For Mr. Bong De Ungria's MarkMan Class SY 2016-2017

1. Marketing Management Final Paper
PowerDrive: 10 Step Marketing Plan
Group 4 | LEC 21: Basallote, Marian | Dela Cruz, Katrina | Llamzon, Samantha | Lok, Niko | Lorena, Alec | Villanueva, Denise | Vitug, Brigido
I. Primary Target Market
From teens to young professionals with active lifestyles who require extra energy, improved audio quality,
and data space in order to improve their experience with their gadgets.
● People aged 13 ­ 30 from class A­C
● Students to young professionals
● Heavy gadget users
● Gamers (Pokemon Go)
● Tech­savvy
● Media consumers
This target demographic was chosen because these are the “heavy users” and in order for PowerDrive to
make its greatest impact, it must be able to breach this targeted market.
II. Needs, Wants and Demands of the Primary Target Market
PowerDrive was created to fulfill a plethora of needs and wants. The assessment of needs to fulfill was
based on Maslow’s Hierarchy of Needs.
● People do not feel safe when their gadgets have no power
○ They feel that in an event of an emergency, the lack of power on their gadget may mean
the difference between getting stranded in a dangerous place and booking an uber to get to
safety. Needs: safety
● Documenting life events with their gadgets (Snapchat, Facebook, etc.)
○ People want to use their gadgets to document life’s precious moments. It could be their
baby’s first steps, their eldest daughter’s debut, showing their friends pictures of a trip to a
foreign country, or a college graduation. Since power drive provides an extra boost of
battery power to their gadgets, they can record or document those precious moments with
confidence. Needs: Love/belonging/, self­esteem
● Consuming and sharing media
○ Students and young professionals are always copying and sharing files. Whether it be
e­books for medical students, or a series with 7 seasons, with power drive’s storage
capacity they can quickly transfer their data and share it with their friends as well. Needs:
belonging, self­esteem, self­actualization because you can be your best self if you have
resources like books
○ Once the people have shared or stored their media, they want a way to be able to consume
it in a way that is to their liking. Since power drive has a built in speaker, you can watch
those newly copied episodes you got from your friend and be able to enjoy it with good
audio quality so that if you’re watching with other people, they don’t feel left out. Needs:
love and belonging, self­esteem

2. ● Owning the next “big thing”
○ Everyone, especially our target market is concerned with owning the next big thing so that
they don’t feel left out. When bluetooth speakers and powerbanks came out, everyone
wanted one. They wanted this product because it was cool to own and add to the fact that
everyone else had one. Power drive seeks to build on the successes of past products by
combining it into one easy to use unit that is ready for anything that the owner can dish out.
III. Competition and Competitive Position Map
In this day and age, technology has played an indispensable role in our everyday lives—enabling
faster, easier communication, making various forms of entertainment readily accessible, enhancing
productivity and efficiency at work, among many others. Technology has been constantly evolving,
undergoing through a series of transformations to meet consumer needs that are flexible and variable. New
gadgets serving different purposes surface in the market every so often. Bluetooth speakers, power banks,
and external hard drives are just some of the gadgets that have made breakthroughs in the market in the
last decade.
As in any industry, competition has already been established among companies dedicated to producing
quality bluetooth speakers (e.g. Creative, JBL, Bose, Beats), power banks (e.g. Xiaomi, Anker, Asus,
EasyACC), and external hard drives (e.g. Seagate, WD My Passport, Transcend, Toshiba). However, when
it comes to hybrid gadgets such as external hard drive with power bank add­on and bluetooth speakers with
power bank feature, weaker competition exists since fewer companies (e.g. JBL, Success ETC, ADATA)
have ventured into such novelty. The group’s brainchild, PowerDrive, was thus inspired by this knowledge
on the existing status of competition among companies and on the rising, discrete demands from
consumers.
Utilizing Porter’s Five Forces Tool, the group has identified the key determinants of competitive power in this
kind of business situation: supplier power, buyer power, competitive rivalry, threat of substitution, and threat
of new entry.
Supplier Power. PowerDrive, packaged as a power bank, external hard drive, and bluetooth
speakers in one ultimate device, requires separate suppliers for each of the components. Due to the
uniqueness of this product, it is anticipated that there would be fewer choices for suppliers, which translates
to suppliers having greater power and control.
Buyer Power. Age, price, composition, packaging, and brand are variables that may significantly
affect consumer choice. It is most likely that PowerDrive would attract people aged 13 to 30 since they are
the ones who use gadgets or consume media most frequently and most heavily. Buyers intuitively opt for
cheaper prices. PowerDrive falls within the middle range of pricing of hybrid gadgets; thereby, granting
buyers with modest power. The well­diversified composition of PowerDrive, as well as its packaging that is
centered on durability, has the potential to create a following, to establish a strong consumer base. When
this happens, lesser power is transmitted to the buyers.
Competitive Rivalry. PowerDrive faces direct competition from only a few rival companies, JBL and
Success ETC, which offer 2­in­1 bluetooth speakers and power bank at high and low prices respectively,
and ADATA, which offers 2­in­1 external hard drive and power bank at a moderate price. PowerDrive’s
strength lies exactly in what it is made of, which uniquely integrates all that can be found in the devices of
JBL, Success ETC, and ADATA, achieving the 3­in­1 appeal at a moderate cost.

