Chapter 8 New Product Development QUESTIONS AND ANSWERS TO END-OF CHAPTER MATERIAL Hands-on…apply your knowledge New Product Development Assignment Impact Machine’s TACKLA QuikBlade Shift251 hockey skate was created as an innovative hockey skate in the competitive sports’ market. Review this chapter’s opening vignette on this skate and gather addition information about this and other products in this category by going online to visit brand websites and social media sites. Also review the latest news in this category, and if appropriate, visit sporting goods stores to review the products in a retail environment. Brainstorm on how the online environment can be used to market the TACKLA QuikBlade Shift251 hockey skate to consumers and present your ideas to the class. Answer: These assignments give students the opportunity to apply chapter material to a real-life example, using the chapter’s opening vignette as a foundation. There are no specific answers. To market the TACKLA QuikBlade Shift251 hockey skate online, utilize targeted social media ads showcasing performance benefits and testimonials. Create engaging video content demonstrating the skate's features and innovations. Leverage influencer partnerships with hockey players for authentic endorsements and host interactive live sessions or Q&A to engage with potential buyers. Video Clip…Questions Review the TACKLA Shift251 Skate video from the CONNECT website to hear Morgan Matthews talk about this new product. Answer the following questions: • Which drivers of new product success are incorporated into the TACKLA QuikBlade Shift251 hockey skate? Answer: The drivers of new product success that are incorporated into the TACKLA QuikBlade Shift251 hockey skate are value, convenience, and innovation. Drivers of Success: The TACKLA QuikBlade Shift251 incorporates technological innovation (advanced materials and design), performance improvement (enhanced skating efficiency), and addressing specific consumer needs (comfort and agility). • Looking at the Adoption Curve, which group of consumers do you think are most likely to purchase the TACKLA QuikBlade Shift251 hockey skate? Answer: Early adopters are most likely to purchase this innovative skate. Adoption Curve: Early adopters are likely to purchase the TACKLA QuikBlade Shift251, as they are typically enthusiasts who seek the latest innovations and are willing to invest in cutting-edge products. Infographic ... Data Analysis Review the infographic on the coffee business that details consumer preferences and the dynamics of the coffee market. Research the latest changes in the Canadian retail coffee business by reviewing news articles on this topic and navigating to the Coffee Association of Canada website at http://www.coffeeassoc.com/ and the Canadian Vending and Coffee Service Magazine website at http://www.canadianvending.com/. Create a new infographic with the latest data gleaned from these sites. (Infographic tip: use Excel and Word to create charts and place them in a single PowerPoint slide to combine the visuals). Answer: The Coffee Association of Canada and the Canadian Vending and Coffee Service Magazine provide excellent data on the coffee market in Canada. This data is periodically updated from new research studies and it therefore will be a good source of information for students. QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES: APPLYING MARKETING CONCEPTS AND PERSPECTIVES 1. Here are three different products in various stages of the product life cycle. What marketing strategies would you suggest to these companies? (a) A cellphone company (b) a tap-water purifying system, and (c) a handheld manual can opener. Answer: a. A cellphone company - two approaches may be used to increase demand; (1) a market penetration strategy focusing on adding new features and services to the phones, and (2) a product development strategy focusing on developing new products that appeal to the current market. The industry is in the mature stage of the product life cycle and will need to be price competitive and focused on promotion and new features. b. A tap-water purifying system - two approaches may be used here; (1) a product development approach focusing on improving the technology to remain competitive, and (2) a market development approach which reaches out to new markets encouraging them to use the system. This industry is in the mature stage of the product life cycle. c. A handheld manual can opener - two approaches may be used with this product; (1) a product development approach which tries to add improved design features to appeal to the market, and (2) a diversification approach which looks at entering the market with new products which may have greater longevity and uniqueness in the market. This product is in the mature-decline stage of the product life cycle. 