Product Positioning Strategies

Positioning is what the customer believes about your product's value, features, and benefits; it is a comparison to the other available alternatives offered by the competition. These beliefs tend to based on customer experiences and evidence, rather than awareness created by advertising or promotion.

Marketers manage product positioning by focusing their marketing activities on a positioning strategy. Pricing, promotion, channels of distribution, and advertising all are geared to maximize the chosen positioning strategy.

Generally, there are six basic strategies for product positioning:

1. By attribute or benefit- This is the most frequently used positioning strategy. For a light beer, it might be that it tastes great or that it is less filling. For toothpaste, it might be the mint taste or tartar control.

2. By use or application- The users of Apple computers can design and use graphics more easily than with Windows or UNIX. Apple positions its computers based on how the computer will be used.

3. By user- Facebook is a social networking site used exclusively by college students. Facebook is too cool for MySpace and serves a smaller, more sophisticated cohort. Only college students may participate with their campus e-mail IDs.

4. By product or service class- Margarine competes as an alternative to butter. Margarine is positioned as a lower cost and healthier alternative to butter, while butter provides better taste and wholesome ingredients.

5. By competitor- BMW and Mercedes often compare themselves to each other segmenting the market to just the crème de la crème of the automobile market. Ford and Chevy need not apply.

6. By price or quality- Tiffany and Costco both sell diamonds. Tiffany wants us to believe that their diamonds are of the highest quality, while Costco tells us that diamonds are diamonds and that only a chump will pay Tiffany prices.

Positioning is what the customer believes and not what the provider wants them to believe. Positioning can change due the counter measures taken at the competition. Managing your product positioning requires that you know your customer and that you understand your competition; generally, this is the job of market research not just what the enterpreneur thinks is true.

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How to Sell Your Product to Costco - 11 Crucial Steps!

Making the decision to do business with one of the countries most successful retailers is not one of those quick brainstorm ideas hatched over coffee and a bagel at your local Starbucks.  I am sure you have lain awake at night dreaming of your product prominently displayed at Costco with thousands of members clamoring around to grab a hold of the last item before they are all gone.  No doubt you have rehearsed your response to the frantic phone call from Costco begging for more product, offering anything to just get one more shipment.  Cool and unbothered you pause before letting them know you will see what you can do, while at the same time, asking for better terms.

Fortunately this has happened and could happen to you.  You may never find yourself invited over to Jim Sinegal's house for holiday dinner, but that doesn't mean you will never be successful selling your products to Costco if you are prepared.

Thousands of companies just like yours have made it into Costco and sold their products successfully for years.  What makes the difference between companies that are in and the ones that are out?  The successful companies had the following in common:

They were prepared:  They did their homework and had a plan.  They knew what they were getting themselves into and had already made the necessary adjustments for success.
They hired a company or individual who had expertise in selling Costco to fill in the gaps in their plan and advise them during the process.
They understood Costco's business model and that Costco would not bend their rules even for them.
They were in the right place, at the right time with the right item.

Will your product be the next big item at Costco?  Only time and preparation will tell.  To get you started I have outlined the first 11 steps which are crucial to preparing for a meeting with Costco.

Product selection:  Determine if a single product or multiple products will be offered.  At times, in order to create the value needed to meeting Costco's standards you may have to bundle products together.  Bundling products can also help with your distribution network as you have created a different and unique item number.
Pricing:  Research your distribution network to determine the lowest sell prices in the market on the products you would like to offer Costco.  Ensure you have a handle on all prices and products being offered for sale.  If you don't you can be sure Costco will.  They will do their research which means you need to as well.  Create a possible pricing structure taking into account prices currently being offered.
Distribution affect:  Determine how selling product to Costco at reduced pricing or added value will affect your current distribution network.  Distributors and dealers can sometimes become difficult if they believe you are undercutting them by offering the same products to Costco.
Packaging:  Determine what type of packaging you will be offering to Costco.  Costco is very specific on their packaging requirements.  Generally the require a single display pallet.  Get quotes from a couple of different companies on the graphics and packaging.
Logistics:  Take a look at your current logistics capacity to determine if you are able to service a large client like Costco.  Knowing your capacity will help you understand what your sell through expectations will be.  Analyze Costco's routing guide to ensure you are including all required aspects when looking at logistics.  Click here for Costco's routing guide

Other costs:  Review and take into account these additional costs. 

1.  Customer service support:  Do you have the phone support required to handle the influx of customers or will you have to hire a company to handle this aspect? 

2.  EDI Costco (Electronic data interchange):  Price out EDI to include in your financials. 

3.  Promotional costs:  Will you want to participate in any promotions?  The various promotions at Costco are where the sales really explode and should be planned for accordingly.  

4.  Shipping:  Costco will require a delivered cost to their depots.  You must cost average this out and include it in your cost structure. 

