Download - Map strategy better C-D maps
BETTER WAY TO MAP
STRATEGYGROUP 7
A B H I N A V G A N D O T R A | S H A S H W AT S H A R M A | V I N AY YA D A V
INTRODUCTION
• Central Brands – First ones to come to mind– Brand shapes category dynamics, including pricing and direction of innovation
• Distinctive Brands– These brands position themselves away from the crowd– They avoid direct competition with the central brands
Striking a balance between Centrality and Distinctiveness of a brand is important
OLDER TECHNIQUES
• Traditionally brand positioning and business performance has been
analyzed separately
• To get a sense of customer’s perception, perceptual maps were used.
• Performance gauging has its own set of tools which measure brands on
market share, growth
• Thus there was lack of coherence in handling the brand positioning along
with the business performance
C-D MAP(CENTRALITY-DISTINCTIVENESS MAP)
• Links customers perceptions with their business performance• Customers score the brands on two parameters
– Centrality: How representative of the category they are
– Distinctiveness: The degree to which they stand out from others in the category
• The brands are mapped and divided into 4 quadrants• Each quadrant has strategic implications for – sales, pricing, risk, and profitability• Offers insights into competitive opportunities and threats
EXAMPLE
STRATEGIC IMPLICATIONSD E P E N D S U P O N C U S T O M E R S E G M E N T , R E G I O N & O T H E R FA C T O R S
IMPLICATIONS(1/3)Maruti in India was present only in lower – mid price segement i.e Mainstream
Identifying the need gap – the company changed its strategy to enter aspirational segment
Identifies gaps and opprtunities
IMPLICATIONS(2/3)
Coca Cola launched Diet Coke considering its positioning as Aspirational in US market
In India , however, Coca Cola launched “Chota Coke“ to match its positioning as mainstream in Indian market
Visualizes differences in consumer perceptions & performance in different countries
IMPLICATIONS(3/3)Brands like Apple have to continuously come up with innovative designs to retain its position as Aspirational Product
Hotel Chain “Taj Hotels” can’t open budget hotels to retain its distinctiveness
Should reflect company’s strategy & consistency with business model
THE FOUR QUADRANTS
ASPIRATIONAL
• High sales volume & Premium pricing• Redefine the category • Launch Innovation• Make distinctive features mainstream, not run-of-the-mill
Eg. Toyota is seen as an Aspirational brand. To maintain its position it has come out with Hybrid Car to retain distinctiveness
MAINSTREAM
• Heavy advertisements to make brand synonymous with category• Risk- averse but can shape markets
Eg. Coca-Cola came out with Diet Coke & Dasani water to retain sales in its segment in the Us & Indian market respectively
PERIPHERAL
• “Me too strategy”• Lower prices & Minimum engagement – most likely to exit• Low marketing & innovation – Generic & private label players eg. TATA
TATA has tried to enter small car segment in India but has remained largely unsuccessful
UNCONVENTIONAL
• Niche Players• Efforts to make unique features more mainstream • Unconventional -> Aspirational , increase volume without compromising
prices.Tesla Motors has always remained unconventional with its distinctive cars
APPLYING C-D MAP
WHAT CAN C-D MAP DO?
• Move a brand along the centrality or distinctiveness dimension
• Assess affect of these moves on sales or profitability.
• Developing an understanding of the costs associated with different strategies
• And Impact that the resulting shifts in position have on brand performance.
Map competitor’s
brands
Use regression
analysis
Use regression
analysis
HOW TO??
Assess your brand’s
positioning strategy
Track the competition
• C-D map reveals disconnect between strategy and objective
• Instant check on strategy’s effectiveness by mapping customer’s perception of brand
• Conventional maps have a narrow view
• Not all brands on maps compete with each other
• C-D maps reveal consumers’ mental representations
• Compare brand performance and strategy across categories
• Standardization and rationalization for budget allocation
• Helps in setting realistic goals geographically
• Explain differences in cross-border performance
• Decisions about standardization versus localization Manage global
brand
Manage your brand portfolio
Track and Analyze results
• Repeatedly charts the position changes that result from marketing initiatives
• Helps marketer in gauging impact of their and their competitors’ actions
THANK YOU!!!