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HooriaNadeem2 11 views 9 slides Oct 03, 2024
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About This Presentation

Yes this is the presentation about customization topic of operations and management a subject of bachelor of business administration student of university of central Punjab this is very informative and easy


Slide Content

Adaptive Customization Description: Offers one standard, but customizable, product that users can alter themselves. When to Use: Appropriate for businesses whose customers want the product to perform in different ways on different occasions, and available technology makes it possible for them to customize the product easily on their own. Example: Lutron Electronics’ Grafik Eye System:
Allows users to program different lighting effects (e.g., lively parties, romantic moments) using a single adaptable system.

Cosmetic Customization Description : Presents a standard product differently to different customers. When to Use: Appropriate when customers use a product the same way and differ only in how they want it presented. Example: Planters Company (Nabisco):Customizes packaging and product display for various retailers based on specific merchandising requirements. Offers different sizes, labels, and shipping containers tailored to each retailer's preferences. For example, Wal-Mart requires bulk packaging while Safeway prefers smaller, consumer-friendly packaging.

Transparent Customization Description: Provides individual customers with unique goods or services without explicitly letting them know about the customization. When to Use: Appropriate when customers’ specific needs are predictable or can easily be deduced, and especially when customers do not want to state their needs repeatedly. Example: ChemStation of Dayton, Ohio:Custom-formulates industrial soap based on each customer’s usage patterns, ensuring continuous availability without explicit customer requests.

Traditional Market Approach: Market as a broad, anonymous group.
Driven by large-scale manufacturing. Disaggregation of Business Segments: Customers no longer seen as homogeneous. Increasing demand for customization. Historical Development: 1960s: Emergence of segmentation. 1980s: Rise of niche marketing. Present: Era of mass customization. Key Point : Mass customization bridges the gap between what is offered and what customers truly desire by identifying specific dimensions along which their needs vary. Shifting from Mass Market to Mass Customization

Paris Miki: Collaborates with customers for optimal eyeglass designs. Lutron: Customizes lighting solutions based on room characteristics and uses. Producer: Adjusts nut products according to retail customers’ preferences. ChemStation : Modifies formulations and delivery systems to meet unique client needs without daily interference. Personalized Presentation: Businesses create dynamic profiles for each customer, acknowledging that each represents different markets based on context and needs. Examples: Newspapers alter content based on the day and events. Airlines tailor services for business and leisure travelers. Objective : Engage in cooperative exchanges with customers. Discover shifting preferences. Create diverse business segments within each individual. Strategies and Examples of Mass Customization

The Four Approaches to Customization 1. Cosmetic Customization Changes only the product's representation Example: Planters changes packaging 2. Collaborative Customization Changes both the product and its representation Example: Paris Miki customizes eyewear and its digital representation 3. Transparent Customization Uses a standard representation to mask customization Example: ChemStation customizes soap and delivery while using standard tanks 4. Adaptive Customization Allows customers to change the product's functionality and representation Example: Lutron customers program lighting effects

Components of Customization Packaging Containers, bar codes, labels, handling info, instructions, storage, and dispenser features Marketing Materials Sales brochures, flyers, videos, audiotapes, client references, customer testimonials Placement Delivery timing, methods, display position, delivery frequency, special handling procedures Terms and Conditions Purchase price, payment terms, discounts, promotions, warranties, guarantees, ordering policies, after-sale service Product Names Brand names, cobranding, club memberships, frequent customer privileges Stated Use Advertised purpose, operability, perceived benefits

Choosing the Right Customization Approach Companies should focus on critical areas where customization matters most Examples Paris Miki : Customizes during eyewear design Planters : Customizes on packing lines ChemStation : Customizes during production and delivery Lutron : Customizes during individual product use Collaborative Customization Effective when customers struggle with trade-offs Example: Paris Miki's digitized eyewear design tool Example: Custom Foot's shoe fitting process Demand Chain over Supply Chain Customizers minimize costs by reducing finished product inventory Focus on actual customer needs rather than forecasts
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