Winning Share In A Recession By De Positinoning The Competition 5 7 09

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  • 1. Win Share In A Recession: De-position the competition May, 2009
  • 2. The recession puts many companies in a share fight © 2009 EMM Group
    • The current environment presents many challenges:
    • Demand contraction: In many categories the consumers and customers are spending less and postponing purchases of large-ticket items.
    • Price-based competition: Many companies have competitors who cut prices to maintain volume; private label products gain volume in consumer staples.
    • Volume mix changing: Many companies are experiencing a shift towards lower-priced products in their portfolio.
    • However, there are also opportunities:
    • Consumers attitudes are changing rapidly. For the nimble player this represents an opportunity to gain share from industry leaders.
    • 92% of the US workforce is still employed and spending money to lead their lives.
    • Share of wallet may actually go up for some categories as consumers skimp on “non-essentials” and spend more time at home.
    Understanding the changes in consumer attitudes and behavior is fundamental to winning share.
  • 3. Our research during boom years showed that consumers value recognition and achievement
      • Want to be recognized as a winner in the culture and economy of growth and success, with the visible signs to prove it.
    Highest Values Features & Attributes Functional Benefits Emotional Benefits Values Of The Materialist Consumer* © 2009 EMM Group *Based on EMM Group’s research in Food and Beverages, Retail, Credit Cards, Consumer Borrowing (2005-2008) High performance, superior design aesthetics Recognized brand heritage, leading edge, superior ingredients and components Wealth, badge value Feel smart, proud, powerful and successful, trusting in continued prosperity Social Recognition + Sense of Achievement
  • 4. Our recent research shows that the recession has brought a shift in consumer values
      • Want to be recognized as a winner in the culture and economy of growth and success, with the visible signs to prove it.
      • Want to re-establish their security and responsibility by re-grounding themselves in a world characterized by honesty, fairness, reliability and authenticity.
    Highest Values Features & Attributes Functional Benefits Emotional Benefits Highest Values Features & Attributes Functional Benefits Emotional Benefits Values Of The Post - Materialist Consumer* © 2009 EMM Group *Based on EMM Group’s research (2008-09), Yankelovich Monitor, Economist Intelligence Unit. High performance, superior design aesthetics Recognized brand heritage, leading edge, superior ingredients and components Wealth, badge value Feel smart, proud, powerful and successful, trusting in continued prosperity Social Recognition + Sense of Achievement Less wasteful, authentic, fair, honest High quality: price ratio, fair value, highly functional Timeless, authentic brand experience Feel safe, wise, smart and disciplined, grounded and balanced Security, Sense of Responsibility Consumers are re-evaluating their choices, providing an opportunity to win share.
  • 5. The values shift brings an opportunity for the nimble brand to win share © 2009 EMM Group
    • There are potential opportunities to win share from targeted competitors that are:
      • Perceived to have values of the pre-recession years (e.g. Starbucks, Nieman Marcus)
      • Unable to prove their worth to increasingly value-conscious consumers (e.g. Estee Lauder)
      • Unable to emphasize the new values of safety and trust and guarantees (e.g. exotic and organic beverages and foods, premium bottled water)
      • Low price but limited to low performance (e.g. private label paper towels)
      • Unable to invest in engaging consumers with an updated value proposition (e.g. private label)
    Complementary components: (1) position my brand (2) de-position the competition
  • 6. There are 6 Steps in the process of Winning Share by De-Positioning the Competition © 2009 EMM Group
    • What’s the market map?: Start with the consumer and the way in which segmentation and brand perceptions have shifted.
    • What’s the consumer opportunity?: Identify the shifts in consumer attitudes and behavior bought on by the recession.
    • Share from whom?: Identify which competitor(s) you are targeting to take share from – the more focused the better.
    • How can we win the competitive comparison?: Position the brand to benefit from the trend and de-position the competition
    • How to coordinate your attack?: Leverage your portfolio (wherever possible)
    • Strike rapidly: Develop the retail, communication and promotion campaign to strike rapidly, followed by relevant series of innovations.
