winning share in a recession by de positinoning the competition 5 7 09
TRANSCRIPT
Win Share In A Recession:De-position the competitionWin Share In A Recession:De-position the competition
May, 2009May, 2009
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© 2009 EMM Group
The recession puts many companies in a share fightThe recession puts many companies in a share fightThe recession puts many companies in a share fightThe recession puts many companies in a share fight
The current environment presents many challenges:
Demand contraction: In many categories the consumers and customers are spending less and postponing purchases of large-ticket items.
Price-based competition: Many companies have competitors who cut prices to maintain volume; private label products gain volume in consumer staples.
Volume mix changing: Many companies are experiencing a shift towards lower-priced products in their portfolio.
Understanding the changes in consumer attitudes and behavior is fundamental to winning share.
However, there are also opportunities:
Consumers attitudes are changing rapidly. For the nimble player this represents an opportunity to gain share from industry leaders.
92% of the US workforce is still employed and spending money to lead their lives.
Share of wallet may actually go up for some categories as consumers skimp on “non-essentials” and spend more time at home.
Our research during boom years showed that Our research during boom years showed that consumers value recognition and achievementconsumers value recognition and achievementOur research during boom years showed that Our research during boom years showed that consumers value recognition and achievementconsumers value recognition and achievement
Want to be recognized as a winner in the culture and economy of growth and
success, with the visible signs to prove it.
High performance, superior design aesthetics
Recognized brand heritage, leading edge, superior
ingredients and components
Wealth, badge value
Feel smart, proud, powerful and successful, trusting in
continued prosperity
Social Recognition + Sense of Achievement
Highest Highest ValuesValues
Features & Features & AttributesAttributes
Functional Functional Benefits Benefits
Emotional Emotional BenefitsBenefits
Values Of The Materialist Consumer*Values Of The Materialist Consumer*Values Of The Materialist Consumer*Values Of The Materialist Consumer*
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© 2009 EMM Group
*Based on EMM Group’s research in Food and Beverages, Retail, Credit Cards, Consumer Borrowing (2005-2008)
Our recent research shows that the recession has Our recent research shows that the recession has brought a shift in consumer valuesbrought a shift in consumer valuesOur recent research shows that the recession has Our recent research shows that the recession has brought a shift in consumer valuesbrought a shift in consumer values
Want to be recognized as a winner in the culture and economy of growth and
success, with the visible signs to prove it.
High performance, superior design aesthetics
Recognized brand heritage, leading edge, superior
ingredients and components
Wealth, badge value
Feel smart, proud, powerful and successful, trusting in
continued prosperity
Social Recognition + Sense of Achievement
Want to re-establish their security and responsibility by re-grounding themselves in a
world characterized by honesty, fairness, reliability and authenticity.
Less wasteful, authentic, fair, honest
High quality: price ratio, fair value, highly functional
Timeless, authentic brand experience
Feel safe, wise, smart and disciplined,
grounded and balanced
Security, Sense of Responsibility
Highest ValuesHighest Values
Features & Features & AttributesAttributes
Functional Functional Benefits Benefits
Emotional Emotional BenefitsBenefits
Highest ValuesHighest Values
Features & Features & AttributesAttributes
Functional Functional Benefits Benefits
Emotional Emotional BenefitsBenefits
Values Of The Post - Materialist Consumer*Values Of The Post - Materialist Consumer*Values Of The Post - Materialist Consumer*Values Of The Post - Materialist Consumer*
Consumers are re-evaluating their choices, providing an opportunity to win share.
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© 2009 EMM Group*Based on EMM Group’s research (2008-09), Yankelovich Monitor, Economist Intelligence Unit.
The values shift brings an opportunity for the nimble The values shift brings an opportunity for the nimble brand to win sharebrand to win shareThe values shift brings an opportunity for the nimble The values shift brings an opportunity for the nimble brand to win sharebrand to win share
Complementary components: (1) position my brand (2) de-position the competition
5© 2009 EMM Group
There are potential opportunities to win share from targeted competitors that are:
Perceived to have values of the pre-recession years (e.g. Starbucks, Nieman Marcus)
Unable to prove their worth to increasingly value-conscious consumers (e.g. Estee Lauder)
Unable to emphasize the new values of safety and trust and guarantees (e.g. exotic and organic beverages and foods, premium bottled water)
Low price but limited to low performance (e.g. private label paper towels)
Unable to invest in engaging consumers with an updated value proposition (e.g. private label)
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© 2009 EMM Group
There are 6 Steps in the process of Winning Share by There are 6 Steps in the process of Winning Share by De-Positioning the CompetitionDe-Positioning the CompetitionThere are 6 Steps in the process of Winning Share by There are 6 Steps in the process of Winning Share by De-Positioning the CompetitionDe-Positioning the Competition
Your attack plan has to be focused and very targeted.
1. What’s the market map?: Start with the consumer and the way in which segmentation and brand perceptions have shifted.
2. What’s the consumer opportunity?: Identify the shifts in consumer attitudes and behavior bought on by the recession.
3. Share from whom?: Identify which competitor(s) you are targeting to take share from – the more focused the better.
4. How can we win the competitive comparison?: Position the brand to benefit from the trend and de-position the competition
5. How to coordinate your attack?: Leverage your portfolio (wherever possible)
6. Strike rapidly: Develop the retail, communication and promotion campaign to strike rapidly, followed by relevant series of innovations.
