Dynamic market . . . relativities change
However, positioning through price presents a challenge. The position is illustrated not by the absolute price, but by the price relative to other choices. As these reference prices change, then the positioning itself can be changed. What was an acceptable premium price can become unacceptable when a competitor drops the price or improves the performance of a substitute brand.
In September 2004, two leading consumer multi-nationals, Unilever and Colgate-Palmolive issued profits warnings on the same day. Both needed to invest more marketing money in communicating the benefits of their brands in the face of strong competition. This competition came from branded rivals and also from supermarket own brands. ...
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