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Capabilities of Positioning Strategies

Capabilities of Positioning Strategies

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Ps capabilities 03 09 print Presentation Transcript

  • 1. Strategy Development Capabilities and Consulting Experience ©2009 Positioning Strategies Four Forces of Positioning
  • 2. About Positioning Strategies
    • Partnership formed in 1994
    • Methodology has been applied equally well to both start-ups and established technology firms in dynamic market environments
    • Particular experience in engaging engineering professionals in the positioning strategy development process
    Typical project deliverables include overall positioning strategy, market vision, marketing implications, business model implications, messaging architecture Specialized management consultants with a proprietary methodology for creating positioning strategies for technology companies
  • 3. How Positioning Strategies Gets Plans Locked Down
    • Fast-paced consulting
      • ― Prevent decisions and markets from drifting on
      • ― No boiling the ocean, just find the missing facts
      • ― Break logjams of ideas, add new content, or do both
    • Achieve management consensus
      • ― No take-it-or-leave-it recommendations
      • ― Weigh the best strategy options, and bury the rest
    Original analytical methods and models Process Consultants who add fresh alternatives Perspective +
  • 4. Page Alloo Biography
    • More than 20 years of experience working with technology-based companies in the semiconductor, networking and systems industries
    • Established distinctive expertise in OEM and alliance marketing through work with many of the microprocessor vendors, including Intel, MIPS, AT&T Microelectronics, IBM and Sun Microsystems
    • An electrical engineer and Stanford MBA graduate, spent eight years in a variety of sales and customer service positions with a laboratory instrumentation manufacturer
    • Prior to co-founding Positioning Strategies, was a Partner at Regis McKenna Inc. where she was director of the Semiconductor Practice
    • Guest lecturer at Santa Clara University Business School and author of articles and lectures about the topics of new product launches and "camp" marketing
  • 5. Glenn Helton Biography
    • More than 20 years of marketing and positioning consulting experience to technology-based companies in a wide variety of industries including personal computers, peripherals and software
    • Special experience in the area of new market creation, including the desktop publishing category, multimedia presentations category and optical character recognition software category
    • Was vice president of marketing for a Silicon Valley startup Palmtex and worked for Young & Rubicam, Inc. among other companies
    • Prior to co-founding Positioning Strategies, was a partner at Regis McKenna Inc. where he was director of the PC Practice and a key member of the firm’s management team
    • A graduate of Tulane University, a guest lecturer at the Stanford Business School and the Stanford-MIT Venture Lab, a panelist and moderator at MacWorld and Comdex and a presenter in a seminar series sponsored by the Haas School of Business, UC Berkeley. Taught six-week course, Software Positioning, for UC Berkeley Extension
  • 6. Clients of Positioning Strategies Current and past projects of the firm include: splunk . >
  • 7. Success Story Examples Repositioned for new segment, acquired at hefty price Identified core value sought by most IT users Updated desktop publishing vision to network publishing Gave “technology searching for market” a product strategy Evolved from generic category benefit claim to sharper ones Shifted R&D for more differentiated product lines Developed focused market entry strategy
  • 8. Definition of Central Concepts
    • Choices made to match the company’s advantages to its environment
    • “ What is strategy but resource allocation?” said Jack Welch in Winning
    • Strategically focusing company resources to establish an advantaged position
    • Associating a product/solution with a benefit that addresses a segment need
    • Understanding which segments a positioning strategy will and won’t attract
    Strategy is . . . Positioning for technology companies is . . .
  • 9. What is a Position?
    • The expectation of the unique value that customers in a market segment would receive from a vendor
    • Relative to, and unique from, competitors
    The most successful products, services and companies reset the market’s definition of value Value = the maximum amount of one thing someone is willing to give up to get more of something else