2. It has often been suggested that products are intentionally made to break-down or wear-out. Is this strategy a planned product modification approach? Answer: Points of view may vary on this. In the electronics business many products have short life-cycles and products are not expected to last many years. Cellphone products and MP3 products are such examples where new products are introduced in a short time-frame to replace older models which cannot be easily repaired at economical prices. No, intentionally making products to break down or wear out is not a planned product modification approach; it's often referred to as planned obsolescence, which is aimed at encouraging repeat purchases rather than modifying products to improve them. 3. A product manager is reviewing the market penetration of garbage compactors in North American homes. After being available in the marketplace for more than two decades, this product is in relatively few homes. What problems can account for this? What is the shape of the garbage compactor’s life cycle? Answer: A garbage compactor is a high learning product. The problems include convincing consumers there is a benefit to compacting garbage. There is also a fear among consumers about having a household appliance that has such force. Since safety is a persistent worry, the shape of the life cycle would seem to have a very long introduction period. 4. For several years Ferrari has been known as the manufacturer of expensive luxury automobiles. Now the company plans to attract the major segment of the car-buying market which purchases medium-priced automobiles. What approach to extending the product life cycle is this manufacturer using? Answer: Ferrari is using two approaches with this strategy; (1) targeting new consumers through new marketing approaches, and (2) introducing a new product. 5. What role does packaging play in new product development? Answer: Packaging can be used to revitalize a product, bringing new features and benefits to a product while creating a point of difference versus other competitive products. Packaging however is not necessarily a feature for all products. QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES: DISCUSSION FORUM You work with a consumer packaged-goods company that creates household cleaning products. The firm is challenged is to produce more winning products and to spend less money on research and development. You have been asked to conduct a presentation on this topic. Design the outline of what you will present. Answer: 1. Introduction: Overview of current challenges in developing successful household cleaning products with a focus on cost efficiency. 2. Consumer Insights: Leveraging data to understand consumer needs and preferences to guide product development. 3. Innovation Strategies: Implementing cost-effective R&D methods, such as incremental innovation and partnerships with suppliers. 4. Case Studies: Examples of successful low-cost innovations and best practices to inspire actionable strategies. Note: These discussions are meant to generate class discussion and a lively debate of issues raised, as well as a general review of concepts discussed within the chapter. There are no correct or incorrect answers. QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES: INTERNET EXERCISE Go to www.coca-cola.com and navigate your way to its lists of brands and products around the world. Identify three products/brands that are not available in Canada and review which ones may have some potential. Anticipate potential stumbling blocks to bringing each of these products to the Canadian market. Answer: The products on this website may change as Coca-Cola routinely introduces new products throughout the world. Here are three products that are not currently available in Canada: 1. Aquarius Freestyle sports drink – the issue in bringing this product to Canada is that the sports drink market is very competitive and saturated with competitors. 2. Sprite Duo soft drink – the issue in bringing this product to Canada is that it would be difficult to get the product on the shelf as the market is moving to healthier and more nutritious beverages. 3. Odwalla Superfood – the issue in bringing this product to Canada is that this product area is virtually unknown in Canada and may require extensive market research. BRING IT TO LIFE: VIDEO SYNOPSIS & TEACHING SUGGESTIONS TACKLA SHIFT251 SKATE Synopsis (This video case is also included in the text book as the opening vignette for chapter 8) TACKLA QuikBlade Shift251 is an innovative hockey skate with replaceable blades that allows users to save time visiting pro-shops to sharpen skates. The hockey skate was developed by Impact Machine and sold at Canadian Tire as the first of its kind on the market. The skate comes with a set of replaceable blades that can be easily latched onto the skate. The process of bringing the hockey skate to market started with an analysis of the market for product feasibility, market potential, and profit prospects. It continued with negotiations with the patent holders for use of the patented blade and with marketing strategies to determine branding. This was followed by presenting the skate to Canadian Tire, engineering prototypes for testing, creating a testing certification