Essays on Price_Performance Value Map Assignment

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Price Performance Value Map Value Table and Model Overall Performance Relative Performance Price($) Relative Price Customer Value Black & Decker Digital Advantage D2020 D2000 85 132 50 109 23 Rowenta Perfect DX9800 75 117 140 3067 -2950 Hamilton Beach Steam Excel 14770 70 109 30 66 43 Sunbeam 3956 70 109 25 55 54 Braun FreeStyle Pro SI 6285 65 101 90 197 -96 T-Fal Ultraglide Diffusion 1759 1769 65 101 45 98 -3 Black & Decker Steam Xpress S685 S680 64 99 30 66 33 GE 106671R 169153 63 98 20 44 54 Sunbeam Simple Press 3035 63 98 25 55 43 Hamilton Beach Steam Storm Plus 14560 62 96 20 44 52 Sunbeam Dura Press 4075 62 96 25 55 41 Proctor-Silex Easy Press 17585 17520 62 96 25 55 41 Black & Decker Quick Press S560A 62 96 25 55 41 Rowenta Powerglide 2 DM273 62 96 60 131 -35 Rowenta Professional Luxe DM880 61 95 100 218 -123 Black & Decker Steam Advantage AS775 60 93 30 66 27 T-Fal Avantis 90 1824 60 93 60 131 -38 Black & Decker Prestige X805 60 93 40 87 6 Black & Decker Classic F63D 50 78 30 66 12 Average 64.3 45.8 Maytag MLI-7500 65 100 150 154 -54 Panasonic NI-L40NS NI-L45NR 65 100 45 46 54 Average 65 97.5 Price-Performance Value Map 2 number 1 2 200 3 4 5 5 6 relative price 20 7 150 8 9 10 17 16 11 1 12 100 13 6 14 18 . 15 15 9 16 19 11,12 7 4 3 13 . 17 50 18 10 21 19 8 20 21 0 20 40 60 80 100 120 140 160 180 200 relative performance Interpreting the Value Map Black & Decker is my choice of product in the analysis of the price performance value map.

The product has a range of different brands under the same name in the market for iron boxes.

Such brands include: Black & Decker Digital Advantage D2020 D2000 Black & Decker Steam Xpress S685 S680 Black & Decker Quick Press S560A Black & Decker Steam Advantage AS775 Black & Decker Prestige X805 Black & Decker Classic F63D There are a total of twenty one brands of iron machines in the market which creates a very competitive environment in the market. Companies involved in the manufacturing of the ironing machines have produced different brands and introduced them in the market. Despite the intense competition in the market, the following observations can be drawn from the value map: a.

All the products have good performance indices. All the products in the market are concentrated in the second quadrant of the map. The second quadrant includes brands that have good performance and are either lowly or highly priced. This indicates that consumers have access to products that satisfy their needs as much as performance is related. The performance metrics used in the market for iron machines include ironing, steaming, glide and ease of use.

The map clearly indicates that consumers enjoyed using the products regardless of their prices. b. Most of the best performing products are highly priced Performance has been the main determining factor in the pricing of the products. The map indicates most of the highly priced products having better performances than the lowly prices products. However, this is not true for all the products because some of the lowly priced products like the Black & Decker Digital Advantage D2020 D2000 have a better performance than highly priced irons like the Rowenta Professional Luxe DM880 iron.

Locating the organization’s product or service on the map As noted earlier on, my product of analysis is Black & Decker. The product has a total of six brands that have good performances. The other observation is that all the Black & Decker brands are highly priced. However, the different brands of Black & Decker face stiff competition from brands like Rowenta Perfect DX9800, Braun FreeStyle Pro SI 6285 and Maytag MLI-7500. The competing brands have higher prices and performances than the Black & Decker brands.

The company has been successful in ensuring that its products remain competitive in terms of good performance. Improving the brand’s perceived customer value Black & Decker has emerged to have the best perceived customer value. However, some of its brands have featured low in customer value including Black & Decker Prestige X805 and Black & Decker Classic F63D. There is an urgent need for the company to improve the brand’s perceived customer value by: i. Increasing product performance Black & Decker can achieve higher perceived customer value by increasing the performance of its brands hence increasing the gap between price and performance.

The company should consider making its brands easier to use by introducing simple features like a conspicuous on and off button. Black & Decker can also improve customer value by increasing the heat capacity of its iron to include high levels of heat produced by the iron so as consumers can use them on heavy clothes (Gholson, Gholson & Schloegel, 2006). ii. Reducing prices Black & Decker should consider reducing the prices of its brands that have low perceived customer value like Black & Decker Prestige X805 and Black & Decker Classic F63D.

This will increase the difference between performance and price hence increasing customer value (Gholson, Gholson and Schloegel, 2006). References Gholson, E, Gholson, E & Schloegel, M. (2006). Driving Growth and Shareholder Value: The Distribution Value Map. New York: NAW.

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