Using the same organization selected ‘ Euro Car ‘, complete the following tasks: Assess the types of stakeholders involved in the development process for the product/servic

Product Life Cycle

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Strategic Marketing

©2016 South University

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MBA6011 Week 4 Lecture 3

Product Life Cycle: An Example JELL-O® is an established brand with a number of products under its brand name. It was the first product thatheralded the gelatin product category in 1845. This brand was developed and established over a long period. Development In 1845, the first patent for the gelatin desert was obtained by Peter Cooper, an industrialist and a philanthropist. In 1897, Pearl B. Wait bought the patent and created a fruit-flavored version of Cooper’s gelatin and named it JELL-O®. Four flavors were created—orange, lemon, raspberry, and strawberry. Introduction In 1899, Wait sold the brand to Woodward's Genesee Pure Food Company. In 1902, Woodward's Genesee Pure Food Company introduced JELL-O® as “America's Most Famous Dessert" through an advertisement in Ladies’ Home Journal. Over the decades, more flavors were introduced. In 1904, the first trademark of the brand, JELL-O Girl, made its appearance. Growth In 1989, Kraft Foods took over the brand. The company strengthened the brand by introducing new attributes and benefits and creating new beliefs and values. The company invited celebrities to endorse the brand. This resulted in a tremendous leap in sales, with the brand being recognized nationally and internationally. Maturity

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Strategic Marketing

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In 2001, JELL-O® was declared the official snack of Utah by the Utah Senate. Today, more than 158 products are sold under the brand name, with about 300 million boxes sold annually in the United States. Epilogue Through astute product development and marketing, JELL-O® has remained a strong product for over acentury and has yet to experience a decline.

New Product Development

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Strategic Marketing

©2016 South University

2 New Product Development

MBA6011 Week 4 Lecture 2

An organization may choose to introduce a new product in response to a competitor's threat to introduce a similar product. The new product development process has seven steps.

1. Idea generation: In this step, the emphasis is on coming up with as many product ideas as possible. This can be an ongoing process, in which you borrow inputs from people both inside and outside the organization. Contributions may be sought from consumers through the formation of focus groups and the creation of feedback mechanisms. The focus group includes channel members and the sales team. You may also use secondary data sources, such as websites and brainstorming sessions within the organization.

2. Screening of ideas: The ideas that seem to have the highest potential are selected from the pool of ideas created in the first step. The evaluation process is usually quite lengthy, with each idea going through several rounds. Advanced research techniques are used during the advanced stages of evaluation, leading to the selection of a few ideas that show promising estimates in terms of profitability, cost of production, sales, and competitiveness.

3. Product concept testing: The ideas shortlisted in the second step are put before a focus group comprising customers, distributors, and employees. The ideas are usually presented in the form of concept board presentations or small advertisements about the product. The initial feedback gives marketers information regarding the likability of and the level of interest in the product, the frequency of purchase, and price points.

4. Business analysis: The process of evaluation becomes more research based in its effort to measure the viability of

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Strategic Marketing

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the one or two ideas that have survived the rigor of the previous steps. Internal discussions, secondary research, customer surveys, and competitors' analyses are some of the tools used to carry out internal and external research. The aim is to obtain proper business and financial forecasts and judge whether the product concept aligns well with the essential purpose and strategy of the organization.

5. Product and marketing mix development: The organization directs its attention to the development of a prototype or a preliminary design of the selected product idea and a marketing plan for it. Both are tested by samples of target customers. The feedback may be used to tweak various elements before seeking inputs again. The information gathered can be used to gauge customers' understanding of the product and opinion on purchase rates and the feasibility of large-scale production.

6. Market testing: The product is marketed as a prototype and introduced in a small city by a town representative of the target market. In more controlled test settings, distributors are paid a fee by the company. Some other approaches include creating a "laboratory" store, that is, a temporary brick-and- mortar setup, where customers are recruited to shop in virtual reality environments in which shops are replicated. The purpose in each case is to measure the level of interest in the product on the basis of the customers' response by buying the product.

7. Commercialization: The organization introduces the product in a wide market, often by scheduling the arrival of the product in waves, which means that the entire market is not targeted at once. The difference in the arrival schedules of the product in various markets gives the organization more control over its

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Strategic Marketing

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production process, allowing it to fine-tune the product according to the requirements of different markets.