3.
Threat of Substitution. With a 3­in­1 kind of gadget such as PowerDrive, the threat of substitution
exists in the form of gadgets themselves that are capable of fulfilling the intended purpose separately or as
single units (i.e. bluetooth speakers for audio, power bank for charging, external hard drive for storage).
Indirect competition may also come from laptops with built­in greater storage capacity and from charging
stations in establishments.
Threat of New Entry. At present, PowerDrive holds strong and durable barriers to entry, securing
protection over its key technologies. Entry into this specific market entails a great deal of time, preparation,
and money, which makes it somehow difficult for interested companies to compete effectively.
Table 1. Direct and Indirect Competitors, Variables Affecting Consumer Choice.
DIRECT INDIRECT VARIABLES
JBL
Charge 3
Portable Bluetooth Speaker with Power
Bank
Individual gadgets
>Power bank
>External hard drive
>Bluetooth speakers
Age
Success ETC
2­in­1 ​Bluetooth Speakers, Power Bank
Laptops with greater storage capacity Price*
ADATA
DashDrive Wireless HDD and Power
Bank AE800
Charging stations in establishments Composition*
Packaging
Brand
*Two most critical factors affecting consumer choice.
Table 2. Price vs. Composition
Price vs. Composition 2­in­1 Power Bank and
Speakers
2­in­1 Power Bank and
External Hard Drive
3­in­1 Power Bank,
External Hard Drive,
and Speakers
Low Price SUCCESS ETC
PhP 2,599
Mid Price ADATA
PhP 4,599
POWERDRIVE
PhP 4,345/ 5,215
High Price JBL
PhP 8,099