lab in China, retesting the products for certification in Canada, locating manufacturers offshore, and finally delivering the products to Canadian Tire. Teaching Suggestions This video case focuses on sports marketing, an interesting subject for many students. Some students will be familiar with the TACKLA dual blade hockey skate and can voice their opinions on the market potential of this Canadian product. This video shows the owner and partner of Impact Machine, the creator of this hockey skate, talking about the skate. You may wish to show the video before distributing the case as it explain the product so all students can understand the premise. The written video case provides insights into the complexity of bringing this product to market. Discussions can focus on the complexity of launching this product and the financial risks involved in bringing a new product to market. BRING IT TO LIFE: VIDEO CASE – PRINTOUT TACKLA SHIFT251 SKATE Impact Machine is a seasoned product design company that provides clients with intricate services for new product development. It focuses on sports products and promotional items, and takes a product from its initial research stage through to concept development and engineering. It also provides consulting services for production and supply chain management and develops sales and marketing strategies. Specifically, Impact Machine conceptualizes and engineers products and designs packaging, retail displays, trade exhibits, and promotional items. It also provides outsource relationship management services to assist with factory and material sourcing, supply chain management, and factory and buyer relations. Products in its roster include, among others, promotional items for Labatt Breweries and Alliance Films, the Roberto Alomar Baseball Pro Series Baseball Glove, a line of hockey equipment for Winnwell Clean Hockey, protective hockey gear for the Forzani Group/Canadian Tire VIC hockey line, Sonic Shield items for DR Hockey, the Vault anti-concussion hockey helmet, and the TACKLA QuikBlade Shift251 hockey skate. Impact Machine emphasizes that new products succeed only if they sell and make a profit. “We start at the end and work backwards, creating a 360-degree view of the product to foresee hiccups,” explains Matthews. “We look at consumers and what they want in a product. We analyze competitive offerings to understand the dynamics of the market. We focus on retail realities, such as how a product is displayed, to avoid problems, and we look at the business side to make sure costs are in line with the market.” In this manner, Impact Machine looks at price points and profit margins to ensure that products are profitable at each stage in the supply chain, and considers the realities of manufacturing, all before detailed concepts are developed. Impact Machine launched the TACKLA QuikBlade Shift251 hockey skate with Canadian Tire in August 2012 as the first of its kind on the market. The TACKLA QuikBlade Shift251 is an innovative hockey skate that comes with a set of replaceable blades. The skate allows hockey players to quickly replace dull blades without having to visit pro shops for skate sharpening. A hockey player merely squeezes the latch on the blade holder to release the dull blade and then replaces it with an alternate sharp blade. In this manner, visits to skate sharpening shops are cut in half, with people sharpening two sets of blades in a single visit. The concept of a replaceable blade started in the late ’70s with ex-NHL defenceman Rick Hampton, who at the end of his playing career, came up with the replaceable blade idea as an option for hockey players of all ages and abilities. However, the idea did not take root, stalled by the considerable expertise needed to move it from an idea into the actual design, engineering, manufacturing, and selling stages of a marketable product. Over the years, Hampton’s business dealings resulted in ownership of the replaceable blade (trigger operated with a rotational latch) residing with car parts manufacturer Multimatic. Impact Machine, knowledgeable about the replaceable blade concept, entered the picture in 2011 and approached and negotiated with the patent holders to use the blade in a new hockey skate. Using its 360-degree approach, Impact Machine determined the various elements required in the project: the retail price point essential to selling the skate in Canada; the upfront costs needed to design and engineer the skate; the costs required to manufacture the skate; the royalties needed to pay the patent holders; the retailer margins crucial to ensuring success at the store level; the potential retailers interested in selling the product; and the profit margins needed to make it worthwhile for Impact Machine. After agreeing to a royalty approach with Multimatic, Impact Machine approached Canadian Tire (leaders in the hockey skate market in Canada) to gauge interest in this new skate. Swayed by the innovative replaceable blade and the potential to use the highly recognized TACKLA brand name (used