Marketing management notes (only case studies)

Chapter 3
 New product development
1. Stage 1 idea generation

Eg: google 20% time policy, spending 20% of their time on side projects which contributed
to gmail, google maps, slack etc and made google mpost innovative company.

2. Stage 2 idea Screening (drop error, go error)

Eg: drop error- friends was almost dropped since pilot was no well rates and was not
entertaining or clever.
EG: my starbucks idea this idea has seen colossal success and has been the source of ideas
such as cake pops, hazelnut macchiato and free WIFI. Company had generated 10000
ideas in shich 277 was implemented.
3. Stage 3 concept development and testing

Eg: Lego as a brand has been leveraging crowdsourcing to design innovative new
products through its LEGO IDEAS website. Users can design their own lego products then
the best idea is voted by the consumers and finalized design is sold under lego, owner
receives royalties.

4. Stage 4 marketing strategy development

5. Stage 5 business analysis

6. Stage 6 product development

EG: Samsung note 7 failures is an example of improper product development. It cost

consumer giant 14.3 billion dollars due to the faulty batteries.

7. Stage 7 test marketing

Eg: SAMSUNG GALAXY FOLD FAILURE, the phone didn’t live upto the samsungs claims as it
stopped working after 120169 folds and samsungs claimed to have tested around 200000
folds Samsung ceo DJ koh said he was embarrassed and may have pushed the project
before it was ready.

8. Commercialization

 Product levels
Examples: smartphone key benefit – expected not expected now,,, its been here
since a decade in holiday inn and marriot.

Augmented benefits- Hilton—select your own room, underwater restaurant

 Product classification and characteristics

 Product design

Successful- Coca Cola bottle – Most Popular and distinguished product shapes. It
recognized in the whole world.
Apple IPOD CLICK WHEEL best example of product design since it was better than
Walkman etc. apple beautiful computers,,,sleek

Stages-
Line stretching or elongating product line
Up market------ examples audi Q7, A8, I phone 11 pro
Down market ---- examples Audi A3, Q2, iphone SE
both ways---- Armani, georgio Armani, emporio Armani and Armani exchange

product life cycle

  Introduction stage
Eg: artificial intelligence
 Growth stage
Eg: apple airpods, and apple watch due to increased awareness and buzz of the
product.
 Maturity stage
Eg: peaked sales volume and increased sale---- tab let sale reaching saturation.
50% people use mobiles for all online activities.
 Decline stage
Eg: profitability decline---- IPOD NANO AND IPOD SHUFFLE. Since they don’t
connect to the internet.

 New product options

Categories
Organic – produce – apple
Inorganic- aquire – Walmart acquired flipkart, Microsoft acquired linkdIn , tesla
acquired Maxwell technologies .

Facebook- whatsapp, instagram etc.

 Categories of new product
1. New to the world--- ipod, poloroid camera, ipad.
2. New product line---- Carlsberg beer beauty—real beer infused products.
Budweiser non alcoholic beer called Budweiser Zero.
3. Addition to exhisting product line--- Redbull sugar free drink, Mc.Donalds
introduced Beyond Meat PLT’S using plant-based alternative meat, Victoria
secret’s PINK targeting young adults and teenagers.

 Improvements in new products

Eg: Microsoft-- windows 95- to now 10,, Samsung galary S series from s10- s20 ultra,
apple watch series series 1-5.

 Product failure
Eg: KFC CHICKEN PIZZA—CHIZZA was not as expected by the public. It was not profitable
and was badly rated by the public.
Eg: google glass ( wearable technology)
After 2 years of surprisingly bad sales it had many privacy concerns, bugs, not aesthetic
etc. it wasn’t tested in the market properly. Conclusively it was a result of bad marketing.

Eg: windows Vista – it had a number of problems such as decreased problems in the PC
etc.

