The beginning step is the most important moment, especially for the one who will enter the market with crowd participants. This presentation is the one way to create winning moment for a challenger product.

1. Copyright: Fadhillah Indra Budi
By: Fadhillah Indrabudi
Marketing Strategy
As A Challenger Product

2. Background
The industry we will enter is tire industry.
Our main product is radial passenger car tires.
Currently, Indonesia market has 6 (BS, DLP, GT, Swallow, EP & GY) tire
manufacturer registered at APBI.
Actually, there are 7 (BS, DLP, GT, Swallow, EP,GY, & Multistrada) local
tire manufactures & more than 5 import tire manufactures (Hankook,
Kumho, Continental, Michelin, Pirelli, etc.) exist in Indonesia market.
Until now, benchmarking only do through analyzing registered tire
manufactures sales to distributor, which is we did not know how much
exactly the market share percentage.
Copyright: Fadhillah Indra Budi

3. Competitive Environment
Tire Industry
The threat of a substitute product – HIGH Level
The industry has more than 13 players, and all of them can be find in each
workshops.
From 13, there are 5 players who have their authorized outlets, spread all over
Indonesia (detail will be attached).
The market leader, Bridgestone, has the highest price level. The others compete
each others with tight offering price & promotion.
The threat of the entry of new competitors – HIGH Level
Currently, there are more than 13 players existed and it will be increase, soon. Like
tires manufactures from India & China could be enter Indonesia market without any
barriers at all.
The Indonesian tire importer have access to buy and sell with well. Most of them
only import the tires which have a lot of margins.
The workshops with open arms in accepting new brands, the choices are selling
strong brand product or high margins.
Copyright: Fadhillah Indra Budi

4. Competitive Environment
Tire Industry
The bargaining power of customers – HIGH Level
Currently, about 52 million units of cars are existed spread all over Indonesia.
Most of cars owner have free will in choosing the tires, with high consideration
of prices and less educated about qualities.
The bargaining power of suppliers – LOW Level
Currently, like we know, each tires manufactures have their own suppliers,
determined by the headquarters.
The intensity of competitive rivalry – HIGH Level
Players existed are more than 13, and each of them have tight competition of
prices and promotion.
The customers have low education about tires quality, that makes them easy
to move to the product which has more offers.
Most of players have good quality of product and almost in the same level.
Copyright: Fadhillah Indra Budi

5. Competitive Environment
Tire Industry
Conclusion
In order to survive and gain profit with continuous sales in tight competition,
the tire manufacture of Indonesia market has to start with brand positioning.
With brand positioning, tire manufacture will create an image or identity in
the minds of their target market for its brand.
A success brand positioning will create “Bonding” (top level in The Brand
Pyramid) with the customer, which the customer is formed a strong
emotional attachment to the brand.
With strong emotional attachment to the brand, the tire manufacture will
have strong position in the competition, which is it become hard to be
substitute, it sow fear to the new entry, and the intensity of market become
soft.
Copyright: Fadhillah Indra Budi

6. The Brand Pyramid
1) Presence
At this beginning level, the customers are aware little bit to
the brand, and they still using the brand with trial error.
2) Relevance
At this level, customers begin asking questions:
"Does this brand fit my needs?", "Is it in the right price bracket for
me?“, & "Is it worth it?“.
In this two level, we will use The Marketing Mix & 4Ps to lay the
foundation for our marketing strategy and to help build
awareness of the brand.
We also have to do Market Segmentation, so we can focus our
marketing strategy on delivering the offerings targeted at the
distinct groups of people most likely to engage with the brand. Copyright: Fadhillah Indra Budi

7. The Brand Pyramid
3) Performance
Here, customers begin comparing the brand with others
and starting to associate the brand with a specific
identity.
In reaching this stage, we need to show that the brand
is better than the competitors' brands, by doing USP
(Unique Selling Proposition) Analysis.
After that, we will ensure that our marketing materials
to inform customers the information they need to
compare our product with competing products.
Copyright: Fadhillah Indra Budi

8. The Brand Pyramid
4) Advantage
At this level, customers have determined that there is a
distinct advantage to using the brand, compared with
others. They are also beginning to associate the brand
with their emotions and with their sense of self.
5) Bonding
Here, customers have established a bond with the brand.
They've determined that cost, advantage, and
performance are all at levels that they're happy with.
To reach these final stages, we need to communicate
the perceived further advantages of the brand.
Customers might begin to identify the brand with
emotions such as fun, excitement, etc. Copyright: Fadhillah Indra Budi

9. Tactical Moves
In order to help in making the right The Marketing Mix & Market
Segmentation, we have to be able to seeing our market through the eyes
of the customers, by interviewing the customers (Focus Group Discussion).
After this, we have to make clear target of which workshops will be our
priority in distributing the brand & the products. In that case, we have to
mapping exactly what numbers of workshops we have and the potential
one are spread in where regions.
By knowing which workshops we targeted, we can customize each
promotion package we will offering to.
Copyright: Fadhillah Indra Budi

10. Tactical Moves
GT GENERAL
AREA BS TOMO DLP SHOP GY SHOP MSA SHOP TOTAL
TIREZONE SHOP
Jabodetabek 71 38 34 16 10 273 445
West Java 23 28 15 2 2 114 184
Central Java 22 11 18 4 2 74 131
East Java 22 21 16 2 4 108 173
Bali & Arounds 5 12 7 1 3 30 58
North Sumatra 13 25 24 3 4 93 162
South Sumatra 14 9 12 4 2 41 82
Kalimantan 13 8 6 2 0 67 96
Sulawesi 4 16 10 5 0 28 63
INDONESIA 187 168 142 39 27 828 1,394
From this table, we can see actually there are more than 1,300 workshops
existed spread all over Indonesia.
The independent workshops (General Shop) still exist about 60% from total
workshops exist. This is our target in making our sales channel.
But in selling the products, there are huge possibility we also can enter to each
authorized outlets, of course with good customization promotion package. Indra Budi
Copyright: Fadhillah

11. TO BE CONTINUED
Copyright: Fadhillah Indra Budi