Levels of a Product
The three “levels of a product” helps entrepreneurs market their products successfully. Marketers should take the three “levels of a product” seriously to make the best decisions. This discussion uses the example of Coke to examine these three levels of a product.
Core Customer Value
More people are consuming soft drinks today than ever before. We have some people who are sensitive about their health needs. A person looking for a soft drink needs a product that is healthy and tasty. The soft drink should not increase the risk of obesity or diabetes. This explains why various products from Coca Cola Company address such needs.
The actual brand or product in this study is Coke. The Coca Company markets its products in different varieties or “product names”. For example, there is “Diet Coke” targeting individuals who are sensitive about their health conditions. Other varieties are containing various minerals and nutrients. The bottles and packages come in different designs and shapes. Coke is therefore a superior brand that offers quality to the global consumer.
The Coca Cola Company uses the best practices to provide the consumer with the best quality. The first approach entails the use of an effective “supply chain system”. The supply chains make it possible for the consumers to access the products wherever they are. Coke has always sponsored various sporting events thus making its products recognizable. The company has a website whereby customers can leave their feedbacks and comments.
Response to Questions
The “three levels of a product” are essential for a successful marketing strategy. However, the three levels will differ if the same product were marketed in a lesser developed nation. In the first level, the consumers will only view Coke as a prestigious product. This means that a few people will consume soft drinks. The issue of health will not be a major concern. With such changes, the marketer will consider the best ways to increase sales and understand the specific needs of the consumers. As well, the marketer should consider the best supply chain to address the needs of the targeted customers.
Different companies can use the “product-market expansion grid” to market multiple products in different countries. The companies can use the grid to penetrate new markets and develop their existing products. As well, the company can introduce its products to new markets to emerge successfully. However, the analysis would be different for a global company that markets “standardized products” globally. The global company can utilize similar resources and approaches to achieve their goals after successful market penetration.
The product life cycle has four critical stages. The product life cycle is useful because it helps global marketers understand how their products perform in the market. This helps marketers determine when it is right to introduce new products or services through “product development”. During the “introduction stage”, different companies encounter various expenses and challenges. During this stage, the market size is usually small. The sales are also minimal but increasing. The use of a “marketing mix” can make the marketing strategy successful. The second stage is the “growth stage”. During this stage, there is a growth in profits and sales. Companies can use promotions to make their marketing strategies successful.
The third one is the “maturity stage”. At this stage, the product is competitive and profitable. The best marketing strategy during this stage is to penetrate new markets and reduce prices. The approach will make the marketing strategy successful. Finally, the product enters the “decline stage”. During this stage, the market is usually shrinking thus making the products less competitive. The companies in the market should come up with new products to promote business performance. Companies can also utilize cheaper methods of production. This will help the businesses achieve their targeted profits and eventually become successful.