EG: Colgate Beef Lasagna ( frozen meal) – One of the biggest product fails, it was bizarre
for people to try food from toothpaste manufacturing company

Eg : Cosmopolitan yogurt ---- brand reaching too far in its area of expertise, it was only in
the market for 18months.

EG: Facebook HOME ---

EG: mc.donalds Arch Deluxe ---

EG: Netflix QWIKSTER ---- DVD rental service , sent by mail- 60% income increased – it was
heavily disliked by customers and broadly criticized.

 Crowdsourcing
A. E.g.: waze--- traffic information, real time , free, crowdsources app.
B. McDonald’s’----burger builder helped people design their own burgers
and burgers were released weekly after winning votes from the rest of
the country.
C. Lego Ideas ---- Lego as a brand has been leveraging crowdsourcing to
design innovative new products through its LEGO IDEAS website.
Users can design their own lego products then the best idea is voted
by the consumers and finalized design is sold under lego, owner
receives royalties.
D. Lays
E. AIRBNB ------- crowdsourcing helped AIRbnb gather pictures of lesser
known places they used the hashtag #AIRBNBshorts in order to
receive short videos that summarisised why people should visit that
city. Winner was awarded with flight tickets and stay in AIRBNB
London estate.
F. Apple’s shot on iphone
  Consumer Adoption
A. Awareness stage---
B. Interest and information stage---
C. Evaluation and Trial stage---
D. Adoption and post adoption stage---

 Diffusion of innovation
innovators—apple enthusiasts camp out of apple stores before the launch of
any new i-
phone.

Early
adopters---
current
owners of
tesla, The
best example
of early
adopters is
that of the
first iPhone by
Apple. When it was first launched in 2007, the iPhone was priced at $600. The
price was quite high, as Apple lacked any experience in the industry. But still,
many of the early adopters did not hesitate to purchase the iPhone despite its
prohibitive price.

Early majority---- , the first iPhone, launched in 2007, came with a $600 price
tag. Two months later, Apple lowered the price to $400; in June 2009, the
price fell again to $200 and the phone offered twice the storage. Nonetheless,
early adopters camped out in front of Apple stores and other retailers in 2007
to get their hands on the first version. The early majority, however, is much
more likely to wait for the $200 version and might only purchase it after
personally hearing stories from innovators and early adopters who have used
the product.

Late majority--- Apple reached the mass markets with products that are easy
to use (though still many late majority people have not bought them). PC
 prices were much lower as they competed more on price and have reasonable
usability, so reaching deeper into the late majority.
the internet was first used in the mid-1990s only by people who had access to
and were familiar with personal computers. By the 2000s, the internet had
revolutionized communication (for example, VoIP, email, and instant
messaging), access to banking and financial services, and mass media (for
example, journalism, newspapers, and television). The late majority,
previously unfamiliar with computers and the internet, has only recently
adopted computer skills after realizing the technology's impact on society at
large.

Laggards --- Mr. Louis is a 68 years old retired engineer that owns a TV that
was designed in the early 2000s. He has been prompted by his 3 sons many
time to change this old model for a new LED version that was developed and
launched by the same brand a few months ago. Despite these comments and
the vast number of offers he has received to purchase a new one on a
discount or through credit he is still reluctant to change his plasma version.
Mr. Louis alleges that he is quite happy with the image quality he gets from
this TV and that means he doesn’t need a new one. From a marketing
perspective, he is a laggard, since he hasn’t been willing to move on from
older versions of such product.

 BCG matrix

Exa
mples:
  Services
Characteristics

A. Intangibility---

customers an experience JIO 4data service by reliance but not carry it around, or hold it in their hands. It is
not a physical entity.

Vistara- it is a premium airline in india. Hence to experience that premium flight service by vistara you
need to fly in the airline atleast once to experience it.

Golds gym—it is a premium gym hence to experience wrld class gym facilities you need to pay for its
membership.

B. Heterogeneity ----
C. Inseperability -----
D.