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8/14/2019 Positioning and Differentiating the Market Offering Through the Product Life
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11-1
Copyright © 2003 Prentice-Hall, Inc.
Positioning and DifferentiatingPositioning and Differentiatingthe Market Offering Throughthe Market Offering Through
the Product Life Cyclethe Product Life Cycle
Presentation byPresentation by
PoonamPoonam
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11-2
Copyright © 2003 Prentice-Hall, Inc.
Developing and Communicating
a Positioning Strategy
Positioning- It is act of designing thePositioning- It is act of designing the
company’s image to occupy a distinctivecompany’s image to occupy a distinctiveplace in the mind of target marketplace in the mind of target market
Value position – a reason why targetValue position – a reason why targetmarket should buy a productmarket should buy a product
e.g Domino’s (pizza)- A good hot pizza ,e.g Domino’s (pizza)- A good hot pizza ,delivered to your door within 30 min. of delivered to your door within 30 min. of orderingordering
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11-3
Copyright © 2003 Prentice-Hall, Inc.
Developing and Communicating
a Positioning Strategy Positioning According to Ries andPositioning According to Ries and
TroutTrout Strengthen own current positionStrengthen own current position
Grab an unoccupied positionGrab an unoccupied position
De-positionDe-position
Re-positionRe-position
Product laddersProduct ladders
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11-5
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Positioning According to
Treacy and Wiersema
Positioning framework calledPositioning framework called
Value disciplines – A firm could aspire to be theValue disciplines – A firm could aspire to be the Product leader – technological frontierProduct leader – technological frontier
Operationally excellent firm- PerformanceOperationally excellent firm- Performance
Customer intimate firm – operational excellenceCustomer intimate firm – operational excellence
Based on the notion that in every market there is a Based on the notion that in every market there is a
mix of three types of customers.mix of three types of customers.
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11-6
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Mc Donald's excelsMc Donald's excels at operational excellenceat operational excellence , G.E ‘s, G.E ‘s
appliance Division – operational excellence , engineered appliance Division – operational excellence , engineered
plastic division – customer intimacy , Jet engine division – plastic division – customer intimacy , Jet engine division –
product leadership product leadership Treacy and Wiersema propose that a business shouldTreacy and Wiersema propose that a business should
follow four rules for successfollow four rules for success
1.1. Become best at one of the three value disciplines.Become best at one of the three value disciplines.
2.2. Achieve an adequate performance level in the other twoAchieve an adequate performance level in the other two
disciplines.disciplines.3.3. Keep improving one’s superior position in the chosen disciplineKeep improving one’s superior position in the chosen discipline
so as not to lose out to a competitor.so as not to lose out to a competitor.
4.4. Keep becoming more adequate in the other two disciplines,Keep becoming more adequate in the other two disciplines,because competitors keep raising customers’ expectations.because competitors keep raising customers’ expectations.
Developing and Communicating
a Positioning Strategy
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11-7
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Positioning: How many ideas to promote?Positioning: How many ideas to promote? Unique selling propositionUnique selling proposition
Four major positioning errorsFour major positioning errors
1.1. Under positioning- vague idea of brand , just theUnder positioning- vague idea of brand , just the
Another entry in the crowded marketAnother entry in the crowded market Vanila Coke, RC Cola , Center Vanila Coke, RC Cola , Center
Shock Shock
Over positioning- too narrow image of the brand, e.gOver positioning- too narrow image of the brand, e.g TanishqueTanishque
Confused positioning- Company making too many claims likeConfused positioning- Company making too many claims like
RecovaRecova Doubtful positioning- buyer find it hard to believe the brandDoubtful positioning- buyer find it hard to believe the brand
claims in view of product,s features, price, manufacturer likeclaims in view of product,s features, price, manufacturer like
Slimming centers Slimming centers
Developing and Communicating
a Positioning Strategy
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11-8
Copyright © 2003 Prentice-Hall, Inc.
POSITIONING
It is a decision reached by a marketer to try to achieve a defined brand
Image relative to competition within a market segment.
e.g Nestlé's Maggi Noodles has been successfully positioned as the
“two minute” noodle in the minds of target consumers and has created
A distinctive brand image.