under licence by Impact Machine in Canada from Finnish company TACKLA), Canadian Tire signed on, but only after considerable back and forth between different buyers who had varying degrees of interest in the hockey skate. “Getting the TACKLA QuikBlade Shift251 off the ground was no easy task,” states Matthews, who explains that it took many twists and turns until the product finally hit retail shelves. “After Canadian Tire announced it was on board, we had a very short window of a few months to pull it off and we hit many hurdles along the way.” Impact Machine had to quickly design and engineer the hockey skate in seven different sizes, determine manufacturing standards and specs for each, source manufacturers and components, and deliver the finished products to Canadian Tire on time and on budget! The first major twist was that Canadian Tire needed the skate to be safety-certified. There were no business guarantees without the certification, and Impact Machine now needed to sink considerable time, effort, and money into conducting product tests to obtain official safety certifications. “We had little choice,” explains Matthews. “We wanted to make this work but we hit our first major hiccup—there were no certification labs for this in Canada.” Three months later, after Impact Machine invested resources into building a testing lab in China, final prototypes were certified and shipped to Canadian Tire for approval. Canadian Tire gave them the green light and things were ready to move ahead. Here the second twist surfaced. This time, Multimatic, the blade patent holder, decided to put the product through its own testing procedures, a standard practice in the car parts industry where it conducted most of its business. This resulted in further delays until finally, at the end of December 2011, four months before required product delivery dates, Impact Machine was ready to secure off-shore manufacturing in China that could reliably deliver the products on spec, on budget, and on time. However, the window for manufacturing was now exceptionally short since manufacturing in China closes in February, and the certification delays resulted in Impact Machine having only a window of opportunity from January to April to produce the skates—peak time for other hockey skate manufacturers. Nonetheless, after considerable work and negotiations, the TACKLA QuikBlade Shift251 skates were delivered to Canadian Tire as needed, hitting its delivery dates for the sell-in of the fall hockey season. In its first year, the TACKLA QuickBlade Shift251 hockey skate disrupted the market with its innovative hockey skate. However, in 2013, a competitive replaceable-blade hockey skate was introduced to the market, adding to the continuous twist and turns that exist in the road to new product development. You can read more about Impact Machine and its approach to product development on its website at www.impactmachine.com. Be sure to follow the future success of the TACKLA skate in the business press and stay apprised of any further twists and turns that may evolve. Questions 1. What type of innovation is the TACKLA QuikBlade Shift251; a minor innovation, a continuous innovation, or a radical innovation? Answer: The TACKLA QuikBlade Shift251 is a radical innovation due to its novel concept of replaceable blades, which represents a significant departure from traditional hockey skates and introduces a new functionality to the market. 2. What stage in the product life cycle is the TACKLA QuikBlade Shift251; introductory, growth, maturity, or decline? (The TACKLA QuikBlade Shift251 is on the introductory stage of its product life cycle.) Answer: The TACKLA QuikBlade Shift251 is at the introductory stage of its product life cycle as it was newly launched and is still establishing its presence in the market, with ongoing efforts to overcome initial challenges and gain acceptance. 3. Looking at the adoption curve, which group of consumers is TACKLA targeting with its new hockey skate; (1) innovators, (2) the early majority, (3) the late majority, or (4) laggards? Answer: TACKLA is targeting innovators with its new hockey skate, as it is aimed at early adopters who are willing to try new and groundbreaking products and are likely to appreciate the advanced features of the replaceable blade system. BRING IT TO LIFE: VIDEO CASE WORKSHEET TACKLA SHIFT251 SKATE Section: The video case will review the TACKLA shift251 hockey and the process used to create it and bring it to market. Please answer the following questions once you have watched the video and read the case: 1. What type of innovation is the TACKLA QuikBlade Shift251; a minor innovation, a continuous innovation, or a radical innovation? Answer: The TACKLA QuikBlade Shift251 is a radical innovation as it introduces a new concept of replaceable blades in hockey skates, fundamentally changing how players maintain their equipment. 2. What stage in the product life cycle is the TACKLA QuikBlade Shift251; introductory, growth, maturity, or decline? Answer: The TACKLA QuikBlade Shift251 is at the introductory stage of the product life cycle, as it is a new product just entering the market and still establishing its presence. 