Proceedings of the 2017 IEEE International Conference on Applied System Innovation

IEEE-ICASI 2017 - Meen, Prior & Lam (Eds)

Pricing and Marketing Strategy for Scooters Based on Matrix Data Analysis System
Chen-Chiou Chiu1, a, Lai-Chung Lee 1,b
National Taipei University of Technology
No 1, Sec. 3, Zhongxiao E. Rd.
Taipei 10608 Taiwan, R.O.C.
+886-2- 2771-2171ext.2826, a g7190313@gmail.com, b f10666@ntut.edu.tw

ABSTRACT For example, Liu [11] discussed the relation between the bike
In the past, once a new product appearing in the market, appearance and consumer’s visual cognition. Huang [9] used a
consumers first check if the price is reasonable, if it is within research of product type and lifestyle pattern analysis through
their budget, if the product's functions meet their requirement, the Web-based two-dimensional analytical tool. Zhou [7] used
and if the appearance of the product caters to their preferences, a questionnaire investigate the relation between lifestyle and
etc. In fact, in addition to the corporate’s brand image, the price, perception of bicycle form. Wu [6] used a questionnaire to
functionality and appearance will be the key success factors of make a survey of the aesthetic imagery and preferences of
product sales. Therefore, this study is aimed to design an Taiwan festival lantern’s appearance. These studies collected
information system for a company to compare their own and analyzed research data by using different tools rather than
products with competitors and do an analysis in product price an integrated system. They discussed more about the
and marketing strategy. In this paper, the system has provided a appearance sensibility analysis, product type analysis and
user-friendly interface, analyst could pre-entry the data of consumer cluster preference analysis. They conducted a few
project and related products. It allow analyst to choose research in price and marketing strategies. This study is aimed
different ways to quantize the relevant comparative data. After to design a strategy analysis information system. With this
the business owner to adjust or change their marketing strategy, system, a company can customize their product information to
that can encourage their products competitiveness and sales in compare with other competitors, such as implementing
the market and increasing profit opportunities. quantitative analysis of monthly sales of goods, and
Keyword: Price setting strategy, marketing strategy, product understanding the pros and cons of each marketing strategy
development through the weight of sales.
INTRODUCTIONS LITERATURE REVIEW
In the past, companies sold their products through limited This section focuses on the literature review of product
and small quantities of mass production, and then using the strategy, product development strategy, product design strategy,
traditional marketing ways (such as DM, magazine and pricing and marketing strategies.
newspaper advertisements, and even by advertising
Product Strategy
anniversary) to achieve their marketing purposes. With the Product strategy covers new product development strategies
progress of information technology, buying pattern has [12]. For a company, the product strategy plays an important
changed. People search for product information on Internet, role in marketing and business strategy. Companies achieve
and even compare the features and prices of different products. their goals of growth and survival through product sales and
Therefore, launching a marketing strategy that meets the services. When studying new product strategies, Pressemier
demand of consumers (such as understanding the consumer’s [15] developed eight strategies based on the product freshness
behavior and having a good relationship with customers) is in the target market and the degree of technological innovation.
critical to maintaining their competitiveness in the market. (1) Product redesign: increase the attractiveness of existing
Once a new product appearing in the market, consumers first products. (2) Attract new users: sell the existing products to
check if the price is reasonable, if it is within their budget, if new customers. (3) Product rebuild: slightly altered to improve
the product's functions meet their requirement, and if the the quality and reduce cost. (4) Product improvements: use
appearance of the product caters to their preferences, etc. After technical improvements to make the product more suitable for
a series of comparison and thinking, consumers are willing to existing customers. (5) Market extension: provide improved
buy this new product. In fact, in addition to the corporate’s products to new customers. (6) Reset: make larger changes in
brand image, the price, functionality and appearance will be order to improve quality and reduce cost. (7) Expanding
the key success factors of product sales. Therefore, this study is product lines: adopt new technologies in order to provide more
aimed to design an information system for a company (Target extensive product lines. (8) Diversify: provide new products
Company) to compare their own products with competitors with new technologies to customers.
(Comparison Company) and do an analysis in product price If the company referred through the matrix of market
and marketing strategy. Through a quantitative model, the freshness and the degree of technological innovation before
company can figure out the best sellers, and the competitive prepared their business strategy that will be able to find the
products of the high, middle and low price ranges. This system product strategy model of operation.
helps the marketing department to understand the market
Product development strategy
demands and provides objective decision analysis information Baxter [14] recommended three steps of the product
of pricing and marketing strategies for their reference. development strategy: (1) Product maturity analysis. (2)
When doing a comparative analysis, consumers usually
Commodity analysis of competitors. (3) Risk assessment of
consider the appearance, features and price of a product if they
subsequent development. He had also been divided the driving
exclude the brand value. Now there are existing analytical tools,
force behind product development into two parts. (1) Market
many of them focus on the appearance and feature analysis.
pulling. (2) Technology push. Baxter also proposed the strategy

