The document discusses marketing strategies for directing brand positioning within competitive environments, emphasizing the importance of market positions such as leader, challenger, follower, and nicher. It outlines frameworks for crafting brand strategies, analyzing market positions, and utilizing strategic marketing options to protect and increase market share. Additionally, it highlights group work activities aimed at identifying brand positions and generating insights about market behavior.

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Directing Marketing Strategy
(Concepts and Structure)
Prof. Remigio Joseph A. De Ungria
Strategic & Marketing Management Department
Ateneo Graduate School of Business

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What is this day about? (2 year MBA)
Strategy Marketing Directing

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What is this day about? (Race 42k)
Strategy
Ready
Marketing
Get Set
Directing
Go

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What is this day about? (Warfare)
Strategy
Ready
Ready
Marketing
Get Set
Aim
Directing
Go
Fire

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What is this day about? (Movie Epic)
Strategy
Ready
Ready
Lights
Marketing
Get Set
Aim
Camera
Directing
Go
Fire
Action

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Provide CFPI stakeholders (YOU)
Structure/ Framework
To Craft Brand Strategies
Module Objective

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Additional “customer” musts:
For Non- CFPI brands- Case Studies
For CFPI brands
Market leader – defend share & expand category
Not market leader – how to compete vs leaders
(Bear Brand, TJ Hotdogs,
Mega Sardines)

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Market Positions & Shares
Concept 1

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In Chess & Consumer’s Minds
Each position or space occupied
by only 1 object or brand
(most is 2)
Prime space (PS), profitable,
powerful (think center/ corner)
1. Occupy PS
2. Defend PS
3. Grab PS from your opponent
at a lower cost to you (pawn
for a queen)

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Brands are constantly battling for
consumer’s minds...

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3 Mind Reactions to What Brands Say:
Wow! You are
My Brand!
Good Idea!Really?

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Strong occupied positions... What
brand has them?
Olympic Energy Drink
Love ko to
887-8888
Triathlete
UAAP Cheer Dance Champions

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There are 4 (sustainable) market
positions.
Leader
Challenger
Follower
Nicher
Loser (not a sustainable position)

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There are 4 (sustainable) market
positions with hypothetical shares...
Leader – 40%
Challenger – 30%
Follower – 20%
Nicher – 10%
Loser (not a sustainable position) - < 1%

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Groupwork Guidelines
1. Use the template
2. Dont be limited by the template
3. Customize those in ( )
4. Aim to contribute
5. Aim to win the group competition

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#1. Identify the brands for the different positions
for your assigned CFPI brand
#2. Choose a non-CFPI category or industry.
Ideal choice would be where the leader is
relatively new. Identify the brands like in #1
(To avoid duplication, announce your choice!)
#3. From your 2 lists, generate at least 2
insights about market positions & behavior
Groupwork #1 (15 minutes):
Market Positions & Share Guess-timates

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(Color & CFPI brand) Group
(What is your insight #1?)
Position CFPI Non CFPI
CATEGORY
Leader
Challenger
Follower
Nicher
Loser
(What is your insight #2?)

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Sample filled up template

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There are 4 (sustainable) market
position. Each position has default
strategic options.
Leader
Challenger
Follower
Nicher
Loser (not a sustainable position)

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Market Leaders must EPI
Not HAPPY

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Market Leader EPI
1Expands, 2Protects & 3Increases
(usually) LEADS
Price changes
New Product Introductions
Distribution Coverage
Promotional Intensity
(What do you notice about the above?)
Lead in 4Ps

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Marketing Mix 4 P’s mean more!
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Market Leader EPI on Current Market

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Market Leader EPI
1Expands,

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Market Leader EPI
1Expands, 2Protects

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Market Leader EPI
1Expands, 2Protects & 3Increases

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Market Leader EPI
1Expands, 2Protects & 3Increases

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Market Leader EPI
1Expands, 2Protects & 3Increases
1. Expand Total Market Demand
A. New Customers
A. Not Using It (market penetration)
B. Never Used It (new market segment)
C. No Access to It (geographical expansion)