3. Looking at the adoption curve, which group of consumers is TACKLA targeting with its new hockey skate; (1) innovators, (2) the early majority, (3) the late majority, or (4) laggards? Answer: TACKLA is targeting innovators with the Shift251, as it is aimed at consumers who are early adopters of groundbreaking technology and new product features in the hockey equipment market. BRING IT TO LIFE: VIDEO CASE – ANSWERS TO QUESTIONS TACKLA SHIFT251 SKATE 1. What type of innovation is the TACKLA QuikBlade Shift251; a minor innovation, a continuous innovation, or a radical innovation? Answer: This new product can be considered a continuous or a radical innovation, depending on your point of view. The TACKLA QuikBlade Shift251 is a radical innovation. It introduces a novel replaceable blade system that significantly alters traditional hockey skate design and maintenance. This represents a substantial leap forward compared to incremental improvements or ongoing enhancements in existing skate technology. 2. What stage in the product life cycle is the TACKLA QuikBlade Shift251; introductory, growth, maturity, or decline? Answer: The TACKLA QuikBlade Shift251 is in the introductory stage of its product life cycle. The TACKLA QuikBlade Shift251 is in the introductory stage of the product life cycle. It has recently launched and is being introduced to the market. This stage is characterized by efforts to build market awareness and gain initial customer acceptance. 3. Looking at the adoption curve, which group of consumers is TACKLA targeting with its new hockey skate; (1) innovators, (2) the early majority, (3) the late majority, or (4) laggards? Answer: The TACKLA QuikBlade Shift251 is targeting innovators and the early majority TACKLA is targeting (1) innovators with the QuikBlade Shift251 hockey skate. Innovators are early adopters of new and unique products, eager to try innovative solutions. The QuikBlade's novel replaceable blade feature aligns with their willingness to experiment with cutting-edge products. BRING IT TO LIFE: NEWSFLASHES SYNOPSIS AND DISCUSSION QUESTIONS Two interesting NewsFlashes are included in this chapter on McDonald’s and Instagram as follows: A. NEW PRODUCTS BOLSTER COFFEE WARS 65 percent of Canadians drink coffee every day and about 37 percent of them outside the home with coffee as one of the most requested products in food establishments. Tim Hortons is the coffee shop of choice with a 77 percent share of the out-of-home coffee business, followed by McDonald’s at 11 percent, and 12 percent shared among independent coffee shops and smaller coffee chains. The market is very competitive with McDonald’s Tim Horton’s and Starbuck’s introducing new beverages to maintain their market share or grow their business. Questions 1. Why do you think Tim Hortons is so successful in the coffee business? Answer: The answers to this question will vary but the success of the brand is rooted in its outreach to local communities, its involvement in its Children’s’ Foundation, and the fact that it consistently delivers a high quality cup of coffee and innovates to bring Canadians new options. 2. In what stage of the product life cycle are single serve coffee capsules? Answer: These new products are in the growth stage of the PLC. Single-serve coffee capsules are in the growth stage of the product life cycle. They are widely adopted, with increasing market penetration and consumer acceptance. The category is expanding rapidly, driven by innovation and rising demand for convenience and variety. B. INSTAGRAM - NEW PRODUCT SUCCESS Instagram is a mobile app launched in 2010 by entrepreneur Kevin Systrom. He secured $500,000 in start-up funds, took on a partner and launched Instagram as a free iPhone camera app with social and commenting options. The product was an instant success and today has over 150 million active users and was purchased by Facebook in 2012 in a deal worth $1 billion in cash and equity. Instagram had yet to make any money. Questions 1. Which drivers of new product success are included in the Instagram product? Answer: The drivers for product success are (1) value, (2) convenience, (3) health, and (4) innovation. Instagram provides good value (it is free). It is also convenient as it is a simple to use mobile app. It is also innovative by providing filters and social sharing capabilities. 