Student ID 63498:
511 – MARKETING MANAGEMENT
With the help of an example, explain
Straddle positioning refers to a situation in which
a firm simultaneously acquire positioning in two distinct categories by using a
single combination of points-of-difference (POD) and points-of –parity (POP).
In this type of positioning two different product images are projected.
The Subway Restaurant positioning itself in the
North American market can be used to elucidate the concept of straddle
positioning. Subway purports to provide good taste and healthy foods. Its taste
POP and health POD enhances its competitive advantage in establishing
positioning against a taste branded restaurant like McDonald’s. Subway’s health
POP and taste POD also enhances its competitive advantage in establishing
positioning against other health branded food restaurants.
Another example is when BMW, a German car
manufacturer entered the United States car market. BMW projected a luxury POP,
and Performance POD against a known luxury car manufacturer like Cadillac. At
the time, Luxury car manufacturers in the U.S were not known for performance.
BMW simultaneously projected a performance POP and Luxury POD against known
performance branded manufacturers like Chevy Corvette. During this period, as
well, U.S. performance branded vehicle manufacturers were not known for luxury.
This allowed BMW to have a competitive advantage and acquired a competitive positioning
in the U.S.
A projected dual image of a brand by successfully implementation
of straddle positioning can be of immense competitive advantage to a firm as
demonstrated by BMW in the U.S. car manufacturing market. Despite credibility
and legitimacy related challenges, Straddle positioning can lead to expanded customer
base and more profit.
Kotler, P., &
Keller, K.L., (2012). Marketing Management (14th
Straddle Positioning, In Business Jargons. Retrieved
January 26, 2018, from https://businessjargons.com/straddle-positioning.html