ATL Group – taking it beyond sales
1. Using the case as a guide for examples, outline the three attributes of a product.
Appliance Traders Limited Group is a company that offers a number of household items
and air conditioning units to the Jamaican market. Actual product, Augmented product
and Core product are the three attributes of the air conditioning unit product. Core
product is a concept that describes the utility that a consumer derives by using the
product. The core product represents the main or essential reason for purchasing the air
conditioning unit? For example, the main reason for buying an air conditioning unit is to
make your home cooler, by drawing heat energy out of the house and transferring that
heat to the outdoors, then replacing the air inside your home with cooler air. The
actual/formal product focuses on the attributes or features of the product. The strategy at
this level involves organizations branding, adding features and benefits to ensure that
their product offers a differential advantage from their competitors. The actual or formal
product of the air conditioning unit are: brand name (ATL), specs of the AC (12000 BTU
Inventor) and the high-speed wireless remote that aims at ensuring that your potential
customers purchase your product. The augmented product focuses on the additional
benefits and services that the consumer receives from purchasing and using the product.
It represents the post-sale benefits
or features associated with the purchasing of the air conditioning unit such as after-sales
service, warranty, delivery and installation. For example, ATL offers with the purchase of
any air conditioning unit after-sales services such as free installation and three years
warranty in order to distinguish themselves from their competitors as many customers are
looking for more than just the core product since global boundaries are being removed
and so people can buy what they want from almost anywhere in the world.
2. Using examples from the case above, explain what the breadth of the product is.
The breadth/Width of the product mix measures the number of product lines or different
products that the firm has. It shows the level of diversification within the firm and its
ability to manufacture and sell different products. ATL has a wide product mix since the
more products that the firm manufactures, the wider will be the product mix. The breadth
of the product mix at ATL are: appliances, air conditioning units, energy solutions, parts,
office and industrial items.
3. Citing examples from the case above, explain the concept of the depth of the product
mix.
The depth of the product mix relates to the variations or features of each product line.
The depth of the product mix at ATL include aspects such as: model, sizes and design.
ATL desires to cover a number of segments and as such would have a very deep product
mix. For example, in the case of energy solutions, ATL offers products such as solar
heaters, LED lighting and energy management systems in order to allow its customers to
access alternative ways of producing energy.