Challengers- 'to Send'
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Transcript of Challengers- 'to Send'
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Of the Challengers
MARKETING STRATEGIES
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- Open to the idea of a new segmentation of the market
- Consider new basis like consumer needs or trends happening outside the
category that are disregarded by leaders.
- Develop an offering to address an untapped need in the marketplace.
HOW
A CH
ALLENGER DIFFERS
Identifyconsumer needstate that wasntbeing addressed
in the samecategory
Identifyconsumer needstate that wasntbeing addressed
in the samecategory
Work out aplan for
consistentexecution of
this vision
Work out aplan for
consistentexecution of
this vision
Develop aunique brand
culture
Develop aunique brand
culture
Work onproduct
& pricing
Work onproduct
& pricingDevelop the
rightcommunication
& channelstrategy
Develop theright
communication& channelstrategy
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It tends to
be easierfor smaller companies to
challenge established
market perceptions.
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EXAMPLE: STONYFIELD FARM
Identified generalconsumer trend that hadnot been leveraged inyogurtthe need fororganic food.
Segmented the marketassuming consumerswould want to eatorganic yogurt just likethey demand othertypes of organic food
Observed that mostorganic yogurt buyers arelikely to be women, manyof whom may suffer fromor fear osteoporosis.
Developed specificinitiatives aroundstrong women andosteoporosis
IS THERE AN
UNREALIZED NEED ?
CAN WE SEGMENT
THE MARKET
ANOTHER WAY?
ARE
DOCTORS/MOTHERS
THE ONLY DECISIONMAKERS?
CAN WE DEPLOY
AFFINITY
MARKETING?
FORSOAPS!!!
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SOME CASESSegmentation based on the fact that
consumers are looking for tasty, low-fat
lunch meat in a wide variety of flavors.
Based on observations: People like
celebrities, like to participate in
philanthropic projects and like a quirky, fun
food brand with products using naturalingredients.
He donated 100% of his profits after tax to
educational and charitable purposes
Challenged the general perception
that healthy food cant also be tasty food
CARL
BUDDIG
NEWMANS OWN
SALADDRESSING
Built a powerful challenger brand
by developing a new positioning in
salad dressings, rather than a new
product.
CANT A HEALTH SOAP
CATER TO BEAUTY
NEEDS TOO ?
CAN AN ASSOCIATIONBE DEVELOPED IN THE
PERIPHERAL SPACE OF
SOAP CATEGORY? LIKE
MOTHER CARE, WOMEN
EMANCIPATION ETC.
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E.G.: PABST BEAR
The cheap beer traditionallycatered to a male, middle-aged, blue-collar East Coastaudience
Skateboarders were looking fora brand that was out of fashionwith the mainstream. To caterto them the brand avoidedmainstream advertising and
promotions campaigns,sponsoring relevant bicycleraces, and giving away T-shirts
at targeted events.
abst leveraged the trend to getinto trendy bars that arepopular with this young, hip
crowd
From an old brand which is
well-established in an
unexciting segment and is
slowly losing market share
Been revived in anothersegment with a very
different positioning
CAN WE TARGET ANICHE (upcoming in
future) INITIALLY TO
CREATE A STRONGER
BRAND IMAGE FOR
THE LONG RUN ?
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Sometimes the OBVIOUS SELLS!!
Babools proposition Isme long ka tel hai saw an
increase in both value & volume shares of the
company in 2005.
The irony of it all is that all toothpastes have long
E.G.: BABOOL TOOTH
PASTE
BABOOL GREW ITSVALUE SHARE BY 2.4% POINTS TO 5.4%.
BABOOLS VOLUMESHARE GREW FROM5.1% IN 2005-06 TO8.4% IN 2007-08
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MALT-O-MEAL
Makes cold cereals that are
bagged rather than boxed and
command a lower retail price
than boxed cereals
Challenged the cold cereal category by
being a successful low-price player
PepsiCos Quaker brand have seen their bagged
cereals business saggingthey sold that
business to Malt-O-Meal in 2002
Malt-O-Meal has been successfully building its bagged cereal
franchise, with products such as Tootie Fruities, Mateys etc.
Their insight was that there is a need for cheaper cereals that are bagged
rather than boxed, but still are marketed in a fun fashion, with attractive
product names & colorful bags.
Redesigned packaging
Gave better Qualityat same price as
boxes
Gave retailers higher
profit margin
CAN WE HAVE
CHEAP ATTRACTIVE NEEDBASED SOAPS. CAN A NATURE
(Ayur) +BEAUTY +HEALTH
PROPOSITION WORK ?
DOES HEALTH SOAP= SIMPLE
SQUARE, NON-FASHIONABLE
PACKAGING?
CANT A SOAP BE SOLD ON A
WICKED-MAVERICK BRANDATTITUDE, WHY LIMIT IT TO
SKIN & HAIR CARE?
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FOR
GROWTHRISK IS
INEVITABL
EIf we dont challenge our
category leadership,
somebody else will & the
loss will be more than of
NO RISK NO PROFIT
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CHEAPER! FASTER! BETTER!
Same value, cheaper priceSame price, quicker delivery
Same price, better quality
Results in lower margins as you cannot chase economies of scale, better
trading discounts, lower cost of capital, and preferential supplier contracts etc.
like a market leader
AW
RONG ROUTE
This is the weakest possible position to approach.
Need to go beyond PRICE/QUALITY &
EFFECTIVENESS as propositions
Product Experience & Indulgence, Brand Image &
health, Consumer personality positioning, Self
Image innovator, Consumers aspirational ID are the
new ways to go
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In Nando's Chicken ads every ounce spent yields yet another fiveounces worth of exposure because viewers enjoy the ads so muchthat they actively re-tell them to friends.
Castrol and Vodacom ads evoke the same positive emotionalresponse and recall.
On the other hand for every ounce spent by Kentucky FriedChicken, half is probably wasted as KFC ads are not retold norhave they managed to establish an emotional bonds with KFC ads.
ADVERTISING EXPENSE ARE
INVESTMENTS IN BUILDING ASSETS
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Anything that destroys bacteria or suppresses their growth or their ability
to reproduce.
Antibacterial products do not reduce the risk for symptoms of viral
infectious diseases in otherwise healthy persons.
Antibacterial products do have the potential to reduce symptoms of
bacterial diseases in the home
ANTIBACTERIAL ACTION
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- Give up the right to play in all markets with the aim to becomemarket dominant.
- Focus on one market and then over-commit to that specificmarket.
- Become a category leader to dislodge the incumbent leader inthe chosen market.
- In an over capacitated market being number two or three isan extremely undesirable and unprofitable position to be in.
- A challenger brand is not competing with the leader at allwho has already been chosen as the leader by the consumer
SACRIFICE IS TH
EW
AY TO GO!
IDENTIFY 1 PROPOSITION
THAT CONSUMERS CANIDENTIFY WITH & THAT HAS
CHANCES TO SELL.
SOMETHING FOR WHICH
THERE IS A NEED BUT HASNT
BEEN PROPOSED BEFORE
AVOID PUTTING IT IN A
COMPETING POSITION WITH
DETTOL OR LIFEBUOY. ITSHOULD HAVE ITS OWN NICHE
HOWEVER SMALL