1. Attitudes Mktg 450 Fall 2005

2. 2 Using Importance-Performance with Competitors’ Data – High Importance Our Performance Competitor’s Performance Simultaneous Result Poor Neglected Opportunity PoorGoodCompetitive Disadvantage GoodPoorCompetitive Advantage Good Head-to-Head Competition

3. Fall 20053 Using Importance-Performance with Competitors’ Data – Low Importance Our Performance Competitor’s Performance Simultaneous Result Poor Null Opportunity PoorGoodFalse Alarm GoodPoorFalse Advantage Good False Competition

4. Fall 20054 Marketing Warfare

5. Fall 20055 Basic Assumptions Markets are competitive Competitors are rarely of equal strength Competitive strategy is dictated by one’s relative strength Proper deployment of assets is key to success –I.e., what you do with your assets is as important as the strength of your assets.

6. Fall 20056 How Markets Divide Themselves Leader - > 30% share Challenger - 15-30% share Flanker - 5 - 15% share Nichers - 1% or less

7. Fall 20057 Carbonated Soft Drinks Brand2003 Share Coke Classic (Coke)18.6% Pepsi (Pepsi)11.9% Diet Coke (Coke)9.4% Mt Dew (Pepsi)6.3% Sprite (Coke)5.9% Diet Pepsi (Pepsi)5.8% Dr Pepper (Cadbury)5.7% CF Diet Coke (Coke)1.7% Sierra Mist (Pepsi)1.4% Seven Up (Cadbury)1.2%

8. Fall 20058 Carbonated Beverage Market Company 2003 Share Coke 44.1% Pepsi 31.8% Cadbury 14.3% Cott 4.7% National Beverage 2.4% Red Bull 0.2%

9. Fall 20059 Coca Cola

10. Fall 200510 Leader Strategy

11. Fall 200511 Leader – Defend Position ApproachExamples Adopt an Aggressive Offense against the competition Microsoft vs Lotus & WordPerfect

12. Fall 200512 Leader – Defend Position ApproachExamples Adopt an Aggressive Offense against the competition Microsoft vs Lotus & WordPerfect Use resources to increase the cost of competition UPS

13. Fall 200513 Package Delivery Market

14. Fall 200514 UPS Strategy

15. Fall 200515 UPS Strategy Wanted to expand share in Ground Deliveries Purchased Mailboxes Etc. A key point of contact for FedEx

16. Fall 200516 FedEx Initially Tried to Remake Itself Consumer research reveals that consumers have 2 key considerations when using the FedEx dropoff sites –Prepared – knows how the system works and need little assistance –Assurance – how likely is that this transaction will be completed as I want it to.

17. Fall 200517 FedEx Research PREPAREDUNPREPARED Do Not Crave Reassurance FrisbeeDo It Yourself Crave Reassurance ConfirmersHigh Maintenance

18. Fall 200518 FedEx Research PREPAREDUNPREPARED Do Not Crave Reassurance Drop Box Inside Front Door Self-Service Station at Front Crave Reassurance Feedback (put through slots) Counter in the Back

19. Fall 200519 Proposed Storefront Image

20. Fall 200520 Better Strategy

21. Fall 200521 FedEx-Kinkos

22. Challenger Strategy

23. Fall 200523 Challenger – Focus on Leader ApproachExamples Attack Leader’s weakness but narrowly Pepsi Consider turning leader’s strength into weakness Netscape

24. Flanker Strategy

25. Fall 200525 Flanker – Focus on Overlooked Areas ApproachExamples Segment market to identify unmet needs Avoid direct competition with leader and challenger

26. Fall 200526 Flanker – Focus on Overlooked Areas ApproachExamples Segment market to identify unmet needs Chrysler Avoid direct competition with leader and challenger Virgin

27. Nicher Strategy

28. Fall 200528 Nichers/Guerillas – Find areas not attractive to Others ApproachExamples Think smallJolt Subaru Be prepared to quit when competition heats up Hummer Microbrews Snapple

29. Fall 200529 Marketing Warfare

30. Fall 200530 How Markets Divide Themselves Leader - > 30% share Challenger - 15-30% share Flanker - 5 - 15% share Nichers - 1% or less