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Market Leader EPI
1Expands, 2Protects & 3Increases
1. Expand Total Market Demand
A. New Customers
1. Not Using It (market penetration)
2. Never Used It (new market segment)
3. No Access to It (place expansion)
B. More Usage
1. Amount (eg. Larger Packaging, Discounts on large sizes)
2. Frequency (eg. Daily shampoo, every meal Coke)
3. New ways to use (Star kanin)

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Market Leader LEAPS!
Case Study: Philips Lighting
(As Country Marketing Manager)
Initiated:
Price changes: Increase or Decrease
New Product Introductions: CFL, LED
Distribution Coverage: MT and hardwares
Promotional Intensity: TV & car raffles

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Curious Case of 3 Lighting Products
(from the Market Leader)

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2009: 13 million CFLs swapped with incandescent
Cost to govt: $18 Million
Savings of govt: $ 100 Million in Fuel Costs
$ 450 Million deferred plant construction

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Curious Case of 3 Lighting Products
(All 4Ps pointed to rapid adoption)
85% saved 20% saved Base
P30 P 100 P200

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Curious Case of 3 Lighting Products
Government wont do it (ban incandescents)
Philips tried to lead by not selling it but lost share
Modern Trade led it
Manufacturers realized the old look was hard to replace

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Customer must find worth and value in
the innovation (example: technology)

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Market Leader EPI
1Expands, 2Protects & 3Increases
2. Protect Market Share.
• How? continuous innovation
• Avoid incorrect customer orientation/ focus
• “Tyranny of the served market”
• Shape the market to your own interests (know others do too)
• Dont be the best player. Change the rules of the game.

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Market Leader EPI
1Expands, 2Protects & 3Increases

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Market Leader EPI
1Expands, 2Protects & 3Increases

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Market Leader EPI
1Expands, 2Protects & 3Increases

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Market Leader EPI
1Expands, 2Protects & 3Increases

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Needs are still basic,
universal human
requirements.
Respond to 6 Types
of needs:
1. Stated
2. Unstated
3. Real
4. Delight
5. Secret
6. Unknown
Basic needs have not changed.

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Market Leader EPI
1Expands, 2Protects & 3Increases
2. Protect Market Share
A. Proactive Marketing
1. Reactive (Meet Stated Need)
2. Anticipate (Look Ahead to Future Need)
3. Creative (Market-Driving. Discover New Solutions to
Unstated and Unknown Needs)
Discuss: C2 drink, Walkman, Sun Cellular, Uber

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Market Leader EPI
1Expands, 2Protects & 3Increases
2. Protect Market Share
B. Defensive Marketing
1. Position: Own most desirable space (Tide clean, Google
search)

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Market Leader EPI
1Expands, 2Protects & 3Increases
2. Protect Market Share
B. Defensive Marketing
1. Position: Own most desirable space (Tide clean, Google
search)
2. Flank: outposts (ex. price brands) to protect weak flank
or support a possible counterattack

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Market Leader EPI
1Expands, 2Protects & 3Increases
1. Position: Own most desirable space (Tide clean, Google
search)
2. Flank: outposts to protect weak flank or support a
possible counterattack
3. Preemptive defense (pre-announcement, guerilla, beta)
4. Counteroffensive (after attack, counter frontally or at
flank: lower prices, pre-announce sale or upgrade, lobby
regulators)

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Market Leader EPI
1Expands, 2Protects & 3Increases
2. Protect Market Share
B. Defensive Marketing
5. Mobile- stretch domain to new territories (diversify)

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Market Leader EPI
1Expands, 2Protects & 3Increases
2. Protect Market Share
B. Defensive Marketing
5. Mobile- stretch domain to new territories (diversify)
6. Contraction (strategic withdrawal)

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Market Leader EPI
1Expands, 2Protects & 3Increases
3. Increase Market Share (Buy?) especially
when market is not growing fast enough
A. Acquire Competitors
B. Increase Capacity or Distribution
C. Massive Promotions
D. Forward Integration (Captive Market)

