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Selecting and Overall Positioning

The document discusses different value propositions that companies can use to position their brands in the marketplace. It presents five value propositions in a table: more for more, more for the same, the same for less, less for much less, and more for less. Each proposition is defined by how the company provides value to customers in terms of quality, price, and benefits compared to competitors. For example, "more for more" provides higher quality products at higher prices to signal prestige, while "more for less" offers more benefits than competitors but is difficult to sustain due to higher costs. The key is for each company to select the positioning strategy that best matches the wants and needs of its target customer segments.

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72 views4 pages

Selecting and Overall Positioning

The document discusses different value propositions that companies can use to position their brands in the marketplace. It presents five value propositions in a table: more for more, more for the same, the same for less, less for much less, and more for less. Each proposition is defined by how the company provides value to customers in terms of quality, price, and benefits compared to competitors. For example, "more for more" provides higher quality products at higher prices to signal prestige, while "more for less" offers more benefits than competitors but is difficult to sustain due to higher costs. The key is for each company to select the positioning strategy that best matches the wants and needs of its target customer segments.

Uploaded by

hafsa mudassar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Selecting and overall

positioning strategy

Value proposition of a brand is the full positioning of that brand, that is, the full
mix of the benefits that differentiate and position a brand. Value proposition
answers the question WHY SHOULD I BUY YOUR BRAND? COCA COLA’s
“taste the feeling” value proposition give us the image of a great and refreshing
drink but also including memorable moments and feelings when sharing on of their
bottles.
There are several possibilities of value propositions on which a company might
position their products, those possibilities are contained in the following

table:  
Colours on the table make easier to understand it. There are shown ways of
achieving competitive advantages in green (winning value proposition); then in red
representing losing value proposition; and finally, the yellow cell shows the
position in which at best a marginal proposition.
The five value winning propositions are the following:
       More for More.
This situation is given when the company provides the most upscale
product/service and they charge a higher price so that they cover the higher cost of
the upscale product. It is not only about quality, but also prestige, status, etc.; all of
them trying to make the consumer much more important. Starbucks coffee or
Pandora are examples of more-for-more. Pandora does not sell only jewellery, it is
also about the experience of having one of their bracelets and the status it gives in
front of others.
As most of the things in this life, more-for-more has a vulnerable side also. It is
easy to find imitators that “sell the same quality for a lower price”. In the case of
Pandora, there could be a jewellery store that tries to imitate Pandora’s products
but selling them at a much lower price so that most people buy to them instead the
originals.
More for the Same.
The company can attack its competitors by positioning its brand above the others,
that is, offering more for the same price. For example, there is a case of More for
the same
Toyota introduced its Lexus line with a more-forthe- same (or even more-for-less)
value proposition versus Mercedes and BMW. With the new Lexus, Toyota offered
higher quality for a low price. Surveys and advertisement were used to show up the
great new product. The last effect was that many Mercedes owners went to buy a
Lexus, increasing the repurchase rate grew..
The Same for Less.
This value proposition could be very powerful. Companies that use this positioning
sell the same products as many other department stores bought setting their prices
much lower, based on superior purchasing power and lower-cost operations for the
firm. Their aim is to lure customers away from the heads of the market, the
principal brands.
For example, inside jack and jones Brand, we can find core section, that sells the
same style of clothes but for less money than jack and jones does.
Less for Much Less.
There is almost always a market in which product offer less quality, duration…
and therefore their prices are much lower. Most people cannot afford the latest
model of the very best in all their purchases. Many times, consumers give up
searching the best model in exchange for a lower price. These consumers take what
is necessary for them and set aside the rest. A case like this can be observed in
flights. When travelling there are the ones that want all the commodities in their
flight and others that want to pay the smallest amount possible, so that they buy the
ticket from the cheapest company, the one that does not offer the best service and
that does not let each passenger carry more than one small bag, but that they can
use to reach their destination (that is, that fulfils the main aim of travelers). 
“Less-for-much-less positioning involves meeting consumers’ lower performance
or quality requirements at a much lower price.”
More for Less.
The winning value proposition: offer more for less. Even though in the short run
there are companies that achieve having this lofty position, is very difficult to take
them to the long run. The reason is that offering more has higher costs, so that it
makes difficult for the company offering more for less, because costs are
uncovered.
After seeing the different value propositions, it is clear that each company should
adopt the positioning strategy that best fits with their wants of their target markets
and the needs they have because each of them will draw to different target
markets. “The important thing is that each company must develop its own winning
positioning strategy, one that makes the company special to its target consumers.”

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