CAIIB JUNE 2024 SHORT NOTES | PRODUCT HIERARCHY
This article deals with the Product Hierarchy topic of the CAIIB JUNE 2024 EXAM and CAIIB JUNE 2024 Study Material.
CAIIB exam is to be given in June 2024 and is handled by IIBF. The main objective of the CAIIB exam is to provide IIBF members with more in-depth knowledge in areas like risk management, Treasury management, credit management, international banking, balance sheet management, economic analysis, etc., which is crucial for better decision-making.
Now that we have enough information regarding the CAIIB June 2024 Exam let’s learn more about a crucial subject called Product Hierarchy.
A product is categorized into its primary components according to a hierarchy of products. A product will inevitably be connected to or related to another. The hierarchy of the products ranges from basic necessities to specialized goods that meet a range of purposes. Instead of focusing on a single product, consider the firm as a whole to better understand product hierarchy. Product hierarchy can be thought of as a method of product categorization since it is frequently stated in the same sentence as product classification.
LEVELS OF THE PRODUCT HIERARCHY
The layers of the product hierarchy are best understood by utilizing examples. These tiers of the product hierarchy include:
- Product need: The main justification for a product’s existence is the need for it. Motor vehicles, for instance, were created because people needed to and wanted to travel. Consider Toyota automobiles as an example of a core product.
- Product families: These are organized on the primary requirement that each product satisfies. This indicates that the entire business market should be considered rather than just a particular market. For instance, if travel is the primary demand, then aircraft, trains, or ships can fulfill it. The product family in this situation is travel, whereas the product family for Toyota is cars.
- Product class: This happens when different categories are taken from the same business. Product class and product family are comparable. However, the product class doesn’t leave the company, while the product family does. One example of a product class is a personal computer.
- Product line: All of the items in a class of products that are related to one another because they serve the same purpose, are bought by the same customers, or are within the same price range make up a product line. A laptop, a wireless, portable personal computer, is an illustration of a product line.
- Product type: This is a term used to describe the many goods that make up a product line. For instance, product categories like I20 Astana, I20 Sportz, and I20 Magna are under the Hyundai I20 product range.
- Product units: These, also known as stock-keeping units (SKUs), are distinct items that can be identified by size, price, or other characteristics within a brand’s product category. When a product is independent of other product types and has no dependencies, it is referred to as an individual product unit.
CREATING A PRODUCT HIERARCHY
It’s difficult to create a hierarchy of products. That’s because getting down to the essential requirements and essential characteristics might be challenging.
Step 1: Get to the core of the matter.
- It can be challenging to concentrate on the essential product demand. Starting with the company’s mission statement is one strategy that can be useful for this step.
- Example: Salesforce’s Customer Success Platform, for instance, “enables businesses to connect with their consumers in a completely new way.”
- This objective appears straightforward at first glance, however, it contains a wealth of insightful information.
- Salesforce is a cohesive ecosystem of software or a “platform.” They wouldn’t develop a brand-new item that doesn’t work with the existing platform.
- Connecting with customers is what Salesforce is all about. Therefore, add-ons like community building software and email marketing automation fit in perfectly with that goal.
Step 2: Select Key Categories or Features
- The next stage for businesses with a large number of items is to develop hierarchy using the primary categories. This phase is intended for businesses with a single product and highlights essential features.
- Although there isn’t a single “correct” approach to organise a hierarchy, we advise to keep things as straightforward as possible.
- The categories should ideally also take into account how the product is positioned in the eyes of the consumer.
Step 3: Optimize for the New Hierarchy
- People can start optimising a product once they have decided on its essential elements.
- We want to emphasise 2 important points here:
- Improving product names.
- Improving category page performance.
Improving product names – You can come up with a naming scheme depending on the levels once you’ve established your new hierarchy. Making consistent product titles makes it simpler for staff and customers to find products.
Enhancing the category pages – For each category page of a product tree, there are numerous opportunities to produce highly focused web content. These pages can provide a tonne of SEO chances, albeit the length and layout will depend on the kind of business you’re in.
Step 4: Scale Your Product Hierarchy
- The organisational structure will expand along with the company. Consider how a new product line or feature will fit into the hierarchy if intended to introduce one. It may be a sign that the product isn’t a suitable fit for the company if it doesn’t fit. Having said that, the hierarchy doesn’t have to be static in every way. If doing so advances the overall purpose, increasing the categories is acceptable.
CAIIB JUNE 2024 STUDY MATERIAL
Candidates preparing for the CAIIB JUNE 2024 Exam have depended on Learning Sessions for many years to provide them with the most recent CAIIB study materials to help in their preparation. The CAIIB June 2024 study material, which has the following qualities, is available to you and you may rely on it with full faith.
- For the ABM, BFM, ABFM, BRBL and optional papers, our bundle includes recorded video lessons.
- The most recent curriculum is accessible for both recorded and live video classes. The video lectures were created using the most recent CAIIB syllabus 2024 recommended by the IIBF for the CAIIB Exams.
- Mock tests are included in our CAIIB June 2024 study material. They also include Memory-recalled questions from previous years’ CAIIB exams.
- CAIIB Case Studies are covered in the courses as well.
- ABM, BFM, ABFM, & BRBL are available in English blended with Hindi and English-only language
- Other Elective papers are available in: English blended with Hindi.
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