Deciphering Value: The Second Stage

The Customer Value Construct       

There are three kinds of people for whom value is created: The Customer, The Consumer and The Retailer. Tresemme, as a product, creates value to these three parties as follows:

Value Creation by Tresemme 

1.        Customer:Easy Availability,Affordability,Economical, Not difficult to carry, handy (in sachets,plastic bottles)
2.     Consumer:Effective in controlling hair fall, gives a salon styled look, great fragrance, gentle on hair, free from harmful chemicals (parabens), contains dimethicone which is good for hair. 
3. Retailer: Attractive trade discounts, Incentives on putting Point-of-Purchase advertisements, Commissions on boosting sales at their personal level.

Customer Perceived value for Tresemme is shown as below: 

Customer Value: Great value offered by Tresemme, which consists of two major elements, the costs associated with it and the benefits derived from the corresponding cost:

      Total Customer Benefit: More than the cost that the customer incurs

      Total Customer Cost: Very less, except for the money which is the sole deciding factor for purchase.

         The benefits of the shampoo are as follows:

•Product: Effective, Lessens Hair fall, Keeps hair smooth, Salon like feel.

•Services Benefit: Does not exist as product is an FMCG good

•Personnel Benefit: The shopkeeper/retail store assistant gives the customer the right bottle.

•Image Benefit: A big brand with a parent like HUL, trustworthy and reliable.

The costs that the customer incurs to get these benefits are as follows:

•Monetary Cost: Not too costly, a premium product. Affordable styling solutions (ranges from Rs 68-275) 

•Time Cost: It doesn't take time to obtain the product-readily available at small mom-and-pop stores as well as large retail outlets.

•Energy Cost: One doesn't have to travel a lot to purchase the product, and do a lot of research and comparisons before buying the product

•Psychological Cost*: Less psychological effort in buying the product

*Risk: No risk is involved with product usage. The product is easy on the eyes, scalp and a very smooth shampoo to use (No Tangles). Therefore, Tresemme is lessening the psychological cost on its purchase.