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Product decisions


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Product decisions

  1. 1. Product decisions
  2. 2. • Product levels: The customer value heirarchyi)Core benefit: rest and sleepii) Basic product: hotel roomiii)Expected product: room with clean bed, towels, bathiv)Augmented product: hotel with travel desk, business centre,wi-fi,…..v) Potential product: Future product….internet on board aircraft?
  3. 3. • Product augmentation key to differentiation• Each augmentation adds cost• Augmented benefits soon become expected benefits
  4. 4. Product differentiation• To be branded, products must be differentiated• Differentiation can be across multiple dimensions:i) Form: shape, size, physical structure (Crocin tablet, syrup)ii) Features: Passenger cars (Honda City 1.5 E MT, 1.5 S MT, 1.5 V MT,1.5 V MT Exclusive, 1.5 V AT…)iii)Performance quality:Low , Average, High, Superioriv)Conformance quality: consistency in qualityv) Durabilityvi)Reliabilityvii)Repairabilityviii)Style
  5. 5. Services differentiationi) Ease of ordering: online bankingii) Delivery: Domino’s pizzaiii) Installation: Sun film, wallpaperiv) Customer trainingv) Maintenance and repair
  6. 6. The product hierarchy• Need family- The core need that underlies the existence of a product Eg: Security• Product family-All product classes that can satisfy the core need with reasonable effectiveness Eg: Savings and Income• Product class-A group of products within the product family which have functional coherence Eg: Financial instruments• Product line- A group of products within a product class that are closely related Eg: Life insurance• Product type- A group of items within a product line that share one of several possible forms of the product Eg: Term life insurance• Item
  7. 7. • Product mix- Width is determined by how many different product lines the firm carries• Product line length is the number of items in the product mix• Product line depth is the number of variants in each product
  8. 8. Hindustan Unilever Ltd Home and Perso Foods nal carePerson Laun Skin Hair Oral Deo Cosme Tea Coffee Foods Iceal tics creamwash dry care care careLux Surf Sunsilk Pepso Axe dentLifeb Excel Fair & Clinic Close Rexon Lakme BBL Bru Kissan Kwalit Lovely a yuoy upLiril Rin Ponds Lipton KnorrHam Whe Annap Walls urnaam elBreezeDovePears
  9. 9. Packaging and Labeling• Packaging: All the activities of designing and producing the container for a product• Often referred to as the fifth ‘P’ of marketing• Contributes significantly to branding• Innovation opportunity
  10. 10. Labeling• Performs several functions:i) Identificationii)Descriptioniii)Advertising and promotioniv)Legal conformances
  11. 11. New products-Challenges• New product development must to sustain growth in revenue• Through acquisition or development• Acquire companies, brands, patents, licences, franchises• Incremental (sustaining) and disruptive innovation
  12. 12. New Product Development• Idea generation• Idea screening• Concept development and testing• Marketing strategy• Business analysis• Product development• Market testing• Commercialization
  13. 13. Stages in new product adoption process• Awareness• Interest• Evaluation• Trial• Adoption
  14. 14. 5 adopter groups• Innovators (2.5%)• Early adopters (13.5%)• Early majority (34%)• Late majority (34%)• Laggards (16%)