Product Issues In Channel

Management
Chapter 10
Three Major Areas of Product Management
• New product planning and development
• The Product Life Cycle
• Strategic Product Management
• Conclusive data
• 45000 new product each year with 90% of new product failure rate
• 75% fail in less than 2 years
• The rest two years survivors will fail five years.
Achieving Success for new factors
• Innovativeness
• Quality of the product
• Price
• How effectively was the promotion done
• Nature of customer demand
• Competitive factors, timing etc.
Main Issues For Channel Members
Encouraging For New Product Planning
• This step ranges from soliciting new ideas for new products from the
idea generating stage to receiving feedbacks from the channel
partners.
• Example of – Henkel Consumer Adhesives
• Largest maker of Duck tapes, which were released in single colour (
plain vanilla) / silver
• Advised by Walmart to bring in colourful colurs, and thus landed with
the range of the neon colours
Channel Members Acceptance Of New
Products
• Final users concerned about – how the product will perform when used
• Channel members concerned about
How the product will sell
Stocking & Display
Profitable or not
• Example- Ongoing trend in the retail market of the inorganic food instead
of the regular manufactured one
• The short guys prefferd over the big ones for “CREDIBILITY”
• Further example – changing of tearshaped bottles to tall cylinder saving
29% per case handling and storage costs
• Pringles – two Smaller cans,plastic wrapped turned into a new super size
can, savings reatailers 90% per case