Positioning by corporate identity:-
Such as TATA, SONY, GODREJ AND SEIKO.Positioning by brand endorsement :-
Companies use names of their powerful brands such as LUX,SURF
And DETTOL.
Positioning by product attributes and /or benefits:-
Such as tag line of TATA INDICA is “ More car Per car” COLGATE as fresh breath , decay prevention and taste
PROMISE on gum care , Dove , non soap
Positioning by use, occasion and time : -
Vicks Vacorub for child’s cold at night, Iodex for sprain and muscle pain
Dettol antiseptic for cuts
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11-9
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Price quality
positioning
A quite powerful
approach.Consumer’squality expectation
levels are
different,depending on
their socio- economicstatus. This offers many
a opportunities for
price-quality levels and
positioning
Nirma
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11-10
Copyright © 2003 Prentice-Hall, Inc.
POSITIONING
Positioning by product category :-
Such as Maruti’s van and later positioned as Maruti Omni, the spacious
Family car and was not competing with other vans but Ambassador & Fiat7-UP first as “thirst quenching” and later positioned as alternative to cola
the “ Uncola”
Positioned by product user:- Farex
Dabur’s chyavanprash , the ayurvedic tonic , is positioned for all ages,
Grandfather , grand childZandu special chyavanprash is clearly positioned for families with small
Children to build up their resistance against coughs and colds
Repositioning ;-
Nestlé's milkmaid was “ Milkmaid condensed milk” a convenient form
Of milk for use as tea or coffee creamer or whitener . Then in 1980’s
Repositioned as product ideal for making sweets and desserts. The pack
Design was smartened and changed to suit this repositioning.
Femina , J&J , Mc Donalds
Onida - was repositioned and a reason to buy - Status
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11-11
Copyright © 2003 Prentice-Hall, Inc.
Positioning by
product user
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11-12
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Positioning bycompetitor:-
The marketer wants
consumer to believe
that the brand is
superior, or at leastas good as offered
by the competitor
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11-13
Copyright © 2003 Prentice-Hall, Inc.
Figure 11.1: Perceptual Map
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11-14
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Developing and Communicating
a Positioning Strategy Communicating the Company’sCommunicating the Company’s
PositioningPositioning
Positioning statementPositioning statement
Mountain Dew’s WebMountain Dew’s Web
site supports itssite supports itspositioningpositioning
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11-15
Copyright © 2003 Prentice-Hall, Inc.
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11-16
Copyright © 2003 Prentice-Hall, Inc.
Product Life-Cycle Marketing
Strategies To say that a product has a life cycle asserts fourTo say that a product has a life cycle asserts four
thingsthings
1.1. Products have a limited life.Products have a limited life.
2.2. Product sales pass through distance stages, each posingProduct sales pass through distance stages, each posingdifferent challenges, opportunities, and problems to thedifferent challenges, opportunities, and problems to theseller.seller.
3.3. Profits rise and fall at different stages of the product lifeProfits rise and fall at different stages of the product lifecycle.cycle.
4.4. Products require different marketing, financial,Products require different marketing, financial,
manufacturing, purchasing, and human resource strategiesmanufacturing, purchasing, and human resource strategiesin each life-cycle stage.in each life-cycle stage.
5.5. PLC can be used to analyze product category (FabricPLC can be used to analyze product category (Fabricwashing product) , a product form ( washing detergent ) , awashing product) , a product form ( washing detergent ) , aproduct (liquid Detergent) or a Brand ( Godrej Ezee)product (liquid Detergent) or a Brand ( Godrej Ezee)
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Figure 11.4: Cost Product Life-Cycle Patterns
Product Life-Cycle Marketing
Strategies
Small Kitchen AppliancesHand held mixtures and bread makers
Aspirin Nylon – Parachutes , hosiery , shirts ,
carpeting , automobile tires
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11-18
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Figure 11.5: Style, Fashion, and Fad Life Cycles
Product Life-Cycle Marketing
Strategies
Style is a distinctive mode of expression
appearing in the field Of human Endeavour
Home , clothing , Art
Fashion is a popular style in a given
field – Distinctiveness, emulation ,
mass fashion and decline
Fads are fashions that come quickly
and decline very fast
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11-19
Copyright © 2003 Prentice-Hall, Inc.
