Kano Analysis explained with a case study.

Kano analysis

During my product management, we were required to do kano analysis on a product. As discussed in my previous post, I was using smart indoor garden system product as my subject for research. Therefore, I conducted Kano analysis on that. In this post we will study what is kano analysis and how it is does done with a case study.

What is Kano analysis?

Kano analysis is like a secret decoder ring for understanding what makes your customers happy, sad, or just meh about your product. Developed by Professor Noriaki Kano in the 1980s, this technique helps you categorize customer preferences into five main buckets, making it easier to figure out where to focus your efforts for the biggest impact. Here’s a quick rundown:

  1. Must-be Quality (Basic Needs): These are the non-negotiables. If you miss these, your customers are heading for the hills. Think of it like the brakes on a car; nobody gets excited about them, but you sure would miss them if they weren’t there.
  2. One-dimensional Quality (Performance Needs): Here’s where the action is. The better you do, the happier your customers are. It’s a direct relationship – like speed in a car. More horsepower, more smiles.
  3. Attractive Quality (Delighters): These are the pleasant surprises that make your customers’ day but won’t necessarily be missed if they’re absent. Like heated seats in a car – not essential, but oh-so-nice on a cold morning.
  4. Indifferent Quality: These features don’t really move the needle either way for your customers. It’s like having a choice of colors for the interior lights of the car. Neat, maybe, but not a dealbreaker.
  5. Reverse Quality: This one’s interesting because it’s about features that some customers might actually dislike. It’s akin to a car being too complicated to operate. For some, more buttons equal more problems.

By sorting customer feedback into these categories, Kano analysis gives you a map of what’s absolutely essential, what could win you brownie points, and what might not be worth your time or investment. It’s all about prioritizing features based on how they’ll affect customer satisfaction. This way, you can strategically invest in areas that will genuinely improve your product and make your customers happier.

How is it done?

Doing a Kano analysis is like hosting a party where your guests’ preferences shape the menu, music, and activities. It’s a mix of gathering insights, sorting them into categories, and then using this intel to plan the best possible experience. Here’s a step-by-step guide to get you started:

  1. Gather Customer Feedback: First up, you need to know what your customers think and feel. This could be through surveys, interviews, or any method that lets you collect their honest opinions about your product or service. The trick is to ask the right questions.
  2. Craft Kano Questions: Instead of asking directly what people want, Kano questions come in pairs for each feature:
  • Functional Question: How do you feel if this feature is present?
  • Dysfunctional Question: How do you feel if this feature is absent? Respondents typically choose from: I like it, I expect it, I am neutral, I can tolerate it, or I dislike it. This dual-question approach helps uncover not just what features are important but how their presence or absence influences satisfaction.
  1. Analyze Responses: With the feedback in hand, you’ll analyze it to classify features into the five Kano categories (Must-be, One-dimensional, Attractive, Indifferent, and Reverse). The patterns in how customers react to the presence or absence of features guide this classification.
  2. Prioritize Features: Once you’ve categorized the features, it’s time to prioritize. Must-be qualities are your baseline; they must be met. Performance attributes are your next priority, as improvements here directly boost satisfaction. Delighters are your secret weapon for exceeding expectations and creating memorable experiences.
  3. Incorporate Findings into Product Development: Use the insights from your analysis to inform your product development. Focus on maintaining must-haves, improving or adding performance features, and sprinkling in delighters to surprise and engage customers.
  4. Iterate and Reevaluate: Customer preferences can shift, and what was once a delighter might become expected over time. Regularly revisiting your Kano analysis helps keep your product or service in tune with customer needs.

The beauty of Kano analysis is that it’s both an art and a science. It’s about listening closely to your customers and then using that information to craft an experience that hits all the right notes. It requires a bit of detective work and a lot of empathy, but the payoff is a product that resonates with your audience on a deeper level.

Case study

We have gone through the theory so far, now let’s get into the actual practice. So, for my following Product Idea

PRODUCT IDEA-SMART INDOOR GARDEN SYSTEM

The Smart Indoor Garden System, tailored for space-constrained urbanites, merges home gardening with technology. This compact solution, ideal for growing herbs and vegetables indoors, caters to the growing demand for organic food and smart devices. It enhances lifestyle, promotes sustainable living, and aligns with modern preferences, transforming urban gardening experiences into an integral part of daily life.

Planned Product Feature List

I had following features planned.

