Correct product portfolio positioning is the key to success in marketing

Guide: The factors that affect market competition are many, marketing theory also change new, especially with the advent of mobile internet era, marketing skills are endless. However, according to the experience of practice, we believe that: correct product portfolio positioning is the key to success in marketing.

As we all know, there are many factors affecting market competition, marketing theory is changing, especially with the advent of mobile internet era, marketing skills are endless.

However, according to the experience of practice, we believe that: correct product portfolio positioning is the key to success in marketing.

Take an enterprise for example, the enterprise selected a less attention to market segments, under the strong leadership of the general manager, with the force of force, with accurate market entry point, in less than five years, achieved from scratch, continuously achieve high-speed growth, laid in the segment of the industry challenger status.

However, shortly thereafter, as the competitor's defensive counterattack intensified, the enterprise also appeared stagflation, especially the sales and sales are at a low speed consolidation situation. In its industry, because of industry characteristics and competitive pressure, if the long-term difficult to achieve scale development, not only enterprise profitability is difficult to maintain, and will inevitably affect the upstream supplier system and downstream of the dealer system, when there is not enough interest space, system and disintegration is inevitable.

To this end, we start with the product analysis and research.

The enterprise currently has a product can be simply summed up as a, B, C, D four series. One series of products because of the unique design in the market has not yet appeared a strong competitive products, B series of products and a series of close, but the function is slightly lower than a series, the price is slightly different, and the two series of products to some extent have an alternative relationship. B series of similar competitive products more, competitive advantage is not obvious.

C Series products, the largest market capacity, but because of high pricing, and its market segments have a relatively strong leadership brand, and because of the market share of leading brands, the price advantage is obvious, leading to the C Series of product sales is also a long time wandering.

and D series of products of their own market segments limited capacity, oligopoly competition is also more obvious, the market is also difficult to break through.

The following diagram can be a clear indication of the company's several major products of the very general.

Earlier, the enterprise generally adopt a conservative approach, in the overall market size is difficult to break through the situation, for all products have adopted a "high price skim fat" strategy. From the overall business situation analysis, the company's profitability is good, each year has more than 30 million net profit. From a single series of product analysis, the main source of profit or rely on the C Series in the industry leading position of products, several other series of products are in a meager profit or loss of state.

Because these large series of products in the customer groups, sales channels and so on many aspects have a strong correlation, if the simple shutdown, not only will cause a large number of sunk costs, but also will make distribution channels of products more thin, the supply system is also difficult to maintain. Let's simply do a product matrix analysis:

It is easy to see that the C Series is the enterprise's main profit contributor, sales growth is also higher, but its market size relative to a series of smaller, is to focus on the development of profitable products. D-Series has a higher profitability, but because of the small market size and weak growth, the real profit contribution is negligible. The B-series has a market size between D and C, but lacks competitive advantage and has a low growth rate. and a series of products in the largest market, and the growth rate is not high.

In this case, how should the enterprise break the deadlock to achieve market breakthrough?

In fact, in the era of homogenization of products, in the short term, it is difficult to enhance the brand power in the real condition, product portfolio positioning strategy is often the key to win the marketing, and pricing has become the key to product portfolio positioning.

It is certainly inappropriate for the enterprise to adopt the almost identical price competition strategy for different series of products under different competitive situation ("high fat"), which is the result of the three consecutive years ' performance wandering.

The high pricing strategy for the C series is entirely correct because it has a relatively obvious competitive advantage and no other competitive product poses a threat in the short term, so it is certainly the right choice to extend the time available for this series of products as much as possible.

For D-Series products, because the market capacity itself is not large, customers buy when the price elasticity is very small, so the significance of the price is not small, but should be the pursuit of a single product profit level, the current pricing strategy is also appropriate.

However, for the B-series products, because of the unknown competitive advantage, many competitors, and the C-series between the price difference is too small (to a certain extent, the product has an alternative), in addition to considering whether the need to close the series of products, in the short term to reduce its price, pull and the C Series between the price difference, can play a C series of peripheral sniper The hitter role can also be moderately enlarged in the size of its marketing segment.

And for a series of products, in addition to the development of its new features, the most should be adjusted is its pricing strategy. As can be seen from the above analysis, the series in the market segments of the largest capacity, can play a role in the regulator, the use of price and product configuration, performance itself constitutes a comprehensive cost-effective advantage, can quickly upgrade a series of large products comprehensive competitiveness, thereby expanding its market sales scale, diluted manufacturing costs and various costs, Acquisition of the scale effect of procurement, but also make the interests of distributors and suppliers can be guaranteed, the company's brand influence will be increased with the expansion of the scale.

To sum up, the enterprises of several major categories of different products should be combined with their respective market size and comparative competitive advantage, combined with the Boston matrix of the relevant ideas, we should adopt different competitive strategies.

This will make the enterprise in the market to form a combination of product positioning advantages, rather than simply blindly pursuit of "high fat" or "low price dumping" can be in the "scale" and "profit" to achieve a balance between the ultimate realization of sustainable development.

There are many marketing factors for any product or service, but considering product performance, quality and price combination positioning strategy will enhance the market competitiveness of various products, that is, the formation of cost-effective advantages, will become the key to success in marketing.