Page 356 - Marketing Management

SETTING PRODUCT STRATEGY | CHAPTER 12 333

Bang & Olufsen’s timeless, stylish
designs command a significant
price premium in the market.

Design can shift consumer perceptions to make brand experiences more rewarding. Consider
the lengths Boeing went to in making its 777 airplane seem roomier and more comfortable. Raised
center bins, side luggage bins, divider panels, gently arched ceilings, and raised seats made the air-
craft interior seem bigger. As one design engineer noted, “If we do our jobs, people don’t realize
what we have done. They just say they feel more comfortable.”
A bad design can also ruin a product’s prospects. Sony’s eVilla Internet appliance was
intended to give consumers Internet access from their kitchens. But at nearly 32 pounds and
16 inches, the mammoth product was so awkward and heavy that the owner’s manual recom-
mended customers bend their legs, not their back, to pick it up. The product was withdrawn
after only three months.
Design should penetrate all aspects of the marketing program so that all design aspects work
together. In search of a universal identity scheme for Coca-Cola, David Butler, vice-president of
global design, established four core principles. Each design, whether of packaging, point of sale,
equipment, or any other consumer touch point, should reflect (1) bold simplicity, (2) real authen-
ticity, (3) the power of red, and (4) a “familiar yet surprising” nature. 24
Given the creative nature of design, it’s no surprise that there isn’t one widely adopted approach.
Some firms employ formal, structured processes. Design thinking is a very data-driven approach with
three phases: observation, ideation, and implementation. Design thinking requires intensive ethno-
graphic studies of consumers, creative brainstorming sessions, and collaborative teamwork to decide
how to bring the design idea to reality. Whirlpool used design thinking to develop the Architect
Series II kitchen appliances with a more harmonized look than had existed in the category. 25
On the other hand, the Danish firm Bang & Olufsen (B&O)—which has received many kudos
for the design of its stereos, TV equipment, and telephones—trusts the instincts of a handful of
designers who rarely consult with consumers. B&O does not introduce many new products in a
given year, so every new product is expected to be sold for years. Its BeoLab 8000 speakers sold for
$3,000 a pair when introduced in 1992 and for $4,500 more than 15 years later. Their designer,
David Lewis, has seen three of his most successful B&O product creations placed in the Museum of
Modern Art’s permanent collection in New York. 26
Design is often an important aspect of luxury products. “Marketing Insight: Marketing Luxury
Brands” describes some of the broader marketing issues luxury brands face.

Product and Brand Relationships

Each product can be related to other products to ensure that a firm is offering and marketing the
optimal set of products.