1QUESTION A number of companies were mentioned as having recently undergone repositioning strategies. Cite recent additional examples of brands that you know have been repositioned in recent years. Discuss the pros and cons of these efforts

Sony repositioning----Nearly three years after the device launched and quickly fell behind its two major competitors, Sony is attempting to reposition its Playstation 3 video game console as an all-in-one entertainment device. It has the ability to play high-definition Blu-ray DVDs and to download movies from the Internet. Rather than being a video game device.

Lifebuoy - It was previously targeted at the male user with an individual-oriented “success through health” positioning. The new Lifebuoy is targeted at today’s discerning housewife with a more inclusive “family health protection for my family and me” positioning.

Van Huesen (Initially a men's apparel brand, now equally admired by women )

Horlicks (Initially targeted at kids only, it introduced Horlicks for women, Horlicks Lite for the calorie-conscious, Horlicks in different flavors etc).

Hyundaiís recent move into the luxury auto segment in the U.S. Where they shifted from low segment to luxury segment.

Mother energy drink launched in the Australian market by coca cola in 2006. Bi=ut was not successful due to the bad taste. So they relaunched with new packaging, tast and humorous appeal ad which captured the attention of the people. The new caption is “new mother, tastes nothing like the old one”. Thus it became successful.

 Johnson and Johnson can differentiate themselves from the competition – which is the essence of what a brand should aim to do – that seduces a female-orientated target market to ignore generic competitors.

 At one time Reebok was known as an athletic shoe brand targeted at young women and aerobics. Today, it is successfully re-targeted at the inner city hip-hop generation.

Marlboro had been targeting women until the 1950’s, when they learned that they would profit more from a different group of audience.

McDonalds was not successful with its adult-oriented Arch Deluxe menu item and Volvo has had limited success with its performance (versus safety) based models.

Need for reposition

New competitors have a better value proposition. Customers think that your brand is

outdated and not established. Your products and services have evolved drastically, Your company has a new, highly proprietary competitive advantage:  Your brand position has become confusing: Competitors have usurped your value proposition A new competitor arrives and changes the game

To Differentiate the Company; To Compete on Something Other Than Price ,To Create More New Business Opportunities ,To Win Business More Easily ,To Reduce Selling Costs, To Increase the Value of the Company, To Create Perpetual Value for the Company

Reasons: The sales are declining. Your target audience is not really the best target,

2)  Changing lifestyles can create both opportunities and threats for the marketer. Provide an example of a changing lifestyle that poses a threat to marketers and one that provides an opportunity. Give an example of a product or brand that has been affected in both of these ways

 Nike used to be a product-focused company focusing on making running shoes. But over time, the company and its logo has become associated with the athlete subculture. This has allowed Nike to expand into related athletic categories, such as sports equipment and apparel. (Lifestyle benefited)

NOKIA- Being affected when lifestyle of the people changed to “Smartphone culture”. They lost their market share drastically.

Apple and Samsung benefited well in the smartphone category. It helped them capture the market share.

Nokia undergone in both ways because in the beginning they only had normal phones but when they introduced new smartphone “Lumina” they could bring back to the competition.

Starbucks- when the life style of the people changed with working professionals- Business environment and better lifestyle.

LOUIS Vuitton, Hermes, prada- luxuxy life style brands

Mc Donalds and KFC- befefited with “fast food culture of the modern people

lifestyle brands to me include: Harley Davidson, Ralph Lauren, Martha Stewart, Ikea, RocaWear, Porsche, MINI, Zara, Old Navy. I tag these brands as “lifestyle” brands because they are ones people want to wear and be identified with. 

Marlboro Friday  As a likely catalyst for the rise of the lifestyle brand. On that day, Marlboro cut

their prices significantly to compete with with less well-known brands on the basis of price. By

performing this action they were essentially admitting that they were not actually better than the generic

brands in any substantial way. Their stocks fell harshly as a result of both the price drop and the loss of

reputation

of their brand.

4) Recently there has been a great deal of attention paid to environmental issues resulting in a number of companies embarking on “green” campaigns. Discuss some of the reasons as to why companies are developing such campaigns. Do you think these campaigns will change consumers’ attitudes toward the environment and/or these companies?7

Tesco lotus: Zero-carbon store chain's first in Asean,  energy saving equipment, Features of

the new outlet will include a solar farm on the roof to produce energy to offset the carbon emissions

generated by the store. Modern-trade retailer Tesco Lotus wants to change that perception. Last week, it

opened the first zero-carbon store ever in Asia in Bang Phra district of Chon Buri province, following its

pledge to protect the environment.

Tesco Lotus has come up with 99 initiatives to reduce energy consumption. All these initiatives are built

into the zero-carbon store with interesting features such as LED lighting, solar farm, wind turbine, natural

refrigeration, biogas system, rammed earth walls, and rain-water conservation.

REASONS:

1) The Environment

The first and most important reason to go green now is to protect the environment. You won’t be doing any business if there’s no planet to do your business on. Going Green means not only assisting our environment to recover from industrial damage (and prevent further damage), but also helping to recover natural resources.

Public Image

No company wants to hold an emergency press conference on the evening news, defending themselves against bad publicity. But many corporations have found themselves in that position. In addition to this, environmental organizations are taking a stand against companies they believe aren’t considering their responsibilities, tarnishing their image.

Lowering operating costs

Improving efficiency and lowering operating costs can potentially save your business hundreds or thousands per year. For example, installing energy saving lighting, heating and ventilation in your offices can significantly reduce your energy bills. Telecommuting also helps a company become greener; the elimination of your employee’s commute results in a reduction in gas consumption.

