This document contains a case study about repositioning strategy for Company X, which manufactures industrial cutting equipment. While X provides high quality equipment, it has a low market share due to higher prices compared to competitors. The document analyzes where X and its competitors A, B and C are positioned based on price and value. It recommends reducing X's price to match quality as the best repositioning strategy, and lists precautions to avoid common positioning errors during implementation.

1. Marketing Management II
Case Study on:
Repositioning Strategy
Submitted to: Submitted By:
Prof. VVRamasastry ArchitGarg
GeetSawhney
Mohit Sharma
Siddharth Kumar

2. 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.

3. Table assuring Price and value competitiveness:
Quality Imp% Weight Weighted Score
dimension
A B C X A B C X
Precision 35 6 5 4 6 2.1 1.75 1.4 2.1
Reliability 25 6 6 3 4 1.5 1.5 0.75 1.0
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 .20
Delivery 5 2 5 5 5 .10 .25 .25 .25
TOTAL 5.35 4.55 3.75 4.30
a b c X
Wt score (P) 5.35 4.55 3.75 4.30
Actual 29000 21000 15000 22000
Price(Rs.) (q)
0.018 0.0216 0.025 0.019

4. 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:

5. 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 Positioning
2) Over Positioning
3) Doubtful Positioning
4) Confused Positioning