Вы находитесь на странице: 1из 27

Why is the niche market occupied by Nespresso attractive to

generic rivals?

• This is a very lucrative niche market for Nespresso which has enjoyed a 30 per
cent annual growth rate.

• The rivals are specifically interested in Europe, although, due to its share of
this market for Nespresso (90 per cent).

• Due to the exclusive way that the capsules are sold there is potentially an
alternative route to the market (via supermarkets) for generic products (as
long as they don’t infringe patents).
Why is Nestlé’s response to this onslaught ‘not to respond’?
• Nespresso is a successfully and clearly positioned product as the ‘Louis
Vuitton of coffee’ and they need to protect that position.

• Doing something different, i.e. cutting prices could easily lead to a price war
and devalue the brand.

• The Nespresso offer goes beyond the coffee-maker and pods with the
addition of a highly personalised customer service which the generic
competitors cannot offer.
Stages in segmentation and positioning
3. What bases could marketers use to segment the coffee market?

• The main principle to bear in mind is that segmentation is about the market,
i.e. customers, not products. The three main bases can be used in this case:

• Background customer characteristics (in particular demographics,


Psychographic characteristics, and lifestyle)

• Customer attitudes (benefits and perceptions and preferences)

• Customer behaviour (usage rate, response to elements of the marketing mix


and relationship seeking characteristics).
1- Market Segmentation
Segmenting Consumer Markets

2- Demographic segmentation divides the market into groups based on


variables such as age, gender, family size, family life cycle, income,
occupation, education, religion, race, generation, and nationality
Copyright ©2014 by Pearson Education
________ calls for dividing the market into regions, states, counties, cities, or
even neighbourhoods.
A) Occasion segmentation
B) Benefit segmentation
C) Geographic segmentation
D) Psychographic segmentation
E) Demographic segmentation
Answer (C)
• ________ segmentation divides the market into segments based on variables
such as age, life-cycle stage, gender, income, occupation, education, religion,
ethnicity, and generation.
• Answer (Demographic)
1- Market Segmentation
Segmenting Consumer Markets

2/1 Age and life-cycle stage segmentation is the process of offering different
products or using different marketing approaches for different age and life-
cycle groups

2/2 Gender segmentation divides the market based on sex (male or female)
1- Market Segmentation Segmenting Consumer Markets

2/3 Income segmentation divides the market into affluent, middle-income or low-
income consumers

3- Psychographic segmentation divides buyers into different groups based on social


class, lifestyle, or personality traits
________ segmentation divides buyers into different segments based on social class,
lifestyle, or personality characteristics.
• Answer (Psychographic)
Copyright ©2014 by Pearson Education
1- Market Segmentation
Segmenting Consumer Markets

4- Behavioral segmentation divides buyers into groups based on their


knowledge, Attitudes, Responses to a product or uses (KAR)

4/1 Occasions (Home depot advertise lawn and garden products)

4/2 Benefits sought (tooth paste)


1- Market Segmentation
Segmenting Consumer Markets

4/3 User status (nonusers, ex-users, potential users, regular user, first time
user

4/4 Usage rate (light, heavy, medium)

4/5 Loyalty status such as brands(Tide), Stores (Target), companies (Apples)


______ segmentation divides buyers into segments based on their knowledge, attitudes, uses,
or responses concerning a product.
Answer (Behavioural)
________ requires finding the major advantages people look for in a product class, the kinds
of people who look for each positive aspect of a product, and the major brands that deliver it.
Answer (Benefit segmentation)
• In the context of behavioral segmentation, markets segmented by ________ can be
categorized into light, medium, and heavy product users.
• Answer (usage rate)
• ---------- refers to a behavioral segmentation variable that involves segmenting markets into
nonusers, ex-users, potential users, first-time users, and regular users of a product?
• Answer (user status)
The Way In Which They Are Measured
Origin of measures

Figure 8.4 Background customer characteristics


3- Differentiation and Positioning

Product position is the way the product is defined by consumers on important


attributes—the place the product occupies in consumers’ minds relative to
competing products. A product ‘s position is the complex set of (PIF)
- Perceptions
• Impressions
• Feelings
• The Nissan Versa and Honda Fit are positioned on economy, Mercedes and
Cadillac on luxury, and Porsche and BMW on performance
3- Differentiation and Positioning
Choosing a Differentiation and Positioning Strategy

• Identifying a set of possible competitive advantages to build a position

• Choosing the right competitive advantages

• Selecting an overall positioning strategy

• Communicating and delivering the chosen position to the market.

