Setting Product Strategy - The Product Hierarchy

There are five levels in the customer value hierarchy. These are illustrated as follows:

These are placed in the 3C Model (See above) by Kenichi Ohmae,

 In the below mentioned manner:

1. Customer: The customer is the dominant factor in marketing activities, as all activities are directed towards the customer only. Therefore, the core benefits lie in the mind of the

 customer. The marketing definition also clearly emphasises that all the activities are directed for the customer only.
Also, the expected product also lies in the customer domain, since the customer requires some features in a product that match the expectation.

In Tresemme shampoo, the core benefit is that it will reduce hair fall which is a problem faced by the customer/consumer. Also, an expectation from the consumer is that it will give him/her great looking hair everyday that are manageable. This is the expected product.

2. Company: The company offers the basic product. The basic product is the fulfilling of basic requirements of the customer. Basic product is also provided by the competition, if the product is at par with the competition, as is the case with FMCG products. Also, the potential product is within the company domain. In future, the company can launch a newer version of the product, or a new product altogether, to fight the competition and stay alive in the product life cycle.
Tresemme as a basic product is a shampoo that cleans dirt off hair and makes hair look good and smell good.

3.Competition: The basic product, the augmented product and the potential product lie in the competition. It is the competition that will try to cut through the clutter with matching customer expectation, bringing out newer versions and variations in their products as well as creating avenues for potential marketing success. 

With Tresemme, the expectation is that it will reduce hairfall and save the cost of going to a salon to get hair treated. As an augmented product, there are four variants of the brand Tresemme - Smooth & Shine, Climate Control, Split Remedy and Keratin Smooth.
In this way it has an edge over the competitors. But since it is a FMCG product, most of the products are at par (Eg L'Oreal, Pantene, Fiama Di Wills, Garnier) with it in features as well. 

Thus, the potential product could be launching of  a new hair care line altogether with oils, protein revitalizers and many improved variants of shampoos. 

The Expected Product and the Augmented Product are key differentiators for the company from the competition which highlight the brand as "unique" in the industry.