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Proceedings of the 2017 IEEE International Conference on Applied System Innovation
IEEE-ICASI 2017 - Meen, Prior & Lam (Eds)

of product reform can be classified as leadership strategy, Figure 1: Competitive rank and Market attractiveness matrix.
response strategy, the traditional strategy and reliance strategy.
(1) Leadership strategy (as a leader): their goal is to achieve The highest market share for leader, followed by the
technology and market leadership. (2) Response strategy (as a challenger, the follower, and final order is niches. Hsieh [2]
challenger): They aims for leading competitors do react, but suggested marketing strategy designed should be taking into
intentionally to allow other companies to bear the risk of new account the competitors' strategy.
product development and developing new markets. (3) Kotler [13], Lin [5] proposed about leaders and challengers,
Traditional strategy (as a follower): In order to reduce costs, followers and those niche strategies are discussed as follows:
convenient for manufacturing and increase product reliability, (1) Leader strategy: To lead the company to maintain its
that reform method usually limited to a small part of the leading position, who should adopt the following three actions:
product changes. (4) Reliance strategy (as a follower): The (A) Defense the market share: (a) Consolidate their position (b)
reform of this kind of company is often dependent on the Side defense (c) Take preemptive action (d) Reverse attack (e)
parent company strategies or according to the preferences of Defense without fixed position (f) Tactical retreat. (B) Expand
consumers. Such internal reforms were usually confined to the market share: (a) Product innovation (b) To ensure product
procedural reforms. quality (c) Product line extension. (C) Expand the overall
Product pricing strategy market: (a) Create new user (b) Create new utilization. (2)
For company’s decision-makers, one of the most difficult Challenger Strategy: Challenger company’s aims to become a
and most complex decisions making was to formulate the price leader in business, but not as a leaders’ scale, try to use the
of products or services. That needs to consider with operational same strategy to win is a very difficult thing. Therefore
costs, marketing strategies, business environment, market challenger was necessary to adopt a differentiation strategy
competition, market demand, product styles, and marketing different from the leader strategy. They expect to lead on cost
tunnels and other factors of survival [12]. Huang [8] and reduction, but also to improve the sense of market
Hsiao [10] had discussed the impact factors of price making competitiveness and consumer perceived feelings. There are
were divided into internal factors and external factors. The three types of companies could choose to attack. (A) Attack the
internal factor contains marketing goals, marketing market leader: (a) Price discount strategy (b) Cheap product
combination strategies, operating costs and the organizational strategy (c) High quality strategy (d) Extending product
structure of company, etc. As for external factor that covers the functions strategy (e) Product innovation strategy (f) Service
nature of market demand, market competition and other Improvement Strategy (g) Innovative marketing tunnel strategy
factors. (h) Reduce manufacturing costs strategy (i) Advertising and
Marketing strategy promotion. (B) Attack the followers of main market, whose
In the market, most companies do not focus on one single status is stable: (a) Pay attention to consumer’s satisfaction (b)
product and marketing plan. The key point of being a winner Care about the potential demands of consumer. (C) Attack hold
was to choose attractive market segmentation. Lin [5] with limited resources of small-scale competitors: (a)
suggested to refer the table of market-attractive and Concentrate attack strategy. (3) Marked followers’ strategy:
competitive-position matrix that could to infer the future (A) Imitator: Imitate the products of leaders and challengers.
competition and cut into time of new markets. As the higher (B) Duplicator: Copy the overall market products and
competitive position and market attractiveness, their main goal marketing steps of leader and challenger. (C) Reformer:
is to protect the competitive position of the target market. Improved the products of leader and challenger, and sales them
Invest their funds in highly profitable markets to maintain its to other markets.
advantages. Below the former, their goals are revenue
management and to maintain the current advantage, invest their
funds in low risk areas and change the competitive position. If
both of market attractiveness and competitive position are
lower, it is recommended to give up the market. It is expect to
sell all products at highest value, then reducing other
investments and fixed costs at the same time. (See Figure 1)