5.  Returns and defects:  How will you manage the return and defect portion.  This can get expensive and should be carefully evaluated.
Potential sell through quantities:  Based on what divisions of Costco you are going after create some scenarios that show potential quantity sales.  Costco has 3 divisions in the US and an International division:

a. Costco wholesale,

b. Costco.com,

c. Costco Road Show,

d. Costco Canada,

e. Costco.com Canada,

f. Costco Mexico, 

g. Costco UK,

h. Costco Taiwan,

i. Costco Japan,

j. Costco Korea.
PNL:  Create a item PNL using the above information to determine program viability.  You never want to do this after the deal has been made.  Entering into a program and finding out after you are having success that you are losing money will be devastating. 
Costco:  Decide which division you should contact first.  Make initial contact with the buyer and gage interest.  You will probably need help here as getting through to Costco buyers can be very difficult if not impossible.  If enough interest exists set an initial meeting at Costco HQ in Seattle WA.
Pre-Meeting:  Final decision on at least two, no more than three packaging options.  Nail down your options as you will only have approximately 30 minutes or less to pitch your idea to Costco and you want to have time left to discuss next steps.  Make your final decision on cost pricing to include in the presentation.  Create your presentation and print out more copies than you think you will need.  Confirm your meeting one week prior to the date.
Meeting:  In your presentation be thorough, but not over the top.  Keep your pitch smart and to the point.  Be prepared for Costco to have some questions, not just about your product, but about you and your company as well.  Know your competition and your market.  They will test you.  Make sure you nail down next steps and follow up before you leave the meeting.

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Cisco CIUS Secure Enterprise Android Tablet Product Review

Cisco's new enterprise Android tablet, the Cisco CIUS, is different from all the other Android tablets available. It is not intended for the consumer market, but for the very different enterprise business market. You won't see this in stores, and unless an organization has a number of things working on the back end, it has nothing different than any other Android tablet.

This is a difficult product to classify, because the tablet aspect is only one part of its capabilities. It is also a phone, desktop video conferencing device, and virtual desktop endpoint. Furthermore, it is designed from the ground up to be secure. With all these capabilities, it can be a very useful device for organizations that are ready to take advantage of all it can offer.

There are two versions of the Cisco CIUS, pronounced "see-us". The one that shipped first is the 7" version, and is the one that I have been using and demonstrating to people. The 7" tablet is running a Cisco Android version based on version 2.2 Froyo. There is rumor of a 10" version available soon, but no confirmation.

The most engaging part of the demonstrations that we have been doing for customers is the High Definition video conferencing client using either the front or back cameras. The HD video operates at 720p with 30 fps, and is a high quality video conference. It is a very different video calling experience than one gets from Google Talk or Skype, which are lower resolution with a lower frame rate.

CIUS Specifications:

Size: 5.5 x 8.9 x 0.6 inches
Weight: 1.2 lb
Screen resolution: 1024 x 600 pixels
Processor: Intel Atom Z615 at 1.6GHz
Memory: 1 GB RAM and 32 GB Flash
Connections: micro USB, micro SD, micro HDMI
Wireless connectivity: 802.11 a/b/g/n with 3G and 4G in future, bluetooth 2.1
Operating System: Android Froyo 2.2.2
Camera: front and rear facing 1280 x 720, 5 megapixel

Docking station specifications:

3 USB ports
Gigabit ethernet wired
DisplayPort with cables for VGA, DVI, HDMI
Can be powered by 802.3at, PoE class 4

Pros

Enterprise tablet that is manageable with a controlled App store.
Cisco IP Telephony endpoint with video and voice calls.
Standards based HD video endpoint with 720p resolution at 30 fps and dual cameras.
Secure operation with Cisco AnyConnect VPN.
Replaceable battery.

Cons

Heavier than similar sized Android tablets.
Requires other Cisco applications to take full advantage of capabilities.
7" form factor too small for full virtual desktop client unless using XenApp.
7" version has low external monitor resolution at 1024x600.
Cisco Unified Communications Manager version 8.5.1 or later required.

There are a few different back end applications that are necessary to put into place to give the Cisco CIUS basic functionality. The CIUS can operate as a full Android tablet with access to the Google Apps Market only, but I expect that most organizations are not going to want to limit it to being just a tablet.

The first application to set up for Enterprise deployment of the Cisco CIUS is the Cisco Unified Communications Manager version 8.5.1 or later. This application provisions and updates the Cisco CIUS. It allows the organization to create an internal App store, with applications that can be pulled from the Cisco App store and the Android market. This addresses multiple concerns, although it is required to set up an account at Cisco which has an additional fee. The first is that only Apps that are approved can be loaded on the organization's CIUS's. The second is site or block user licensing for purchased applications. Additionally, it centrally controls tablet security.

The CIUS docking station enhances the capability of the tablet significantly. I have found that keeping the dock plugged into an external monitor, keyboard, and mouse enhances the usability of many applications, and is almost a necessity given the small size of the 7" form factor. Even the video output ports on both the dock and tablet support both VGA and HDMI, one drawback is the low external resolution size, which is limited to 1024x640 pixels.

