Chapter 7 Differentiation and Positioning
Case: Eileen Fisher: Repositioning The Brand
Author(s): Keinan, A.; Avery, J.; Wilson, F.; Norton, M.
Publisher: Harvard Business School
Publication Date: 2012
Reference: 9-512-085
Abstract: Well-established fashion brand Eileen Fisher has traditionally appealed to older
women. However, to drive growth, Eileen Fisher’s management team wants to target a younger
demographic and has revamped its Fall product line to offer more fashionable styles to appeal to
younger women. But, repositioning the brand has proven to be harder than expected. This case
explores the challenges of appealing to new target markets, without alienating existing
customers. The case follows Eileen Fisher’s initial forays into social media as they chase a
younger demographic and demonstrates the opportunities and pitfalls that await big brands when
they enter the world of Web 2.0.
Case: Lean Edge Razor: Splitting Hairs in Product Positioning
Author(s): Quelch, J.; Beckham, H.
Publisher: Harvard Business School
Publication Date: 2011
Reference: 4249
Abstract: After three years of development, Paramount Health and Beauty Company is preparing
to launch a new technologically advanced vibrating razor called Clean Edge. The innovative new
design of Clean Edge provides superior performance by stimulating the hair follicles to lift the
hair from the skin, allowing for a closer shave. The company has already decided to introduce
Clean Edge into the men’s market where it has a strong presence. Jackson Randall, the product
manager for Clean Edge, struggles with how best to position the product for the launch. One
strategy is to release Clean Edge as a ‘niche’ product, targeting the high-end market of fastidious
groomers looking for superior skin care products. Another strategy is to release the product into
the highly competitive mainstream razor market where the product can be positioned as the most
effective razor available. Randall meets internal resistance to the mainstream strategy from the
product manager for the company’s current, but aging, mainstream razor products and he must
consider the effects of cannibalization in his plan. Randall must recommend an optimal strategy
and provide supporting economic analysis of his decision – not just for Clean Edge, but for its
effect on the entire company.
Case: Concha y Toro
Author(s): Deshpande, Rohit ; Herrero, Gustavo A.; Reficco, Ezequiel;
Publisher: Harvard Business School
Publication Date: 2008
Reference Number: 9-509-018
Abstract: Chile’s largest wine producer faces a price versus value positioning problem. Its highest
quality wines are not priced competitively at retail because “Made in Chile” connotes great value
and low price..
Case: Tanishq: Positioning to Capture the Indian Woman’s Heart
Author(s): Narayandas, D; Herman, K
Publisher: Harvard Business School
Publication Date: 2006
Reference: 9-057-025
Abstract: The firm has to choose between an established brand, Tanishq, and a new skunkworks
brand, GoldPlus, to go after the Indian plain gold jewelry market: Tanishq, initially targeted at a
western customer, has undergone strategic retooling and has currently been repositioned to serve
the ‘traditional yet modern’ Indian woman. The brand still carries some baggage from its past.
GoldPlus, on the other hand, is a new brand that is positioned to serve the plain gold wedding
jewelry market. A variety of strategic, economic, organizational and brand investment reasons
make the decision an important one.
Case: Airbus A3XX: Developing the World’s Largest Commercial Jet (A) 20 pp.
Author(s): Esty, Benjamin C.; Esty, Benjamin C.; Kane, Michael
Publication Date: 2000
Publisher: Harvard Business School
HBS Number: 201028
Abstract: In July 2000, Airbus Industries’ supervisory board is on the verge of approving a $13
billion investment for the development of a new super jumbo jet known as the A3XX that would
seat from 550 to 1,000 passengers. Having secured approximately 20 orders for the new jet, the
board must decide whether there is sufficient long-term demand for the A3XX to justify the
investment. At the time, Airbus was predicting that the market for very large aircraft (VLA),
those seating more than 500 passengers, would exceed 1,500 aircraft over the next 20 years and
would generate sales in excess of $350 billion. According to Airbus, it needed to sell 250 aircraft
to break even and could sell as many as 750 aircraft over the next 20 years. This case explores
the two sets of forecasts and asks students whether they would proceed with the launch given the
size of the investment and the uncertainty in long-term demand.
Case: BET.com
Author(s): Eisenmann, Thomas; Fischer, Pauline
Publisher: Harvard Business School
Publication Date: 2000
Reference: 9-800-283
Abstract: Black Entertainment Television, a leading cable programmer, is launching BET.com,
an Internet portal targeted toward African-Americans. This case examines the challenges facing
BET management as it defines its service offerings and target customer segments in a
fast-moving, highly competitive environment. BET.com faces two decisions: 1) whether to
bundle Internet access service with its ethnic portal; and 2) whether to strictly target
African-Americans, or also pursue the “urban market,” a young (aged 15-24), cross-racial
segment with distinctive tastes in music and fashion, and part of the core audience for BET’s
cable programming. Teaching Purpose: To illustrate the economics and strategy issues facing an
Internet content provider and to explore the tradeoff between focus and growth in launching
Internet businesses.
Case: Autobytel.com
Author: Moon, Youngme
Publisher: Harvard Business School
Publication Date: 1995; Revised 2005
Reference: 9-500-015
Abstract: Autobytel enjoys first-mover advantage in the Internet new car buying space.
According to a number of metrics, it is the online leader in this category. However, a number of
competitors have sprung up, raising questions about the long-term viability of Autobytel’s
purchase referral model. In addition, Autobytel is struggling to accelerate revenue growth. The
company has launched several new services and is now seeking to reposition itself in the market.