Page 305 - Marketing Management

282 PART 4 BUILDING STRONG BRANDS

and leisure locations that accepted only the Visa card, to reinforce both its exclusivity and its acceptabil-
ity. American Express has substantially increased the number of merchants that accept its cards and cre-
ated other value enhancements while also reinforcing its cachet through advertising that showcases
celebrities such as Jerry Seinfeld, Robert De Niro, Tina Fey, Ellen DeGeneres, and Beyoncé.

MULTIPLE FRAMES OF REFERENCE It is not uncommon for a brand to identify more
than one actual or potential competitive frame of reference, if competition widens or the firm
plans to expand into new categories. For example, Starbucks could define very distinct sets of
competitors, suggesting different possible POPs and PODs as a result:

1. Quick-serve restaurants and convenience shops (McDonald’s and Dunkin' Donuts). Intended
PODs might be quality, image, experience, and variety; intended POPs might be convenience
and value.
2. Supermarket brands for home consumption (Folgers and NESCAFÉ). Intended PODs might be
quality, image, experience, variety, and freshness; intended POPs might be convenience and value.
3. Local cafés. Intended PODs might be convenience and service quality; intended POPs might
be quality, variety, price, and community.
Note that some potential POPs and PODs for Starbucks are shared across competitors; others are
unique to a particular competitor.
Under such circumstances, marketers have to decide what to do. There are two main options
with multiple frames of reference. One is to first develop the best possible positioning for each type
or class of competitors and then see whether there is a way to create one combined positioning
robust enough to effectively address them all. If competition is too diverse, however, it may be
necessary to prioritize competitors and then choose the most important set of competitors to serve
as the competitive frame. One crucial consideration is not to try to be all things to all people—that
leads to lowest-common-denominator positioning, which is typically ineffective.

Starbucks has encountered some
stiff competition in the coffee
market in recent years from
McDonald’s and Dunkin’ Donuts.