Figure 11.3: Sales and Profit Life Cycles
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11-20
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Introduction StageIntroduction Stage Growth tends to be slowGrowth tends to be slow
Delay in expansion , Delay in adequate distribution , CustomerDelay in expansion , Delay in adequate distribution , Customerreluctance , sales of expensive new products.reluctance , sales of expensive new products.
Profits are negative or lowProfits are negative or low
Low sales, heavy distribution and promotion expensesLow sales, heavy distribution and promotion expenses
- need to inform potential consumers- need to inform potential consumers
- induce product trial- induce product trial
-secure distribution in retail outlets-secure distribution in retail outlets
Prices are highPrices are high
Costs are high due to technological problemsCosts are high due to technological problems
High required margins to support a heavy promotional expend.High required margins to support a heavy promotional expend.
Nanz store , Bowmar hand calculator , Reynolds Nanz store , Bowmar hand calculator , Reynolds
Product Life-Cycle Marketing
Strategies
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11-21
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Introduction stage-strategies
Rapid skimming:- launching new product at high price and High promotional level – Consumer electronics and
non-durables like TV , DVD , Music system video games
Sony in High-definition TV ( HDTV) in Japanese's market were priced at $43,000.
Rolex , Omega , German car marketers Mercedes , BMW to recoup their R&D
expenditure within short period of time , Bosch ,
"Skimming" is a profit-maximization strategy
• When large part of market is unaware of the
product• Those who are aware are eager to have it and
can pay the asking price.• Firm faces potential competition and wants to
build brand preference
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11-22
Copyright © 2003 Prentice-Hall, Inc.
Introduction stage-strategies
Slow skimming :-launching a new product at
high price and Low promotion –many industrial
products , more specifically laser technology or petrochemicals may fall in this
category
• When the market is limited in size
• Most of the market is unaware of the product
• Buyers are willing to pay higher price
• Potential competition is not imminent
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11-23
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Introduction stage-strategies
Rapid penetration :- launching the new product at lower price and spending heavily on promotion –
Want to maximize the market share Believe that higher sales volume will lead to lower unit costs and
higher long run profit
They set the lowest price assuming buyer are price sensitive
"Penetration" is a market sharemaximization strategy.
The market is large
• Most buyer are price sensitive• Strong potential competition and unit manufacturing cost fall
with company’s scale of production• Japanese automakers in a US automobile market , Maruti
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11-24
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Introduction stage-strategies
Slow penetration :- launching the new productat low price and Low level of promotion. The
firm’s objective is to maximize sales or profits in
the long run
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Growth stage Demand for the product increases and size of the marketDemand for the product increases and size of the market
growsgrows Early adopters like the product and additional consumersEarly adopters like the product and additional consumers
start buying itstart buying it
New competitors attracted by opportunitiesNew competitors attracted by opportunities
They introduce new product features and expand distributionThey introduce new product features and expand distribution Price remains same or fall slightlyPrice remains same or fall slightly
Promotion remain same or slightly increase to meetPromotion remain same or slightly increase to meet
competitioncompetition
Sales rise much faster than promotional expenses causingSales rise much faster than promotional expenses causingwelcome decline in promotion-sales ratiowelcome decline in promotion-sales ratio
Profit increases as unit manufacturing cost fall because of Profit increases as unit manufacturing cost fall because of
large volumelarge volume
Yahoo !- 120 million visitors in a monthYahoo !- 120 million visitors in a month
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11-26
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Marketing Strategies: Growth StageMarketing Strategies: Growth Stage Improve product quality and add new productImprove product quality and add new product
features and improved styling – features and improved styling – Coffee Café’sCoffee Café’s
Add new models and flanker products – Add new models and flanker products – Maruti-800 ,Maruti-800 ,Zen , Maruti OmniZen , Maruti Omni
Enter new market segments – Enter new market segments – J&J , Mc Donalds , FeminaJ&J , Mc Donalds , Femina
Increase distribution coverage and enter newIncrease distribution coverage and enter new
distribution channels – distribution channels – Amway , Avon , Tupper wareAmway , Avon , Tupper ware
