Product Positioning of Bike Industry in the Philippines

1. Product
Positioning
Mario L. Rance
TM281 | F6-9PM | PROF. GLEN IMBANG
University of the Philippines Technology Management Center

2. Report Outline
Definition
Topic Overview:
Marketing Strategy
How to create
Perpetual Map?
Sample
Perpetual Map
for Bike Industry
in the Philippines
Effectivity measures
of Product Positioning
Key
Takeaways

3. Marketing Strategies
Market segmentation and
product positioning rank
as marketing’s most
important contributions
to strategic management.
Market
Segmentation Product
Positioning

4. Marketing Strategies
Market segmentation can
be defined as the
subdividing of a market
into distinct subsets of
customers according to
needs and buying habits.
Market
Segmentation
Product
Positioning

5. So ideally, after markets
have been segmented so
that firm can target
particular customer groups,
the next step is to find out
what customers want and
expect, this is Product
Positioning.

6. What is
Product
Positioning?

7. Product Positioning is
…
Product Positioning
(sometimes called Perpetual
mapping) entails developing
schematic representations
that reflect how products or
services compare to those of
the competitors on
dimensions most important
to success in the industry.
-Fred & Forest David
Positioning is not what you do to a
product. Positioning is what you do to the
mind of the prospect. That is, you position
the product in the mind of the prospect.
So it's incorrect to call the concept
'product positioning.' As if you were
doing something to the product itself.
Not that positioning doesn't involve
change. It does. But changes made in the
name, the price and the package are
really not changes in the product at all'¦.
Positioning is also the first body of
thought that comes to grips with the
problems of getting heard in our
overcommunicated society.
-Al Ries and Jack Trout,
…
"Product positioning"
is a marketing
technique intended
to present products
in the best possible
light to different
target audiences.

8. However, product positioning can
also be applied to products
without an existing market. Apple
mastermind Steve Jobs famously
said:
“People don't know
what they want until
you show it to them….
Our task is to read
things that are not yet
on the page.”

9. How to create a
Product
Positioning Map
or Perpetual Map?

10. Product Positioning
steps:
1
2
Select key criteria that effectively
differentiate products or services in
the industry.
Diagram a two-dimensional product-
positioning map with special criteria on
each axis.

11. Product Positioning
steps:
3
4
Plot major competitors’ products or
services in the resultant four-quadrant
axis.
Identify areas in the positioning map where the
company’s products or services could be most
competitive in the given target market. Look
for vacant areas (niches).

12. Product Positioning
steps:
5Develop a marketing plan to position
the company’s products or services
appropriately.

13. Additional
Rules:
1Look for the hole or vacant niche,
which is a segment of the market
currently not being served.
2
Do not serve two segments with the
same strategy. Usually, a strategy
successful with one segment cannot
directly transferred to another
segment.

14. Additional
Rules:
3Do not position yourself in the middle of the map.
The middle usually indicates a strategy that is not
clearly perceived to have any distinguishing
characteristics. This rule can vary with the
number of competitors. For example, when there
are only two competitors, as in US presidential
elections, the middle becomes the preferred
strategic position.

15. Sample Perpetual
Map for bike
industry in the
Philippines

16. Perpetual Map for Bike Industry in the
Philippines (Bike frame):
Low-cost
High-cost
Race Performance
wise (Carbon
frame)
Utility-wise
(Alloy frame)

17. Perpetual Map for Bike Industry in the
Philippines (Bike frame):
Low-cost (less
than Php200k)
High-cost (More
than Php200k)
Race Performance-wise
(Carbon frame)
Utility-wise (Alloy
frame)

18. Perpetual Map for Bike Industry in the
Philippines (Group set):
Low-cost
High-cost
Race Performance
wise (Carbon
frame)
Utility-wise
(Alloy frame)

19. Perpetual Map for Bike Industry in the
Philippines (Group set):
Low-cost
High-cost
Race Performance
wise
Utility-wise

20. An effective Product
Positioning must:
1
2
Uniquely distinguishes a company
from the competition.
Lead customers to expect slightly
less service than a company can
deliver.

21. Key Takeaways:
1
2
Many firms have become successful by filling
the gap between what customers versus
companies see as a good service. What the
customer believes is good service is
paramount, not what the producer believes.
Hence, product positioning is important.
However, product positioning can also be
applied to products without an existing
market, like in the case of Apple where they
dictate what the consumer would want.

22. Thank you.
Mario L. Rance
mlrance@up.edu.ph

23. References
Strategic Management
Concepts and Cases
Fred R. David, Forest R. David
Product Positioning: Key
Elements and Strategies for
Success
https://www.lucidchart.com/blog/wh
at-is-product-positioning
Product Positioning
https://www.inc.com/encyclopedia/pr
oduct-positioning.html