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How to make a product’s real and perceived value higher

 

There are stereotyped and consolidated products within our society and consumption habits that have become a referral in our lives. This is a great competitive advantage for these products’ survival since they are naturalized at the consumption moment, but at the same time they enormously condition their evolution. It is difficult for them to disappear but they can hardly evolve and grow, because they are locked up within their “paradigm”.

A clear referral of this product typology is “The tricycle”: All children at any time in their lives receive and play with a tricycle, it is part of their vital development; we can even define when it is the optimal consumption moment through the kid’s vital line. We all know definitely in our consumer mind that a tricycle is basically a device for children to play and that it has pedals and 3 wheels.

If in an “innovation” exercise we want to make the tricycle’s value higher in the market by adding or suppressing some of its structural elements (we eliminate or add a wheel), surely we will obtain a great product result, but we will break the stereotype and the competitive advantages. It will no longer be a tricycle and it will not be part of our children’s lives.

 

When this happens, paradoxically this products’ typology enters a marginalization process by the consumer’s fair-price. I definitely know what I want from the product, reason why I know exactly the right price I must pay for it (neither more nor less if possible). In the case of the tricycle, the price assumed by the market is of 60 U$D. This price is the cost to transport the product from China to Europe. Another of the indicators of a product’s maximum marginalization is that, for its manufacture there is a reduced number of manufacturers in the world, reason why practically all the toys’ brands (in this case) commercialize the same references with the same price PVP bought to the same supplier.

Imaginarium gave us the challenge to structure, design and develop a new variety of tricycles for its brand, one of own manufacture, that becomes a company’s referral and that makes the product’s real and perceived value higher in the market shelves.

We have already said that if we eliminate or add things to a stereotype, it stops being it, reason why the main competitive advantage of being in the consumer’s “life’s line” stops being that. To conceptualize the challenge, we consider changing the parent’s purchase way when facing a tricycle; for this we mix it with a child’s care product.

As consumers, we do not buy considering the “spending power type that is adjudged to us” low, average low, average, average high and high; we buy on the basis of the value that we give to the product we acquired. If I buy a toy (a tricycle), I give it the value of a consumable and this is usually low; on the contrary, if I acquire a child’s care product, I am buying something vital for my son’s development, it is not a marginalized product, it is something that will contribute to my son’s vital development, reason why I automatically rise (and it is risen) the product’s real and perceived value.

To establish a mixing criteria, we decided to fuse a baby stroller (residual product of a baby stroller variety and totally oversized in its capacities) with “an evolutionary” tricycle.

The consumer acquires a product that evolves considering the kid’s physical development: baby stroller, assisted tricycle and in the end tricycle. An important detail is that the consumer buys it at the time of a stroller’s life line but under the future necessity of a tricycle, reason why we go ahead at the tricycle purchase time from all the competence.

The final product has been a great market success, becoming a stereotype, with numerous imitations from the competence (what it is a stereotype symptom); with great value contribution for the final user and marking a follow up line in the rest of the company’s products.

 

 

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