4) Increased Sales

Consumers and companies are increasingly showing their environmental awareness by choosing to deal with responsible companies. So taking a green stance can give you credibility and a competitive advantage.

5) Lower Taxes

Finally, the government is providing our businesses with more “green” tax credit and deductions than ever before.

Mandating change is rarely a recipe for success. Organizations must engage their people and position processes for successful green implementation.1.Company or brand image 2.Cost savings 3.Competitive advantage4.Employee satisfaction, morale, or retention 

5.Product, service, or market innovation 6.Business or process innovation7.New sources of revenue or cash flow 8.Effective risk management 9.Shareholder relations

Reduced WasteGoing green can improve the overall efficiency of a business. Reducing unnecessary waste can trim

operating costs for the business, for example. Turning off lights in vacant offices can save energy,

save on utility costs and increase the company’s bottom line. Printing less cuts down on paper usage,

and can lower the budget spent on printing materials

Improved WorkplaceProviding green options within a company can offer overall workplace improvements. Green cleaning

supplies can help employees who suffer from respiratory and other health-related conditions, because

green products contain fewer chemicals–such as sodium hypochlorite and nitrobenzene–that are

connected to physical problems

Public ResponseWhile public response alone is not necessarily the best motivation for going green, it might be a good

side effect. With green initiatives increasing in popularity, economic studies have shown that

companies utilizing green technology and selling green products are seeing an increase in profits. 

SustainabilityThe larger value of going green relates to maintaining the health of the environment. Utilizing

sustainable methods can prevent the waste of natural resources, helping reduce the risk of depletion

on the long run

5) It seems like guerilla marketers are becoming more and more aggressive. One agency, while not revealing the client, said that the client actually asked him to break the law so as to get some publicity. Others seemingly have already broken the law by defacing property and other means. Discuss some of the potentially unethical or illegal practices of guerilla marketers. What should be done to curb these activities?

n the never-ending quest for free publicity, guerilla marketers have gone through great lengths to try to make a big splash. Many guerilla marketers will often concoct stunts that are risky or illegal to grab the publics’ attention.

Goldenpalace.com at the 2004 Athens Olympic Games. - “Goldenpalace.com” painted on his torso, jumped off of a high dive board into the olympic swimming pool. Greek officials were not pleased, slapping the man with 3 months in Greek prison. Ultimately, he was released and given a fine of a few hundred dollars.(online casino)

The Red Bull Pit Stop on Times Square, 2009. (Red Bull)

In 2009, the usually stoic and hard-to-reach New Yorkers and tourists alike were stunned by a Red Bull vehicle crossing Times Square at high speed only to pull over for a tire-change at a full-blown NASCAR pit stop – all in the middle of one of the busiest squares in the world. The move

made headlines the world over, reached 100.000 views over five days and was a huge success in promoting Red Bull’s interests in racing. 

Coca-Cola Gets Busted In Recent Illegal Guerrilla Advertisements Guerrilla campaigns can be edgy but not illegal. For example, a lot of companies, as part of a guerrilla marketing strategy, use sidewalks to paint their messages. During the NCAA men’s basketball tournament, Coca-Cola hired graffiti artists to stencil and paint red logos on the sidewalks of New Orleans. This violated a city law that bars “posted or painted advertisement on any street, sidewalk, public buildings, utility poles, trees located in public rights-of-way.” Guerrilla marketing tactics that go against the law get bad press.

Smirnoff – the Vodka producer – used steam jets and stencils to decorate a busy underpass in Leeds without prior permission form the Government. Stylish slogans and catchphrases were added to the underpass in attempt to promote Smirnoff Ice (alco-pop) to the young public.

However, the Government were soon on the case, branding Smirnoff’s guerrilla campaign as “vandalism” and have slapped a cleaning fine on the company which is expected to cost several thousand pounds.

Vodafone

2002 where the leading mobile phone company – Vodafone – endorsed two men to ‘streak’ at an International Rugby game with the corporate logo painted on their backs. As you can imagine, not only did the couple find themselves in big trouble, but Vodafone also landed themselves in the frame for legal action.

How to control it

Punishments through legal treatment………….. fine, imprisonment, etc.

3) Discuss some of the reasons why traditional advertising agencies have been developing more integrated marketing communications capabilities. What changes might traditional agencies have to make to improve their IMC capabilities? And, discuss the pros and cons of the commission system method of agency compensation. Do you think this system is outdated and needs to be replaced? Defend your position.

IMC also increases profits through increased effectiveness. At its most basic level, a unified message has more impact than a disjointed myriad of messages. In a busy world, a consistent, consolidated and crystal clear message has a better chance of cutting through the 'noise' of over five hundred commercial messages which bombard customers each and every day.

At another level, initial research suggests that images shared in advertising and direct mail boost both advertising awareness and mail shot responses. So IMC can boost sales by stretching messages across several communications tools to create more avenues for customers to become aware, aroused, and ultimately, to make a purchase

Carefully linked messages also help buyers by giving timely reminders, updated information and special offers which, when presented in a planned sequence, help them move comfortably through the stages of their buying process... and this reduces their 'misery of choice' in a complex and busy world.

IMC also makes messages more consistent and therefore more credible. This reduces risk in the mind of the buyer which, in turn, shortens the search process and helps to dictate the outcome of brand comparisons.

MC saves money as it eliminates duplication in areas such as graphics and photography since they can be shared and used in say, advertising, exhibitions and sales literature. Agency fees are reduced by using a single agency for all communications and even if there are several agencies, time is saved when meetings bring all the agencies together - for briefings, creative sessions, tactical or strategic planning. This reduces workload and subsequent stress levels - one of the many benefits of IMC.