A locally based pharmaceutical company manufactures a headache remedy, Feelgood. You have been hired to assess the current positioning of Feelgood relative to major competitors, as perceived by consumers, and to make recommendations for repositioning if necessary.

Consumers consider two attributes to be of prime importance when selecting a headache remedy: gentleness and effectiveness. In fact, these benefits define three segments that exist in this market: consumers who want the most effective brand (about 20% of the market), those who want the gentlest brand (about 50% of the market), and those who want a balance between the two benefits (the remainder). These are referred to as Segments 1 through 3 respectively. Feelgood, and Brand B, are the gentlest brands on the market, whole C and D are judged to be more effective by consumers. You have the following information about segment preferences and perceived brand positions:

	Attribute 1 (Gentleness)	Attribute 2 (Effectiveness)
Segment 1s Ideal	-1	2
Segment 2s Ideal	2	-1
Segment 3s Ideal	1.5	1.5

	Attribute 1 (Gentleness)	Attribute 2 (Effectiveness)
Feelgoods Position	1	-1.25
Brand Bs Position	1.75	-0.5
Brand Cs Position	-1.5	0.5
Brand Ds Position	-0.5	1.5

1) Obtain a perceptual map that reflects current perceived positions. What can you say about Feelgoods position? Is it well situated in this market?

2) What is the current market share of the Feelgood brand? Try several other positions for Feelgood, justifying each one (i.e., try to move close to ideal segments, away from competitors, and so on). Would you recommend any of these positions as particularly good from Feelgoods point of view?

3) What other considerations should go into your repositioning recommendations?

4) Suppose Brand B defensively repositions itself closer to the gentleness-seeking segment (Segment 2). Choose a position close to (but not right at!) this segments ideal point for Brand Bs new position and determine what the effect is on Feelgoods market share.

Plain explain answers, and show all work.