4.
Table 3. Competitive Position Map: Functional Benefit vs. Brands
PowerDrive JBL Success ETC ADATA
Allows for safe and efficient charging of
devices
++ ++ ++ ++
Provides ample space for music, movies,
and other media files
++ ++
Delivers full­range, rich bass sound ++ ++ ++
Displays resistance to shock, dust, and
water
++
IV. Gap, Opportunity, and Position
Up until now, there have been devices that provide two or more features that cater to the NWDs of
people for power banks­hard drives and power bank­speakers. The gap in the market was to provide a
device that could potentially create a new permutation of features never seen before, such as a hard
drive­speaker combo. While the opportunity for a hard drive­speaker combo was there, there was a vision to
simply go even further where no other device has gone before: to give a 3­1 hard drive, speaker, and power
bank device. PowerDrive fills in the market gap to provide a unique combination of features that has never
been developed, and seizes the opportunity to provide the product that most people would qualify as
something they’d need in their everyday life.
Besides the ability to provide these features, it also aims to position itself in a way that is similar to other
brands and products of the same tier, plus more­­given some extra features other products don’t have.
​Wireless Generation. People of today have been accustomed to living in a very unattached and
wireless age­­they just don’t want to be tied down especially since the trend these days is to be on­the­go
and very mobile in their daily lives. PowerDrive addresses this by also providing the same needs and even
eases the burden of carrying supporting cables by having retractable built­in cables so people carry less
when they actually need to be wired.
​Unlimited Power. A very difficult situation these days is to be caught in the middle of things and
suddenly run without battery. PowerDrive aims to fix that by not only serving as the life force for your other
gadgets, but by also having solar panels, it allows charging on­the­go whenever the sun is out. People value
this type mobility since you’re not tied down to a need for sockets. Even more, you’re eco­friendly.
Practical Convenience. The fact that 3 features have been put into one device already makes
PowerDrive very practical and convenient. There is no longer a problem of forgetting a device that serves
just an individual feature of PowerDrive. By just bringing your PowerDrive, and not even it’s cables, you’re
sustainable and ready for all your tech needs on the go. What’s more, people may not realize just yet, but
with this product, they may have been missing out a feature that they never thought would be useful in their
lives.

5.
V. Market size from the 3Cs perspectives
Competition
Unlike other electronic consumer goods, the power bank market is relatively new and as such, not
much information is made available to the public regarding its size, segmentation, annual profit, and the
likes. This is especially true in the Philippines, where not a lot of news articles are written about power banks
in particular nor are there local manufacturers of power banks that disclose information regarding the
performance. Market studies and analyses done by marketing firms are available, but they come at a very
high cost. As such, the information regarding the estimation of market size from the competition’s
perspective will be from a global standpoint.
It is undeniable that power banks have found their way into the market because of the insatiable
need of consumers to stay connected through their electronic gadgets, particularly with their smartphones.
The increase in digital content and technological advances in the creation of applications have led to an
increased use of smartphones with a corresponding increase in the discharge rate of batteries. As such,
power banks have almost become a complementary good to smartphones and other devices.
Based on a study by marketing firm MarketsandMarkets, the global power bank market is
segmented based on capacity range, the number of USB ports, source of energy, technology, application,
and region. Intuitively, low capacity power banks (those less than 1500 mAh) are not as preferred because
they fail to meet consumers’ demands. On the other hand, those with capacities ranging from 9500 mAh to
12499 mAh have the highest market share and are expected to have a compound annual growth rate
(CAGR) of 24.2% from 2015­2020. However, due to the increasing processor speeds of newer smartphones
as well as the increasing amount of digital content available, it is expected that power banks of higher
capacity (greater than 12499 mAh) will be of greater demand in the years to come.
Moreover, Zion Research predicted earlier this year that the global power bank market could surge
to USD 17.2 billion by the year 2020 after valuing the said industry at USD 15.09 billion in 2014 (Fig. 1). The
firm attributes this to the growing demand for smartphones and tablets across the globe, decreasing prices
of power banks, and increasing battery consumption secondary to increased digital content. Lastly, they also
noted that the Asia Pacific region is the leading market for power banks globally, which accounts for 45% of
the total market. Thus, the total ​market size for power banks in the Asia Pacific region is USD
6.79­7.74 B from year 2014 to 2020.
Fig. 1 Global Power Bank Market, 2014­2020 (USD Billion)

