BY: PINKY NIKITA SHRADDHA LAXMI ARPAN NEHA

Customer Delivery Value (CDV): An approach which helps in formulating the strategies for achieving profitable growth and improved returns on delivering experiences (rational, emotional and operational ) of superior value to targeted customers.

CDV = TCB - TCC

Total Customer Benefits (TCB): Benefits customer expect from a product/service

Total Customer Cost (TCC): Costs customers expect to incur in evaluating/obtaining the product or services

CUSTOMER BENEFITS
1. Product benefits 2. Service benefits 3. Personal benefits 4. Image benefits

CUSTOMER COSTS

1. Buying Costs 2. Transportation and installation 3. Costs 4. Operational costs 5. Time costs 6. Psychic cost

GIVEN DATA 1. PURCHASE PRICE 2. Resale value (after 5 years) 3. Life 4. Petrol price and lubricant

HONDA ACTIVA 55,000 20,000 5 years Rs. 72/day

BAJAJ PULSAR 65,000 25,000 5 years Rs. 72/day

5. Mileage
6. Maintenance and service cost 7. Power 8. Speed

40 Kms/ltr.
20,000 90 Kms/hr. 60 Km in 11 sec.

45Kms/ltr.
25,000 110 Kms/hr. 60 Kms in 08 sec

BENEFITS
FEMALE
Honda Activa 1. Product benefit 10 Pulsar 150cc Honda Activa 6

MALE
Pulsar 150cc

10

2. Service benefit

3. Personal benefit

4. Image benefit

10

10

TOTAL BENEFITS

38

16

24

38

WORKING NOTES:
Energy-cost: ACTIVA Activa: Runs 100 kms/day with mileage of 40 kms/ltr @ Rs. 72/ltr of petrol Runs 40 kms in 1 liter petrol Will run 100 kms in (1/40)*100 liters of petrol = 2.5 liters of petrol/day 1 liter petrol costs Rs. 72 2.5 litres petrol will cost 2.5*72= 180 Rs. 180 is the petrol cost per day. So, petrol cost for 5 years= 180*365*5= Rs.3,28,500

Energy-cost: PULSAR Pulsar: Runs 100 kms/day with mileage of 45 kms/ltr @ Rs. 72/ltr of petrol Runs 45 kms in 1 liter petrol Will run 100 kms in (1/45)*100 liters of petrol = 2.22 liters of petrol/day 1 liter petrol costs Rs. 72 2.22 litres petrol will cost 2.22*72= 159.84 Rs. 159.84 is the petrol cost per day. So, petrol-cost for 5 years= 159.84*365*5= Rs.2,91,708

After 5 years, total costs =

FEMALE DATA 1. Buying cost 2. Maintenance cost 3. Energy cost 4.Psychic cost 5. Time cost TOTAL COSTS ACTIVA 10 4 7 0 9 30 PULSAR 9 5 8 9 1 32 ACTIVA 7 4 4 9 4 28 MALE PULSAR 8 5 9 0 10 32

CUSTOMER DESIRED VALUE = TOTAL CUSTOMER BENEFITS TOTAL CUSTOMER COST

ACTIVA
FEMALE : 38 30 = 8

MALE : 24 28 = -4

In case of Activa for females the CDV is 8 whereas in case of males it is -4, therefore Activa would be preferred by females and not by males.

PULSAR

FEMALE : 16 32 = -16 MALE: 38 32 = 6

In case of Pulsar in males the CDV is 6 whereas in case of females it is 16, therefore Pulsar will be preferred by males and not by females.

THANK YOU