Shift from product-awareness advertising toShift from product-awareness advertising toproduct-preference advertising – product-preference advertising – Comparative AdsComparative Ads
Lower prices to attract next layer of price-sensitiveLower prices to attract next layer of price-sensitive
buyers – buyers – Coke vs Pepsi , surf , carsCoke vs Pepsi , surf , cars
Product Life-Cycle Marketing
Strategies
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11-27
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Maturity Stage At some point of time the rate of sales growth willAt some point of time the rate of sales growth will
slow and the product will enter the stage of slow and the product will enter the stage of maturitymaturity
This stage lasts longer than previous stagesThis stage lasts longer than previous stages
Most products are at maturity stage of productMost products are at maturity stage of productlife cycle and most marketing managers copelife cycle and most marketing managers copewith this problem of marketing the maturewith this problem of marketing the matureproductproduct
Only the giant firms will survive perhaps theOnly the giant firms will survive perhaps thequality leader , service leader and cost leader thatquality leader , service leader and cost leader thatserves the whole market and makes profitserves the whole market and makes profitthrough high volumethrough high volume
P d t Lif C l M k ti
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Marketing Strategies: Maturity StageMarketing Strategies: Maturity Stage Market ModificationMarket Modification
Expand number of brand users by:Expand number of brand users by: Converting nonusersConverting nonusers
Entering new market segments-Entering new market segments- J&J , Pears pink for kidsJ&J , Pears pink for kids
Winning competitors’ customers – Winning competitors’ customers – PepsiCo. Surf Vs ArielPepsiCo. Surf Vs Ariel
Convince current users to increase usage by:Convince current users to increase usage by: Using the product on more occasions – Using the product on more occasions – Heinz Vinegar to cleanHeinz Vinegar to clean
windows , Cadbury for all celebration occasions , Juices morning andwindows , Cadbury for all celebration occasions , Juices morning and
evening., Milkmaid ( Nestle) , Mithaimate (Amul) for variety of dessertevening., Milkmaid ( Nestle) , Mithaimate (Amul) for variety of dessertpreparations at home .preparations at home .
Using more of the product on each occasion -Using more of the product on each occasion - Priyagold Priyagold juices juices – – Ab Koi Pani Nahi Mangega, Drink larger glass of juice , Ab Koi Pani Nahi Mangega, Drink larger glass of juice ,
Using the product in new ways – Dettol ,Using the product in new ways – Dettol , Use Asprin daily for Use Asprin daily for
reducing chances of strokereducing chances of stroke
Product Life-Cycle Marketing
Strategies
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Product modificationProduct modification Quality improvementQuality improvement – “Plus launch”, stronger , bigger , better WIMCO’s – “Plus launch”, stronger , bigger , better WIMCO’s
safety matches which included Carburization of match sticks and a new wrappersafety matches which included Carburization of match sticks and a new wrapperfor wholesale packing., Chakki fresh Atta by Piilsburyfor wholesale packing., Chakki fresh Atta by Piilsbury
but be aware : Coca Cola Story in 1985but be aware : Coca Cola Story in 1985
Feature improvement-Feature improvement- size , weight , accessories that expand product’ssize , weight , accessories that expand product’s
versatility , safety and convenienceversatility , safety and convenience e.g Pan Parag adding new ingredients to the product like Zarda or Tobacco ,e.g Pan Parag adding new ingredients to the product like Zarda or Tobacco ,
changing its packaging like Sachet from Tin can containing 100gms of Masalachanging its packaging like Sachet from Tin can containing 100gms of Masala
Marketing-Mix ModificationMarketing-Mix Modification PricesPrices DistributionDistribution
AdvertisingAdvertising Sales promotionSales promotion Personal sellingPersonal selling ServicesServices
Product Life-Cycle Marketing
Strategies
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Decline stage
The sale of most products and brands declineThe sale of most products and brands decline The decline might be slow or rapidThe decline might be slow or rapid
Sales may plunge to 0 or may reach a lowerSales may plunge to 0 or may reach a lower
levellevel• Technological advancesTechnological advances
• shift in consumer taste and preferencesshift in consumer taste and preferences
• domestic and foreign competition – somedomestic and foreign competition – some
firms withdraw from market or reduce no.firms withdraw from market or reduce no.
of products they offerof products they offer
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Marketing Strategies: Decline StageMarketing Strategies: Decline Stage1.1. Increase firm’s investment (to dominate theIncrease firm’s investment (to dominate the
market and strengthen its competitive position)market and strengthen its competitive position)
2.2. Maintain the firm’s investment level until theMaintain the firm’s investment level until theuncertainties about the industry are resolved.uncertainties about the industry are resolved.