2. Do you think Instagram will lose its lustre once ads become a regular feature of the app? Answer: Time will tell whether ads will negatively impact Instagram, but unless it finds a way to monetize its product, it will not be able to exist as a free mobile app. Instagram might face some challenges as ads become more prevalent, potentially affecting user experience. However, if ads are well-targeted and integrated seamlessly, they may not significantly diminish the app's appeal. The platform's continued innovation and user engagement will be key to maintaining its allure. BRING IT TO LIFE: NEWSFLASH PRINTOUT AND WORKSHEET Name: Section: NEW PRODUCTS BOLSTER COFFEE WARS The Canadian coffee market continues to morph, boosted by a highly competitive market where consumers love their coffee. The Coffee Association of Canada tells us that 65 percent of Canadians drink coffee every day and about 37 percent of them do so outside the home. This leaves coffee as one of the most highly requested products in food establishments, and with its high margins, competitors work hard to hang on to market share. Tim Hortons is the coffee shop of choice. It enjoys a hefty 77 percent share of the out-of-home coffee business, followed by McDonald’s at 11 percent, leaving the remaining 12 percent to independent coffee shops and smaller coffee chains (in Canada) such as Starbucks and Second Cup. However, being number one in the business is no easy task, and between 2009 and 2013, Tim Hortons’ market share slipped 3 share points from 80 percent to 77 percent, feeling the direct hit from McDonald’s premium McCafé beverage brand, which was launched in 2009 with an annual free coffee giveaway. Since 2009, McDonald’s share of the out-of-home coffee market has increased 5 share points, from 6 percent to 11 percent. McDonald’s restaurants now sell a line of McCafé beverages that includes made-to-order premium hot coffees such as Premium Roast brewed coffee, as well as upscale varieties including mocha, latte, cappuccino, Americano, espresso, and iced coffees from freshly ground beans. McDonald’s also sells 350-gram packages of McCafé Premium Roast ground coffee for home brewing. In 2012, not to be outdone, and needing to shore up its own coffee business that consisted of original and decaf premium blends and flavoured cappuccinos, Tim Hortons added a new line of coffees made with premium espresso beans, lattes, mocha lattes, and cappuccinos. In addition, in 2012, Tim Hortons introduced Tassimo single-serve coffee T DISCs for coffee lovers who use the Tassimo single-serve brewing machines at home, followed by the launch of Tim Hortons Single Serve Coffee Cups compatible for use in Keurig single-serve brewers in 2013. In 2013, it also test-marketed a dark roast coffee blend in London, Ontario, and Columbus, Ohio, to see how it fared in the market. So where is Starbucks in this equation? Starbucks is holding its own and also attempting to take business away from Tim Hortons. In 2012, it introduced a Blonde roast to target Canadians that prefer the milder coffees they can buy at Tim Hortons, and in 2013, it announced the opening of Starbucks coffee shops within Target stores in Canada. Questions 1. Why do you think Tim Hortons is so successful in the coffee business? Answer: Tim Hortons' Success: Tim Hortons' success can be attributed to its strong brand loyalty, extensive network of locations, and consistent quality. Its deep integration into Canadian culture and its focus on convenience and affordability also play significant roles. 2. In what stage of the product life cycle are single serve coffee capsules? Answer: Product Life Cycle of Single-Serve Coffee Capsules: Single-serve coffee capsules are in the growth stage of the product life cycle. They have gained widespread acceptance, driven by increased consumer demand for convenience and a growing variety of options and brands. BRING IT TO LIFE: NEWSFLASH PRINTOUT AND WORKSHEET Name: Section: INSTAGRAM - NEW PRODUCT SUCCESS In October 2010, the new free iPhone app Instagram was launched in the Apple app store, the brainchild of Kevin Systrom, a Stanford University graduate with an entrepreneurial spirit and a passion for photography. Influenced by a university study-abroad photography course in Italy, inspired by a trip to Mexico where he created an app to make mobile photography easier, and with an entrepreneurial spirit coaxed by an internship at start-up Odeo (which morphed into Twitter), and two years working at Google, Systrom knew he had an idea with legs, and the passion to make it happen. The idea was to create an open mobile platform for visual media that could be accessed anywhere in the world, whether this be a sporting event, a protest, a natural disaster, or just a personal experience. What started off as an idea for a mobile check-in app where photos could be added, turned into a photo app with optional location check-in; Systrom realized that Foursquare had cornered the market on check-in apps and changed his approach. As with most starts-ups, Systrom needed funds to help get his idea off the ground. He secured $500,000 in start-up seed money but it was dependent on Systrom taking a partner. Enter Mike Krieger, also a Stanford grad, and together they launched Instagram as an iPhone camera app with social and commenting options. The new product was an instant success, boosted in its early days by tweets from Jack Dorsey, owner of Twitter, and articles in the TechCrunch and Bits blogs. In 24 hours, the app was downloaded 25,000 times, and the entrepreneurs were challenged to prevent its servers from