Positioning and repositioning in markets
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1. Can you think of a company whose product line positioning enhances both its sales and profits? Conversely, can you think of a company with a small market share although it has an attractive product position? How is this possible? In other words, how could a business with very attractive product position achieve a lower market share?
2. Can you think of a company whose repositioning strategy now yields higher sales and higher profits than its previous position? Why do you think it changed its position? Do you think a company can reposition too often?
3. Can you think of a company that merely extended its product line of related products in order to contribute to higher levels of profitability? Why do you think profits increased? If you owned a small business that manufactured recreational camping equipment would you use an experiential brand name vs. an evocative brand name? Why?
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Solution Summary
A discussion on some companies that are positioned well, how repositioning helped a company and companies that extend their product lines for profitability. Examples are given.
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I think that Lays does an excellent job of positioning, using not just positioning that is easy to reach, but extending horizontally and vertically around the main product of Lays potato chips. It does an excellent job of making the customer have to look to find its competitors by going farther in one direction or another, a move that is unwelcome by consumers in many cases such as being in a hurry or with a long grocery list.
SoBe has an excellent positioning and though it is a PepsiCo company, the SoBe Company is positioned very well in most places. It keeps a viable position and yet only has a small market share due to the nature of the ...
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