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Russia s Mountain Water War
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Sometimes a company s marketing can be a weakness. The number one mineral water in Russia is a brand called Aqua Minerale. In fact, it s a brand owned by PepsiCo, so it s not surprising that it has excellent marketing. It positioned the brand effectively by disguising its origin. It put mineral in the name and mountains
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REpositioning
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on its label, thus making consumers believe that the water comes from a mountainous region. Smart. The original mineral water in the Russian market was a Russian brand called Borjomi. Also not surprisingly, it has had muddled marketing. Since it was the original, Borjomi is perceived by older consumers as being the leader in mineral waters. But it has failed to capitalize on its origins while introducing confusing line extensions such as Borjomi Light and Borjomi Springs. All this did was weaken the brand. The obvious strategy is to use advertising to reposition Aqua Minerale as not being real mountain water, only make-believe mountain water. And real mountain water is the best. The concept would be to simply put the two labels side by side with the headline:
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You can t spot real mountain water by the label.
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Under the Aqua Minerale label, you would say, This water is produced nowhere near the mountains. Under the Borjomi label you would print, This water comes from the mountains, where nature produces the best water. In judo, you re taught to use an opponent s momentum against him. This is a classic example of using a competitor s marketing against it.
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REPOSITIONING THE COMPETITION
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An Attack Must Resonate
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Anytime you hang a negative, it must quickly make sense to your prospect. Everyone knows that Listerine tastes terrible. Not everyone knows that Starbucks is snobby. That idea doesn t resonate. And MSG in soup is an idea that s a little too complicated to resonate. When Boar s Head deli products talks about its meats and cheeses as containing no artificial colors, artificial flavors, or trans fats, it repositions its competitors as not being very good. This resonates. Why Because Boar s Head costs more and is sold in prestigious, quality-conscious delicatessens and gourmet stores places that stake their reputation on quality. Another way to express this concept is to ask whether the idea explodes in the mind. When you ve presented your idea, your prospect should agree almost instantly, without further explanation or argument. The idea should be just too obvious to need prolonged consideration. If an idea doesn t explode or needs more explanation, it is not a good repositioning-the-competition idea. Mental explosions come with an almost instant acceptance, where the prospect agrees, no questions asked.
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It s Not about Price
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Trying to reposition the competition as being more expensive usually is not a very good strategy to pursue.
REpositioning
Price is often the enemy of differentiation. By definition, being different should be worth something. It s the reason that supports the case for paying a little more for a product or service, or at least the same amount. But when price becomes the focus of a message or a company s marketing activities, you are beginning to undermine your chances to be perceived as being unique. What you re doing is making price the main consideration in picking you over your competition. That s not a healthy way to go. Few companies find happiness with this approach, for the simple reason that every one of your competitors has access to a pencil. And with it, each of them can mark down its prices any time it wants to. And there goes your advantage. As Harvard s Michael Porter says, cutting prices is usually insanity if the competition can go as low as you can.
THE CASE OF CHEAPER CARROTS
To support Porter s premise, we point you to a start-up company that came up with a unique packaging system for baby carrots. It was one that produced a decided price advantage over the two big suppliers that were already in the business.
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