3.3. Decrease the firm’s investment level selectively byDecrease the firm’s investment level selectively bydropping unprofitable customer groups, whiledropping unprofitable customer groups, whilesimultaneously strengthening the firm’ssimultaneously strengthening the firm’sinvestment in lucrative nichesinvestment in lucrative niches
4.4. Harvesting (“milking”) the firm’s investment toHarvesting (“milking”) the firm’s investment torecover cash quicklyrecover cash quickly
5.5. Divesting the business quickly by disposing of itsDivesting the business quickly by disposing of itsassets as advantageously as possible.assets as advantageously as possible.
Product Life-Cycle Marketing
Strategies
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Why changes occur in PLC
Changing customer needs – Changing customer needs – Sony’s ChairmanSony’s Chairman
Akio Morita in his book “ Made in Japan”- explains Walkman’sAkio Morita in his book “ Made in Japan”- explains Walkman’sdevelopmentdevelopment
Better more efficient and user friendlyBetter more efficient and user friendly
products – products – Parle bottling for Frooti packages like Tetra packsParle bottling for Frooti packages like Tetra packs
did wonders , friendly packages in retail Banking madedid wonders , friendly packages in retail Banking madeHongKong bank’s ATM (automated teller machine) successful inHongKong bank’s ATM (automated teller machine) successful in
all mjor cities in Indiaall mjor cities in India Be it agricultural like Nitrogen based Fertilizers orBe it agricultural like Nitrogen based Fertilizers or
More Urban products like Credit CardsMore Urban products like Credit Cards
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Life-cycle critique
Life-cycle patterns are too variable in theLife-cycle patterns are too variable in theshape and durationshape and duration
It lacks any fixed sequence of stagesIt lacks any fixed sequence of stages
Marketers can seldom tell that what stage theMarketers can seldom tell that what stage theproduct is inproduct is in
PLC pattern is the result of marketingPLC pattern is the result of marketing
strategy rather than the course that salesstrategy rather than the course that salesmust followmust follow
It is dependent variableIt is dependent variable
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Case of Polo – For Reading
Injecting new life into the product lifeInjecting new life into the product life
cyclecycle
The Polo mint is a British institution -The Polo mint is a British institution -
'The mint with the hole'. Everyone is'The mint with the hole'. Everyone is
familiar with Polo and can clearly familiar with Polo and can clearly
distinguish the brand from other products.distinguish the brand from other products.The pack has its own distinctive colour The pack has its own distinctive colour
and shape.and shape.
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As with most established brands, there comes a timeAs with most established brands, there comes a timewhen they need a bit of a facelift to inject new life intowhen they need a bit of a facelift to inject new life intothem.them.
Markets are in a constant state of change and the life of Markets are in a constant state of change and the life of a product is the period over which it appeals toa product is the period over which it appeals tocustomers.customers.
The product life cycle charts the life of the productThe product life cycle charts the life of the productfrom its launch until its eventual decline. In the coursefrom its launch until its eventual decline. In the courseof time rival products come along and begin to takeof time rival products come along and begin to takeaway some of a brand's market share. It is at this timeaway some of a brand's market share. It is at this timewhen the enlightened business will take stock and makewhen the enlightened business will take stock and makesure that it wins back its prime position..sure that it wins back its prime position..
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Polo has traditionally been the market leader in mints in thePolo has traditionally been the market leader in mints in theUnited Kingdom. However, during the late 80s and early 90s thisUnited Kingdom. However, during the late 80s and early 90s thisposition was slipping.position was slipping.