Figure 2: Preschool safety seats analysis data

Product price and value analysis

The value of products will not be necessarily proportional to
its price. Baxter [14] had used preschool safety seats data to
analyze (See Figure 2). For example, low price has high value
(such as sample 8: the price is £ 37 and its value of score is
70), but the high price get its low value (such as Sample 2: The
price is £ 150 and its value of score is 35).

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 Proceedings of the 2017 IEEE International Conference on Applied System Innovation
IEEE-ICASI 2017 - Meen, Prior & Lam (Eds)

Owada [1] in his analysis of price and sales chart, use the
horizontal axis represents the proportion of sales and the
vertical axis is the price. We can clearly from the chart to see
that each of the market share of the price range, pricing
strategies of each company's main products, and the functional
and pricing of other competitors’ products between different
price ranges. In the study, we refer Owada’s prices and
marketing analysis table (named as PMA Table) as basis of
system design. We import the real total sales amount of
products as data of sells weight axis. Therefore, analysts can
obtain those data of sells weight and market share after
aggregation, classification and statistical procedures of these
sells amount of products. These data can provide the
decision-makers and analysts an objective suggestion of
pricing and marketing strategies.

Figure 3: System architecture.

SYSTEM DESIGN
Analysts will first be asked to entry account and password
data for authentication. If he/she passes identity verification,
system will show related project data on the menu, but if not
verified will repeat procedures for authentication. The system
will check user identity whether as the Administrator or not. If
he/she is a managers identity, browser will show with full
menu, otherwise will show normal menu. Operational flow of
this system is divided into eight parts. (1) Project definition.
(2) Company data maintain. (3) Production data maintain. (4)
Project competitor defined. (5) Product sell data maintain. (6)
Price interval defined. (7). Marketing strategy defined. (8)
Figure 2: Prices and marketing analysis table Product functions and prices analysis board. (See Figure 4)

SYSTEM ARCHITECTURE
WWW (World Wide Web) from 1994 to date released more
than twenty years, with the advancement of information
technology and communications standards constantly updated;
today's Web Service technology is quite advance. Therefore,
our goal is to integrate existing Web Service technology to
construct an information system for company’s analyst to
compare their products with competitor’s products. (See Figure
3) This system is the type of web site, users can login the
system through a browser, so the system does not have to
worry about compatibility issues. On client site, user presented
with HTML tag form, and use by JQuery and Flash Player API
tools kit to transmit data with HTPP protocol or pass by AJAX
(Asynchronous JavaScript and XML) technology between
client and server. When the server receives a message
transmitted from the client site, and then specifies the content
Figure 4: System work flow
of the received packet according to the parameter parsing
program, and binding with the database system. Filtering data Normalization of sales weight slope
with SQL script or transmit to others API tool kits (such as When testing the system with scooter marketed data, we had
SPSS API) for subsequent processing. Finally, response data founded that the weight values of test data were less than 1 and
with HTML tag or XML format back to the front end, and then close to zero. To facilitate with building the production of
browser refresh the contents. In addition, this system could use PMA table, we use normalized slope formula and corrected the
serverlet script language (for example ASP/PHP/Python) to sell weight values range between 1 and 10. Each original sales
combine with IBM Statistics API tool kit, then filtered data is weighted value is between 0 and 10. We can see that equation
converted to SPSS statistical system can access data format. of straight line 2 in Figure 5 is X-Y=0. So the solution of this
After that SPSS Syntax Script call SPSS statistical system to equation is (ω, ω), ω as any real number. After that we set X=ω
execute statistical and classification, and finally the output is and put it in the equation of straight line 1, then the solution of
converted to standard web format, then again with JQuery or Y is the right value of normalized sales weight. (See Figure 5)
XML parsing engine, post back to the front end and display
related statistical information.

