The paper "Luxury Markets And Premium Pricing" is a perfect example of a Marketing Case Study. Each and every product has a relation to another product or products. There are seven levels of product hierarchy that stretches from the basic needs to more particular needs that are able to satisfy those needs. Need family is based on the core need for the existence of a product family. An example is a security. The product family includes all products which have the capability to satisfy the core need effectively. These include savings and income.
Product class is based on a group of products within the product family that has functional coherence. They include financial instruments. The product line is based on products in a product class which is closely related due to the fact that they carry out similar functions. They have the same customer groups and uses similar marketing channels. Product type is a group of products in a product line that has similar forms of products such as term life. Lastly, a brand is used to identify the item source of character (Armstrong, Kotler & He, 2000).
This report looks at five industries; telecommunication, automobile, finance, food industry, entertainment. In each of the industries, the hierarchy of product is defined. The hierarchy in each of the industry is arranged and each brand position analyzed based on the economic notion of substitutability, level of competition and sequence of the consumer. Lastly, the future of the product selected in the UAE market is analyzed in correlation with consumer behavior, culture, and market competition. Telecommunication industry in UAE (Etisalat) The telecommunication industry in UAE plays a major part in the economy.
The country has the highest mobile penetration in the Middle East which has been a great opportunity for the operators. The mobile industry in UAE is dominated by Etisalat who holds a market share of over 64.2%. Being one of the fastest-growing industries in the region, it becomes a great choice to analyze its product hierarchy (Al-Ghamdi, 2010). Product hierarchy Need family Communication Product family Communication and technology Product class Emails, satellites, mails, face to face interactions Product category Subcategories in the Etisalat telecommunication services are; long-distance calls (international), domestic calls, mobile phones, fixed telephones. Product line Mobile phones, fixed lines, VoIP Product type The specific products that fulfill needs are; broadband market, the mobile market Product item Mobile market The economic notion of substitutability In the telecommunication industry in UAE, Etisalat is the main service provider having the largest market share.
The services provided by Etisalat cannot be easily substituted. This is due to the fact that Etisalat controls both mobile and fixed-line networks in the country. There is virtually no substitute for the services provided by the company. Level of competition The industry is highly competitive. This is especially in the mobile phone market.
There are a lot of alternative service providers in the UAE. This gives the customer a wide range of choices to satisfy their needs. Etisalat's major competitor is Emirates Integrated Telecommunications Company du. Being a former monopoly, Etisalat controls a large market share and has been very aggressive in international expansion. As du expands its network, it is expected that competition will become more enhanced between the players. There is also competition by the internet-based companies and software providers. These offer communication through the use of voice over internet protocol (VoIP) (Al-Ghamdi, 2010).
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