We can see this decline by looking at the Index of Polo Sales fromWe can see this decline by looking at the Index of Polo Sales from
1986 to 1993.1986 to 1993. Polo's problem was that it had gradually lost its value as a productPolo's problem was that it had gradually lost its value as a productin the eyes of consumers. When this happens it affects the positionin the eyes of consumers. When this happens it affects the positionof a product in the market place. This was as a result partly of of a product in the market place. This was as a result partly of strenuous competitive activity, partly because of a lack of strenuous competitive activity, partly because of a lack of innovation in the Polo brand itself and partly because advertisinginnovation in the Polo brand itself and partly because advertisinghad not bound people sufficiently to the brand.had not bound people sufficiently to the brand.
Competitors such as Trebor Extra Strong Mints, Trebor Mints,Competitors such as Trebor Extra Strong Mints, Trebor Mints,Trebor Spearmints and Softmints had fought hard to win a shareTrebor Spearmints and Softmints had fought hard to win a shareof the market from Polo. Instead of consumers primarilyof the market from Polo. Instead of consumers primarilyassociating mints with Polo they were choosing from a variety of associating mints with Polo they were choosing from a variety of mints. Polo's declining share up until 1993 is shown in the chartmints. Polo's declining share up until 1993 is shown in the chartbelow:below:
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Polo's responsePolo's response
Polo's response to these trends was decisive.Polo's response to these trends was decisive.
The key problem was that the brand had notThe key problem was that the brand had notbeen developed and so it was starting to be seenbeen developed and so it was starting to be seen
as predictable.as predictable.
To regenerate sales volume and rejuvenateTo regenerate sales volume and rejuvenate
brand interest, three new Polo variants werebrand interest, three new Polo variants were
added to the range in 1994 and Polo wasadded to the range in 1994 and Polo was
relaunched as Polo Original.relaunched as Polo Original.
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Extensive market research was carried out before the relaunch. TheExtensive market research was carried out before the relaunch. Theobjectives were:objectives were:
revitalise the brandrevitalise the brand rejuvenate the total sales of Polorejuvenate the total sales of Polo
broaden Polo within the consumers repertoire - i.e. offer consumers abroaden Polo within the consumers repertoire - i.e. offer consumers arange of different types to select fromrange of different types to select from
create trade interest in the brand. Retailers are always keen to stock create trade interest in the brand. Retailers are always keen to stock products for which there is a lot of interest and hence demandproducts for which there is a lot of interest and hence demand
The new flavours were selected as a result of market research because:The new flavours were selected as a result of market research because: Spearmint is a very popular growing market.Spearmint is a very popular growing market. Strong provides direct competition with Trebor's Extra Strong MintsStrong provides direct competition with Trebor's Extra Strong Mints Sugar Free is a small but growing market which is becoming increasinglySugar Free is a small but growing market which is becoming increasingly
appealing to figure -conscious consumers.appealing to figure -conscious consumers. At the same time all these mint variants support Polo's core brand valuesAt the same time all these mint variants support Polo's core brand values
of being 'hard, smooth, round hole mints'.of being 'hard, smooth, round hole mints'.
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Target marketsTarget markets As the market for mints has grown it has also become more diverse. InAs the market for mints has grown it has also become more diverse. In
the past there was only one Polo which was targeted at the generalthe past there was only one Polo which was targeted at the generalpublic of mint eaters. There tended to be a single message which was putpublic of mint eaters. There tended to be a single message which was putover through advertising and promotion to this market. Selling to aover through advertising and promotion to this market. Selling to asingle market in this way is called undifferentiated marketing i.e. yousingle market in this way is called undifferentiated marketing i.e. yousell the same product, at the same price, through the same distributionsell the same product, at the same price, through the same distributionchannels, with the same advertising and promotion to anchannels, with the same advertising and promotion to anundifferentiated target group.undifferentiated target group.
The new strategy involves widening and deepening this market by usingThe new strategy involves widening and deepening this market by usingdifferentiated marketing. This enables the company to alter ingredientsdifferentiated marketing. This enables the company to alter ingredientsof the marketing mix such as where and how it advertises its products,of the marketing mix such as where and how it advertises its products,the outlets it sells its products in, and gives it the flexibility to chargethe outlets it sells its products in, and gives it the flexibility to chargedifferent prices for the variants of this where appropriate.different prices for the variants of this where appropriate.
