What Are the Three Levels at Which a Product Can Be Seen? in Response, Use a Concrete Example of Product.

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Assignment No.9

Rome Business School

Q1 What are the three levels at which a product can be seen? In response, use a concrete example of product.

The product is defined as a "thing produced by labor or effort or the "result of an act or a process"and stems from the verb produce from the Latin 'produce ' which means to lead or bring forth '. The first economic use of the word was by Adam Smith, known as the father of modern economics.

-Kotler et al (1989)

For marketers, it is useful to divide the product into three main categories, being the Core Product ( Also known as Core Benefit), the Actual product and the Augmented Product. You can see them in the diagram below with some examples of what they
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From a geneder split point of view, adidas NEO is targetting primarily the girls who account for two-thirds of the business. The Original division allows adidas to increase its reach into the lifestyle market, without losing sight of its long heritage as the original performance brand. The Original division is geared specifically toward consumers who may be less active sports participants, but who are style setters and style leaders. It is these people who set the trends which are later adopted by the mass market. Originals speak to the needs and values of the lifestyle consumer with concepts that are smart, cool, positive, modern and alive. Adidas Originals are the perfect fusion of heritage sport authenticity and global street style.

Lastly, for the sports-elite Adidas opened Adidas Sports Style . Adidas defined the last one as the “Future of sportswear, which includes the labels Y-3 , Porsche Design, Adidas SLVR and Adidas NEO. Their positioning statement was “Style your life” . The overall marketing statement that ties these three product categories is “Adidas is in all”. They made these product lines for the general public, but the main focus was on supplying the sports wear of the major sports , focusing on football, tennis, basketball, cricket and athletics and rugby.

b) Manufacturing level: Adidas owns four factories in China, the US, Germany and Japan, as well as sharing manufacturing with 863 other factories worldwide, 60% being in Asia.
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