The CIUS docking station turns the Cisco CIUS into a full Cisco IP phone. The best way to use a Cisco IP phone is to connect it into a Cisco Communications Manager server. The Cisco Communications manager can be the company's entire phone system, and it is currently the #1 shipping business phone system in the world, so there are many organizations that could take advantage of this capability. If an organization has a different phone system, it is still possible to stand up a small Cisco Communications manager installation for just the Cisco CIUS's, and then integrate the Cisco phone system into the company's existing IP or traditional phone system.

The HD video conferencing endpoint capabilities of the CIUS can be enabled by connecting it into the Cisco Communications Manager, but for full HD video conferencing capabilities it is best to have the Cisco Video Infrastructure in place. This provides for standards based video calls to other organizations over the internet, HD video conferences using a centralized conferencing codec, and bandwidth management for the calls.

The Cisco CIUS can be used as a full Virtual Desktop endpoint using either VMware View or Citrix HDX Receiver for Citrix XenApp and XenDesktop. The two virtual desktop applications have their pros and cons, and it is good that the Cisco CIUS supports both. At the 7" form factor when not using the external monitor, the most useful is Citrix XenApp, which provides full screen application capability.

It is important to operate the Cisco CIUS over a good network. Both the Local Area Network and the Wide Area Network has to have a good Quality of Service policy implemented, and there has to be sufficient bandwidth for the voice, video, and virtual desktop streams. The CIUS preferentially uses 802.11n wireless LAN for call control even when docked, so it is best to have a good wireless infrastructure in place that has sufficient coverage, bandwidth, and Quality of Service. The advantage of always using wireless for call control is to allow the user to undock the CIUS in the middle of a video or voice call and to permit it to continue the call without interruption.

The Cisco CIUS is a new category of tablet device that is focused at a distinctly different market than the consumer tablets from Apple and other Android tablet manufacturers. When it is deployed in an enterprise environment that has the right types of back end applications, it can be a very useful device. The two issues of small screen size and low external monitor screen resolution on the 7" CIUS are a limitation for its use as a general purpose tablet. This is overall a good product that works well and can be the main device for a mobile device strategy. It is an especially good choice for organizations that have concerns about security and have existing voice, video, and virtualization deployments.

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Apple iPhone 3G Product Review

The iPhone 3G of Apple, weighing 133g and measuring 62.1 x 12.3 x 115.5 mm is the 3rd development after the launch of the previous 2G model, but not much difference between him and his two predecessors. added based on three main concepts, ie as a phone, an iPod and an Internet browser, on which this model was the 3G functionality, a GPS mapping system and the familiar Microsoft Exchange is designed to focus primarily commercial purposes.

Overall, the iPhone 3Ghas UMTS, HSDPA, GSM, Wi-Fi, Bluetooth, GPS and Bluetooth + EDR connectivity. The headphone jack has been changed and can now be any type of headphones you want with the iPhone 3G. However, neither the external appearance or the software much like his first two starts has changed. It has the same design and interface of the iPhone itself. The few changes include the gray metal back plate, which was a white or black plastic and chrome curved spine replacedEnd on the side controls. In addition, the battery is larger than the original, performance better than expected. It has the same 8GB and 16GB of memory chips and has the same two-megapixel camera.

On the other hand, with this new version of third-party applications can now be easily accessible, such as iTunes App Store was launched to facilitate the acquisition of fee and free software.

The 3.5 inch 480 x 320 color TFT display multi-toucheverything possible to control what the rotation of the screen in either portrait or landscape with the fingers, if you pinch, flick, tap, to save, scroll or slide through its various applications.

Dotted with HSDPA (High Speed Downlink Packet Access) allows data to any iPhone 3G network UMTS (Universal Mobile Telecommunications System networks) and download faster browsing over EDGE network. However, in the absence of a 3GNetwork to connect to a 2G network GSM or EDGE for data and calls as possible. Connectivity can be or 3G, EDGE or Wi-Fi. IPhone 3G will be perfectly recognize the fastest connection.

Another big improvement has been the GPS system. No matter where you are, your progress as you can move around the world are carried out by a mapping system A-GPS (Assisted GPS), which allows you to compare the results faster than a normal GPS. IPhone 3G will be calculatedPosition if all the signals by satellite, Wi-Fi hotspots or cellular towers. If you want a guided tour, all you have to do is set a goal of GPS, the route is marked on a map and also allows you to follow your progress with live view.

In addition, e-mail has never been so easy on a mobile phone. The iPhone 3G supports HTML e-mail and everything is presented in their original formats, not stripped like smaller versions, and the same goes for web browsingprovided by Safari. Installed Microsoft Exchange enables push email, synchronization of calendar, notes and contacts with access to resources such as Cisco IP VPN and WPA2 Enterprise support were included.

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