Tag Archives: product positioning

Google Glass Evolves and Repositions

Remember Google Glass? Google Glass had a short life; it was pulled from the market in 2015 amidst complaints about technology, usefulness, price, and privacy. The original product was focused on consumers as wearable technology. The glasses had a smart heads-up display and camera, allowing users to connect to data and share information and images.

However, Alphabet (Google’s parent company) has now relaunched the product as Glass Enterprise Edition (EE). The new Glass EE is being repositioned into the enterprise/industrial market as wearable tech for workers. Alphabet has been testing Glass EE at locations for companies including Boeing, General Electric, Volkswagen, Samsung, Sutter Health, and DHL.

The Glass EE looks similar to the original, but has a better camera, extended battery life, faster Wi-Fi and processor, and has a new red light that turns on when recording. The electronics are now modular in the shape of a pod which can be detached and reattached to any frame, including safety goggles.

How useful are they? GE reported a 46% decrease in time for certain activities, and 85% of the workers believe the system will help reduce mistakes. Glass EE is sold exclusively through Glass Partners. Prices vary depending on the software customization, customer support, and training.

It’s tough to reposition a failed product, but Glass EE seems ready for an entirely new market.

Group Activities and Discussion Questions:

  1. Review key aspects of developing a product positioning map, including determining the axis labels for positioning.
  2. Review Glass EE product: https://www.x.company/glass/
  3. What products are competitors (direct and indirect)?
  4. Divide students into teams and have each team develop a positioning map for Glass. Start with the original Google Glass, and then reposition for the Glass EE product.
  5. Have each team draw their map on the board.
  6. Debrief exercise.

Source: Wired, New York Times, Wall Street Journal, other news sources

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Vehicle Dependability Study

Cars are one of the most expensive and involved purchases that consumers make. They have an extended decision-making process, use multiple information sources, and include multiple evaluation criteria before making a final decision. The decisions that car buyers make impact not only their immediate budgets, but also their long-term budgets with respect to repairs and vehicle dependability (post-purchase behavior).

One source often used by consumers is the J.D. Power Vehicle Dependability Study. According to the most recent study, car buyers avoid models with poor reputations for dependability. The good news is that buyers do not have to spend a lot of money in order to get a dependable vehicle.

The study examines problems experienced over the past 12 months by original owners of 3-year cars. Eight categories are examined, including exterior, engine/transmission, audio/communication/entertainment/navigation, interior, features/controls/displays, the driving experience, heating/ventilation/air condition, and seats. The survey examined responses from 35,186 original owners of 2014 auto models.

Check out the report and see where your vehicle placed.

Group Activities and Discussion Questions:

  1. Review key aspects of developing a product positioning map, including determining the axis labels for positioning.
  2. Poll students: What are factors that influence consumer purchases of cars?
  3. Divide students into teams.
  4. Have each team select two criteria and draw a positioning map for automobiles using those criteria (Ex: price and reliability).
  5. Show the J.D. Power report and video:
  6. http://www.jdpower.com/cars/awards/Vehicle-Dependability-Study-%2528VDS%2529-by-Category/1882ENG
  7. Based on the J.D. Power ranking, how could different auto manufacturers use the rankings to reposition their products?

Source:  J.D. Power, Manufacturing Business Technology

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Lamborghini SUV Targets Female Buyers

suv

Quick: What comes to mind when picturing a Lamborghini sports car? And, who comes to mind as the ideal customer for the Lamborghini cars? Most likely, you said the customer is a wealthy male. After all, Lamborghini uses a bull as its brand. But, consider what would have to change if the company were to refocus its efforts to attract a new customer base – females.

Lamborghini is doing just this – the company is working on a new SUV model which is due to the marketplace by 2018. It hopes the new SUV will attract women and families as primary customers. This is a big switch for Lamborghini – currently only 5% of its global buyers are female. Money isn’t the main issue for women – the issue is that women don’t think the manufacturer understands the needs of female buyers.

Women are a large and valuable percentage of the SUV market. According to J.D. Power & Associates, women buy 53% of all small SUVs, and 48% of all small premium SUVs. And, for the single woman market, sales of premium small SUVs grew by 177% from 2010 to 2015. Plus, two-thirds of female buyers report that their vehicle purchase decision is entirely their own.

So, what do women want? Well, it sure isn’t a “shrink it and pink it” answer. In order to gain female buyers, Lamborghini is going to have to show that it understands the needs of women and families. The new SUV will need to be one that women can use often, and in comfort.

Group Activities and Discussion Questions:

  1. Visit Lamborghini’s Web site and view several of the car models: https://www.lamborghini.com
  2. Ask students to describe the target market for the company.
  3. Also, have students develop a positioning map for Lamborghini cars.
  4. Now, talk to students about changing the target market.
  5. Divide students into teams. Have each team prepare a re-positioning map for Lamborghini to reflect a new target market of women.
  6. What happens to the marketing mix when the target market changes?
  7. Have students develop the 4Ps for the new SUV: product, price, place, and promotion.

Source:  Bloomberg News

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