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Positioning Test with Segmentation
Category: Kitchen Appliance System
Methods: Positioning Test, Market Segmentation, Latent
Class Cluster Analysis
Summary
A major consumer-packaged-goods (CPG) company and a large appliance manufacturer
have jointly designed a system to deliver a superior finished product, compared
to traditional ways of preparing the product. The client wanted to know how
to position the new appliance system against their competition.
Strategic Issues
The appliance manufacturing industry has revenues of $25 billion. The top-25
appliance manufacturers control 95% of the market. This new system would be
marketed under a new brand name and would compete against a similar product
that has a slight lead in entering the marketplace. In order to be successful,
this new appliance system needs to be positioned to best communicate meaningful
consumer benefits, and yet also must separate this system from a competitor
that has recently introduced a similar system.
Research Objectives
The overall goal of the research was to identify a positioning for our clients’
system that was both compelling and sufficiently different from that of the
competitor, to allow it to hold a different position in consumers’ minds.
Research Design and Methods
Decision Analyst designed research to test multiple positionings for the new
product, along with a blinded version of the competitor’s positioning.
Research was conducted online using 400 consumers from Decision Analyst’s
American Consumer Opinion® Online panel.
Latent class cluster analysis was used to segment
consumers based upon their responses to a battery of behavioral and attitudinal
statements. The resulting clusters were then analyzed in terms of the consumers’
responses to both the competitive positioning and the potential positionings
for our client, in order to determine not only the most compelling positionings,
but also those that would maximize perceptual distance from the competition.
Results
By using this segmentation technique the client was able to select a positioning
that was attractive, ownable, and used for the product’s successful launch.
Copyright © 2009 by Decision Analyst, Inc.
This case study may not be copied, published, or used in any way without written permission of Decision Analyst.
Analytical Consulting Services
If you would like more information about our positioning research or market segmentation services, please contact Jerry W. Thomas,
President/CEO (jthomas@decisionanalyst.com), or Kathi McKenzie, Senior Vice President,
(kmckenz@decisionanalyst.com) at 1-800-ANALYSIS (262-5974) or 1-817-640-6166.
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