    Your attack plan has to be focused and very targeted.
  • 7. It all starts with the market map © 2009 EMM Group Excitement Enjoyment Progressive Traditional “ I love to party and try new things. I am game for a cool new beer if it helps me amp up the party.” “ I love to be at a party and a part of the scene. Drinking beer helps me fit in and enjoy the moment.” “ I have a beer to relax. It is a great way to kick back and enjoy myself with friends and family.” “ I love the taste of a good beer. I seek out new ways to enjoy my beer.” Beer Category Example
  • 8. In the boom years (2004-2008) a perceptive brand builder could find the dominant values trend © 2009 EMM Group Excitement Enjoyment Progressive Traditional
    • Seeking unique and fresh experiences
    • Using badge brands with recognized heritage
    • Being on the leading edge
    • Increasing health consciousness – strong light beer volume, emergence of ultra-lights
    Progressive Excitement Progressive Enjoyment Pass Out Sleep Broad Category Values Trend Beer Category Example
  • 9. Coors Light achieved 13 straight quarters of growth by capitalizing on this trend © 2009 EMM Group Excitement Enjoyment Progressive Traditional Progressive Excitement Progressive Enjoyment Pass Out Sleep Miller Lite Bud Light 3 years ago Current Coors Light de-positioned larger competitors by being on trend and innovating on its core benefits of cold and refreshing Coors Light Beer Category Example
  • 10. In the recession years, there's a shift in values and a new opportunity for an agile brand © 2009 EMM Group Excitement Enjoyment Progressive Traditional
    • Being responsible - Creating more meaningful/special experiences at home instead of going out
    • Emerging trend of frugal being cool
    • Focusing on quality (ingredients, authenticity, etc.) – seeking higher value
    • Defining own relaxing experiences (e.g. food pairing, beer with home games)
    • Stocking multiple beers – my beer, entertaining beer
    • Digital lives - more influences on our decision making
    Progressive Excitement Progressive Enjoyment Pass Out Sleep Shift in Category Values Trend Beer Category Example
  • 11. MillerCoors has an opportunity to capitalize on the shift to further marginalize Bud Light © 2009 EMM Group Excitement Enjoyment Progressive Traditional Progressive Excitement Progressive Enjoyment Pass Out Sleep Coors Light Miller Lite Bud Light Bud Light Current Future ..while putting downward pressure on Bud Light to dilute its amorphous brand positioning Now Miller Lite can capture the shift from Excitement to Responsible Enjoyment by owning the benefit of taste in light beer Beer Category Example
  • 12. Another example of the pre-and-post crisis shift: Share Win Strategies between Apple and Microsoft © 2009 EMM Group Example: Apple’s Mac vs. PC Advertising campaign Apple’s De-positioning Strategy over the last 3 years
    • Ubiquitous (90%+ share)
    • Mainstream audience
    • Bug-ridden Vista launch
    • Poor track-record in recent innovations
    • Resurgent brand with iPod success
    • Capitalize on category trend towards media-centricity and Internet
    • Take share by making Apple more aspirational
    Responding post-crisis with a “more for less” campaign to de-position Apple, making its users look indulgent and frivolous
  • 13. A couple of additional examples of leveraging values shifts to de-position competition © 2009 EMM Group
    • Deposition premium competition as frivolous and excessive in the progressive economy – e.g. McDonald’s strategy to own the breakfast occasion with a value offering and take share from Starbucks.
    • Capitalize on shifts that strengthen previous de-positioning strategies – e.g. Dove’s strategy to focus on inner beauty and self-esteem to de-position many externalizing and “idealizing” beauty care brands.
    • De-position private label products as poor value and less aligned with today’s values (e.g. quality family time and being grounded)
  • 14. Thank You If you would like to find out more, please contact: Satprit Duggal Phone: 408-202-6244 E-mail: SatDuggal@emmgroup.net © 2008 EMM Group