Wednesday, September 24, 2008

More for the Same

“Companies can attack a competitor’s more-for-more positioning by introducing a brand offering comparable quality but at lower price. For example, Toyota introduced its Lexus line with a “more-for-the-same” value proposition versus Mercedes and BMW. Its first ad headline read: “Perhaps the first time in history that trading in a $72,000 car for a $36,000 car could be considered trading up.” It communicated the high quality of its new Lexus through rave reviews in car magazines and through a widely distributed videotape showing side-by-side comparisons of Lexus and Mercedes automobiles. (Armstrong & Kotler – Marketing 9e Ch.6 pg.191)”

Our target audiences aren’t millionaires, but they do have money to spend, and they want to spend it on high quality items rather than the price of the item. Pretty much all vodkas are the same, the only thing that is really different is where it’s from, how many times has it been distilled, and the packaging. Kettle V. is a high end product for a reasonable price at $35.99 for a 70cl bottle.

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