Analysis On Profile Products Positioning Of PG Company

Since entering into 21^st century, the GDP of China has always maintained a high speed increase by means of increasing the input of fixed assets to stimulate the domestic demands which leads to the outbursting increase of national iron and steel output. The domestic crude steel output was 129 million tons in the year 2000, and skyrocketed to 489 million tons in 2007, the so-called sunset industry in the past has won unprecedented development. However, the problems are brought about at the same time, such as unreasonable distribution of productive forces, low concentration degree of production capability, low grade of product mix, weak ability of independent innovation, overall excess of production capability, overcapability of low level production, as well as the strengthening of external condition restraint like resources, energy , transportation and environment. How to survive and develop in this increasingly fierce competition is an imperative concern for every iron and steel enterprise.The object of study in this article is the profile products of large domestic state-owned iron and steel enterprise - PG Company. Facing with the great threat of numerous domestic producers of profiles and the increasing opportunities of huge domestic market, the strategic plan that PG sets about to realize is: keeping remarkable advantages and distinct characteristic in the competition with related domestic enterprises to maximize the enterprise benefit, gradually realizing the transition from the traditional low-grade profiles to specialized high value-added profiles. Guided by STP marketing theory and combined with the actual production of PG, this paper has performed detailed division of PG profile products, choosing of targeted markets and positioning of products.Five force models is used in this paper to analyze the industry environment of PG profiles, and got competitors and customers are two key factors in the industry competition faced with by PG; SWOT analyzing method is used to analyze the advantages, disadvantages, opportunities and threats, and got that PG should adopt increase strategy on the special products with comparative advantages; With market areas, prices and services as subdivided variables, with attraction degree of subdivided markets, own resources and target as references for the choosing of target markets, with product advantages and features to define the positioning of products, and finally got the conclusion: The profiles products of PG should choose the strategy of professional service and high-grade products.