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Executive Summary

With a vast range of options available to consumers, it is vital to use a variety of
techniques to remain competitive. These include product classification, an awareness of
the three levels of a product and market targeting.
This report examines the theory behind these and how they are applied to both an iPad 2
and Nescafe Blend 43 instant coffee. It compares and contrasts these products in terms of
their product classifications, levels and ideal target markets in order to aid in the
development of effective marketing strategies for each product.
The importance of product classification and use of levels is highlighted, before an
explanation of the different ways of classifying a product is given. Products can be
classified as being durable or non-durable goods and industrial or consumer products. This
report focuses on consumer products which can be categorised into four classes;
convenience, shopping, specialty and unsought products. The three levels of a product are
defined, being the core benefit, actual product and augmented product.
Each product is then classified. The coffee is classed as both a convenience and shopping
product, while the iPad is classed both a specialty and an unsought product. The core
benefit of the coffee is identified as the energising effect it has, while the iPads core
benefit is found to be entertainment. The actual products are explained, as well as the
various augmentations of each product and how they contribute to the overall product.
The iPad is compared and contrasted with the coffee in terms of its classifications and
levels. While the two products are very different types of goods, and are purchased in
different ways, it is found that they have similar augmentations, which are intended to
differentiate the products.
The importance of segmenting the market is briefly covered, along with the theory behind
both market segmentation and targeting. The four types of variables most useful for
segmenting the consumer market are identified to be geographic, demographic,
psychographic and behavioural.
The selected target market for both the iPad 2 and the Nescafe Blend 43 instant coffee are
described based on these four classes of variables. Reasons for the selection of each target
are given along with a comparison between the two targets.