Toyota Benefit
Identify using a model the levels off product. A) Core Benefit: This is the basic need of the consumer that the product satisfies. This is the basic need that urges the consumer to buy something.
For example, a hotel room satisfies the basic need of having a place to sleep and some privacy. So the core benefit here is the need for a place to sleep and privacy. B) Basic Product: This Is the basic product that satisfies the Inner needs of the consumer.
At this level the product contains only those values and properties that are most essential for the product to function. For example, the hotel room that has a single bed and a lockable door. C) Expected product: This involves all the aspects that the consumer expects to receive while purchasing the product.
For example, the hotel room must have a clean room with an attached bathroom. D) Augmented Product: This involves those aspects of the product that differentiates the product from its competitors.
This includes everything that exceeds customer expectations. For example, complementary breakfast, air conditioner, etc in a hotel room. E) Potential Product: This Involves all the augmentations and transformations that the reduce may undergo In the future. For example, LCD television, surprise bottle of wine for a fifth time customer, hydro massage shower cabin, etc with the hotel room.
2. List and discuss the stages in the introduction of a new product. How is this relevant to Toyota?
Here is a list of stages in the introduction of a new product: a) Idea Generation: New product idea can be generated through basic research by conducting a SOOT analysis, employees, focus groups, sales people, consumer trends, etc. Lots of Ideas get generated. Many out of these are Implemented.
Brainstorming can also help In Idea generation. Locating resources to it. Marketers should analyses questions like “will the target customer benefit from the product? “, “what is the competition for the product? “, “Is it technically feasible to produce the product? “, etc. ) Concept Development and Testing: This is also the concept development stage where the basic product is developed. It involves investigating intellectual property issues and searching patent databases and also analyzing questions like, “who is the target market and who is the decision maker in the purchasing process? “, “what product features must the product incorporate? , “what benefits will the product provide? “, “how will consumers react to the product? “, “how will the product be produced most cost effectively? “. Prospective customers are made to test the same concept and feedback is taken.
) Business Analysis: This stage includes estimating selling price of the product based on current competition and customer feedback, estimating sales volume based on market size and also estimating the profitability and the break even point. E) Market Testing: A mock up of the product is produced and tested is typical usage situations. Focus group interviews can also be conducted or the product can be introduced in a trade show. Necessary adjustments are made based on the feedback received. Then, an initial run of the product is made and sold in the test market to analyses customer acceptance.
) Technical Implementation: This is the implementation stage where the resources are estimated and planned, supplier collaboration takes place, logistics are planned, engineering operations are planned, program is reviewed and monitored, contingent situations are planned. G) Centralization: This is when the product is launched. This is the stage where advertisements and promotions take place and the distribution strategies of the product are decided. H) Review of Market Performance: This is the final stage where the product’s overall performance in the market is reviewed.
The total impact of the product is measured and the internal and external value is analyses.
The competition, sales volume and profit is also analyses in this stage. Since Toyota is always looking to innovate and come up with new cars modified to target the different sections, these stages of introduction of new products is very important to the company. Toyota not only aims at manufacturing better cars but also aims at targeting different market sectors by modifying their new cars to match the needs of the different target sectors.
For example, when Toyota built the car “mono-spec” to target teens. When Toyota decided to target the teens, they came up with different ideas but finally narrowed it down to the mono-spec idea after preferences, etc, was conducted after which the product was finally implemented and launched.
Market research and great understanding of the market is necessary when launching a new product and following the steps for new product implementation is the best way to go about the same.