Copyright ©2014 by Pearson Education


3- Differentiation and Positioning
1- Identifying Possible Value Differences and
Competitive Advantages

Competitive advantage is an advantage over competitors gained by offering


consumers greater value, either through lower prices or by providing more
benefits that justify higher prices.

Copyright ©2014 by Pearson Education


Differentiation and Positioning
2- Choosing a Differentiation and Positioning Strategy

Identifying a set of possible competitive advantages to build a position


by providing superior value from:

Product differentiation

Service differentiation

Channel differentiation

People differentiation

Image differentiation

Copyright ©2014 by Pearson Education


________ involves actually distinguishing the firm's market offering to create superior
customer value.
A) Market segmentation B) Mass customization
C)Differentiation D)Targeting
E) Diversifying
Answer (C)

To the extent that a company can differentiate and position itself as providing
superior customer value, it gains ________.
A) contingent liability B) complementary assets
C) core competencies D) competitive advantage
E) service life
Answer (D)
Differentiation and Positioning
Choosing the Right Competitive Advantage
A difference is worth establishing to the extent that it
satisfies the following criteria:

Important Distinctive Superior


Delivers a highly valued benefits Unique Difficult to
difference imitate

Preemptive Affordable
Communicable
Not easy to To pay for the Profitable
And visible
copy by rivals difference

Copyright ©2014 by Pearson Education


Differentiation and Positioning
3- Selecting an Overall Positioning Strategy

Value proposition is the full mix


of benefits upon which a brand
is positioned
• More for More. More-for-more positioning involves providing the most
upscale product and charging a higher price to cover the higher costs. A
more-for-more market offering not only offers higher quality, it also gives
prestige to the buyer. Four Seasons hotels, Rolex watches, Mercedes
automobiles. 21
• More for the Same. Companies can attack a competitor’s more-for-more
positioning by introducing a brand offering comparable quality at a lower
price. For example, Toyota introduced its Lexus line with a more-for-the-same
value proposition versus Mercedes and BMW.
22
• The Same for Less. Offering the same for less can be a powerful value
proposition—everyone likes a good deal. Discount stores such as Walmart,
Best Buy, PetSmart. They don’t claim to offer different or better products.
Instead, they offer many of the same brands as department stores and
specialty stores but at deep discounts based on superior purchasing power
and lower-cost operations.
23
• Less for Much Less. A market almost always exists for products that offer less
and therefore cost less. Few people need, want, or can afford “the very best”
in everything they buy.
24
• More for Less. Of course, the winning value proposition would be to offer
more for less. For example, when it first opened for business, Home Depot
had arguably the best product selection, the best service, and the lowest
prices compared to local hardware stores and other home improvement
chains.
25
Differentiation and Positioning
Developing a Positioning
Statement

• “To multi-taskers who need help remembering things, Evernote is digital content
management application that makes it easy to capture and remember moments
and ideas from your everyday life using your computer, phone, tablet, and the
Web.”
The full mix of benefits on which a brand is differentiated and positioned is known as the
brand's ________.
Answer (value Proposition)
________ consists of arranging for a market offering to occupy a clear, distinctive, and
desirable place relative to competing products in the minds of target consumers.
A) Targeting B) Differentiation
C) Segmentation D) Positioning
E) Mass customization
Answer (D)
________ positioning involves meeting consumers' lower performance or quality requirements
at a much lower price.
Answer ( Less for much less)
The winning value proposition would be to offer ________.
Answer (More for less)

Вам также может понравиться