POSITIONING OF COMPANY X

D16: Shraddha Hadnoorker D17: Mayurika Handa D18: Rohit Jacob D20: Jaslin Jaison D21: Smita Kadian

INTRODUCTION
A manufacturer of industrial cutting equipment was concerned about its poor market share and wondered whether its prices were the problem It undertook a market research study which identified the product and service attributes most desired by customers and evaluated how its product X & its key competitors were rated.

IN THE TABLE BELOW, RATING ON A 1 TO 6 SCALE WHERE 1 IS LOWEST AND 6 IS HIGHEST IS DONE FOR THIS EVALUATION.

Importance weight 35% 25%

Quality dimensions Precision Reliability

Competitors
ABCX

6546 6634

15%
20% 5%

Durability
Service Delivery

5325
5351 2555

A
Weighted score 5.5

B
4.6

C
3.7

X
4.3

Actual prices Market share%

29,000

21,000

15,000

22,000

27

45

20

Benefit to Price Ratio

1.8965

2.1904

2.4666

1.9545

WHERE IS X POSITIONED?
Product Lacks in Excels in Market share B2P Ratio Positioning

Service & Reliability

Precision, Durability & Delivery

8%

1.9545

Unclear

The problem of company X is that it is under positioned Market share is just 8% No clear STP yet technically amongst the best Customer perceived benefit to price ratio is amongst the lowest

WHERE IS A, B, C POSITIONED?
Product Lacks in Excels in Market share Positioning

Delivery

Precision, Reliability, Durability & Service Durability, Service & Delivery

27%

Premium Segment

Precision & Reliability

45%

Mid/Mass Segment

Precision, Reliability & Durability

Service & Delivery

20%

Low end Segment

POSITIONING IS BASED ON..

Market segmentation:
1. Premium: Customer focus on quality and service at a high price 2. Mass: Focus on good quality at affordable prices 3. Low end: Price conscious

WHO IS THE STRONGEST AND WHY?

Product Lacks in Excels in Market share Positioning

Delivery

Precision, Reliability, Durability & Service

27%

Premium Segment

Precision & Reliability

Durability, Service & Delivery

45%

Mid Mass Segment

Precision, Reliability & Durability

Service & Delivery

20%

Low end Segment

Service & Reliability

Precision, Durability & Delivery

8%

Unidentified

HOW DO YOU SOLVE THIS CRISIS?

X lacks in service & reliability and hence if we correct these 2 factors and increase efficiency of services offered and improve the reliability we can solve this crisis If these 2 issues are addressed, the market share of the company will automatically increase as the other factors are strong Once we combine our strengths and correct/improve our weaknesses our customers and sales increase This leads to automatic appropriate positioning

WHAT STRATEGIES DO YOU RECOMMEND?

1. Company X should reposition itself to cater to the mass market

2.
3.

Provide better service and get regular customer feedback

Build competitive edge over others using this feedback

4.
5. 6.

Communicate increased quality to target customers

Keep track of competitors The perceived satisfaction for a customer should be high

WHY WE RECOMMEND THESE STRATEGIES?

1. Largest market size

2.

Better in terms of precision and durability

3.

Comparable in terms of reliability and delivery

4.

Comparable benefit to price ratio

5.

Improving service has cascading effect on durability and reliability

WHAT ALTERNATES CAN BE CONSIDERED BY X AND WHY SHOULD THEY BE DROPPED?

Alternate 1:

Focus on nice market and target the market share of A

Why to drop? Low segment size Customer loyalty

WHAT ALTERNATES CAN BE CONSIDERED BY X AND WHY SHOULD THEY BE DROPPED CONTD..?
Alternate 2:
Attack market of C Offer a lower price and cater to the specific needs of the segment and capture market slowly

Why to drop? Small size of segment High cost

WHAT ALTERNATES CAN BE CONSIDERED BY X AND WHY SHOULD THEY BE DROPPED CONTD..?
Alternate 3:

Simply opt out of this business instead of wasting resources and making higher loses

Why to drop? Heavy investment Lack of competitive spirit if company X doesnt try even once

THANK YOU