Positioning is an advanced marketing tool that allows managing perceptions of an existing business and its associated brands towards external and internal decisions. Externally, what are the optimal messages to be communicated to our targeted audiences? Internally, what needs to be improved in-house in order to upgrade perceptions that are related to our critical success factors?

1. Analysis of the current situation c h a p t e r o n e Marketing Plan DIY d anny abramovich Chapter 1out of 4 Positioning www.MarketingPlanNOW.com

2. 1.7 Positioning a n a l y s i s o f t h e c u r r e n t s i t u a t i o n SWOT as a scanning tool Positioning is the average perception of our brand by the target audiences against other competitive brands. Perception is the key issue, but perception of what ? The price? The value for money? Perhaps the quality of service? No ! Perception of the USP ’s www.MarketingPlanNOW.com

3. 1.7 Positioning a n a l y s i s o f t h e c u r r e n t s i t u a t i o n SWOT as a scanning tool Positioning is the average perception of the unique selling propositions of our brand by the target audiences against other competitive brands. The above definition compiles three analysis tools that we have covered so far to find out the following : Direct competition, segmented target audiences & USP’s (SWOT).

4. 1.7 Positioning a n a l y s i s o f t h e c u r r e n t s i t u a t i o n SWOT as a scanning tool We can use the three ingredients (on the left) to measure an average perception by using a perceptual map. direct competitors targeted segments USP’s Who do we ask ? What do we ask ? existing co n sumers and/ or potential cus t omers in your opinion as a regular client, how can you rate the bakery as far as their health consciousness goes for their products between 1 (low) and 4 (high)? www.MarketingPlanNOW.com

5. 1.7 Positioning a n a l y s i s o f t h e c u r r e n t s i t u a t i o n Step 1 : Selecting 2 of the top-3 USP’s of BA * as X and Y axis. The 3 rd USP, USP 3 , will be later in use * British Airways USP 2 USP 1 4 3 2 1 1 3 4   USP’s   flexibility of schedule quality of in-flight services Me First Quadrant I Me Too Quadrant II Me Too Quadrant II Not Me Quadrant III

6. 1.7 Positioning a n a l y s i s o f t h e c u r r e n t s i t u a t i o n Step 2 : Preparing a short questionnaire mentioning BA and its direct competitors Comment : It is preferable that the customers will not be aware of who is behind the survey (source). It can take place in an airport at the counters of the competing airlines in your opinion as a regular business class “London-New York” passenger, could you please rate the following airlines with regards to the quality of their in-flight services, between 1 (low quality) and 4 (exceptional quality) : British Airways (BA), Delta (DL), Air Canada (AC), American Airlines (AA) ? direct competitors www.MarketingPlanNOW.com

7. 1.7 Positioning a n a l y s i s o f t h e c u r r e n t s i t u a t i o n Step 3 : Plotting the feedback and its average following the response of the targeted segment USP 1 4 3 2 1 1 3 4    targeted segments Comment : The number of interviewees (“n”) should be up to 20 (n=20) for a small business and up to 500 (n=500) for a large corporation.  quality of in-flight services flexibility of schedule USP 2  This is the optimal position to be reach ed

8. 1.7 Positioning a n a l y s i s o f t h e c u r r e n t s i t u a t i o n Step 4 : BA realizing its current positioning as leader in schedule flexibility ‘London-New York’, but only as 3 rd best in perceived quality of service USP 1 4 3 2 1 1 3 4      analyzing perceptions flexibility of schedule USP 2 quality of in-flight services www.MarketingPlanNOW.com

9. 1.7 Positioning a n a l y s i s o f t h e c u r r e n t s i t u a t i o n Step 4 : BA locating the optimal USP match out of three possible perceptual maps (with 3 USP’s) analyzing perceptions USP 1 - quality of in-flight services > blue USP 2 - flexibility of schedule > green USP 3 - seat comfort > red Me First - I Me Too – II Me Too – II Q quadrant first fourth third BA rating USP 3 USP 2 USP 3 USP 1 USP 2 USP 1 perceptual map USP Y-axis USP X-axis

10. British Airways London-New York Business Class Perceptual map - 1 USP indicators quality of in-flight services (USP1) flexibility of schedule (USP2) Rating of perceptions BA is in second quadrant, 3 rd out of 4 relevant brands Interviewee composition 500 passengers that were addressed at Heathrow Airport, check-in counters of AC, DL & AA (not BA) 4 3 2 1 1 3 4      quality of in-flight services flexibility of schedule 1.0 2.5 3.3 3.8 2 2.5 2.5 3.5 1.0 1 AA DL AC BA USP

11. British Airways London-New York Business Class Perceptual map - 2 USP indicators quality of in-flight services (USP1) comfort of seat (USP3) Rating of perceptions BA is in second quadrant, 4 th out of 4 relevant brands Interviewee composition 500 passengers that were addressed at Heathrow Airport, check-in counters of AC, DL & AA (not BA) 4 3 2 1 1 3 4      quality of in-flight services comfort of seat 1.5 3.8 2.2 3.0 3 2.5 2.2 3.5 1.0 1 AA DL AC BA USP

12. British Airways London-New York Business Class Perceptual map - 3 USP indicators flexibility of schedule (USP2) comfort of seat (USP3) Rating of perceptions BA is in first quadrant, leading this USP match ! Interviewee composition 500 passengers that were addressed at Heathrow Airport, check-in counters of AC, DL & AA (not BA) 4 3 2 1 1 3 4      flexibility of schedule comfort of seat www.MarketingPlanNOW.com 1.5 3.8 2.2 3.0 3 1.0 2.5 3.3 3.8 2 AA DL AC BA USP

14. a n a l y s i s o f t h e c u r r e n t s i t u a t i o n www.MarketingPlanNOW.com