Restructuring the product portfolio for a legacy consumer durables brand
Background
For over 50 years, a large and diversified Indian consumer durable legacy brand has been making and selling ceiling fans in the Indian market. Over that time, their product became commoditized, facing challenges from both competitors and internal inefficiencies. This client approached Turian Labs to help re-engineer their product strategy using Design Research.
Project Brief
This project involved the following activities:
User Research to understand changing needs, to create clear consumer segments based on the new need map
Consensus Building within the team through co-creation
USP articulation for each segment, and
Fresh styling and naming architecture for the product range (later, we also created prototypes for new product designs)
Challenges
The product portfolio was messy, with over 250 SKUs and a price differential of Rs. 2500 between the top and bottom end models. Product recall was difficult for both traders and the consumers, due to too many SKUs.
There was no clear messaging to consumers across different segments.
Consumer mindshare had shifted to newer, more ‘innovative’ brands in the market.
The consumer market and the manufacturer got locked into segments such as ‘decorative fans’ and ‘simple fans’, halting the evolution of technology in this commoditised category.
Making the ‘old-hands’ at the client organisation accept new ways of qualitative research (such as Design Thinking based empathic and iterative research) was challenging.
Approach
For this project, we used a two-pronged approach. Taking help of our sister firm in product design, we did thorough product analysis of the existing fan range, to understand the structural construct of the client’s fans compared to that of the competitors. We then evolved new parameters to benchmark the market landscape in terms of fan aesthetics in addition to price or technical features.
Secondary market research and product analysis together revealed the possible gaps in perception in consumers and trader’s mindshares for this brand.
Equipped with this information, we conducted ethnographic research along the Design Thinking methodology, engaging stakeholders using card sorting, look-book and open-ended conversations.
Key discoveries & Client Impact
Identification of key segments of target consumers
We identified that from the lowest to most premium end of the product spectrum, four key personae existed which were not just based on the product’s price. This helped create four clear product ranges, which were driven by consumer insights rather than just price or accessories as in the past.
Rationalisation of SKUs
Once we identified the four key product ranges, out next task was to rationalise the 250 SKUs which we suggested to be brought to one-third of the existing client portfolio. We also suggested a transition management strategy of the high-selling products.
New messaging for product ranges
Based on strong personae characteristics, we provided key messages to be communicated through packaging, advertisement and salesmen/trader training.
Style guide for product portfolio
We developed a trend and personae-led product style guide for the key ranges, with a style manual to guide future evolution of the styles and sub-segments. Most importantly, guidance was provided on which styling elements must remain unchanged in order to differentiate the range and brand.