  • Efficient LED lighting.
  • Basic App.
  • High-quality plant nutrients.
  • Compact, modular design.
  • Educational content about gardening.
  • Subscription service.
  • Advanced AI.

Kano Survey

Next step was to design kano survey for my target audience, which basically was around 150+ fellow students. So, following is the structure and example of survey I created.

Survey structure.

  1. Introduction [about Product survey]
  2. Demography questions
    • Age
    • Location
    • Prior experience with indoor gardening
  3. Features.
    • Functional question
    • Dysfunctional question
    • [repeat for each feature]
  4. Example question

so created similar set for all my planned features.

Analyzing the responses

I received more than 30+ responses, I filtered them based on my targeted demography which was urbanites above 24 years old. I used evaluation table to interpret the responses as given at this website.

Kano evaluation table used to interpret responses as per foldingburritos.com/blog/kano-model/

kano evaluation table

Response Interpretation for one of the product features for a segment.

interpreting responses using Kano table

After interpreting the responses, I had my satisfaction index and dissatisfaction index for each feature as below:

Formula for satisfaction index = A%+P%/(A%+P%+M%+I%)

Formula for dissatisfaction index= M%+P%/(A%+P%+M%+I%)

Legend: M-mandatory (must have), P -Performance, A-attractive/delighting, I-Indifferent, R-Reverse, Q-Questionable

Plotting Dissatisfaction vs Satisfaction index on graph

Kano dissatisfaction vs satisfaction graph.

This is basically a 2-dimensional graph plotting DSAT index on x axis and SAT index on y axis. Lot of my fellow students got confused about this division using red color cross. This is just a logical distribution of attributes in four sections based on their actual values and their interpretation.

  1. Mandatory
  2. Performance
  3. Delighting
  4. Indifferent

Feature prioritization based kano analysis.

Product Road Mapping

Based on kano analysis I created product roadmap which looked like this

Product road map based on kano

As we can see kano analysis is really useful in leveraging design thinking and putting your customer needs at the center of your product design.

[Call to action] : It’s a long post, written in hurry, if there are any parts which need more explanation please comment and I will try to explain it more.

What are the four dimensions of the marketing mix? 4Ps

Marketing_4Ps

As discussed in my previous post, during my ongoing study in product management at ISB (Indian school of Business), I conduct research which sometimes is also related to certain assignments. So, for one such scenarios, I refreshed my IIM’s marketing study memories when I again encountered 4ps of marketing, I will share a case study where I applied its principles as part of overall product management cycle here. This will also give additional insights into other critical aspects of the product management, ranging from Idea to launch etc.

Before we delve into that, first let’s go through the four dimensions of the marketing mix! These are often referred to as the “4 Ps” of marketing, a concept that’s been a cornerstone in the marketing world for decades. In this post, we’re going to explore each of these critical components – Product, Price, Place, and Promotion – and understand how they are related and help in creating a comprehensive and effective marketing strategy. So, let’s break them down!

1. Product: What You’re Selling

The first ‘P’ stands for Product. This is what you’re offering to the market – be it a physical good, a service, or a digital product. When considering your product, think about its features, quality, design, and the value it offers to the customer. What makes your product stand out? Why would a customer choose it over competitors? The uniqueness and appeal of your product are crucial in catching and retaining customer interest.

2. Price: The Value Proposition

Next up is Price. This isn’t just about the cost; it’s about the value proposition to your customers. The pricing strategy involves understanding what your target market is willing to pay, how your pricing compares with competitors, and how it reflects the quality of your product. Strategies can range from premium pricing to competitive pricing, or even value-based pricing, each affecting how your product is perceived in the market.

3. Place: Where and How You Sell

The third dimension is Place. This involves where and how your product is distributed and sold. Are you targeting online platforms, physical stores, or both? Place also considers logistics and accessibility – how easy is it for your customers to get your product? Ensuring that your product is available in the right places is vital for effective market reach.

4. Promotion: Communicating with Customers

Finally, we have Promotion. This encompasses all the methods you use to communicate with your customers about your product. From advertising and public relations to social media and email marketing, promotion is about creating awareness, generating interest, and persuading customers to make a purchase. Effective promotion can significantly boost your product’s visibility and appeal.

Now that we have understanding of the 4Ps, lets discuss a case study to understand its usage.

Case Study

This case study applies the understanding of product management principles, and it has five main parts of product management starting from idea generation to Launch. I used smart indoor garden system product idea for this study.

