Perceptual mapping
The perceptual map is a useful tool for determining the position of a brand in the marketplace. It is a visual representation of consumer perceptions of a brand and its competitors using attributes (dimensions) that are important to consumers. The key steps in developing a perceptual map are as follows.
Identify a set of competing brands.
Identify - using qualitative research (e.g. group discussions) - the important attributes consumers use when choosing between brands.
Conduct quantitative marketing research where consumers score each brand on all key attributes.
Plot brands on a two-dimensional map (or maps).
F
igure
5.4 shows a perceptual map for seven supermarket chains. The results
show that the supermarkets are grouped into two clusters: the
high-price, wide product range group; and the low-price, narrow
product range group. These are indicative of two market segments and
show that supermarkets C and D are close rivals, as measured by
consumers' perceptions, and have very distinct perceptual positions
in the marketplace compared with E, F and G. Perceptual maps are
useful in considering strategic moves. For example, an opportunity
may exist to create a differential advantage based on a combination
of wide product range and low prices (as shown by the theoretical
position at X). This type of thinking underpinned the opening of a
new venue called Club Absinthe in Dublin in 1999. Dublin has an
exciting nightlife ranging from theatre and cinema to pubs and
nightclubs. What the founders of Club Absinthe wanted to do was
create a venue that was half-theatre and half-pub. It had a
cafe-style design with a relatively muted sound system, but also live
performances of music and comedy.
Repositioning
Occasionally, perhaps because of changing customer tastes or poor sales performance, a product or service will need to be repositioned. Repositioning involves changing the target markets, the differential advantage or both. The first option is to keep product and target market the same but to change the image of the product. In markets where products act as a form of self-expression, the product may be acceptable in functional terms but fail because it lacks the required image. In the sports shoe market, Nike and Adidas have moved the emphasis from shoe performance to street cred by using advertising that features sports personalities such as Eric Cantona and David Beckham, and by using famous slogans like Nike's 'Just Do It'. An alternative approach is to keep the same target market but to modify the product. For example, in 1992, Allied Breweries rejigged the formulation and can size of its Castlemaine XXXX lager brand to improve its appeal. The product's alcohol content was raised from 3.7 to 3.9 per cent in pubs and to 4 per cent in supermarkets; its can size was also increased from 440 ml to 500 ml.
Some repositioning strategies involve retaining the product but changing the market segment it is aimed at. Lucozade, a carbonated drink, is a famous example of this kind of so-called 'intangible repositioning'. Manufactured by Beecham's Foods, it was initially targeted at sick children. Marketing research found that mothers were drinking it as a midday pick-me-up and the brand was consequently repositioned to aim at this new segment. Subsequently the energy-giving attributes of Lucozade have been used to appeal to wider target market- young adults- by means of advertisements featuring British Olympians such as Daley Thompson and, more recently, Linford Christie. The history of Lucozade shows how a combination of repositioning strategies over time has been necessary for successful brand building.
When both product and target market are changed, a company is said to be practising 'tangible repositioning'. For example, a company may decide to move up- or downmarket by introducing a new range of products to meet the needs of its new target customers. Mercedes-Benz found it necessary to use both target and product repositioning in the face of Japanese competition. Tangible repositioning took the form of developing new products (e.g. a city car) to appeal to new target customers. Product repositioning was also required in its then current market segments to bring down the cost of development and manufacture in the face of lower-priced rivals such as Toyota's Lexus. The tangible repositioning of airline British Midland is described in Marketing in Action 5.3.
5.3 Marketing in Action