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Proceedings of the 2017 IEEE International Conference on Applied System Innovation
IEEE-ICASI 2017 - Meen, Prior & Lam (Eds)

opportunities.

Reference
[1] Minoru Owada, “The actual method of product development –
Case study: Consumer product values and planning of Japanese”,
1996, External Trade Development Council Conference, R. O. C.
[2] Phillip Kotler, et al., “Marketing Management”, 2th ed., 2002
[3] Rafael. Muhammad, “Good price to let you earn money：the price
strategy that you should know it”, 2007
[4] Jian-Huang Lin, “Marketing Management”, 2002, Best-Wise
Publishing Co., Ltd.
[5] Long-Yi Lin, “Marketing Strategy Management”, 2006, 5th
ed., Wu-Nan Book Inc., R. O. C.
[6] Xuan-Qing Wu, “A questionnaire to make a survey of the
aesthetic imagery and preferences of Taiwan festival lantern’s
appearance”, 2011, Lantern Celebration Art Images Investigation of
Figure 5: The slope of the sales weight formula. Taiwan，Design and Art Master Thesis of Da-Yeh University, R.
O. C.
Product functions and prices analysis diagram [7] Wun-Xiang Zhou, “A questionnaire investigate the relation
When Analyst has chosen this option, system will filter all between lifestyle and perception of bicycle form”, 2001,
the project data related with analyst from project define table. Design and Art Thesis of Da-Yeh University, R. O. C.
The system responded a drop-down list on analyst’s browser [8] Jiun-Ying Huang, “Principles of Marketing”, 2007, Hwa Tai
with project name. After he has finished selection, system will Publishing Co., LTD.
filter all the products data related with that selected project [9] Shih-Yen Huang, “A research of product type and lifestyle
number. The system will to summary all the weight of products pattern analysis through the Web-based two-dimensional
sell amount and its price range, and summarize the radio of analytical tool”, 2011, Chuan Hwa Book Co., LTD.
market share value that respectively belong to high, medium [10] Fu-Feng Hsiao,”Consumer Behavior”, 2008, Best-Wise
and low range. (See Figure 6) Analysts then have the following Publishing Co., LTD
mode of operation, and the results provided to the managers as [11] Zhang-Hao Liu, “Research of the relation between the bike
the recommendations who should be taken in response to a appearance and consumer’s visual cognition with Eye Tracking
competitor's marketing strategy. (A) View any product System”, 2009, Institute of Industrial Design Master's Thesis of
information (such as product contents, features, etc.). (B). National Cheng Kung University.
Select the analyst’s company and other companies’ products to [12] J.Paul Peter, James H.Donnelly., “A Preface to Marketing
compare. (C) Choose one price range to view all the Management”, 9th ed., 2003
comparison of products within the range. (D) Choose some [13] Kotler, P. and Armstrong, G., “Marketing Management ：
products to compare. Application, Planning, Implementation and Control”, 1999
[14] Mike Baxter,” Product Design”, 1995
[15] Pessemier, E. A., “New Product Decisions ： An Analytical
Approach”, 1996, McGraw Hill, New York, p9.

Figure 6: PMA Table

CONCLUSIONS
In this paper, the system aimed to provide integrated
information system for companies. Analyst could take their
products compare with competitor’s products price, value and
feature in the face of fierce competition environment. The
system has provided a user-friendly interface, he/she could
pre-entry the data of project and related products. It allow
analyst to choose different ways to quantize the relevant
comparative data. After the business owner to adjust or change
their marketing strategy, that can encourage their products
competitiveness and sales in the market and increasing profit

198 - ISBN 978-1-5090-4897-7