Sunday, September 29, 2013

Chapter 9 Summary: Crafting the Brand Positioning and Competing Effectively


           Chapter 9 discusses the various ways to compete for majority market share and ways to protect market share. Some companies choose points-of difference and points-of parity to distinguish their brand in the overall market. The text mentions Southwest Airlines and I’d like to take a closer look at this company and how they distinguish and compete against the other airlines.
           
            Southwest is a fantastic example of setting yourself apart from other brands and emphasizing a product or service you offer that none of your competitors can provide. Many years ago, Southwest re-vamped their entire airline but setting insanely high standards in customer service and also by advertising “bags fly free.” All other airlines are still charging for each checked bag, many charge about $25 per bag and even to this day, Southwest does not charge for luggage. These services are points-of-difference. Southwest has advertised so much that consumers know they have good customer service but sometimes that is not enough. Purchasing a plane ticket is expensive and consumers are looking to save a few bucks these days, so no bag fees also sounds perfect. After doing some research, Southwest recently tried a new advertising campaign and my guess is this is a market-challenger strategy to protect and increase market share.

            The text defines a frontal attack as, “the attacker matches its opponent’s product, advertising, price, and distribution. A modified frontal attack, such as cutting price, can work if the market leader doesn’t retaliate, and if the competitor convinces the market its product is equal to the leader’s” (Kolter 138). In Southwest’s latest campaign, they focus on being America’s largest domestic airline. They also stray away from humor or emphasizing the bags fly free promotion and instead they focus on the American dream. I believe this is a great example of challenging the other top three airlines and expanding the brand.

            
            In conclusion, there are several ways to increase and protect market share but it is very important that the brand stay in tact and choose the best strategy for that company. In the end, effective positioning will make all the difference in the success or failure of a marketing plan.

Sources: Kotler, Philip, and Kevin Lane Keller. A Framework for Marketing Management. 5th ed. Boston: Prentice Hall, 2012.           

http://business.time.com/2013/03/26/southwest-airlines-were-not-really-about-cheap-flights-anymore/

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