position, otherwise use interpolation

New Target Segments

Sometimes two segments can be served with a given product, however as sizes grow/change products need to be repackaged for just one group

Semantic Scales

Studies can provide ideal ratings from consumers, as well where they actually perceive your brand in comparison to others

Multidimensional scaling of brands similarities and preferences

Visually represents the difference between the respondents ratings, across economy, performance and convenience