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Just rip open the tube put the open end in the mouth

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Unformatted text preview: endly yogurt is packed in This a tube that eliminates the need for spoons. Just rip open the tube, put the open end in the mouth and squeeze squeeze • And since the tubes can be frozen And and thawed for consumption later in the day, Go-Gurt is great for lunch boxes and bags boxes Drexel University Dr. Girish Ramani MKTG 347 8 Introduction(contd.) • Innovation is important Innovation – In a survey of 700 firms, over a 5 In year period, new products accounted for 28 % of these companies’ growth ( Booz, Allen and Hamilton,1982) and – In another study, it was found In that 25 % of current sales were derived from new products introduced in the last three years (Marketing Science Institute) (Marketing Drexel University Dr. Girish Ramani MKTG 347 9 Introduction(contd.) • But Innovation is risky – Failure rates for new products range from 33% to 35% Failure ( Booz, Allen and Hamilton,1982) Booz, – In a study of 138 firms, 27% of product line extensions In failed, 31% of new brands introduced in categories where the company had a product failed and 46% of new products introduced in new categories failed ( The Association of National Advertisers, 1984) Association Drexel University Dr. Girish Ramani MKTG 347 10 Introduction(contd.) • And Innovation is costly – For every product –idea launched commercially in the For market, seven product ideas are rejected, but expenditures are incurred on R&D , engineering, market research, market development and testing research, – 46 % of resources spent on new products are allocated 46 to products that fail in the market or earlier in the process ( Booz, Allen and Hamilton,1982) Drexel University Dr. Girish Ramani MKTG 347 11 Will this product be a success ? • Allergy sufferers can find relief Allergy with a gum available in the Japanese market Japanese • Lotte Tencha Mint Gum not only Lotte delivers cool and refreshing taste, it's also claimed to help combat allergies combat Drexel University Dr. Girish Ramani MKTG 347 12 Will this product be a success ? The iPad is a tablet computer designed The and developed by Apple. It is particularly marketed as a platform for audio and visual media such as books, periodicals, movies, music, and games, as well as web content. At about 700 grams (25 ounces), its size and weight are between those of most contemporary smartphones and laptop computers. computers. (Source: Wikipedia) Drexel University Dr. Girish Ramani MKTG 347 13 How do we evaluate if a product is likely to be a success ? • Some success factors – Does the product satisfy customers’ perceived needs? – Relative advantages vis-à-vis competition – Propensity o...
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