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Case on Disneyland
Disney in America was a success
Disney in Japan was a success too
Disney faced difficulties in France for assaulting French
culture (EuroDisney)
In two years, it lost about 900 million dollars in EuroDisney Product Idea: everything was in English in France?..WHAT?
Restructuring Plan: New Name: Paris Disneyland, medium of
language within Disney was changed to French
Result: Today, we have Paris Disney & Disney Studio theme
park in Paris and both are profitable venture
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Few more Demonstration on Product
Modification on International level
KFC more spicy in Bangladesh
MacDonald's Veggie burger in India and
other veg items from a franchise who have got
marvelous reputation with MEAT
Xperia X10: Skype is a default application in
UK
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What is Quality?
Market perceived qualities
Performance quality
Which one is more important? Specially, when competitors products meet all
performance quality attributes
Maintaining quality is equally important asproviding a quality product at the beginning
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Adaption as per the Requirement
Product Homologation: It is used to describe
the changes mandated by local product and
service standard
Product homologation is at the basis of
product adaption
Some changes are very obvious while others
are mainly due to economical, technological,
or for climatic differences
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Green Marketing and Product
Development
Green marketing involves developing and promotingproducts and services that satisfy your customerswants and needs for quality, performance, affordablepricing and convenience without having a detrimental
impact on the environment
A product is evaluated on all significant environmentaleffects throughout its life cycle from manufacturing to
disposal
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Green Marketing and Product
Development
Identify customers environmental needs and
develop products to address these needs;
develop environmentally responsible products
to have less impact than competitors.
Products made from recycled goods
Products that can be recycled or reused. Certified products, which meet or exceed
environmentally responsible criteria.
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Green Marketing and Product
Development
Efficient products, which save water, energy or
gasoline, save money and reduce environmental
impact.
Products with environmentally responsible
packaging.
Organic products many consumers are
prepared to pay a premium for organic products,which offer promise of quality.
Main Concept involvement of 3R
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Case StudyFujitsu (Worlds first
commercialized vegetable derived casing
Fujitsu is the first one in the world to manufacturecasings of netbook using vegetable derivedmaterials and very less harmful substances
They used Corn in Netbook Casings The commercialized technology includes a flame-
retardant characteristic requisite for notebookcomputers casings, while achieving a strength andresistance comparable to those of ABS casing.
This casing production employing this technologyrequires 40% less energy than conventional casingproduction, it helps to reduce the environmentalburden
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Products and Culture
A product is more than a physical item, its the bundleof utilities that the buyer receives.
A product is a physical and psychological satisfaction itprovides the user
Usually, few changes are required when a product ismoved from one culture to another
Products physical, mechanical attributes need to bevery much consistent with behavior pattern of the
customers Therefore, before getting into a new market look for
cultural differences since that is going to tell you howmuch product modification you require
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Case Study on Cake Manufacturer in
US
Successful American cake producer went to
Britain with their successful Fancy Iced Cake
Reason British people have cake with tea
unlike the Americans after dinner plus when
they buy fancy cake, they want to buy it from
proper bakery, not from a super store.
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Innovative Products and Adaption
New product ensures success?
What if people reaction to new product iscold?
Therefore, success of a new product dependson how people react to the new product andhow new the product is to a market
A product that reached its decline stage in acountry can ever be considered as innovationsome other country?
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Innovative Products and Adaption
Any idea perceived as new by a group of people can becalled innovation
From Marketing perspective, product innovations canbe
A modified version of an existing product range A new model in the existing product range
A new product outside the existing range but in a similarfield of technology
A totally new product in a new field of technology.
Innovations can be rejected completely if culture is notkept in mind while innovating the product (there areother reasons as well)
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Case Study on Incinerator Company
Incinerator Company (IC) is an example of both planned andopportunistic innovation.
It began as a supplier and sub-contractor of fabricated components.
Over a period it investigated the possibility of entering the marketfor advanced incinerators.
However it was only when a customer firm, which was installing anincinerator, asked it to take over the contract with which it washaving technical difficulties, that it was able to carry out its plan.
The company subsequently introduced a new type of incineratoroffering more complete combustion and reduced smoke emission.
This had become the main source of the companys growth and hadpermitted it to enter export markets
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Diffusion of Innovation
Describes the manner in which a product is
disseminated in the marketplace.
The diffusion of innovation spans an
unspecified period of time from new product
introduction through market saturation and
affects the total sales level of a product
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Product Diffusion Curve
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Diffusion of Innovation
Five characteristics that affect acceptance/
rejection:
Relative Advantage: Perceived marginal value of the
new product to the old one Compatibility: Compatibility with culture
Trialability: perceived economic risk associated with it
Observability: the ease with each product benefit can
be communicated
Complexity: complexity associated with the product
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Product Component Model
Core Component
Packaging Component
Support Service Component
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Product Component Model
Core Component:
Product Platform, design features & functional
features
Essential technology of the product
Variations can be added or deleted according to
the social need
Example: Nestle in Japan, Cleaning materials inJapan
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Product Component Model
Packaging Component: Packaging, labeling, trademarks, brand name,
quality, price (mentioned/not mentioned) and allother aspects of products package
You need to be careful with packaging companywith a red circle in Japan, company with a yellowflower in Mexico, Brugel in China ( pictures aretaken as instructions)
Color of the packaging can also affect yourbusiness ( Pink Diaper in China)
Size of the packaging is also important
Sometimes, you need to follow mandatoryinstructions in packaging
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Product Component Model
Support Service Component:
Repair, Maintenance, Instructions, installation,
warranties, deliveries, availability of spare parts
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Product Component Model
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Class Activity
Imagine, HP has gone into a joint venture with
Dell Computers in order to initiate a new
laptop brand for Bangladesh market. Use
Product Component Model in order to explainthe products that would be offered by the
company