...New Products in Consumer Goods By Patrick Bower consumer packaged goods. There are no magical algorithms, forecasting tools, or proprietary process solutions that offer much more than a "like as" or analog-based planning solution. The companies that do the best job in forecasting new ¡Hnáucts work the details in a methodical way, challenge underlying assumptions, and examine all available data to givei: PATRICK BOWER Mr. Bower is Senior Director of Corporate Planning & Customer Service at Combe Incorporated, producer of high-quality personal care products. He is a frequent writer and speaker on supply chain subjects, and is a self-professed "S&OP geek." Prior to Combe, he was with a consulting firm where he worked for clients such as Diageo, Bayer, Glaxo Smith Kline, Pfizer, Foster Farms, Farley's and Sather, Cabot Industries, and American Girl. His experience also includes employment at Cadbury, Kraft Foods, Unisys, and Snapple. He has been twice recognized as a "Pro to Know" by Supply atid Detnand Chain Executive magazine. He is also the recipient of the IBF 2012 award for "Excellence in Business Forecasting & Planning." His expertise includes S&OP, demand planning, inventory, network optimization, and production scheduling. Copyright ©2013 Journal of Business Forecasting 1 All Rights Reserved I Winter 2012-2013 ne of the toughest demand planning tasks is forei goods world. Why? First, we don't really have good math tg^nnelp us. It would be great if there were...
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...Disney’s Dilemma Disney Consumer Products Europe and Middle East (DCPEME), a business unit of The Walt Disney Company, is hoping to maintain their position as the fastest growing division within the company by expanding into the Middle East. This region represents huge growth potential for Disney due to its favorable demographics and consumer spending patterns. These lucrative business opportunities in the Middle East resulted in DCPEME signing a 50/50 joint venture with a Saudi Arabian regional partner in 1993. The joint venture would begin their operations in Saudi Arabia, but was interested in expanding into neighboring countries, specifically Lebanon. DCPEME now faces the decision of determining whether entering Lebanon is the correct next step in their Middle Eastern expansion strategy. Additionally, if the company decides to enter Lebanon then they must evaluate the best product categories to launch as well as identify which distribution options will position the country for success. Should Lebanon be Next? Lebanon is considered a small and prosperous Middle Eastern nation. A devastating civil war in the 1970s and 1980s wreaked havoc on the country’s infrastructure, but their economy has since recovered and is now characterized by free market pricing and an unrestricted exchange and trade system. Currently, Disney products are already distributed in Lebanon via three channels: worldwide licensees (ex. Mattel), non-worldwide licensees that distribute in Lebanon...
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...Unit 3 – Question 1 pg 179 The first question in the text book is a question that a lot of companies are asking themselves because of what Disney has been able to do with its brand. The question is as follows: What does Disney do best to connect with its core consumers? It can be seen from the passage that by the early 1970s Disney determined on clientele encompass of kids, relatives and adults. From the early to mid 1980s, it implemented policies to get in touch with older viewers. Now its advertising to all ages and civilization. Now it is one of the principal vary global entertainment business which consists of five divisions which include the following: The Walt Disney Studios, Parks and Resorts, Disney Consumer Products, Media Networks, and Interactive Media. This diversity supplies adequate probability for all category of consumers to first-rate services. They used up-and-coming knowledge to attach with patrons. This assists clientele to be provided with more expediently and amusingly. Disney’s nucleus values, as dedicated by its president in saying their greatest confrontation is to keeping up with a 90-year-old trademark pertinent and existing to its central part spectators while wait factual to its inheritance and core trade name principles. Today, the company is one of the planets main medium activity corporation in the globe having a unsurpassed correlation with core patrons. From the time when it began in 1923 by the Disney brothers, Disney has stayed soaring...