6. Customer
​The number of Filipino users with a power bank was estimated using information that was more
readily available, which is the amount of smartphone users in the country. According to market research firm
International Data Company (IDC), the Philippines is “the fastest­growing smartphone market in ASEAN” as
evidenced by the shipment of 3.5 million units of smartphone in the country in the first quarter of 2016 alone.
They also predict a 20% year­on­year growth as well as a total growth of 25% by the end of the year (18.3 M
shipments). Given this trend, one can predict that a rise in power bank sales will also occur in the years to
come.
The number of smartphone users in the Philippines is available in Figure 2. Based on this figure,
there are 27.5 million smartphone users in the country. Assuming that 1 in 5 smartphone users own a power
bank, we can then say that approximately 5.5 million Filipinos own a power bank this year.
In order to estimate the potential market size for 10,000 mAh and 20,000 power banks, the said
number of Filipinos with power banks would have to be multiplied by the average cost of power banks with
the aforementioned capacities. For 10,000 mAh power banks, the average cost based on the online store
Lazada is around PhP 2,924.50 (lowest at PhP 1,300 and highest at Php 4,549). On the other hand, 20,000
mAh power banks cost PhP 3,299.00 on average (lowest at PhP 1,599 and highest at PhP 4,999). Given
these numbers, we can then say that the ​market size for 10,000 mAh power banks is at PhP 16.1 B​,
while the ​market size for 20,000 mAh power banks is at PhP 18.1 B​.
Fig. 2 Smartphone users in the Philippines, 2013­2020
Company
​Lastly, since the company has not started its operations yet, no existing claims or historical sales
data can be used to estimate the market size. Instead, targets can be set at this point. PowerDrive aims to
have a ​target market share of at least 10%​ in the Philippine power bank market by ​year 2020​.

7. VI. The Product: PowerDrive
Dimensions
The product size is 4 inches x 1.5 inches x 3 inches (Figure 3). True to its purpose and primary
target market, this compact size enables the device to easily be put inside one’s pocket or the side pockets
of a bag. This makes it portable for wherever one chooses to venture and adaptable to the youth’s active
lifestyle.
Figure 3. Product dimensions
Design
With the primary target market in mind, the design idea is centered around durability—that is, fit for
a life of adventure (Figure 4). The hardware is metal coated in soft touch plastic, to protect the device from
harsh elements. It is hexagonal in shape, with rubberized edges to ensure stability. This exterior, coupled
with the latest software technology, makes the device shock resistant, dust resistant and waterproof.
Because the company is confident in PowerDrive’s durability, the product includes a 3­year warranty.
Overall, these features ensure long product life, adapting to any activity.
Figure 4. Components of PowerDrive’s durable design

8.
A tough exterior is good, but captivating aesthetics is better. With this in mind, the product is
designed to be more reflective of the owner’s personality. Four color variations are available to choose from:
black, blue, red and apple green (Figure 5).
Figure 5. PowerDrive color variants
Components
The product has three key components—speaker, power bank and hard drive—which address the
target market’s evolving needs.
Speaker. Size does not limit the features of PowerDrive’s speaker as it has 360­degree surround
sound with wireless capability for a rich and unrestricted audio experience. To conserve electric
charge, it has a toggle switch to turn on the speaker function and solar panels, which also allow
charging of the powerbank. To complete the experience and make it compatible to all devices,
PowerDrive also has retractable USB and micro USB slots, as well as an AUX input (Figure 6).
Figure 6. Speaker component specifications
Power Bank. The power bank is PowerDrive’s main feature, boasting of either a 10,000 mAH or
20,000 mAH capacity, equivalent to a maximum of 8 full phone charges or 2 full iPad charges. The
power bank component also allow for the charging of the speaker component. It has a brilliant LED
light power indicator as well as a Toggle power button to ensure efficient battery use (Figure 7).

9.
Figure 7. Power bank component specifications
Hard Drive. PowerDrive’s hard drive provides 500 GB storage, for one’s extra storage needs. The
device is compatible with both Windows and Mac devices for a limitless experience (Figure 8).
Figure 8. Hard Drive component specifications
VII. Promotion
The main avenue for promoting the product is through digital marketing. First, the company can buy
advertising/promotional spaces in the marketplaces where the product will be sold to increase traffic to the
product’s page. These marketplaces will be discussed in more detail in the section ‘Place’. Second, targeted
and tailored advertising will be availed for users in social media. This should be optimized using available
information about these users, such that those who tend to shop for or browse a lot of electronics will be
more exposed to ads of the product.
PowerDrive will also maintain a Facebook Page that will be continuously updated and can serve as an
interactive portal for present and potential customers. An important factor with the maintenance of this page
is its ability to quickly and appropriately respond to customer queries within 24 business hours. PowerDrive
will also provide sample products to tech bloggers to review and, in the process, promote. This is to increase
awareness of the product and will serve as a form of advertising.
Word of mouth will also be employed, as PowerDrive recognizes the ability of spontaneous, unscripted
recommendations to penetrate deeper into the trust and subconscious of consumers. Real

