4.2 Positioning examples at Citroën

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From the course by IE Business School

Positioning: What you need for a successful Marketing Strategy

273 ratings

IE Business School

Positioning: What you need for a successful Marketing Strategy

273 ratings

Course 2 of 5 in the Specialization Marketing Strategy

Positioning is the heart of any Marketing Strategy, the core that you must get right. It does not matter whether you start with a clearly defined target group or with a differential value proposition: you will need end up with a clear segment or segments upon which we build our Marketing Plan. In this course - the second in our Marketing Strategy Specialization - IE professor Ignacio Gafo will guide you through the essential stages of this key marketing process, starting with the basic elements that you will require and deciding on the market segmentation and marketing. The course progresses to examine the key market trends that you will encounter and will provide you with a handy practical toolbox of skills. The course features interviews with industry professionals as well as on location videos where we quiz members of the public on their attitude towards this key concept. After this course you will be in no doubt of where to position your product and which segment you are going to attempt to attract.

From the lesson

Positioning

In the fourth module we speak about positioning itself. The positioning concept is analyzed and practical tools are shared to define it . Furthermore, key marketing strategies and market trends affecting positioning are offered.

4.0 Introduction to the session1:53

4.1 What is positioning?3:41

4.2 Positioning examples at Citroën10:05

4.3 Positioning Statement3:45

Meet the Instructors

Ignacio Gafo
Professor
Marketing

[MUSIC]

Hello to everybody.

Today I would like to share with you in a story, the story about Citroen,

the French automobile manufacturer.

And specifically, I want to speak about the successful story of positioning and

product launch, which applies to this vehicle I have here with me,

which is the Citroen Berlingo.

Before jumping into that, let me provide you with the context about the launch.

So with the late 90s, again we're speaking about the small industrial vehicles.

And at that moment what you could get from small industrial vehicles was very,

very straight forward.

So we're speaking basically about a very functional

mini van that was basically good for doing the job.

But from a aesthetic point of view, it was not really impressive, right?

It was something you could get at a reasonable price, but

from design comfort perspective, it was not really outstanding.

In any case, was dominating that segment.

And they were addressing a target group which was mainly males.

45 years old professional that were looking for something functional and

they could use mainly at work and from time to time in their personal lives.

So that was where basically the market stood.

As we tried and tried to revolutionize the market to come up with

something different.

So, what they did is they conducted the research and

they realized that there were some needs that could be covered smartly

because those professional people that were using the car for

professional usage were also keen and using that for their personal life.

So what they did is based on that input that they got from the market from

the target group they were addressing which was basically the same I spoke about

before, they came up with something which was revolutionary.

And what they came up with, this kind of hybrid.

It basically combined what you could get from a saloon car

with a small industrial vehicle.

So, what did they do?

Well, they took he positive things about the small industrial

vehicles they could find in the market.

It was basically functionality.

And, on top of that, added quite a few interesting things.

First thing they did was to change completely the out design.

Because, all the sudden design was rounded.

It was not, it was functional, still, but, it was not like edgy.

It was something much more trendy, something much more appealing.

That's one thing they did.

The second thing they did was to change completely

the functionality before they could get in the car, and introduce new functionality

that was unthinkable at the time of the case, which was thing likes air, etc.

So that's what they did, and

the last thing they did on top of that to complement the offering, to

complement the hybrid product they came up with, was to come up with flashy colors.

New colors,

because what you could get before that was very plain, straightforward, eight colors.

So this is the position.

This is what they came up with.

A target group was very, very well defined.

And now what I want to share with you,

is the history about how they came out with this.

What was the product lines like.

You think work.

Well, let's see it in a minute.

Thank you.

[MUSIC]

I said right before we were speaking about something revolutionary.

Introduced by Citroen for

the small industrial vehicles, which is the Citroen Berlanga.

So as I told you they basically come out with something completely differential for

a well defined target group and now I would like to speak with Miguel Fernandez.

Miguel, thank you for coming.

Today, I'm meeting with [INAUDIBLE], who's the marketing director, who is very,

very involved in the product launch, and knows all the details, okay?

So, let's speak to Miguel and see basically what they did.

So, Miguel, first of all, thank you again.

I would like you to share with us everything around the product launch,

the marketing company design, how it worked.

And how you connected with the positioning that you came up with for

this exclusive product.

>> Okay,

[FOREIGN]

>> Mm-hm.

>> [FOREIGN]

>> Mm-hm.

>> [FOREIGN]

>> Sounds really really cool and

it's amazing to me how aligned it was with the position,

the marketing a plan and you came up with.

What was the reaction from the customers when they

found out this revolutionary concept?

What was the feeling?

What was the insight develop, what was the reaction?

>> [FOREIGN]

>> I guess since very negative but, it did to work.

How were they sales?

Do you pick up with the sales?

What was the result?

>> [FOREIGN]

>> Fantastic.

Looks like positioning really, really works.

My last question would be competition.

I guess they were pretty shocked when they introduced this innovative concept.

What was their reaction from competition?

How did they fall off with you?

>> [FOREIGN] >> Mm-hm.

>> [FOREIGN] >> Mm-hm.

>> [FOREIGN] >> Mm-hm.

>> [FOREIGN]

>> The numbers speak by themselves since

Israel is still leading this market segment.

So thank you, Miguel, I think it was great, the insight about how positioning

works in real life, the importance of being very clear about the target group.

>> Whether you want to sell and then being consistent right in your commercial

plan on your commercial execution.

So congratulations and thank you so much for being here with us.

>> Thank you.

[MUSIC]

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