Your goal in positioning concept development is to identify a winning strategy for your product or service. In some cases, you have no choice in the matter due to what is going on with or around your brand or business. Let’s take a look at a few key instances.
1. Your declining brand needs a new strategy. This, of course, is the most obvious reason for new concept development. The key is to make sure the concept is the problem. As such, you need to make sure that you thoroughly understand the drivers of your business with comprehensive analysis before your start doing concept work. Make sure it is not due to a lousy media plan, pricing, lost distribution in a key account, or something else. Any of those things could impact your brand performance, so it is important to make sure you know what the drivers are: A) your product enjoys high brand awareness, but it is no longer relevant, B) your consumers are not loyal and select products on price vs. your product benefits, C) the brand strategy is no longer distinctive in the category, and all the “me too’s” claim the same benefits.
2. You need products/services to fill unmet consumer needs. Over time, market conditions change. Sometimes what was really important at one point in the category is not the case anymore. Think about rising gas prices. Ford, who for many years carved a comfortable niche with SUV’s and large trucks, had to rethink its product offerings. The market is moving toward smaller, more fuel-efficient vehicles and hybrid technology. With gas prices appearing to stay high, the day of the gas guzzling, “own-the-road” type of vehicle is starting to shift.
3. A new competitor has entered the market. A new competitor may enter the marketplace and really shake up the status quo. Consumers can be fickle, and, when they find something that has some cache, loyalties can switch. A great example is the Apple iPhone, which clearly turned the cell phone industry on its head. The only way to get an iPhone was to have a contract with AT&T, and many switched. Interestingly, in order to compete, many other cell phones started to imitate the iPhone (Samsung, Android) to provide the other carriers with a product to plug the hole for their consumer base. In this case, concept development is really the only way to defend your product and maintain customer loyalty.
4. You have new technology or service capability. Be ready when something new comes along that can be exploited. Although a new capability should typically be developed to fit a consumer need, sometimes product advancement might need a home. A great example is the product, Rogaine. While scientists were exploring the treatment of hypertension (high blood pressure) with Monoxidil (Rogaine’s active ingredient), they discovered that one of the side effects was hair growth. Monoxidil was then tested for the potential to regrow hair for balding individuals. The results were impressive enough that the treatment was approved for people suffering from hair loss. A positioning concept was created and successfully launched in the market.
Now, it is time to reflect. What’s going on with your brand or business? It might be time for you to change, too.
