Professional Documents
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Page 2
Sylvanias positioning strategy should be done through a
holistic rather than independent decision approach
Pr
B2B od Ef
uc fec
VS t P tiv
B2C os e
itio
S
ni
Strategic Analysis
n V
ng
tio ies
va nc
Hedonic New Brand
ng
n o te
ici
VS VS
In pe
Pr
m
Utilitarian Sub Brand
Co
&
es
re
ur
Co
at
Fe
Target Market
&
Target Segment
Consumer Insight
Sylvanias decision has to strike a balance between whats good for the company, and
features customers value
Page 3
Moreover, they should target Asia and Europes Residential
Lighting Control Market
A B2C business model will tap into the Fast growth for the next 18 years will make
Residential Lighting market this market even more attractive
MKT Size MKT Size
$ 43 BUSD $ 60 MUSD
CAGR (2012-30): 20%
Asia; 40%
USA; 22%
$ 642 Mn
Targeting Residential Lighting Control Market in Europe & Asia has huge potential
Page 4
17% (14%)
Over 80K 12% (39%)
Page 5
People who value more the experiential aspects of our
product, are similar to our defined customer target segment
Cluster 1 Cluster 2
(Energy Savings) (Experiential)
Age 38 37
Male 53% 63%
Age: the younger the
better
Expected Price $164 $181
Less price sensitive
Willing to Pay $177 $198
Household: the
Household Size 2.9 3.4 bigger the better
Based on our research, Hedonic Customers are the best type of customers to target
Page 6
Sylvania must prioritize the GO signals valued by Hedonic
customers, and inhibit the STOP signals for the Utilitarians
Cluster 1 Agree to
Hedonic Go-Signals
Features to Cluster 2
1 (Energy Pay List
prioritize (Experiential)
Savings) Price
Interested Hedonic
Set a better
Prospects Customers 8% 97% 80%
mood at home
Improve
24% 76% 70%
quality of light
Ad
va
n ta
2 i ty ge
Utilitarian Go-Signals
b i l
a
rial Rogers 5
T
Com
attributes
Uninterested Utilitarian that
p
Prospects Customers
lity
lexit
influence
atibi
adoption
p
Com
Observability
Stop > Go Stop < Go
Inhibit STOP signals for Utilitarian customers: Price and switching costs to a new system
Page 7
The $200 price point should remain to maximize gains and
develop a Premium Product image
Agree to
Reason to Purchase Utilitarian
10.8 Pay List
10.0 IQ Control Vs. Hedonic
Price
9.5 9.2
8.5 8.1 Improved Quality of Light 70% Hedonic
Aesthetic appeal 71% Hedonic
Make Social Events Fun 93% Hedonic
Energy Cost Savings 66% Utilitarian
Better mood 80% Hedonic
Easier control 69% Utilitarian
Improved productivity 69% Utilitarian
Cluster 2 (yellow) will appreciate as traditional 68% of Utilitarian customers are ready to pay
products shift from lowinvolvement to the list price for IQ Control with its respective
lifestyle products features
Pricing Decision
$200
Page 8
Sylvania should go for B2C and innovate to survive, while
developing a new set of core competencies
B2C
Focusing on B2C segment and reshaping their core-competencies to align with the changing market
trends is an important aspect for companies in which are in a highly innovative market
Page 9
The brand should be Sylvania IQ Control, based on our
market research data and the Brand Architecture framework
Brand Equity
Page 10
Our Positioning Statement will focus on the hedonic-
lifestyle features and ease of use
Page 11