challengers- 'to send

8/8/2019 Challengers- 'to Send'

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Of the Challengers

MARKETING STRATEGIES


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- Open to the idea of a new segmentation of the market

- Consider new basis like consumer needs or trends happening outside the

category that are disregarded by leaders.

- Develop an offering to address an untapped need in the marketplace.

HOW

A CH

ALLENGER DIFFERS

Identifyconsumer needstate that wasntbeing addressed

in the samecategory

Identifyconsumer needstate that wasntbeing addressed

in the samecategory

Work out aplan for

consistentexecution of

this vision

Work out aplan for

consistentexecution of

this vision

Develop aunique brand

culture

Develop aunique brand

culture

Work onproduct

& pricing

Work onproduct

& pricingDevelop the

rightcommunication

& channelstrategy

Develop theright

communication& channelstrategy


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It tends to

be easierfor smaller companies to

challenge established

market perceptions.


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EXAMPLE: STONYFIELD FARM

Identified generalconsumer trend that hadnot been leveraged inyogurtthe need fororganic food.

Segmented the marketassuming consumerswould want to eatorganic yogurt just likethey demand othertypes of organic food

Observed that mostorganic yogurt buyers arelikely to be women, manyof whom may suffer fromor fear osteoporosis.

Developed specificinitiatives aroundstrong women andosteoporosis

IS THERE AN

UNREALIZED NEED ?

CAN WE SEGMENT

THE MARKET

ANOTHER WAY?

ARE

DOCTORS/MOTHERS

THE ONLY DECISIONMAKERS?

CAN WE DEPLOY

AFFINITY

MARKETING?

FORSOAPS!!!


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SOME CASESSegmentation based on the fact that

consumers are looking for tasty, low-fat

lunch meat in a wide variety of flavors.

Based on observations: People like

celebrities, like to participate in

philanthropic projects and like a quirky, fun

food brand with products using naturalingredients.

He donated 100% of his profits after tax to

educational and charitable purposes

Challenged the general perception

that healthy food cant also be tasty food

CARL

BUDDIG

NEWMANS OWN

SALADDRESSING

Built a powerful challenger brand

by developing a new positioning in

salad dressings, rather than a new

product.

CANT A HEALTH SOAP

CATER TO BEAUTY

NEEDS TOO ?

CAN AN ASSOCIATIONBE DEVELOPED IN THE

PERIPHERAL SPACE OF

SOAP CATEGORY? LIKE

MOTHER CARE, WOMEN

EMANCIPATION ETC.


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E.G.: PABST BEAR

The cheap beer traditionallycatered to a male, middle-aged, blue-collar East Coastaudience

Skateboarders were looking fora brand that was out of fashionwith the mainstream. To caterto them the brand avoidedmainstream advertising and

promotions campaigns,sponsoring relevant bicycleraces, and giving away T-shirts

at targeted events.

abst leveraged the trend to getinto trendy bars that arepopular with this young, hip

crowd

From an old brand which is

well-established in an

unexciting segment and is

slowly losing market share

Been revived in anothersegment with a very

different positioning

CAN WE TARGET ANICHE (upcoming in

future) INITIALLY TO

CREATE A STRONGER

BRAND IMAGE FOR

THE LONG RUN ?


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Sometimes the OBVIOUS SELLS!!

Babools proposition Isme long ka tel hai saw an

increase in both value & volume shares of the

company in 2005.

The irony of it all is that all toothpastes have long

E.G.: BABOOL TOOTH

PASTE

BABOOL GREW ITSVALUE SHARE BY 2.4% POINTS TO 5.4%.

BABOOLS VOLUMESHARE GREW FROM5.1% IN 2005-06 TO8.4% IN 2007-08


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MALT-O-MEAL

Makes cold cereals that are

bagged rather than boxed and

command a lower retail price

than boxed cereals

Challenged the cold cereal category by

being a successful low-price player

PepsiCos Quaker brand have seen their bagged

cereals business saggingthey sold that

business to Malt-O-Meal in 2002

Malt-O-Meal has been successfully building its bagged cereal

franchise, with products such as Tootie Fruities, Mateys etc.

Their insight was that there is a need for cheaper cereals that are bagged

rather than boxed, but still are marketed in a fun fashion, with attractive

product names & colorful bags.

Redesigned packaging

Gave better Qualityat same price as

boxes

Gave retailers higher

profit margin

CAN WE HAVE

CHEAP ATTRACTIVE NEEDBASED SOAPS. CAN A NATURE

(Ayur) +BEAUTY +HEALTH

PROPOSITION WORK ?

DOES HEALTH SOAP= SIMPLE

SQUARE, NON-FASHIONABLE

PACKAGING?

CANT A SOAP BE SOLD ON A

WICKED-MAVERICK BRANDATTITUDE, WHY LIMIT IT TO

SKIN & HAIR CARE?


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FOR

GROWTHRISK IS

INEVITABL

EIf we dont challenge our

category leadership,

somebody else will & the

loss will be more than of

NO RISK NO PROFIT


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CHEAPER! FASTER! BETTER!

Same value, cheaper priceSame price, quicker delivery

Same price, better quality

Results in lower margins as you cannot chase economies of scale, better

trading discounts, lower cost of capital, and preferential supplier contracts etc.

like a market leader

AW

RONG ROUTE

This is the weakest possible position to approach.

Need to go beyond PRICE/QUALITY &

EFFECTIVENESS as propositions

Product Experience & Indulgence, Brand Image &

health, Consumer personality positioning, Self

Image innovator, Consumers aspirational ID are the

new ways to go


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In Nando's Chicken ads every ounce spent yields yet another fiveounces worth of exposure because viewers enjoy the ads so muchthat they actively re-tell them to friends.

Castrol and Vodacom ads evoke the same positive emotionalresponse and recall.

On the other hand for every ounce spent by Kentucky FriedChicken, half is probably wasted as KFC ads are not retold norhave they managed to establish an emotional bonds with KFC ads.

ADVERTISING EXPENSE ARE

INVESTMENTS IN BUILDING ASSETS


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Anything that destroys bacteria or suppresses their growth or their ability

to reproduce.

Antibacterial products do not reduce the risk for symptoms of viral

infectious diseases in otherwise healthy persons.

Antibacterial products do have the potential to reduce symptoms of

bacterial diseases in the home

ANTIBACTERIAL ACTION


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- Give up the right to play in all markets with the aim to becomemarket dominant.

- Focus on one market and then over-commit to that specificmarket.

- Become a category leader to dislodge the incumbent leader inthe chosen market.

- In an over capacitated market being number two or three isan extremely undesirable and unprofitable position to be in.

- A challenger brand is not competing with the leader at allwho has already been chosen as the leader by the consumer

SACRIFICE IS TH

EW

AY TO GO!

IDENTIFY 1 PROPOSITION

THAT CONSUMERS CANIDENTIFY WITH & THAT HAS

CHANCES TO SELL.

SOMETHING FOR WHICH

THERE IS A NEED BUT HASNT

BEEN PROPOSED BEFORE

AVOID PUTTING IT IN A

COMPETING POSITION WITH

DETTOL OR LIFEBUOY. ITSHOULD HAVE ITS OWN NICHE

HOWEVER SMALL

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