crashing. Reaching out to their contacts, the hosting was transferred to Amazon’s servers, and after a month, the app had 1 million users. In December 2011, Apple selected Instagram as its app of the year, boosting it into further success. Four months later, in April 2012, an Android version was launched, and Facebook announced its intention to purchase the start-up for a deal worth $1 billion in cash and equity, although Instagram had yet to make any money. Today, Instagram is the world’s largest photo-sharing site, has over 150 million active users, and runs ads to help monetize the platform. The app allows users to instantly and easily create square photos with borders and filters that give them a hip, retro feel. Images can be tagged and immediately shared with a user’s Instagram network for comments and likes, and also shared on Twitter, Facebook, Flickr, or through e-mail. Images can be “hashtagged” for search functionality, and short video clips (up to 15 seconds) can also be shared with the network. Passion, hard work, creativity, and an entrepreneurial spirit helped make this happen. But let’s not forget the role of funding, word-of mouth marketing, and the impact of subtle recommendations from tech gurus such as Jack Dorsey and tech blogs that helped boost the app’s popularity. Questions 1. Which drivers of new product success are included in the Instagram product? Answer: Drivers of New Product Success for Instagram: Instagram's success can be attributed to its innovative idea, user-friendly design, effective use of social media for word-of-mouth promotion, and strategic funding and support from influential figures in tech. 2. Do you think Instagram will lose its lustre once ads become a regular feature of the app? Answer: Instagram and Ads: Instagram might face some decline in user engagement if ads become intrusive, but if ads are well-targeted and integrated seamlessly, they could sustain the platform’s appeal while providing revenue. BRING IT TO LIFE: IN-CLASS ACTIVITY NEW PRODUCT FAILURES – INSTRUCTIONS Learning Objective To have students study six new product failures and in each case determine its (1) target market, (2) reasons for failure, and (3) market research that could have averted its launch. Description of In-Class Activity • Provide students with a handout and show a visual on a PowerPoint slide of the six product failures to be reviewed. Ask students to identify the reasons for their failure. (These examples, and the accompanying photos, are adapted from Robert M. McMath’s book “What Were They Thinking?” and www.newproductworks.com. • This activity should be conducted in pairs. Estimated class time: 30-45 minutes. Preparation before Class • Make a PowerPoint slide of the product failures or organize to show the hand out on the classroom screen so that the students can see the product in colour and in the necessary detail for successful completion of the activity. In-Class Implementation • Relevant Chapter Content – Prior to conducting this in-class activity you will need to review the following chapter material with your students and explain it by giving examples: New products fail for the following reasons: ○ Insignificant point of difference ○ Incomplete new concept definition. ○ Insufficient market attractiveness. ○ Inadequate marketing support. ○ Insensitivity to critical customer needs ○ Bad timing ○ Limited access to buyers • In-Class Instructions – Show a colour visual or a PowerPoint slide of the handout on the classroom screen and distribute the handout and worksheet to the students. Review the activity with the students and give them 30 minutes to complete it. Conduct a feedback session in class (25 minutes) and collect the handouts for evaluation purposes. • Handout – Distribute the handout and worksheet for students to complete. • Evaluation – Collect the worksheets from this activity for evaluation purposes. They can be evaluated for completion, or graded for quality of the work completed. Robert M. McMath and Thom Forbes, “What Were They Thinking?” (New York: Times Business, 1998). See also New Product Works at www.newproductworks.com. BRING IT TO LIFE: IN-CLASS ACTIVITY NEW PRODUCT FAILURES – HANDOUT The products below did not succeed in the market. Review them and identify (1) their target market, (2) the reasons for failure, and (3) market research which could have averted their launch. Produced by Adams Nutritional fruit chews Produced by Coca-Cola High Caffeine, citrus soft drink Produced by General Mills Basketball-shaped corn & wheat breakfast cereal Produced by Gunderson An hors d'oevre for cocktail parties Produced by Kellogg's A Special K product with more calcium, packaged in a milk-carton-like container Produced by Dairimetrics, Ltd. A vanilla mint-toothpaste in an aerosol container BRING IT TO LIFE: IN-CLASS ACTIVITY NEW PRODUCT FAILURES – WORKSHEET Name: Section: 1. After reviewing the identified products, please determine (1) their target market, (2) the reasons for failure, and (3) market research which could have averted their