JF17 Block III: AESA Vs IRST - which system should take priority?

[araz]

I would agree with your point regarding the marketing aspects atleast as far as concepts go ..

-In certain product categories ... price indeed CAN take the back seat when your considering that product from a customer's point of view ..

-Promoting a product as "cheap" does have a negative association attached to it ...

However, the fact of the matter is, for the segment we've chosen price is DEFINITELY an important variable if not the most important one ... See, while your decision making for purchasing a product, does start with a "needs/wants/desires" --- the price becomes a limiter --- and as you get richer that limitation loosens its grip. Who wouldn't want EF-2000's, Rafales etc. in PAF ... but we can't, thanks to our economic conditions ... and there are alot more countries like us, that definitely need a mid-tier 4th generation platform however are limited by their capability to spend money because of poor economic conditions. This is where they would have to search the market and go by what options they have (second hand platforms etc./JFT ) ... the set of options in consideration would be the "consideration set" of that organization/potential customer.

Another consideration that you have to go by, is to see what kind of market segments does this company have a history of serving ... and this in itself is very important ... Chinese defence companies usually have done business with countries that don't have the best of economies... So shifting from one segment to another or serving another segment in addition to what your already serving becomes one hell of a challenge ... eg. if you research up on it you will find different brands ...who are infact would be taken /perceived as competitors in the market owned by the same parent company.
I won't go in to much detail, but this approach is usually referred to as "house of brands" in which you have a company having multiple un related brands ... so that it can serve multiple segments altogether .... because a single brand with a perception associated with it (that the company projects) will not be meddled with unless absolutely necessary ...

So my argument would be, for some countries (the segment we're trying to seve with JFT) price is a big issue, and it is a driver in the decision making process ...

Secondly regarding the "cheap stigma" ... that is indeed a factor ... but when you don't have any other option besides buying a cheap new product, a second/third hand good product with less life, an older product with newer upgraded gadgets then that negative stigma also takes a back seat because "cheap" is all what you can afford ... Secondly, when you look at the Representatives of the project, the usual word that THEY use, is not "cheap" but "cost effective"

I think you have more or less nailed it. We have 2 different worlds,those of "haves" & "have nots". As a beginner in the field PAF chose to market the product to the have nots as we needed to have our credentials established. The Chinese have had some experience in that market as well. As our credentials have begun to be established and induction of newer technologies and capabilities have made this fighter a possibility in the world of haves we are moving out of our cheap and cheerful mode and tailoring the product to the needs of the world of haves. However even here we need to keep our prices down to make the product palatable to everyone and make the sale a logical one. The other angle is our own needs to have a more developed fighter which I am assuming will be partly financed by the profits from the sale of fighters. We whould hopefully incorporate AESA and IRST in block 111.
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