The Product in an Organization

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Strategic Marketing

©2016 South University

2 The Product in an Organization

MBA6011 Week 4 Lecture 1

A marketing mix is a set of controllable tactical marketing activities—product, promotion, place, and price—that an organization blends to produce the response it wants from the target market. The first element of concern in a marketing mix strategy is the product; the place in the order is no coincidence. Without having the right product for your target market, it would make no business sense for you to spend time and effort on the rest of the elements of the marketing mix. In the end, it is the quality of a product or a service and its benefits to the target market that attract customers and keep them coming back for more.

A product strategy is a response to the marketing objective formulated after performing a strengths, weaknesses, opportunities, threats, and trends (SWOTT) analysis and a market growth strategy analysis. Regardless of whether the organization pursues a new product growth strategy or an existing one, tactical decisions need to be made concerning the following key issues:

Experts from the beverage industry signal that consumer preferences are shifting toward more fruity flavors. This trend is part of the much larger health and wellness movement, which has already hit the food industry. Encouraged by the trend, a leading beverage producer, Nature Drink, thinks it is time to experiment with a new product—a milk-based beverage with a tropical taste. Although the product can be used by people of all age groups, Nature Drink is specifically targeting the adult, health-conscious demographic. NatureDrink wants to position its product such that it reflects the healthy, energetic, and chic lifestyle of its target group.

Features and Design

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Strategic Marketing

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A product must first and foremost satisfy the basic expectations of the consumer segments it caters to. A company conducts surveys to identify the needs and expectations of its customers and then decide which specific features can add value to the product at the best cost to the company. Besides flavor, what are some of the features that Nature Drink can offer in its new beverage? Keep in mind its main target group. How Nature Drink takes care of the features and design of its new product: The new product aims at promoting a healthier lifestyle among the target group. Therefore, it offers numerous health features such as low fat content, high calcium and mineral content, and an optimal amount of antioxidants (known to slow down the process of aging).The product is designed to maintain its taste as close as possible to the natural flavors of tropical fruits. The color is also kept in natural shades of the fruits, adding to the allure of the product.

Variety and Quality Variation should not be so great as to cause the product to deviate from the product category. Moreover, customers do prefer choices but too many options can often confuse them. What kind of variation and how much of variety are questions that need to be addressed here. The product must not only meet the high quality level defined for it but also provide a consistent level of performance. Should Nature Drink offer its customers variety in its new beverage? What would be some of the quality levels for the new beverage? How Nature Drink takes care of the variety and quality of its new product: Customers definitely like to have some choice of flavor in a beverage. Nature Drink has launched its new drink in four natural flavors—blueberry, pomegranate, mango, and mixed berry. The quality of the drink is maintained using minimum preservatives.

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Strategic Marketing

©2016 South University

4 The Product in an Organization

MBA6011 Week 4 Lecture 1

Branding, Packaging, and Labeling Successful branding leaves a lasting positive impression on the minds of buyers and creates loyalty toward the brand. It is important that all packaging decisions are in line with the essential positioning and marketing strategy established for the product. How can Nature Drink display, package, and label its new beverage? What can it do to maintain its brand identity on the packages? How Nature Drink is branding, packaging, and labeling its product: The new drink is packaged in lightweight, recyclable plastic bottles designed in exotic shapes and colors adding an element of liveliness. Although the packages of different flavors are identifiable by their characteristic colors, the green and white colors of the Nature Drink brand are maintained as the main background colors. In addition, an easy-to-grip, twist-off top provides a hassle- free opening experience. Moreover, a catchy slogan—Drink healthy for a healthy lifestyle—is added on the label. Support Services Support services need to be designed keeping in mind the needs of customers. The organization will need to conduct appropriate surveys to identify the requirements of its target market, assess the cost involved, and develop a package that will please customers and be profitable to the organization. Can you think of any support services that Nature Drink can offer to its customers? What support services Nature Drink provides to its customers: Nature Drink provides tips on a healthy lifestyle through its “Healthy Living” campaign. Using a panel of eminent doctors and nutritionists, the campaign aims at creating health awareness among its customers.

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Strategic Marketing

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This helps position Nature Drink as a company that cares for the health and wellness of its customers.