launch. PRODUCT TARGET MARKET REASON(S) FOR FAILURE POSSIBLE MARKET RESEARCH 1 Point of difference 2 Concept definition 3 Market Attract-iveness 4 Mktg support 5 Cust-omer needs 6 Bad Timing 7 Access to Buyers A. Body Smarts B. Surge C. Wheaties Dunk-A- Balls D. Garlic Cake E. Kellogg’s Special K Plus F. Dr. Care Tooth- paste BRING IT TO LIFE: IN-CLASS ACTIVITY NEW PRODUCT FAILURES – ANSWERS PRODUCT TARGET MARKET REASON(S) FOR FAILURE POSSIBLE MARKET RESEARCH 1 Point of difference 2 Concept definition 3 Market Attract-iveness 4 Mktg support 5 Cust-omer needs 6 Bad Timing 7 Access to Buyers A. Body Smarts Nutrition- conscious adults √ √ Consumer taste tests B. Surge 18 – 34 year old males √ √ √ Paired-comparison taste tests with Mountain Dew C. Wheaties Dunk-A- Balls Kids √ √ √ Concept tests with mothers and children D. Garlic Cake Adults √ √ √ √ Concept and taste tests E. Kellogg’s Special K Plus Health- conscious adults √ √ Package tests on consumers and retailers F. Dr. Care Tooth- paste Families √ √ √ Concept tests BRING IT TO LIFE: METRICS ASSIGNMENT AND WORKSHEET KEYWORDS AND TAG CLOUD - LIVINGLOU.COM Name: Section: The keywords used in company websites, online press releases, and blogs are important to how search engines index websites and rank them during keyword searches. Keyword data for a search topic or for a website can be easily retrieved from numerous online destinations along with information on the number of search queries for these terms. These keyword metrics are generally presented as a list and used by businesses to help market their websites on the Internet. Task: Your task is to retrieve a list of keyword for the food blog LivingLou.com and to present it in a table and in a tag cloud format to see the advantages of each approach. A tag cloud is a visual representation of important words. The more important the word, the larger it appears. In marketing how data is presented is important and for a quick snapshot, a tag cloud may be useful. 1. Create a Tag Cloud using Wordle.net Answer: Go to http://www.wordle.net Click on the Create tab Type in the URL of the blog http://www.livinglou.com/ where indicated Click Submit Experiment with the layout by selecting various options on the edit tool bar Grab a screen shot of the tag cloud Create a Tag Cloud using Wordle.net: To create a tag cloud for LivingLou.com, visit Wordle.net, enter a list of keywords from the blog, and generate the tag cloud. Ensure to use relevant and frequent keywords to visualize their prominence and importance. This visual representation helps quickly identify key terms and their frequency. 2. Retrieve keyword metrics using Wordtracker Answer: Go to the Wordtracker’s website and use its free keyword tool and enter the top 10 keywords that surfaced on Wordle for the LivingLou website and click search; https://freekeywords.wordtracker.com/searches. (You may need to register to use this website’s free service.) Scroll down to see the list of global monthly searches for these words and capture the top 20 results in a table format. Be prepared to discuss the merits of each approach. Retrieve keyword metrics using Wordtracker: Visit Wordtracker’s website and use their keyword research tool. Enter keywords related to LivingLou.com to get metrics such as search volume, competition, and keyword popularity. This data helps understand which keywords are most effective and relevant for search engine optimization. BRING IT TO LIFE: METRICS ASSIGNMENT KEYWORDS AND TAG CLOUD - LIVINGLOU.COM ANSWERS AND TEACHING NOTE This assignment is a lighthearted way of making students aware of the keyword data available on the Internet while also demonstrating its importance and the various ways it can be used. By allowing students to retrieve keywords on Wordle and comparing them to data available on Wordtracker, they are able to question the merit of different presentation formats. This assignment will prompt a discussion on whether a metric should be shown in a table, as a list, in a bar chart, as a pie chart, as a line graph, as a tag cloud, or as a dashboard that includes various metrics? To successfully use this assignment you will need to first demonstrate how to create a tag cloud on Wordle and then how to use Wordtracker - both are simple and easy to use websites. How to use Wordle Go to http://www.wordle.net Click on the Create tab Type in the URL www.livinglou.com Click Submit Experiment with the layout by selecting various options on the edit tool bar Be sure to show some of the easy edit options How to use Wordtracker Go to the WordTracker website at https://freekeywords.wordtracker.com/searches You may need to register to use it. You can use its free option Enter the keywords of interest in the keyword box and click search Scroll down to see the suggested keywords and their metrics Solution Manual for Marketing: The Core Roger A. Kerin, Steven W. Hartley, William Rudelius, Christina Clements, Harvey Skolnick, Arsenio Bonifacio 9781259030703, 9781259269264, 9781259107108
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