10. recommendations from real friends and real people will be effective in communicating the advantages of the
product.
Third, PowerDrive expects to increase market share by being present in fairs and events where there is a
heavy concentration of the primary target market, such as college fairs and tech conventions. These events,
happening once or two times a year, require more preparation by way of physical materials and logistics.
However, the density of people who are potential customers in these events is a positive that outweighs the
negatives of the preparation. Fairs and conventions also allow consumers to experience PowerDrive in
person rather than in theory behind a computer screen. It allows user to correlate PowerDrive’s descriptions
with its actual touch and feel, to weigh it in their hands, to experience its superior sounds, and physically see
how well­made the product is.
Lastly, we will employ sales promotions to engage the consumers and increase the recall value of the
product. Such contests can be held, for example, on Facebook’s groups platform or PowerDrive’s page
itself. Online contests that require simple entries such as “Post your most favorite soundtrip moment” with
the chance to win a PowerDrive unit are simple to execute and have a great impact in promoting the product
through that particular virtual space. The more entries are posted, the more visibility the main post gets,
which increases the promotion even more. Taking advantage of Facebook’s ecosystem and notification
engine is an intuitive step in promoting PowerDrive to its intended target audience.
VIII. Price
Table 4. Summary of Features and Price Comparison of PowerDrive and its Competitors
JBL Charge 3 SCS ETC 2­in­1
Bluetooth Speakers
and Power bank
ADATA
DashDrive
AE800
PowerDrive
Power Bank
(mAh)
6,000 7,000 5,200 10,000 / 20,000
HD Space
(GB)
­­ ­­ 500 500
Speakers Yes Yes ­­ Yes
Price (PhP) 8,099 2,599 4,599 4,345 / 5,215
​Table 4 shows the summary of the important features and price comparison of the PowerDrive in
relation to its competitors. The price for the JBL Charge 3 was based on Lazada, while that of the SCS ETC
and ADATA were from Amazon as they are not readily available in the local market.
As for the determination of the price of the PowerDrive, research on suppliers of the individual main
components of the PowerDrive was made at GlobalSources.com, a website which lists products from
various suppliers (most of which are from China) with their corresponding prices per unit or in bulk. The
process was then to look for the most affordable component and to add them together. An additional 25%

11. was then added to the cost for each unit of PowerDrive in order to account for other costs (i.e. shipping,
assembling, etc.) as well as the contribution margin. Again, all computations are used so as to provide a
rough estimate for the cost of the product, and as such they are subject to change. The final breakdown of
the components leading to the final estimated price of PowerDrive can be seen in Table 5.
Table 5. Costing of the PowerDrive
Cost (in PhP)
10,000 mAh 20,000 mAh
Power bank 1158 1853
Bluetooth speaker 463.25 463.25
Hard drive 1853 1853
Total Price 3474.25 4169.25
FINAL Est. Price ​(TP x 1.25) PhP 4,342.81
~​ PhP 4,345.00
PhP 5,211.56
~​ PhP 5,215.00
Next, Table 6 presents the price difference between PowerDrive and its competitors. Cells in green
signify that PowerDrive is cheaper than the competitor by the given percentage; likewise, cells in red signify
that PowerDrive is more expensive compared to the competitor by the said percentage.
Table 6. Price Differences between PowerDrive and Its Competitors in Percentage
PowerDrive
10,000 mAh 20,000 mAh
JBL Charge 3 46.35% 35.61%
SCS ETC 2­in­1 67.18% 100.65%
ADATA DashDrive AE800 5.52% 13.39%
Lastly, projected revenues and expenses for years 2017 (first operating year) through 2020 are
shown below (Tables 7 and 8). At the end of the first year of operations, around 7,300 units of each model of
PowerDrive are expected to be sold (around 20 units of each model per day). Marketing expense is
estimated to be around PhP 50,000, which will be used to pay Lazada, costs for participation at events, and
other marketing events. This is expected to increase at a steady rate of 5% every year. Moreover, other

