Essay on OXO: Satifaction Guranteed

943 Words May 15th, 2014 4 Pages
OXO

Satisfaction Guaranteed

4/27/2014

OXO’s most profitable customers are those with dexterity problems like arthritis such as the wife its founder, Sam Farber, had when coming up with the idea of starting OXO. Now OXO designs products that are usable by as many people as possible. This means that men and women, young and old, left and right handed, and those with special needs can utilize their products (OXO, 1990). “Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs (Kotler & Armstrong, 2014).” Psychographic segmentation is primarily used by OXO in
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OXO’s customers are purchasing “wonderfully comfort–able tools that are easy to use (Corporate Design Foundation).”
Actual product: brand name, quality level, packaging, design, features
OXO's hand tools are sold under the name Good Grips, chosen because "it communicates the major advantage of the line quickly," explains Farber. OXO’s goal is to provide “budget–conscious consumers with tools that adhered to OXO's principles of universal design, focusing on user comfort.” OXO makes grave attempts to use less plastic in packaging (Corporate Design Foundation).
Augmented product: delivery and credit, product support, warranty, after-sale OXO provides product support via email, phone, fax, and mail. The company’s satisfaction guarantee is a warranty within itself. Customers can return products for a replacement or a full refund. After researching OXO’s products it became very apparent that the company follows an intensive distribution strategy. Their products are found in many different shopping outlets such as JC Penny, Bed Bath and Beyond, Kohl’s, Amazon.com, and Sur La Table just to name a few. This type of distribution is very convenient for the company if they’re aim is to provide comfortable gadgets for all to use. Distributing to these types of stores appears to target all lifestyle groups. The pricing of OXO’s Good Grip products seem very reasonable in nature from the product