Agenda

1
Agenda

• Presentation
• Short Lecture on Chapters 12 and 13
• Short Activity (continued on Saturday)

2
Developing New Market Offerings

• Marty Gustafson
• EM 670S Chapter 12
• April 23, 2003

3
New Products

• Less than 10 of new products are truly
  innovative
• New to the world
• New product lines to enter an established market
• Additions to existing product lines
• Improvements or revisions of existing products
• Repositioning products to a new market
• Cost reductions similar products for a lower
  cost

4
Challenges

• Shortage of important ideas
• Fragmented or small markets
• Social and governmental constraints
• Cost of development
• Capital shortages
• Faster required development time
• Shorter product life cycles

5
What is marketings role?

• Idea generation
• interact with others for new ideas
• Creativity techniques
• Idea screening
• Concept development and testing
• Conjoint analysis
• Market strategy
• 4 Ps (product, price, promotion, placement)
• Market testing
• Financial projections
• Commercialization

6
Update the Strategy
7
Designing Global Market Offerings

• Marty Gustafson
• EM 670S Chapter 13
• April 23, 2003

8
Blunders in Going Global
Coca-Cola had to withdraw its two-liter bottle in
Spain after discovering that few Spaniards owned
refrigerators with large enough compartments to
accommodate it. General Foods Tang initially
failed in France because it was positioned as a
substitute for orange juice at breakfast. The
French drink little orange juice and almost none
at breakfast. Kelloggs Pop-Tarts failed in
Britain because the percentage of British homes
with toasters was significantly lower than in the
United States and the product was too sweet for
British tastes. General Foods squandered
millions trying to introduce packaged cake mixes
to Japanese consumers. The company failed to
note that only 3 of Japanese homes were equipped
with ovens.
9
Marketing Decisions

• Should we go abroad?
• What markets should we enter?
• How should we enter the market?
• Export
• Local factory
• Licensing
• Joint ventures
• Set up a Marketing Program (4 Ps)
• Set up a Marketing Organization

10
Activity

• Select one of the products on display
• What type of new product introduction was it (new
  to the world, new to the market, etc.)?
• What challenges were probably faced in bringing
  it to market?
• What testing was required?
• Could you take this product globally?
• What would you need to do in order to launch it?