Marketing Management II

Case Study on:

Repositioning Strategy

Submitted to: Submitted By:

Prof. VV Ramasastry Archit Garg

Geet Sawhney

Mohit Sharma

Siddharth Kumar

Summary

The company X is making industrial cutting equipment. It is providing good quality equipment but still the market share is low as the price is high as compared to the competitors which mean that X is providing lower value to the customers.

Table assuring Price and value competitiveness:

a b c X

Qualitydimension

Imp% Weight Weighted Score

A B C X A B C XPrecision 35 6 5 4 6 2.1 1.75 1.4 2.1Reliability 25 6 6 3 4 1.5 1.5 0.7

51.0

Durability 15 5 3 2 5 0.75

0.45 0.30

0.75

Service 20 5 3 5 1 1.0 0.6 1.0 .20Delivery 5 2 5 5 5 .10 .25 .25 .25

TOTAL 5.35

4.55 3.75

4.30

Wt score (P) 5.35 4.55 3.75 4.30Actual Price(Rs.) (q)

29000 21000 15000 22000

0.018 0.0216 0.025 0.019

Q.1 What is wrong with the position of X? Is it positioned rightly or wrongly? Where is it positioned?

Ans. The right positioning is the one in which the customer is getting right value at the right price. X is positioned wrongly as it is providing the same quality as of competitors at a comparatively higher price. It is positioned at the right side of the diagonal.

Q.2 Where are A, B and C positioned? Whose position is strongest and whose position is weakest in the market?

Ans. B is positioned at the left side of the diagonal whereas A and C is positioned at the centre. The position of A is strongest because it has the premium positioning while the position of X is weakest and thus it has the lowest market share.

Q.3 How do you reposition X to improve its market share and profit? Suggest at least 3 repositioning strategies of X. Recommend the best option.

Ans. The various repositioning strategies could be:

1. X should reduce the price of the equipment to match the quality.

2. It should provide higher quality at the same price.3. It should focus on premium positioning i.e. higher price and

higher quality.

The best strategy would be to reduce the price of the product as the quality is at par with the competitors.

Q.4 What precautions will you build in successful implementation of the repositioning strategy?Ans. The precautions would be to avoid the following 4 positioning errors:

1) Under Positioning2) Over Positioning3) Doubtful Positioning4) Confused Positioning