Management and Strategic Launch planning

Question 1

What are some management issues in NPD? (5)

Answer 1

1. Structure and composition from different departments/areas
2. diversity
3. expertise
4. timing of contribution and lengths of contribution of individuals members
   = the exact matrix these take place
5. physiology/functioning of the team. This can take at least five different angles.

Question 2

What is the physiology of NPD management “angles”? (5)

Answer 2

1. The process or articulating innovation opportunities and then deciding and realising/implementing actions for the purpose.
2. How to build the team, select the leader and members, attribute roles to participants, training and organising.
3. Management of the team and that may include clarity of goals, and objectives, ownership of tasks, leadership and functioning integration and flexibility as well as motivation and compensation.
4. Virtual teams versus single location teams and geographical diaspora of contributing members (globally dispersed teams).
5. How these teams can change structure or function-wise along the different stages of the new product process.

Question 3

What are some strategic givens and their affect? (5)

Answer 3

1. A specified gross margin: Affects funding
2. Speed-to-market: Affects promotional outlays and schedules
3. Commitment to a given channels: Affects distribution plan
4. Advertising policy; Affects promotional decisions
5. Pricing policy: Affects decisions to use penetration or price skimming

Question 4

What is entitled in the strategic platform decisions? (8)

Answer 4

1. Permanence, strategic options:
   - we are in to stay
   - in to stay if we meet out goals (tentative)
   - temporary: given firms tendency to develop streams of products.
2. Aggressiveness (aggressive versus cautious attitude at entry)
3. Type of demand sought:
   - primary demand: for new to the world product (stimulate adoption and lead to diffusions through the market place).
   - replacement demand for a product improvement or upgrade
   - selective Demand for an new entry or line addition into an established market
4. Competitive Advantage sought (differentiation, price leadership or both)
5. Product Line Replacement
6. Competitive Relationship (aim at a competitor, avoid a competitor)
7. Scope of Market Entry
8. Image (create, tweak or use existing one)

Question 5

What are Product Line Replacement strategies? (6)

Answer 5

1. Butt-on product replacement: the existing one is simply dropped when the new on is announced.
2. low-season switch: Same as butt-on, but arranging the switch at a low point between seasons.
3. High-season switch: Same as butt-on, but arranging the new item at the top of a season. (Polaroid during xmas)
4. Roll-in, roll-out: Another version of butt-on, but arranged by a sequence of market segments (Mercedes introduce c-series, country by country).
5. Downgrading: Keeping earlier product along side the new, but with decreased support.
6. Splitting channels: putting the new item in a different channel or diverting the existing product into another channel.

Question 6

What are the different scope of market entry? (3)

Answer 6

1. Roll out slowly: Checking product, trade and service capabilities, manufacturing fulfilment, promotion communication etc.
2. Roll out moderately: but go to full market as soon as volume success seems assured
3. Roll out rapidly: Full commitment to total market restricted only by capacity.

Question 7

What needs to be considered in the target market decisions? (3)

Answer 7

1. Alternative ways to segment a market: end-use, geographic/demographic, behavioural/psychographic, benefit segmentation.
2. Micromarketing and mass customisation:
   - trend towards smallness: small targets with unique purchase patterns (loyalists, deal selective, price driven, store brand buyers).
   - Mass customisation: Tailoring a good or service to the unique specifications of individual consumers (NikeiD).
3. Also consider the diffusion of innovation

Question 8

What are the factors affecting diffusion of Innovation from Rogers model of diffusion? (5)

Answer 8

1. Relative Advantage (how superior is the innovation)
2. Compatability (does it fit current product usage?)
3. Complexity (will frustrations or confusion arise?)
4. Divisibility (trial portions of the product)
5. Communicability (how easy is it for the user to see the benefit)

Question 9

How is product positioning established? (3)

Answer 9

1. To whom are we marketing?
   - user vs non user
   - target market criteria
   - everybody: no narrowing down (issue here is commitment by all NP participants and mgmt)
2. Why should they buy it?
   - basic concept statement used for testing and for guiding technical and the key reason on the how likely would you be to buy this If we marketed it? (product use test)
   - Formatted in 3 ways: solves major problems current products don’t, better meet needs and preferences, lower prices.
3. How do we make the claim? - product positioning statement is a strategic drive, a core item, not list of advantages.
   - can be stated as one or more features (what it is), functions (how it works), benefits (how the user gains) or surrogates (no features, functions or benefits)

Question 10

Branding decisions: what are the guidelines in brand name selection? (8)

Answer 10

1. Assess the role or purpose of the brand ( if it is to aid in positioning choose meaningful brand name).
2. Possibility of extension to a line of products: chose so it is not a limitation in the future.
3. Possibility of long-term position in market: dramatic novels name doesn’t do as well here.
4. Avoid an irritating or insulating name
5. Be careful of regional differences in language
6. Allocate enough time to brand selection
7. Don’t chose the wrong comfort level
8. Other pitfalls: not identifying the key decision makers; people involved in decision don’t understand brand naming; getting “stuck” on a brand name early in process; not hiring the best patent attorney.

Question 11

How does different elements of brand equity provide value? for the firm? for the customer? (5 & 2)

Answer 11

1. High brand loyalty= Reduced marketing costs, increased trade leverage.
2. High brand awareness= easier to make brand associations and increased liking and familiarity.
3. High perceived quality=Supports quality positioning, supports higher price strategy.
4. More/better brand associations= creates positive image and helps customer process info.
5. Other brand assets= patents or trademarks, strong channel relationships

1-customer: assist in customer info processing increases confidence in purchase and increases satisfaction in product use.

2.firm: increases effectiveness of marketing programs, increases customer loyalty and trade leverages, facilitates brand extension and it a source of competitive advantage:_

Question 12

How is brand equity built? (5)

Answer 12

1. Getting awareness of the brand and the meaning
2. Making brand associations
3. Building perceived quality
4. Loyalty is repurchase: locking them in
5. Getting reseller support

Question 13

What are some brand equity and branding strategies? (2)

Answer 13

1. Umbrella branding strategy: e.g. Kellogg uses corporate name as part of all verbal brands.
2. Individual branding strategy: No P&G products carry the P&G name.

Question 14

How is global branding and positioning achieved? (3)

Answer 14

1. Standardisation: Gillette uses the same brand name and positioning worldwide.
2. Adaptation of positioning: Canon sells the same camera worldwide but uses the “so advanced, its simple” positioning in NA.
3. Adaptation of brands: General Mills cereals are marketed in Europe through a joint venture with Nestle and are sold under the Nestle name there.

Question 15

How is the role of packaging achieved? and what does it serve? (3)

Answer 15

1. The role of packaging: containment, protection, safety, display and information/persuasion
2. Packaging can assist the user, permit reusability, meet environmental needs, carry warnings, meet legal requirements, aid in disposability.
3. Packaging as a competitive tool: recognisability, convenience, customer attraction.