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  White Paper - Industrial Design to blend cost, quality and aspiration in a product of any price point  
     
     
 
W H I T E   P A P E R
   
   
Balance of cost,
quality and
aspiration:
A must at any
price point
 
   
Senior management
“Principles of Marketing” course
at Indian Institute of Management (IIM)
 
   
 
by Shombit Sengupta
 
Cross industry knowledge
   
   
   
The balance of cost, quality and aspiration at any price point of any product or service is a must for tomorrow’s forward looking marketing. The selling price of any product or service is a big factor for target customers, whether the category is low or high priced.

Most people do not flaunt money without having the appropriate result
from any product. Industrial Design, is the balance of the 3 elements of cost, quality and aspiration.
Cost Quality Aspiration
 
COST DESIGN
Material cost is
difficult to control
because of market
dynamics such as
inflation. There
will always be a
bunch of
competitors
in any product
category, but
material cost
could be the
same for
everybody.
How can one
player overcome another?
Material
 
A strong cue to get customer mindshare is added perceptible functional benefit. This can change the volume game. Production cost decreases when you have more volume.
Industrial Design is
based on the ideology of
“reduce effort,
increase comfort.”
which obviously
adds functional
benefit for
the user.


  reduce effort, increase comfort   The pulley system is an ideal metaphor of reduce effort, increase comfort, which in customer usage experience, changes the paradigm.

Excellence of functionality is the crux in the evolution of
ID Product Design.

Examples that effectively display functional excellence ranges from the steam engine to TGV, propeller planes
to supersonic Concorde, basic canvas keds to Nike sports shoes, ink for pen to refill ball pens, typewriter to computer, carbon copy to photocopy, cash payment to card payment among many others.
         
         
propeller planes Typewriter to computer Bullet train card
 
 
 
scientific lab work
 
But usage superiority is not a matter of automation or scientific lab work;
rather it is about understanding the consumer in the psychological lab.

The unsaid aspect in any product usage is the microtone functional improvement parameters that customers perceive.

That’s why, to understand gaps in functionality, we need the combined physiological and psychological balance of consumers.

     
psychological balance of consumers The consumer’s
mind always
moves towards
2 baskets,
the generic
or unique.

An analogy
for the unique
find is the gold
micro particles
mixed with
sand or hidden
in rock, while
something very
easily found is
the generic.
Generic Unique
     



Industrial Design
is discovering the
unique functionality
that customers care
to use, such as an
air bag in a car.
air bag in a car
  In any price segment, whether it is high or low,
if the functional superiority is obvious and
universal, it would mean volume sales will grow.
This would automatically bring down the cost
of production.
 
 
 
QUALITY DESIGN
It’s no longer true that only sophisticated, expensive products will have quality.

Customers get multiple options in the market today where both quality and reasonable cost meet their expectation.

In buying Chinese products customers don’t expect quality beyond a certain limit as they think they are gaining in better
price advantage.

A branded mass product has to assure unconditional quality during its durable usage cycle. Otherwise the customer gets placed in a trade off situation between a Chinese product and a well known branded product.

A product should visibly reflect its quality in the customer’s hand. This will encourage the customer’s confidence as the quality of the product’s hidden mechanism cannot be seen at the moment of purchase or during usage.

People discover its intrinsic quality with the passage of time.

The proven example of how the manufacturer has never compromised on quality is the $ 30 Swatch watch which has never failed in any quality parameter. And Swatch is no less in aspiration than any other costly watch.
 
Rado
$ 7000

Rado
Tag Heuer
$ 4000

Tag Heuer
Swatch $ 30
Rolex
$ 10000

Rolex
 
 
 
ASPIRATIONAL DESIGN
People’s aspiration level shot up significantly after World War II. The free economy is a key driver for the growth of aspiration.
The growth of industry and globalization led to an obsession for mass production to have control over the global market.
From the value game, it became the numbers game.
Feudal Lord
Feudal Lord
Aspiration is an important element for sales growth.
Once upon a time, it was
the aspiration of royalty or feudal lords that decided on functionality excellence.
When democracy came, the economic level of people rose, and product functionality became a factor for multiple societies to express through their purchase behaviour.
This was the beginning of
the creation of the
mass market
     
Car ownership Volkswagen
Car ownership limited to only rich
people before World War II
People’s car “Volkswagen” in mass production unit after World War II
 
 
 
How can we bring this aspiration to every price point through Industrial Design?
Even seemingly irrelevant distribution
logistics system can totally destroy
the business result of Industrial Design products.

See how Swatch customises its store
according to the locality.
Swatch store in Time Square,
New York
   
    Swatch in Soho, New York
 
 




Here aspiration can be transcended from multiple areas such as functionality beyond
expectation, high order intensity in user friendliness, touch and feel of the product,
in aesthetics which amount to high craftsmanship and the skill of art in business.
 
 
If you only think of business, art will escape you; and with art alone you will not make business. You require the finesse of art that drives business through design.
technical tool A technical
tool makes
only a
stereo typed
Industrial Design product
artistic tool An artistic tool
for thinking
of Industrial Design
can create
high volume
products
 
 
 
 
 
  So design that sells a product has 3 components
 
  . Cost design with uncommon functional superiority
  . Quality design at any price point
  . Aspirational design at any price point
 
  But the perfection of these 3 designs depends on marketing
design, in how, and in what context, you sell the product.
 
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© Copyright of all original content in this website belongs to Shining Consulting and cannot be used for any purpose without written permission from Shining. The copyright of the different examples of brands and advertising used in this website belongs to their respective owners.
 
 
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