Consumer Chain Mapping
7/11/2013
NMIMS HYDERABAD
DOMINO’S
CONSUMER CHAIN MAPPING
Consumer Behavior Assignment | Prachi Mehta (A030)
Consumption Chain Analysis
Background
Offering customers something of value that competitors cannot or do not provide is the essence of differentiation. The problem is that most companies (and most sales people) focus all their energy and attention only on their products and services or their price. We often hear sales people complaining that their company’s product portfolio is no different that their competitors and that their prices are just not aggressive enough to beat the competition.
But changing the product portfolio or dropping the price (while it may make things easy for the sales person in the short run) is actually the most expensive and slowest form of differentiation. In fact, a company has the opportunity to differentiate itself at every point when it comes into contact with its customers—from the moment potential customers realize that they need a product or service to the time when they no longer want it and decide to dispose/upgrade/replace it. This relationship lifecycle is known as the consumption chain.
When a company thinks creatively about their customer’s entire experience with a product or service, they can discover opportunities to both position and sell their offerings in ways that they, and their competition, would never have thought possible.
Objective
1.
To facilitate a mindset shift from product/service/price differentiation to consumption chain differentiation,
2.
To inform sales people how to search for critical value drivers when speaking to their clients,
3.
To provide a practical vision for how to successfully implement the consultative method of selling in reality, when the sales person is facing the customer. Method
1) Mapping the Consumption Chain
Awareness of need
“People acknowledged the pizza was very good, the service was very good, but the biggest hindrance
NMIMS HYDERABAD
DOMINO’S
CONSUMER CHAIN MAPPING
Consumer Behavior Assignment | Prachi Mehta (A030)
Consumption Chain Analysis
Background
Offering customers something of value that competitors cannot or do not provide is the essence of differentiation. The problem is that most companies (and most sales people) focus all their energy and attention only on their products and services or their price. We often hear sales people complaining that their company’s product portfolio is no different that their competitors and that their prices are just not aggressive enough to beat the competition.
But changing the product portfolio or dropping the price (while it may make things easy for the sales person in the short run) is actually the most expensive and slowest form of differentiation. In fact, a company has the opportunity to differentiate itself at every point when it comes into contact with its customers—from the moment potential customers realize that they need a product or service to the time when they no longer want it and decide to dispose/upgrade/replace it. This relationship lifecycle is known as the consumption chain.
When a company thinks creatively about their customer’s entire experience with a product or service, they can discover opportunities to both position and sell their offerings in ways that they, and their competition, would never have thought possible.
Objective
1.
To facilitate a mindset shift from product/service/price differentiation to consumption chain differentiation,
2.
To inform sales people how to search for critical value drivers when speaking to their clients,
3.
To provide a practical vision for how to successfully implement the consultative method of selling in reality, when the sales person is facing the customer. Method
1) Mapping the Consumption Chain
Awareness of need
“People acknowledged the pizza was very good, the service was very good, but the biggest hindrance