Product Service Strategy
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(Sundar) Balakrishnan Banking, Hotels, Tax Preparation, Home Repair Services 1 Levels of Product 2 Customer Value Hierarchy Core benefit Augmented Augmented Product Product Installation Basic product Packaging Expected product Delivery Credit Brand Name Quality Level Drill- “holes” Hotels – “rest sleep” Core Core Benefit Benefit or or Service Service Features Design AfterSale Service Bed, closet, … Clean bed fresh towels,… Augmented product “..Sizzle, not the steak” Potential product Warranty Actual Actual Product Product Five Product Levels All possible augmentations MyCereal.com Core CoreProduct Product 5 Product Classifications: Consumer Products ¾ Buy frequently immediately ¾ Low priced ¾ Mass advertising ¾ Many purchase locations i.e Candy, newspapers Product Mix Decisions Shopping Products ¾ Buy less frequently ¾ Higher price ¾ Fewer purchase locations ¾ Comparison shop i.e Clothing, cars, appliances Specialty Products Unsought Products ¾ Special purchase efforts ¾ High price ¾ Unique characteristics ¾ Brand identification ¾ Few purchase locations i.e Lamborghini, Rolex ¾ New innovations ¾ Products consumers don’t want to think about these products ¾ Require much advertising personal selling i.e Life insurance, blood donation7 Consistency Convenience Products 6 Width Width--number number of of different different product product lines lines Length Length--total total number number of ofitems items in inproduct productlines lines Product ProductMix Mix-all allthe theproduct product lines lines items items offered offered Depth Depth--number numberof of versions versions of of each each product product 9 1 Product-Mix Width and Product-Line Length for Proctor Gamble Products Product Line Decisions Product-Mix Width Product Line Length Number of Items in the Product Line Disposable Bar Soap Diapers Paper Tissue Ivory (1879) Pampers (1961) Charmin (1928) Dreft (1933) Kirk’s (1885) Luvs (1976) Puffs (1960) Tide (1946) Lava (1893) Cheer (1950) Ca
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