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Market Challenger ATTACKS
Leaders (primarily) & others

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5 Challenger Attack Strategies
Market Challenger ATTACKS
Leaders (primarily) & others

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1. Frontal: 4Ps match
2. Flank: if limited resources, find
weak spot, unserved markets &
needs
3. Encirclement: with superior
resources, multiple attacks
4. Bypass: easier markets thru
diversification (products,
geography, technology)
5. Guerilla- small, interminent,
selective, harassment, footholds
Market Challenger ATTACKS
5 Strategies

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Case Discussion
Group Work: Best answers win!
Once upon a time,
Mang Inasal was growing rapidly and aggressively
attacking Jollibbee’s Chickenjoy market share
1. What was Mang Inasal doing right?
2. Why cant Jollibee counterattack frontally?
3. Why did Mang Inasal (and earlier Chowking)
sell out to Jollibbee despite their seeming
success?

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“Product imitation might be as profitable
as Product Innovation”
-Theodore Levitt, “Innovative Imitation
Market Followers Dont Rock the Boat
Profitably imitating
Imitation avoids costs of
1. New product development
2. Market & consumer education
3. Channel development
4. Market research
** Risk takers are “sometimes” rewarded with market leadership

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“Follow the leader” is common in industries:
1. Capital intensive
2. Homogenous-product
3. Little opportunities for product/ image /
service differentiation
4. Price sensitivity is high
Market Followers Dont Rock the Boat
Profitably imitating
Examples: Moldex pipes, Pag-Asa Steel, SM Bonus rice

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1. Counterfeiter (100%)- thru bad sellers
(ex. Fake Nike in Greenhills sold at Nike price)
2. Cloner (90%) – slight variation on name &
packaging to avoid lawsuit; buyer beware
(Roles not Rolex; Frosen instead of Frozen Disney)
3. Imitator (<90%) – differentiated in packaging,
advertising, pricing, location (“Class B” branded)
4. Adapter (<50%)- introduces improvements
(a reputable company’s option. Apple did it with ipod vs
Creative and iphone vs. other smart phones. Eight O
Clock vs. Tang, _____ vs Kraft. )
** the copy percentages cited here are representative numbers created by
Professor Bong to facilitate learning
Market Followers COPY the LEADER
4 Broad Strategies/ “% Copy**”

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1. Keep Costs Low
2. Enter Markets as they Open Up
3. Keep Existing Customers Loyal and Win
New Ones
4. Bring some degree of competitive
advantage to its target markets
5. Dont invite competitive retaliation
Market Followers Dont Rock the Boat
What Followers Must Be Able to Do
Examples: Moldex pipes, Pag-Asa Steel, SM Bonus rice

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P&G – for its brands
GE- Jack Welch- BU must be #1 or #2, or else
Japanese companies often take long term view
1. American companies- only end result is important
2. To Japanese- the process and result are both
important
Market Followers
Not a Profitable Option for Some
Leading Companies

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Choose: Big fish in small pond
is better
a small fish in a big pond
Market Nichers
Be #1 in a Small but Feasible Market

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Choose: Be on a crowded market
or be alone in a blue ocean
Market Nichers
Be #1 in a Small but Feasible Market

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Market Nichers
Have market or time-bound
opportunities
Some markets, for some time
Are too small for
Market leaders and challengers
But times can change rapidly...

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Nichers or adapters?
Who adapted who?