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...choice. Bateman & Snell (2011) states, “Organizations can be structured on the basis of function, division (product, customers, or geographic), matrix, and network (chapter 8, p. 302)”.Each form has advantages and all organizational structures are developed to enable the organization to accomplish its work and succeed as a business. This paper will cover the structure of the organization that Walt Disney uses. I will compare and contrast the structure that Walt Disney uses with two different organizational structures. Then I will evaluate how organizational functions influence and determine the organizational structure. Last I will explain how organizational design helps determine which structure best suits Walt Disney’s organizational needs. Walt Disney is considered one of the top companies in the world. They have survived for over 80 years and have done so by evolving with the future. According to the textbook Bateman & Snell (2011), “core competence is the capability—knowledge, expertise, skill—that underlies a company’s ability to be a leader in providing a range of specific goods or services” (chapter 9, p.310). Walt Disney definitely is a company that has core competence and the structure used today is a Matrix. The Walt Disney company consists of four main umbrella categories; The Walt Disney Studios, Resorts and Parks, Disney Consumer Products, and finally Media Networks (Danielski, 2009). The matrix structure allows the benefits of vertical and horizontal...
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...Jack Zipes, leading expert on fairy tales and German professor at the University of Minnesota, the movies have “a type of gender stereotyping . . . that has an adverse effect on children, in contrast to what parents think . . .. Parents think they’re essentially harmless – they are not harmless” (Giroux, “Roared” 103). Maria Tatar, Harvard folklorist, also sees harm in the movies since “[Disney] capitalizes on the worst part of fairytales” placing the focus on the material world and removing the cunning and intelligent roles that the females once played (Healy). However, these messages surly must not be intentional, and they are open to interpretation, right? Not according to Mary Beech, director of franchise management for Disney Consumer Products, who admits that the company does not merely want their viewers to watch the...
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...The Children’s Place is a leading specialty retailer of children’s merchandise. They sell clothing and accessories for newborns to 10 year olds. The company is not just a retail store, they also design, contract to manufacture high quality merchandise under the brand name “The Children’s Place.” The first Children's Place store was opened by two 1965 graduates of Harvard Business School, David Pulver and Clinton Clark.[1] The Children’s Place is a publicly traded company on the NASDAQ exchange since 1997 and the headquarters are located in Secaucus, New Jersey. They currently employ about 5,000 full time employees. This company is a vertical retailer and their website is WWW.ChildrensPlace.com. According to GlobeNewsWire.com, The Children’s Place is the largest pure-play children's specialty apparel retailer in North America.” [2] This company owns many brands and licenses but the three main brands they own or have owned are their own brand of “The Children’s Place” clothing and accessories, Disney Stores through Hoop Holdings, and licensed graphic t-shirts. The first company brand is their self named brand, “The Children’s Place.” This is their most well known brand because it is what they sell in their stores. They have lines ranging from newborns to 10 year olds. They sell everything from clothing to accessories including shoes. They have design teams who design seasonal clothing for each age group. They have lines for both girls and boys. Their logo on their website for...
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...Disney consumer products consist of toys, fashion and home products, food, health & beauty, Disney stationary, Disney stores, Disney Publishing Worldwide, Disney Global Book Group, Disney Digital Books, Disney English, Disney Family Fun, Disney Baby Einstein, and Disney websites. According to the Disney 2010 financial annual report and share holder letter, consumer products generate revenue from the licensing characters from Disney film, television, other properties, publishing children’s books and magazines, retail stores, and internet shopping sites. The operating expenses include costs of goods sold, distribution, operating labor, and retail occupancy costs. The revenue that comes from consumer products can make a major difference on how Disney does its financial planning. According to the Disney 2010 financial annual report and shareholder letter, changes in public and consumer tastes and preferences for entertainment and consumer products could reduce demand for Disney entertainment offerings and products and affect the profitability of the business. The success of Disney businesses depends on the company’s ability to consistently create and distribute consumer products that meet the changing preferences of the consumer market. Many of the Disney businesses increasingly depend on the acceptance of the company’s products by consumers outside of the United States. The consumers outside of the United States base their success on Disney’s prediction and adaptation to the changes...
