Redesigning Product Lines with Conjoint Analysis: How Sunbeam Does ItPresented By

Vikas KumarAmul deepWahid zeeshanSumit WaliaShweta Kumari

SUNBEAM APP. CO.SUNBEAM APP. CO.INTRODUCTION:-Sunbeam co.is mainly manufacturing lines of small appliances for the household purposes.In 1981, Sunbeam Corp. was acquired by Allegheny International and new management was introduced.The new management team at SAC determined that it was necessary to redesign its many mature lines of small kitchen appliances.

Product vs. Product LineProduct vs. Product LineRedesign DecisionsRedesign DecisionsA product line is composed of a number

of models of the same basic products.Managerial decisions to stretch a product

line, to fill it out or to redesign it, lead to concern about new entries in the line stealing sales from the rest of the line, or cannibalizing it.

PURPOSE OF THE CASE.PURPOSE OF THE CASE.

To describe how Sunbeam Appliance Co. has successfully confronted the problem of redesigning its product lines by developing a sophisticated redesign procedure that is built around

market research, Conjoint analysis, and product line simulations .

COMPLETE PROCEDURE COMPLETE PROCEDURE INVOLVES:-INVOLVES:-

A Consumer Usage and Attitude Survey. A Consumer Attribute and Benefit

Survey. A Conjoint Analysis Study.Product Line Simulations.

A Consumer Usage and Attitude Survey.The purpose of this part of the procedure is to determine how and for what purpose products in the product category are used. The results of this part of the process are useful for product and advertising planning.

A Consumer Attribute and Benefit Survey.In this process Importance ratings of product attributes and benefits are collected along with their perceived presence or absence. This data provides the basis for identifying need gaps.

A Conjoint Analysis Study.From exploratory group discussions lead to a consumer survey that produces the data from which the structure of consumers preferences for different product features is determined via the conjoint measurement technique.

Product Line Simulations.Product management prepares various possible versions of the product line, and their shares of the market are predicted from the structure of consumers’ preferences. The market share generated by each of the simulations of the product line is used to determine the best configuration for redesigned product line in the category.

Sunbeam’s Food Processor Sunbeam’s Food Processor Redesign StudyRedesign StudyQuestionnairesGroup interviewsWhat if analysis /scenario

analysis.

OVERALL RESULTSOVERALL RESULTS

Cheap and large segments was created for the lower segment.

Multiple speed and uses was created for the upper segment.

ANALYSISANALYSIS

Various concepts used in the case arePRODUCT LIFE CYCLEFORCASTINGPRODUCT MIX ASSORTMENTRESEARCH TOOLS

CONCLUSIONCONCLUSION

This success can be attributed not only to

an effective application of the conjoint analysis technique but also to the continuing involvement of product management in the research studies as exemplified by the description of the food processor study.

CONTD..CONTD..

The involvement of product managers and

planners with all phases of the redesign process produces several benefits.