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Sensodyne- had to permanently
drop price by 25% to respond to
Colgate Sensitive?
Sensodyne Freshmint Print Ad, Philippine Daily Inquirer, Feb. 10, 2011

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Market Nichers
Specialize in at least 1 thing
1. End users (Chinese speaking, high net worth)
2. Vertical level: (collector of used bottles)
3. Customer size (accumulators of tiangge and trade
events, races)
4. Specific customer (SM affiliates only)
5. Geographic (department store in far flung provinces)

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Market Nichers
Specialize in at least 1 thing
6. Product or product line (“battery” retailer)
7. Quality price (low or high end) (“Mercedes Benz
repair shop” vs. “shops for jeepneys”)
8. Product or product line (“battery” retailer)
9. Job-shop (dressmakers, made to order furniture)
10. Service ( tow trucks)
11. Channel (selling through network marketing only)

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Product Life Cycle
Concept 2

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2016: Barbie is 57 and politically
correct and socially acceptable

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PLC means:
1. Products have limited life
2. Stages are distinct
3. Profits rise and fall
4. Different strategies for each stage

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In what product life cycle stage is
your brand?

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Competition has their own PLC.
What is their stage?

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There is a point where
profits/losses are not worth the
trouble...

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Re-investing in the brand can
reverse the decline. No
guarantees...

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What brands hope to do with their PLC...
Resume growth, delay decline,
stretch time #forever young!

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The time element is a key
strategic criteria whether to
enter, re-invest or divest

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Market cycle trumps PLC
(Emergence = Intro)

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Market Life Cycle of Tech
Categories…

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Famous Brands that We Know
“PLC” Case Studies
Assumes that all things being equal
Share Prices provide Meaningful Insights
About the Brand

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Instantaneous data are important
but...

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Trends provide more insights...

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What happened to CFPI June/July?
Stock or cash dividend?
Purchased a new company?
CPFI 1 Year Stock Price
http://www.advfn.com/stock-market/PSE/CNPF/stock-price

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Markets/
industries
life cycle
have large
influence on
products and
brands (must
understand other
factors)
PSE! Phil Stock Exchange Index
CPFI 1 Year Stock Price
http://www.advfn.com/stock-market/PSE/CNPF/stock-price

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Sales and stock prices are good
indicators of PLC (filter out
external effects)

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1. Tech?
2. Oil?
3. Fashion?
4. Cars?
What can we learn from world’s most
valuable brands & their industries?

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Twitter is dying?!
Failure to convert users to paying
customers (demand!)

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Facebook has converted
customer insight to sales!

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Google 5 yrs- growing!

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Google 10 yrs of continuous
growth!

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Yahoo since 2000- stagnant?

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Meyer effect on Yahoo?

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Yahoo: $ 2.8 Billion for 53 Apps

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How does World’s Most Valuable
brand look ( 5 years...)

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Proof of Strong Brand Equity:
Apple stock price still grew after
Steve Jobs death Oct. 2011

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3 month Samsung shares
Decline. Recovery. Repeat.

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Resilient, strong brands bounce
back

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Stories in perspective.
What are the long term effects?

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Where is your brand now?
Marketing assessment tools

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Plot your brand in BCG Matrix

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Appropriate strategies to a
brand’s position in the matrix

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Or can apply a more detailed GE
matrix

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There are only 3 ways to gain
strategic advantage...

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4 Ways to Growth

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Create Positioning Maps
1st Map: 2 x 2 Matrix showing the 2 Most
Critical Variables for Consumer choice
This 1st Map should allow differentiation/
non-clustering of the direct competitors
Example: Price vs. Age
Size of bubbles= represent relative market shares of the
brands
2nd Map: Functional Benefit vs. Brands/
Variants

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Example of a 2x2 competitive
position map for toothpaste
Price vs. Age Matrix

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Example of a benefit positioning
vs. brand map for toothpaste
Benefit Positioning vs. Brand Matrix
FunctionalBenefit
Colgate
Kids
Colgate
Fresh
Colgate
Total+
Whitening
Colgate
Sensitive
CloseUp
Gel
CloseUp
White
Hapee
Kids
Hapee
Fresh
Hapee
Total+
Whiten Unique Sensodyne
PreventsToothDecay
WhitensTeeth
FreshensBreath
Mouthwashin1
FreshConfidence
ConfidenceUpCloseto Kiss
Protect24hours
Funforkids
Savesmoney
Reducesteethsensitivity
Harder to stand out amidst the competitive clutter.