To extend the total market for Polo mints each of the products needs itsTo extend the total market for Polo mints each of the products needs its
own 'marketing mix' which enables it to be focussed at the appropriateown 'marketing mix' which enables it to be focussed at the appropriatetarget market.target market.
For example, Sugar free Polo's have been advertised in the Women'sFor example, Sugar free Polo's have been advertised in the Women'spress, whilst the Spearmint and Strong Polo's have been advertisedpress, whilst the Spearmint and Strong Polo's have been advertisedthrough posters and more recently in TV adverts.through posters and more recently in TV adverts.
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Developing a distinct messageDeveloping a distinct message In developing Polo through differentiated marketing it has been necessary to doIn developing Polo through differentiated marketing it has been necessary to do
two things.two things.
It has been essential to stress the core strengths of PoloIt has been essential to stress the core strengths of Polo It has been necessary to create the character of the variants in their own right.It has been necessary to create the character of the variants in their own right. The Polo's core strengths which have needed to be stressed are:The Polo's core strengths which have needed to be stressed are: Its unique physical form - it is this which distinguishes Polo most tangibly fromIts unique physical form - it is this which distinguishes Polo most tangibly from
other mints.other mints. Polo's 'friendly' reputation, built up over many years through humorousPolo's 'friendly' reputation, built up over many years through humorous
advertising.advertising. The core strengths had to continue to be a key part of all Polo advertising.The core strengths had to continue to be a key part of all Polo advertising.
However, in addition to these core strengths it is also important to draw out theHowever, in addition to these core strengths it is also important to draw out thedistinct characteristics of the variants.distinct characteristics of the variants.
Polo have established these as being:Polo have established these as being: Polo Original - the original and best taste.Polo Original - the original and best taste.
Polo Spearmint - the younger trendier mint.Polo Spearmint - the younger trendier mint. Polo Strong - a smooth strong taste.Polo Strong - a smooth strong taste. Polo Sugar Free - the sugar free mint with a hole.Polo Sugar Free - the sugar free mint with a hole.
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The Polo strategy of differentiated marketing in order toThe Polo strategy of differentiated marketing in order to
extend the Polo brand has been a success both in terms of extend the Polo brand has been a success both in terms of
the overall brand, and for the three variants. Importantlythe overall brand, and for the three variants. Importantly
the size of the overall mint market has grown.the size of the overall mint market has grown.
The success of the relaunch is shown in the figures below:The success of the relaunch is shown in the figures below:
In April 1995 Polo Spearmint had captured 4.3of all mintIn April 1995 Polo Spearmint had captured 4.3of all mintsales, Polo Strong had 1.7and Polo Sugar Free had 1.5sales, Polo Strong had 1.7and Polo Sugar Free had 1.5
Of course it is early days and the marketing mix will nowOf course it is early days and the marketing mix will now
need to be carefully applied to ensure that the new mintsneed to be carefully applied to ensure that the new mints
are provided to consumers at the right place, the right timeare provided to consumers at the right place, the right time
and the right price with the appropriate advertising andand the right price with the appropriate advertising and
promotional mix to appeal to their lifestyles.promotional mix to appeal to their lifestyles.
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The Polo goes from strength to strengthThe Polo goes from strength to strength
The Polo case study provides us with an interesting andThe Polo case study provides us with an interesting andexciting example of the way in which an innovativeexciting example of the way in which an innovative
company can retain market leadership for its products.company can retain market leadership for its products.
The Polo mint is just one element of the overall portfolio of The Polo mint is just one element of the overall portfolio of
sweets and confectionery products produced by Nestlésweets and confectionery products produced by Nestlé
Rowntree.Rowntree. The art of successful marketing is knowing when and howThe art of successful marketing is knowing when and how
to make changes to highly successful products. Polo hasto make changes to highly successful products. Polo has
been a successful product for many years. Its continuingbeen a successful product for many years. Its continuing
success will depend upon further innovation and changesuccess will depend upon further innovation and change
which is taking place to make a good brand an even betterwhich is taking place to make a good brand an even betterbrandbrand