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© 2009 EMM Group
It all starts with the market mapIt all starts with the market mapIt all starts with the market mapIt all starts with the market map
ExcitementEnjoyment
Progressive
Traditional
“I love to party and try new things. I am game for a cool new beer if it helps me amp up the party.”
“I love to be at a party and a part of the
scene. Drinking beer helps me fit in and
enjoy the moment.”
“I have a beer to relax. It is a great way
to kick back and enjoy myself with
friends and family.”
“I love the taste of a good beer. I seek out
new ways to enjoy my beer.”
Beer Category Example
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© 2009 EMM Group
In the boom years (2004-2008) a perceptive brand builder In the boom years (2004-2008) a perceptive brand builder could find the dominant values trendcould find the dominant values trendIn the boom years (2004-2008) a perceptive brand builder In the boom years (2004-2008) a perceptive brand builder could find the dominant values trendcould find the dominant values trend
ExcitementEnjoyment
Progressive
Traditional
• Seeking unique and fresh experiences • Using badge brands with recognized
heritage• Being on the leading edge • Increasing health consciousness –
strong light beer volume, emergence of ultra-lights
Progressive Excitement
Progressive Enjoyment
Pass OutSleep
Broad Category Values Trend
Beer Category Example
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© 2009 EMM Group
Coors Light achieved 13 straight quarters of Coors Light achieved 13 straight quarters of growth by capitalizing on this trendgrowth by capitalizing on this trendCoors Light achieved 13 straight quarters of Coors Light achieved 13 straight quarters of growth by capitalizing on this trendgrowth by capitalizing on this trend
ExcitementEnjoyment
Progressive
Traditional
Progressive Excitement
Progressive Enjoyment
Pass OutSleep
Miller Lite
Bud Light
3 years ago Current
Coors Light de-positioned larger competitors by being on trend and innovating on its core
benefits of cold and refreshing
Coors Light
Beer Category Example
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© 2009 EMM Group
In the recession years, there's a shift in values In the recession years, there's a shift in values and a new opportunity for an agile brandand a new opportunity for an agile brandIn the recession years, there's a shift in values In the recession years, there's a shift in values and a new opportunity for an agile brandand a new opportunity for an agile brand
ExcitementEnjoyment
Progressive
Traditional
• Being responsible - Creating more meaningful/special experiences at home instead of going out
• Emerging trend of frugal being cool• Focusing on quality (ingredients, authenticity, etc.) –
seeking higher value• Defining own relaxing experiences (e.g. food pairing, beer
with home games)• Stocking multiple beers – my beer, entertaining beer• Digital lives - more influences on our decision making
Progressive Excitement
Progressive Enjoyment
Pass OutSleep
Shift in Category Values Trend
Beer Category Example
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© 2009 EMM Group
MillerCoors has an opportunity to capitalize on MillerCoors has an opportunity to capitalize on the shift to further marginalize Bud Light the shift to further marginalize Bud Light MillerCoors has an opportunity to capitalize on MillerCoors has an opportunity to capitalize on the shift to further marginalize Bud Light the shift to further marginalize Bud Light
ExcitementEnjoyment
Progressive
Traditional
Progressive Excitement
Progressive Enjoyment
Pass OutSleep
Coors Light
Miller Lite
Bud Light
Bud Light
Current Future
..while putting downward pressure on Bud Light to dilute its
amorphous brand positioning
Now Miller Lite can capture the shift from Excitement to
Responsible Enjoyment by owning the benefit of taste in light beer
Beer Category Example
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© 2009 EMM Group
Another example of the pre-and-post crisis shift: Share Another example of the pre-and-post crisis shift: Share Win Strategies between Apple and MicrosoftWin Strategies between Apple and MicrosoftAnother example of the pre-and-post crisis shift: Share Another example of the pre-and-post crisis shift: Share Win Strategies between Apple and MicrosoftWin Strategies between Apple and Microsoft
Example: Apple’s Mac vs. PC
Advertising campaignApple’s De-positioning
Strategy over the last 3 years
• Ubiquitous (90%+ share)
• Mainstream audience
• Bug-ridden Vista launch
• Poor track-record in recent innovations
• Resurgent brand with iPod success
• Capitalize on category trend towards media-centricity and Internet
• Take share by making Apple more aspirational
Responding post-crisis with a “more for less” campaign to de-position Apple, making its users look indulgent and frivolous
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© 2009 EMM Group
A couple of additional examples of leveraging A couple of additional examples of leveraging values shifts to de-position competitionvalues shifts to de-position competitionA couple of additional examples of leveraging A couple of additional examples of leveraging values shifts to de-position competitionvalues shifts to de-position competition
Deposition premium competition as frivolous and excessive in the progressive economy – e.g. McDonald’s strategy to own the breakfast occasion with a value offering and take share from Starbucks.
Capitalize on shifts that strengthen previous de-positioning strategies – e.g. Dove’s strategy to focus on inner beauty and self-esteem to de-position many externalizing and “idealizing” beauty care brands.
De-position private label products as poor value and less aligned with today’s values (e.g. quality family time and being grounded)
ThankThank YouYouThankThank YouYou
If you would like to find out more, please contact:
Satprit DuggalPhone: 408-202-6244E-mail: [email protected]
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© 2008 EMM Group