Understanding 'Productizing Process'

First of all, Did you ever think of how would it be to go back to school after a decade plus experience in the industry and what it takes to sit in a class and learn with other fellow students and work on some assignments..?? 

Most of us would have thought about it and found it so hard to decide on what one should take up and which institute or university to go far etc etc.. Well, for few years I was thinking about it and a few months ago I finally decided to do a MBA in 'Product Leadership' at the 'Institute of Product Leadership'. I always wanted to do something as masters and specifically around products because, I am enjoying my work as a product owner/manager for quite some years now. The main thing that drove me to this, was the fact that this was the only available option (a masters in product management or product leadership) :D. But yes, I did some research on this institute and the course. Also, checked with few friends and took quite some time to finally go for it. You know, it takes a decent amount of money and a lot of time and effort. All are very very precious!.

Guess what! I am truly enjoying it. Every class that I attend and learn something, I start seeing things around me in a different perspective. Incase, if this doesn't happen automatically, there are anyways explicit assignments after some classes that forces one to think/see/feel things around us from a product management perspective. One such assignment was to visit any Tanishq store and observe the productizing process.

Productizing process mainly involves five different parts.

1. Understanding value,

2. Creating value,

3. Capturing value,

4. Communicating value and,

5. Delivering value.

So, I visited the nearest Tanishq store to me and as soon as I entered, an executive asked me directly 'Sir, How can I help you?' I said, I am student and here for an assignment. Maybe, he didn't understand, how could he directly help me or there were orders to take such visitors to the store manager. I went to the manager and said the same thing, he asked me to go ahead and ask him what I want to know? He answered the first question and then said 'if you have too many questions, we can fix another date for an appointment'. I re-iterated, I just have five questions and nothing more. But I realized that its going to be difficult because the store manager is thinking that there is no ROI for him. And he also said he can't let me sit in their store and just observe. I quickly said, I will also make a purchase :-). Then, he answered my other four questions and said I can be the customer and experience the shopping as a customer. He quickly called another executive(a trainee) and asked him to help me in my shopping. Now I started my journey in understanding the productizing process at Tanishq.

Understanding Value

This is all about understanding who the customer is, what are their needs and how can it be solved etc. The first thing that the executive asked me is 'what is the occasion?'. Do we always need an occasion to shop something!! Well, then he started showing various options. I directly asked, don't you want to know my budget? He said 'Sir, it is not so nice to ask this directly to customers'. Hmmm.., and it was not that difficult to know this for him from me. Once he showed me a certain option, I had to tell him either, show me more better ones or a little cheaper ones. (Cheaper and economical at Tanishq!, the manager had already told me that they are one of the top jewelers and they don't target the mass but a very specific class). So, they know their customers well and try to understand customer's current needs by knowing the occasion for shopping and try to help customers decide on the available options and shop.

Creating Value

This is all about the product or solution for those specific set of customers' (target segment) needs. I Looked around, each jewelry is so unique, there are no exhaustive/countless options. Now I could understand that since they their exact customers, they don't have any simple/similar looking/cost effective designs for the masses. It was clearly visible that each jewelry was unique and a lot of effort/time/cost has gone into it. I also noticed that the shop was not so crowded and there were some executives free to attend any new customers and the less crowd in a way helped me look at all the options available at my own time and there was hurry from the executives.

Capturing Value

This is all about the business models, how to make money out of the products/services offered, why should customers buy this product and not any other competitor's etc. Hmmm.., because each jewelry is so unique and customers can spend ample amount of time looking at all the options to shortlist and then decide a final one, the cost is at a little higher side in comparison to other Jewelers. But since, their target segment of customers are willing pay this extra price for all the value add they experience at Tanishq, it is sustainable and a WIN-WIN situation for customers and Tanishq :-).

Communicating Value

This is all about letting the target customers, personas and the market, know about the products and the positioning of the products. Yes, Tanshiq does a lot of advertising and I also get regular messages about their new offerings, stores etc. And more important when I was already in the store, they tried to communicate to me, about a lot more than I was looking for. For example, When I asked for gold chain and decided on something they started showing me some very nice pendants. I didn't want them but, the options very tempting (so they they tried to tell me that they also have some very nice pendants. It is is also a up-selling technique). Additionally, they tried to explain me the new saving scheme they have and how beneficial it would be that I save/invest regularly and there are some good returns. (well, since the previous class was on personal finance, I was more equipped. I quickly calculated and told them a return of 5.5-6% is not really that a nice option unless they give more discounts club other offers :-) ).

Delivering Value

This is all about enabling sales/sales team to be able to sell the products effectively, selling models, partners etc. The sales executive, knew all the options available on the store, was able quickly understand what I wanted and helped me out with options. Billing was also very quick and efficient. They also explained me that I could have done all these right at my home, through one of their partners (caratlane).

End of Productizing process journey, I went back home and slept peacefully. Good night :-)