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| Author: | Rhim, H. Cooper, L.G. |
| Title: | Assessing potential threats to incumbent brands: New product positioning under price competition in a multisegmented market |
| Journal: | International Journal of Research in Marketing
2005 : JUN, VOL 22:2, p. 159-182 |
| Index terms: | Marketing Strategy Brands Product development New products Positioning Prices Competition Research Models |
| Language: | eng |
| Abstract: | This paper presents a model of competitive positioning and pricing of new products in a multisegmented market in which the ideal point for each segment is located in a multidimensional discrete-attribute space with fixed demands at a given point in time. The results show that the only open position for successful entry matches the effectiveness of Tide (the market leader) in removing stains, and lowers costs (and price) by sacrificing on the other attribute in the space. The reduced price appeals to the heavy user segment, leading to profitable entry. This position for entry remains profitable even if Tide opportunistically relocates. |
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