Product positioning-as defined- “the position in your consumers minds relative to your competition” appears on the surface to be customer centric. But backing from the term customer and broadening it to stakeholders helps rediscover and uncover more of your identity, whether it is the aspired, communicated or mirrored image you desire.
So, what is your positioning in the minds say… of your suppliers? As we know, supply chain management has become a highly successful form of managing profit by not only reducing expenses, but by having product available at the right place, the right time, in the right form and at the right price to the satisfaction of your consumers.
So, what is your positioning in the minds say… of your suppliers? As we know, supply chain management has become a highly successful form of managing profit by not only reducing expenses, but by having product available at the right place, the right time, in the right form and at the right price to the satisfaction of your consumers.
How is it that you build a quality, reliable and reciprocal relationship with your suppliers such that you are more profitable?
Positioning. Understanding where your suppliers are relative to their competition takes time and energy on the part of the buying center, but it is research well worth the effort. The manner in which you explore and investigate your suppliers is as essential as the research you perform to understand your customer behavior. Key questions include the quality of the product, price, financial health, capacity, distribution, warehousing, access to resources, investment in R&D…the list is endless and mirrors the same checklist done internally in your organization to diagnose your own health and forecast your own growth. The qualitative and quantitative value analysis that you execute with your suppliers in easily transferred into your own health and growth potential. It is clear that their costs and their ability to manage costs become your costs. Their mission and vision also become integrated by association and assembly into your final product. Think of internal branding cases such as “Intel inside.” The practices of the supplier are so credible and reliable that the end product chooses to boast and borrow from the equity of the brand of its own suppliers. Are you able to state to your end users what ingredients are inside? Have you managed your suppliers in such a way that you can build your own equity derived from theirs? Have you formed a relationship with them such that business activities are transparent?
Rather than pit yourself against your supplier for the low bid, and milking every drop of profit from their margin, position yourself as a strategic annex to their operations. Negotiate win-win. Form strategic pricing agreements. Arrange exclusive distribution as a reseller. When they are THAT good, so are you. And when you are THAT good, they cannot ignore how valuable your business model is.
Positioning. Understanding where your suppliers are relative to their competition takes time and energy on the part of the buying center, but it is research well worth the effort. The manner in which you explore and investigate your suppliers is as essential as the research you perform to understand your customer behavior. Key questions include the quality of the product, price, financial health, capacity, distribution, warehousing, access to resources, investment in R&D…the list is endless and mirrors the same checklist done internally in your organization to diagnose your own health and forecast your own growth. The qualitative and quantitative value analysis that you execute with your suppliers in easily transferred into your own health and growth potential. It is clear that their costs and their ability to manage costs become your costs. Their mission and vision also become integrated by association and assembly into your final product. Think of internal branding cases such as “Intel inside.” The practices of the supplier are so credible and reliable that the end product chooses to boast and borrow from the equity of the brand of its own suppliers. Are you able to state to your end users what ingredients are inside? Have you managed your suppliers in such a way that you can build your own equity derived from theirs? Have you formed a relationship with them such that business activities are transparent?
Rather than pit yourself against your supplier for the low bid, and milking every drop of profit from their margin, position yourself as a strategic annex to their operations. Negotiate win-win. Form strategic pricing agreements. Arrange exclusive distribution as a reseller. When they are THAT good, so are you. And when you are THAT good, they cannot ignore how valuable your business model is.
Positioning with power.I have a friend who loves to negotiate. He can zing power play one liners across the table faster than they can be processed. He is powerful and negotiation makes him more powerful. But he has suppliers that flee from his presence and even customers who question his intentions. Be cautious that your power is not your position. Your position should always be to build a better business relationship so that there is not a dominant or supply chain leader, but there is an integration of the business model from seed to table.
Back to customer based product positioning. The healthiest place to start positioning yourself in your consumers’ minds is to be clear on the position of your suppliers relative to their competition and to establish a position in their minds that a symbiotic relationship with your firm is the only chance for survival. When you benefit from a healthy and favorable relationship with your supplier, your final product is more attractive to the consumer and more profitable for you as a result.
IF you wish to explore how to go about creating a good relationship with your suppliers and how to uncover more information about their positioning, just ASK.
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