31. Fall 200531 Marketing Warfare – Video Games

32. Fall 200532 Video Game Warfare StrengthsWeaknesses Sony (65%) Microsoft (17%) Nintendo (15%)

33. Fall 200533 Future SonyPlayStation 3March 2006 Blu-Ray DVD MicrosoftxBox 360 Nov 2005 Hard Drive Web downloads NintendoRevolutionMarch 2006 mystery features

34. Fall 200534 Battle Field

35. Fall 200535 Humble Beginnings 13,614 Versus 7,727 Outlets

36. Fall 200536 1 st Wendy’s ( Columbus Ohio 1969 ) 6,000 outlets

37. Fall 200537 1 st Jack in the Box ( San Diego - 1951 ) 2,000 Outlets 17 states

38. Fall 200538

39. Fall 200539 Constant Combat

40. Fall 200540 A Battle of Words as Well as Food

41. Fall 200541 Fast Food Attitudes FAST FOOD CHAIN MENU VARIETY POPULARI TY w/ Child FOOD QUALITY PRICEOVERALL PREFER BURGER KING 2.93.83.73.83.6 JACK IN THE BOX 3.3 3.03.33.2 McDONALDS' 3.34.43.64.03.8 WENDY’S 3.03.54.12.63.4 RELATIVE IMPORTANCE WEIGHTS.22.23.30.25

42. Fall 200542 Overall Attitudes 3.6 = 2.9*.22 + 3.8*.23 + 3.7*.30 + 3.8*.25

43. Fall 200543 Battle of Words & Toys McDonaldsI’m Lovin’ ItChicken Little (Disney) Burger KingHave It Your WayStar Wars III Wendy’s“It’s Better Here” “Do Wendy’s. Do What Tastes Right” Maya & Miguel ( PBS KIDS GO!) Jack in the Box We Don’t Make It ‘til You Order It Not for Kids

44. Fall 200544 McDonalds-1

45. Fall 200545 Burger King -1

46. Fall 200546 Burger King -2

47. Fall 200547 Wendys

48. Fall 200548 Wendy’s Answer to Where’s the Beef?

49. Fall 200549 Jack in the Box - 1

50. Fall 200550 McDonalds ( adults ) - 2

51. Fall 200551 McDonalds (dryer) - 3

52. Fall 200552 Wendy’s 2004

53. Fall 200553 Burger King - 2004

54. Fall 200554 Burger King - Ugoff

55. Fall 200555 Jack in the Box ( language ) - 2

56. Fall 200556 JBX

57. Fall 200557 Competitive Strategy LeaderUse strengths to defend leadership position via offensive actions ChallengerNarrowly attack leader’s weakness FlankerIdentify unmet needs in overlooked segments (large) NicherIdentify unmet needs in overlooked (small) segments that can be defended

58. Fall 200558 Video Game Wars

59. Fall 200559 Leader – Sports Games Electronic Arts (63% share in sports) –John Madden NFL Football –Tiger Woods Golf –MBAs & focus groups Take Two (Grand Theft Auto) –ESPN Football (dropped price to $20) –Outlaw Golf (tattooed convicts & bikini clad women) –Sex and Violence crazed developers

60. Fall 200560 Leader – Sports Games Take Two –Dropped price of ESPN Football to $20 Electronic Arts –Dropped price of John Madden to $30

61. Fall 200561 Leader – Video Game Units

62. Fall 200562 Leader – Video Game Revenue

63. Fall 200563 Leader – Sports Games Electronic Arts –Paid for $400 million for exclusive NFL rights (5 years) –Paid for $800 million for exclusive ESPN rights (15 years) –Deals with NCAA and Arena Football League Take Two ? –Deal with Major League Baseball Others? –Sony created fictional football game with players engaged in edgy off-field activities (gambling) not permitted by NFL

64. Fall 200564 Video Game Wars

65. Fall 200565 Challenger – Miller Lite

66. Fall 200566 Nicher – Jones Soda

67. Fall 200567 Flanker – Wendy’s

68. Fall 200568 To Persuasion

69. Fall 200569 Nicher - Taco Bell ( Think Outside the Bun )

70. Fall 200570 Project Due Date – Tuesday, December 6th For Tuesday, article on humor in the packet, pp. 95-100 in the text