  • 10. Positioning Drives Overall Business Strategy Product Roadmap Marketing Sales Channels Manufacturing R & D Positioning Strategy
  • 11. Strategy Development Sequence Organization and business model alignment, program implementation Positioning Strategy Brand Strategy Marketing Strategy Vision, Segmentation & Differentiation Brand Promise, Corporate ID, Architecture & Voice Pricing, Channel & MarCom
  • 12. Why Four Forces of Positioning?
    • As thrust must overcome drag, vision must overcome the risk perceived by the market
    • As lift must overcome gravity, differentiation must overcome competition
    Like the principle of flight, technology positioning can be reduced to simple matters of overcoming negative forces LIFT GRAVITY DRAG THRUST DIFFERENTIATION COMPETITION RISK VISION
  • 13. Strategy Development Model  Four Forces of Positioning Differentiation Vision Competition Risk
  • 14. Positioning Strategy Development Process VISION DEFINITION RISK PROFILE ANALYSIS DIFFERENTIATION STRATEGY C O M I T I T E P O N A N A L Y S I S Identify, Evaluate Competing Solutions’ Features & Benefits Define Our Solution’s Features & Benefits Identify Potential Differentiators for Our Solution Match Differentiator to Needs in Positioning Statement Create Market Segment Penetration Plan Identify Potential Segments & Unmet Needs Identify Current & Potential Trends in Environment Articulate Unexpected Benefits & Alternative Future Identify Our Own Action Barriers & Engines Analyze Implications of Positioning on Business Model Develop Positioning Implementation Plans Create Roadmap for Technology & Product
  • 15. Vision Definition: Route to an Alternative Future Visionaries define the engines and benefits of change The Present Alternative Future New Benefits Expected Future Familiar Benefits Trends Trends Barriers Engines
  • 16. Vision Examples CRM software as a service circa 2000 E-commerce displaces significant part of bricks-and-mortar retailing circa 1997 Internet portal could provide a “home” for web users circa 1996 Open-standard RISC circa 1990 Vision Company
  • 17. Competition Analysis: Determining Advantage
    • Analyzing competitive advantages before segmentation research saves resources
    • Short-listing potential differentiators can be efficient, if …
      • Existing and potential competitors are included in analysis
      • Competitors are assumed to execute reasonably well
      • Competitors’ own lop-sided advantages are ignored in the analysis
    There is no point to analyzing competitors beyond defining what we can or could do better than they do Context Scoring Assets Elimination Our Scoring Rival A Rival B Rival D Rival C CASE Advantage Analysis Model™
  • 18. Early Segment Analysis Answers to all three major questions must be yes yes no yes no yes no yes no Segment has a need? Need justifies spending est. TCO? Segment lacks constraints that prevent adoption? Investigate variables and substitutes Confirm generalizable ROI projection Hypothesize reasonable barrier breakers if needed Model segment view around common need(s) Estimate importance to value proposition Specify requirement for MRD Model segment view around common need(s) Estimate importance to value proposition Specify requirement for MRD 1. 2. 3.
  • 19. Risk Profile Analysis: Adoption and Migration Fears Total Product Roadmap and Market Penetration Roadmap must align to overcome market’s perceived risks
    • Factor Y‘ (Enhanced Product Benefit)
    • Factor Z (Service or Channel Benefit)
    Core Technology Value Proposition Factors Total Product Roadmap
    • Factor X‘ (Enhanced Product Benefit)
    • Factor Y
    • Factor X (Basic Product Benefit)
    • Factor Y (Basic Product Benefit)
    Vertical / Horizontal Market A Business Opportunity & Segment Assumption Market Segment B2 Market Segment C1 Market Segment A3 Market Segment B1 Market Segment A1 Market Segment A2 Market Penetration Roadmap Vertical / Horizontal Market B Vertical / Horizontal Market C Core Investment Market Investment Period 3 Market Investment Period 2 Market Investment Period 1
  • 20. Differentiation Strategy: Defining a Unique Space
    • Associate a product/solution with a benefit that addresses a segment need
    • Strategically focus company resources to establish advantaged position
    Understand which segments a positioning strategy will and won’t attract  Our Company Weak Strong Attribute A Competitor B Competitor A Competitor C Strong Weak    Attribute B
  • 21. Contact Information Positioning Strategies 12055 Green Hills Court Los Altos, CA 94022 USA www.positioning.com Page Alloo Glenn Helton Partner Partner 650-917-9225 408-996-8660 phone/fax 650-949-4095 fax [email_address] [email_address]