P1: Product

Five Product Levels:

Combining the Kenichi Ohmae 3C model with Five Product Levels as described by Kotler, we end up with the following understanding of a product:

Now let us understand each element with respect to Snickers as the "company" and Cadbury Dairy Milk as the "competitor".

• Core Benefit: Customer wants a chocolate to satisfy his/her sweet tooth.

• Basic Product (Company): The chocolate is flavoured with Caramel (Mars Bar)

• Basic Product (Competitor): The chocolate is milk chocolate (Plain Dairy Milk)

• Expected Product: Affordable and tasty chocolate, packaged attractively.

• Augmented Product (Company): The chocolate has real peanuts and nougat that fulfills the customer's hunger. Projected as a hunger killer. (Snickers is born!)

• Augmented Product (Competitor): Adds rice crisps / dry fruits for a different taste. (Dairy Milk variants)

• Potential Product (Company): Snickers Bites, Snickers Ice Cream

• Potential Product (Competitor): Cadbury Silk- Super Soft chocolate

Product Hierarchy:

Let us understand the six levels of Product Hierarchy with the help of Snickers.

1. Need Family: Food and Beverage
2. Product Family: Confectionery
3. Product Class: Chocolate
4. Product Line: Snickers
5. Product Type: Snickers The Lot, Snickers Fudge, Snickers Maximus, Snickers PB Squared, Adventure Bar, etc
6. Item: Snickers Fun Size, Miniatures, Minis

Product Length,Width, Height

The following diagram explains a product's length, width and height:

Packaging

As Snickers is a chocolate bar, it has been packaged in brown paper.

Variants of Snickers display variety of ingredients on the cover, depending on which ingredient has more presence in that particular variant.

For example, as Snickers More Nuts has more of peanuts in it, peanuts are displayed on the cover.

Similarly, Maximus has the photo of caramel on it's cover.