12. expenses (selling, general, administrative, income tax, etc.) are estimated to be around 10% of the cost of
goods sold yearly.
Table 7. Income Statement for 2017
​The projected growth rate is based on the annual increase in the number of smartphone users.
Given this, an increase in net income of 9%, 7%, and 7% are to be expected in years 2018, 2019, and 2020,
respectively.
Table 8. Projected Income Statement for 2018­2020
IX. Place
The product is primarily distributed through tech­rich virtual marketplaces. These are digital
marketplaces in which there is a large variety of technological and electronic products for sale and which are
very proficient in the sales and promotion of these types of products. These marketplaces, such as Lazada
and Ebay, were chosen because of their affinity to the primary target market, who are heavy tech­users and
who are always connected to the internet. Aside from the wide demographic reach of these websites (it is
accessible to anyone with an internet connection), most of their users fit squarely into the primary target
market. For instance, in 2015, more than 50% of Lazada’s gross merchandise volume ­ or the value of items

13. that shoppers buy ­ came from mobile users. It is exactly this group of people ­ users who are highly
dependent on mobile technology ­ that PowerDrive is targeting.
The products are going to be available worldwide as a consequence of the choice of marketplace. The
products can be delivered worldwide by courier services such as FedEx, UPS, or DHL. For local buyers,
couriers like LBC, JRS, and Xend can be chosen by the buyers depending on their comfort level with the
respective companies. This allows for unparalleled convenience for buyers of the digital age.
X. Generic winning strategy
Of Porter’s 5 Generic Winning Strategies, differentiation best reflects the success of the product.
First, the product is different due to its functionality. The increase in functionality proves to be essential in
this day and age of increased demand for connectivity. People are always on the go, and PowerDrive’s
functionality as well as its portability fulfills a growing need in the modern man’s market.
Second, PowerDrive is durable. Unlike other products in the market, PowerDrive boasts of shock resistance,
dust resistance, water resistance and includes a 3­year warranty. This kind of durability is difficult to find in
products of a singular nature, more so in a multi­functional device. But because PowerDrive is made of high
quality materials, these may be guaranteed to the customer.
Third, PowerDrive differentiates itself through its value for money. Purchasing separate speakers, hard
drives and power banks will easily cost three times as much as owning a single PowerDrive. The price of a
single PowerDrive unit is comparable to that of any of the single items on the market. Plus given the
functionality and the durability, there is no question about the product’s value for money.
Finally, PowerDrive is different in that it offers excellent customer service done through reliable and
accessible technical support and ease of ordering and transaction of the product. This is a feature that is
usually overlooked in Filipino­made products. Customer service is not a high priority in local businesses. But
with PowerDrive, we recognize the growing demand of customers for good service, and their appreciation
for easy and hassle­free transactions. This sets the product apart from any of its competitors, most of whom
as based abroad and do not have a solid service center based in the country.

14.
References
● “Power Bank Market worth 17.8 Billion USD by 2020”
(​http://www.marketsandmarkets.com/PressReleases/power­bank.asp​)
● “Global Power Bank Market Set For Rapid Growth, To Reach Around USD 17.2 Billion By 2020”
(​http://www.marketresearchstore.com/news/global­power­bank­market­194​)
● “PH is fastest­growing smartphone market in ASEAN ­ report”
(​http://www.rappler.com/business/industries/215­tech­biz/136777­idc­smartphones­market­philippin
es­asean​)