Fermin Ezquer, (Think Creative and Imagemme) at Iaccoca Institute. September, 2010.

1. Positioning Your Firm to
Succeed in the Marketplace
Thursday, September 9, 2010

2. Global From To
Trends • Developed Economies
• Western
• Emergent Economies
• Eastern
• Vertical Integration • Horizontal Breadth
Employees Entrepreneurs
• Young Societies • Aged Societies
• Elite • Mass
• Local • Global
• Man • Woman
• Rural • Urban
• Rivalry • Competition
2

3. New Paradigms
Our world is becoming increasingly complex. So much
that it is quite difficult to find solutions.
Our world is more dynamic every time. Hence, the
solutions we find do not last.
Moreover, when we find the solution, the problem has
already changed.
(D. Schön)
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4. “It is not the strongest...
nor the most intelligent
that survives. It is the one
that is the most adaptable to
change.”
Charles Darwin

5. Escape from industry rivalry and
create your own competitive context.
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6. “There is only one valid definition of
business purpose: to create a customer...
[therefore], any business enterprise
has two –and only two– basic
functions: marketing and innovation.”
Peter F. Drucker
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7. Shift focus from product to client
The ultimate goal of strategy is to achieve
client bonding
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8. Understand Strategic Positions
System Lock-in
Dominant Exchange
Property Rights
Limited Access
Low Cost
Horizontal Breadth
Total Customer
Client Integration Redefine Client Relationship Differentiation Best Products
Solution
8

9. Business Model Building Blocks
x-y=?
Value Consumer Profit
Proposition Engagement Formula
Activities
Resources
9

10. Segment your clients
From demographic to psychographic criteria.
Customer attitude and willingness to do business with us.
Value added.
Life cycle.
Purchase pattern.
Distribution channel.
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11. Customer Segmentation Back
From Loyalist
Gender and Age
To
Attitude Towards the
Brand and Share of Wallet
Follower
Occasional Client
Non-Customer
Entrance
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12. Formulate a specific value proposition for each segment
What need does it satisfy?
What are its technical attributes?
And the emotional ones?
Design the product or service bundle to provide the value proposition.
Innovate in product features.
Design the product range architecture.
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13. Have a Relevant Purpose
MGD64
Clearly demonstrates
value and solves a problem
better than others in its
competitive set
13

14. A Clear Product Range Architecture
Failed extensions. Consumer says… WHAT?
Smith & Wesson
Coors water Cocaine beverage mountain bikes Cosmo yogurt
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15. A Clear Product Range Architecture YEAH!
1846 1860’s 1930’s 1980’s
Soda Packaging Baking Soda A Proven Medical Agent Powder and Liquid
Sodium Bicarbonate Laundry Detergents
1986 1992 1999–Present
Dental Care Toothpaste Cat Litter Deodorizer Fridge Freezer Pool Cleaner Fridge Air Filter
Dog Deodorizer Pads Shake Container Deodorant Whitening Boost
15

16. Product Innovation
“A lot of companies have chosen to
and maybe that was the right
downsize,
thing for them. We chose a different path.
Our belief was that if we kept putting
great products in front of customers, they
would continue to open their wallets.”
Steve Jobs
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17. Product Feature Innovation
Stay ahead of the technology curve
Listen to the consumer conversation
Alter price and reposition
Design and functionality revisions and improvements
Line extensions
New markets
2001 2003 2004 2004 2005 2005 2005 2005 2007 2010
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18. Engage Your Consumers
ue
ven
Re
Client Segment
Profit
Customer Relationship Strategy Value
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19. Engage Your Consumers
Get in the conversation
• How do consumers define your products
• Where does dialogue about your product take place
• Become a front-runner in the conversation
Get every segment to understand and adopt your
value propositon.
• Understand the Brand Attributes
• Build a Clear Message
• Incorporate Emotional Triggers
• Deploy a Multi-Channel Strategy
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20. “brands that do the best are those that are
authentic, purpose-driven brands
that have defined themselves over decades as being
true to their core purpose.”
Jack Pitney, Current VP of marketing for BMW
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21. Clarity of Message
Tropicana
What your competition does not and cannot offer
Every piece of communication should tout this benefit
• Define the USP
• Categorize the benefit
• Identify the segment
• Tailor the communication
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22. Emotional Triggers
Rational Thinking
Emotional
Processing
Decision
Making
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23. Emotional Triggers
Communicate rational benefits
Reinforce the rational benefits with emotion and feeling
Allow the consumer to arrive at their own conclusion
The Ultimate Driving Machine Love your heart Consider this
BMW is Joy
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24. Multi-Channel Deployment
British Airways- Open Skies Campaign
1. Location, location, location.
2. Embrace behavioral targeting.
3. Leverage multiple channels.
4. Turn messages into relevant
impactful invitations.
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25. Strategic Summary
1. Conduct a Strategy Due Dilligence
2. Go 4 Customer Segmentation and Value Proposition Ideation
3. Innovate your Product Features
4. Strengthen Consumer Engagement Tactics
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26. After Careful Planning, Remember Napoleon's Motto
"Engage and we will see"
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27. Thank You