Transcript
Roll No. Name
04 Dhaval Bhoraniya
07 Rohan Brahmbhatt
30 Nidhish Kadia
53 Dhruv Patel
7480
Bhavesh TavethiyaPrakash Zala
Group Members
Objective of Presentation
• To understand
– What is a Product?
– Five Products levels with Suitable Example.
– Classification of Consumer and industrial Products.
– Product Differentiation with Suitable Examples.
– Service Differentiation with Suitable Examples.
– Product hierarchy with Suitable Example.
– Product system and Mix with example of AMUL.
– Product line decision with example of SUZUKI Cars.
– Product mix Pricing with Suitable Example.
What is a Product?• A product is anything that can be offered to a
market to satisfy a want or need, includingphysical goods, services, experiences, events,persons, places, properties, organizations,information, and ideas.
• Theordo Levitt: “Every product have servicecomponent and Every Service have productcomponent.”– Doctor: Medicine
– Car: Maintenance Service
Five Product Levels
Transportation from one place to another.
Brand of the car, looks and design of the car etc.
Decent mileage, proper engine, inflated tyre etc.
After-sale services, insurance policy etc.
Auto Driving, Interactive etc.
Product Classification
Base on
Durability, Tangibility,
and Use
Non- Durable Goods
Durable Goods Service
Consumer Goods Classification
Industrial Goods Classification
Industrial Products
Material & Parts
Raw Material
Farm Products
Natural Products
Manufactured Materials
Component Parts
Component Materials
Capital items
Installation Equipment
Supplies & Services
Maintenance and Repair
Operating Supplies
Product Differentiation• Actually differentiating the company’s market offering from
competitor so that it achieve desire position in consumer’smind to give more consumer value.
Bases of Product Differentiation
Form/ Size Features
Customization
Performance/
Quality
Durability
Reliability
Repairability & After sale service
Style
Services Differentiation
• When the physical product cannot easily be differentiated,the key to competitive success may lie in adding valuedservices and improving their quality.
Bases of Service Differentiation
Ordering Ease
Delivery
InstallationCustomer Training
Customer Consulting
Maintenance & Repair
Return
The Product Hierarchy
Item
Product Type
Product Line
Product Class
Product Family
Need Family
The product hierarchystretches from basicneeds to particular itemsthat satisfy those needs.We can identify six levelsof the product hierarchy,using Cooker as anexample
Cooking
Cooking Utensils
Boiling Utensils
Cooker
Nonstick Cooker
Prestige Omega
Product Systems and Mixes
• A product system is a group of diverse butrelated items that function in a compatiblemanner.– For example, the extensive Nokia Lumia 530 product
system includes headphones and headsets, cables,cases and car accessories it is Product System forNokia Lumia 530.
• A product mix (also called a product assortment)is the set of all products and items a particularseller offers for sale.– A company’s product mix has a certain width, length,
depth, and consistency. These concepts are illustratedProduct Mix of AMUL.
Product Mix of AMUL
MilkBread
SpreadsCheese Beverage Paneer Dahi Ghee Mithai
Amul gold Amulbutter
Processed Cheese
Amul koolFlavored
Milk
Amul malaiPaneer
AmulMasti Dahi
Amul GheeGulab
Jamoon
Amul Taaza Amul LiteAmul
Gouda Cheese
Amul koolCafé
Amul Fresh paneer
AmulProbiotic
DahiSagar Ghee
AmulBasundi
Amul Slim & Trim
Delicious Table
Margarine
Mozzarella Cheese
Amul KoolKoko
Amulflaavyo
AmulBrown
AvsarLadoo
Amul Tea-Specuial
Garlic Butter
Amul KoolMilk
Shaake
AmulYellow (Cow) Ghee
Shrikhand
AmulShakti
AmulStamina
Can
AmulDimond
AmulButtermilk
Amul Lassi
Product Mix Width
Pro
du
ct L
ine
Le
ngt
h
• Product Line: A group of Product offer by single seller, to
single target customer, to satisfy same kind of need,
through same supply chain, at relatively same price is called
product Line.
– Amul have Different Product line Like Milk, Paneer, Ghee, Dahi,
Mithai, Beverages etc.
• Product Mix Width: Number of Product line offer by seller.
– Amul have 8 Product line so, Product Width = 8
• Product line Length: Number of Item in each Product Line
– Amul have 6 Item For Milk category so, Product line Length of Amul
Milk = 6
• Product Mix Depth: refers to how many variants are offeredof each product in the line.
– Amul offer 4 Kind of Flavored Milk.
• consistency of the product mix: Describes how closelyrelated the various product lines are in end use, productionrequirements, distribution channels, or some other way.
• Product Mix Assortment: Total Number of Product inProduct Mix.
– Amul have totally 33 Product in it’s Product Mix.
Product line Decision• Line stretching: occurs when a company lengthens its product line beyond
its current range, whether down-market, up-market, both ways and Line Filling.
Alto K10
A- Star
Wagon R
Celerio
Ritz
Swift
A- Star
Wagon R
Celerio
Ritz
Swift
Ciaz
Alto K10
A- Star
Wagon R
Celerio
Ritz
Swift
Ciaz
Down-MarketStretching
Up-MarketStretching
Both WayStretching
A- Star
Wagon R
Celerio
Ritz
Swift
Initial ProductLine
A- Star
Wagon R
Celerio
Stingary
Ritz
Swift
LineFilling
• Line Modernization: In rapidly changingmarkets, modernization is continuous.
– Companies plan improvements to encouragecustomer migration to higher-valued, higher-priced items.
– It’s important to time improvements so they donot appear too early (damaging sales of thecurrent line) or too late (giving the competitiontime to establish a strong reputation)
– Samsung came up with new version of android,Processer in it’s smart phones over period of time.
Product Mix Pricing
• Product mix pricing is setting price of Product as Part of Product Mix.
• Objective is to set prices that maximizes profits on the total product mix.
• Difficulty arise because of demand and cost interrelationships and different degrees of competition of products.
Pricing Strategy
• Product line pricing: Price of whole line is set to establish perceived quality differences that justify the price differences.
Low Price –low Quality
Average Price – Average Quality
High Price – Superior Quality
• Optional-feature pricing: Many companies offer optional products, features, and services with their main product. Mostly seen in Automobile industry.
Maruti Suzuki Ritz Models
Price (Ex. New Delhi) [in Lakhs]
Lxi 4.39
Vxi 4.79
Zxi 5.03
vdi 5.79
Zdi 6.38
• Captive-product pricing: Base product price is lower where Captive Product price is High.
Printer is Base ProductCartridge is captive product for Printer so, it’s price is high relative to printer price.
• Two-part pricing: Service firms engage in two-part pricing, consisting of a fixed fee plus a variable usage fee.
– Eg. Hospital have Fix room charge and extra charge for Doctor’s Visit, medicine, Food etc.
• By-product pricing: in certain Production Process by Product is resulted from production of main product.
– Eg. Molasses By-Product of Sugar so, Price of Molasses is lower than price of Sugar.
• Product-bundling pricing: Sellers often bundle products and features. Pure bundling occurs when a firm offers its products only as a bundle.
– Eg. Multiplex provide bundle of Film Ticket + Coke + Popcorn at lower price than price of each products individually.
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