TIDE • Is so powerful; it cleans down to the fiber • All purpose family detergent for extra-tough laundry jobs. • “Tide’s in, dirt’s out”
CHEER • Color Guard gives “outstanding cleaning and color protection. • Clothes look clean, bright, and more like new.
OXYDOL • Contains bleach. • Makes your white clothes really white and your colored clothes really bright. • “So don’t reach for the bleach -- grab a box of Ox!”
GAIN • Originally P&G’s “enzyme” deteregent • Repositioned as the detergent that gives you clean, fresh smelling clothes • “Freshens like sunshine”
BOLD • Detergent with fabric softner • “Cleans, softens, and controls static with fabric softener scent”
IVORY SNOW • Ninety-nine percent and forty-four one hundredths percent pure • “Mild, gentle soap for diapers and baby clothes”
DREFT • Formulated for baby’s diapers and clothes. • Contains borax - nature’s natural sweetener • “A clean you can trust.”
DASH • P&G’s value entry • Attacks tough dirt • “Dash does it for a great low price.”
ERA PLUS • Built-in stain removers • “Gets tough stains out and does a great job on your whole wash too.”
HOW TO DIFFERENTIATE Features: Characteristics that supplement a product’s basic function - “bare bones” model - Optional features Continuously introduce new features - Japanese electronics - Contact recent buyers - Survey - Value to customer vs. cost to firm tradeoff
Performance Quality: Strategic Planning Institute (SPI) found a positive correlation between high quality and ROI. In a study of 525 units, ROI Low Quality 17% Medium Quality 20% High Quality 27% Quality - Premium price - Repeat purchase - Loyalty - Positive word of mouth Three strategies Continuous improvement /maintain quality / reduce quality.
Conformance quality - degree to which design and operating characteristics come close to target standard Durability - products expected operating life - Volvo has highest mean life Customers will pay if - not high fashion, - technological obsolescence - not excessive price.
Reliability - Probability that a product will not malfunction within a specified period. - Maytag - Oster blenders - 2% returns because blade was rusting within two years. Lowered it to .5%. - Mitsubishi (Motorola’s Quaser Division) TV receivers - 141 defects out of 100 sets - 6 defects out of 100 sets - Buyer complaints reduced by 90% - Warranty liability reduced to 10% Repairability - Ease of fixing - Caterpillar parts division
Style - How well the product looks and feels to the buyer. - Packaging of cosmetics - Jaguar - GM hired Pinifarina, an Italian designer, to design the Allante’ - Herman Miller - office furniture - Olivette - office machines - Swatch - watches Design - Integration - Italian design - apparel and furniture - Scandianvian - functionality aesthetic - German - austerity and robustness - Braun - design, engineering, and manufacturing - Bang and Olufsen - stereo and television
Services Differentiation • Delivery - speed, accuracy, care - Deluxe Check Printers - Shipped out one day after receiving the order • Installation - IBM delivers all equipment to the site at same time. - IBM moves competitors equipment as well. • Customer training - GE - McDonald employees attend Hamburger University • Consulting - McKesson Corporation - 12,000 independent pharmacists. Helps set up accounting and inventory systems - Milliken and Co.
Personnel Competence - skill and knowledge Courtesy - friendly, respectful, and considerate Reliability - consistency and accuracy Credibility - trustworthy Responsiveness - quick response Communication - make effort to understand and communicate McDonald’s - courteous Singapore - beauty and grace IBM - professional Disney - upbeat Image differentiation - Marlboro Man Identity versus image. Identity - how companies aim to identify itself to its customers. Image - how an individual perceives the company - singular, distinctive, and emotional
DEVELOPING A POSITIONING STRATEGY Points of differentiation should be • Important • Distinctive • Superior • Communicable • Preemptive • Affordable • Profitable Product needs a USP ( Unique Selling Proposition ) Perceptual maps or Positioning Maps - Tools for positioning
Why position at all ? 1. We are an over-communicated society Advertising spending in US is $376.62/year/person versus $17 for the rest of world - 30,000 books published - 10 million tons of news 94 pounds/year/person NY Times Sunday - 4 1/2 lbs.; 5000,000 words - Television - 7 hours/day 2. Product explosion 25,000 SKUs UPC - 10 digits 3.Advertising explosion Therefore the product’s message and position needs to be heard and registered in the consumer’s mind amidst all the noise.
Positioning by Al Ries and Trout 1. Be the first - pioneering advantage 2. Strengthen current position - give a reason - Avis - 7-Up 3. Look for the hole: Milky Way candy - lasts longer United Jersey Bank - fast moving bank 4. Deposition/reposition the competition Lenox/Royal Doulton - both from England Lenox made in New Jersey