  • Product Idea.
  • Concept.
  • Marketing strategy including Pre-launch.
  • Testing.
  • Launch strategy.

Product Idea-Smart Indoor Garden System

The Smart Indoor Garden System, tailored for space-constrained urbanites, merges home gardening with technology. This compact solution, ideal for growing herbs and vegetables indoors, caters to the growing demand for organic food and smart devices. It enhances lifestyle, promotes sustainable living, and aligns with modern preferences, transforming urban gardening experiences into an integral part of daily life.

Fundamental Concepts for New Product Success:

  • Customer Needs: A simple, space-efficient way to grow plants indoors. Targets urban dwellers with limited space, offering ease of use and integration with their tech-savvy lifestyles.
  • Customer Value: Compact design, ease of use, and smart features. It adds to the aesthetic of living spaces, promotes healthier eating habits, and provides the satisfaction of growing one’s own organic food.
  • Product Market: Includes urban residents, tech enthusiasts, health-conscious individuals, and environmentalists. Includes various age groups, appeals to young professionals and families living in urban environments.
  • Market Structure: Emerging market, mix of niche players and larger companies. Moderate competition, high growth potential in urban areas. Opportunity to differentiate through enhanced features, quality, and customer service.

Concept testing

Testing the Product Concept: Product concept validation combines focus group feedback, beta testing, online surveys, and rigorous technical assessments of app interface, sensor accuracy, and system efficiency to ensure reliability and user satisfaction.

Go / No-Go Decisions: Product decisions depend on user feedback, prototype testing, market viability, competitive analysis, cost considerations, and alignment with the company’s strategic goals and vision.

Improving the Concept: Enhance the product by improving design, usability, and technology, including app and sensor precision. Prioritize sustainability, develop educational support, and tailor features to diverse markets.

Marketing strategy including Pre-launch Marketing.

4Ps of Marketing

  • Product: Compact, user-friendly Smart Indoor Garden System with app control, LED lighting, and automated nutrient delivery.
  • Price: Competitive pricing reflects innovative features; higher initial cost justified by value; tiered strategy for diverse customers.
  • Place: Product distribution spans online channels, retail stores, and tech outlets, prioritizing websites and e-commerce.
  • Promotion: Marketing strategies encompass digital campaigns, influencer partnerships, educational content, and launch promotions with discounts.

Early Adopters: Tech-savvy urbanites keen on smart home tech and sustainability, health enthusiasts desiring organic food, and eco-conscious consumers prioritizing sustainable lifestyles.

Acquisition Strategies: Attract early adopters through targeted digital marketing on tech and sustainability, influencer collaborations in wellness and eco-niches, educational content on smart gardening, and participation in relevant exhibitions.

Testing

Testing the Smart Indoor Garden System

The Smart Indoor Garden System undergoes comprehensive testing: Functional Testing for system features like watering, nutrient distribution, and app functionality; User Experience Testing to assess usability and design; Durability and Reliability Testing for long-term performance; Performance Testing to evaluate plant growth efficiency; and Safety Testing to meet all relevant safety standards.

Reiteration Based on Testing

Refine the Smart Indoor Garden System based on feedback, adjusting design for aesthetics and function. Enhance the app and LED system for user-friendliness and efficiency. Simplify setup and instructions, optimize performance for varied plants, and address durability and safety concerns, ensuring reliability and compliance with safety standards.

Launch Strategy

Distribution Strategy: Reaching the Customers

To distribute the Smart Indoor Garden System, leverage online sales via e-commerce platforms and the company’s website, targeting tech-savvy consumers. Establish retail partnerships with home improvement and gardening stores for tactile customer experiences. Adopt a direct-to-consumer approach through social media for enhanced customer engagement and profitability. Implement a subscription model for ongoing supplies, and plan for international expansion in highly urbanized, tech-friendly regions.

Marketing and Branding Campaigns

Launch the Product solution with a virtual event, utilizing social media and influencers for outreach. Engage in influencer marketing across gardening, sustainability, and tech sectors. Develop compelling content, run targeted social media ads, and host educational workshops on indoor gardening. Seasonal promotions, community engagement, and emphasizing the product’s sustainability will build awareness and appeal.

[Call to Action:] I hope this gives clear understanding to the 4Ps of marketing along with insights into product management and where 4Ps are applied in the cycle. Please let me know in comments if this was helpful, please subscribe for more insights.