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Is the product mix right for the market and for the company?
The high incidence of new product failures suggest you neglect
the consumer at your peril!
Techniques and planning tools
- Consumer requirements
- Business performance
Product Audit to determine strengths/weaknesses
- Market share
- Consumer likes/dislikes
- Sales trend
- Seasonality
- % of company sales
- Contribution
- Degree of facility usage
- Return on investment
- Fits into firms product mix
Product Audit aftermath
- Consumer oriented research
- Maximizing return on investment
Do we want new products? - Questions to ask
- Has profitable growth potential of existing products been
fully explored.
- Is company dependant for profits on one or two products
only.
- Do we have the resources to mount a successful new
product program.
- Will other products have to be dropped to make way for
new ones.
- What is the companies basic attitude to new products.
Management considerations - Marketing Manager must
- Address himself to the market place
- Be aware of attitudes within the company to "growth v
quality"
- Appreciate the contribution the various products make to
the health of the company
- His options are limited by what has happened before
Are the products being marketed as effectively as possible?
- Analyze strengths / weaknesses of own and competitor
products
- Check that products are not over supported
- Be prepared to experiment
New product development
- Group discussion
- Screening
- Market size
- Market growth
- Competition
- Margin level
- Fit distribution channels
- Degree of exclusivity
- Manufacturing ease
- Placement tests
- Final check
- Screening
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