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...Multinational Corporation (MNC). MNC is a corporation that they registered their company in more than one country and has been operate in more than one country. It can be also called as International Corporation (Bucheli and Kim 2012). The established of MNC helps both the host country and home country. For the host country, due to the operation of MNC, the investment level, employment level and income level increase. Other than that, the latest technology will be introduced in the host country by the MNC(Girma and Gorg 2007).. There are also chances to increase the business of those domestic trader and market intermediaries (Daniel, Sorinel and Sorin 2010). While for the home country, the country will get the chance to marketing their products throughout the world. Other than that, MNC also create employment opportunities to the people of home country (Brikinshaw, Hood and Johnson 1998). In the other hand, MNC also brings disadvantages to both host country and home country. Instead of introducing the latest technology in the host country, MNC may use the technology that has been outdated. Other than that, in order to make profits, MNC may use the natural resources of the host country indiscriminately. For those MNC that did not follow CSR, the company did not operate in the right manner and thus posing a threat to the host country. While for the home country, MNC may create unfavorable balance of payment in the home country due to transferring of capital from home country...
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...New Product Development Why is it importand to launch a new product? * A successful new product does more for an organization than any other thing can do * Today a high percentage of sales and profits come from new products (> 30% avg) * The process is extremely difficult * Companies take big risks * Failure rate is quite high (40% avg) * It is fun and exciting! A product can be tangible = Goods A product can be intangible = Services B2B =Business to Business BSC =Consumer Products * New product process does not usually start with a new product idea: it begins with an amount of Strategy * Marketing does not start when the procut is finished: it often starts before ideation * The process is not over when the product is launched=It ends when the new products is successful * Very few are taken to launch and only a small fraction succeed: high risks! * Most new ideas are epresed as lie extensions of existing brands= Parent Brands awareness+values * Most new ideas....are not that new: what’s new for you may not be new for consumers Opportunity An opportunity is a business or technology gap that a company or individual realizes that exists between the current situation and an envisioned future in ordert o capture competitive advantage, respond to a threat, solve a problem or ameliorate a difficulty A Strategy: It is necessary, because it ist he foundation for a new product management A new product development...
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...preparation for Spring, consumers begin to think about yard work and making their lawn as beautiful as possible. This entails making sure that all lawn equipment is ready to cut grass and making it as easy as possible. Briggs in Stratton is a power engine company that has been around for 100 years. Briggs continues to strive for innovation and is dedicated to increasing success. To maintain the growth and profitability of the Briggs and Stratton Corporation, two products that I would like to add to the line of engines that the company produces is a lawnmower engine that can be interchanged into a generator and Gas Off, a new product that removes the gas smell from hands and clothes. Briggs and Stratton is the world’s largest producer of gasoline engines. Therefore, introducing a mower engine that can be converted into a generator would add on to their innovative ideas. Consumers would be able to have one have a mower to cut grass as well as a generator when electricity is loss due to weather or for outdoor use. This product would also do well globally. The second product, Gas off, also would do well globally because almost everyone has spilled gas on themselves or clothes. To have a product that will erase the smell would be beneficial as well. The other benefit of Gas-off is that it will be available in wipes and liquid as well. The consumer will also be able to purchase the product in many different store chains. Whenever a new product is being introduced, there...
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...Francis Shirriff. Over the years, a number of Ontariobased wineries were established, eventually amalgamating into three large companies. In 1993, these companies; Cartier, Inniskillin and T. J. Bright, merged together to form Vincor. As of 2004, Vincor was the world’s eighth largest producer and distributor of wine and wine-related products. Case Background Vincor: Project Twist details the decisions that Vincor’s marketing team had to make in order to create a new alcoholic beverage to bring to the market. This task was challenging due the fact that “what’s trendy today may not be trendy two years from now,” as stated by Vincor’s marketing manager Kelly Kretz. Key Issues and Decisions The key issue in this case was coming up with a concept for a new alcoholic beverage product. Decisions to be made in regard to the product included: product characteristics, positioning, target market, branding, packaging and distribution strategy, pricing, and promotional strategy. Vincor was already a well-established player in the wine industry, holding 16% of the refreshment market in 2004 with their VEX and Growers Cider brands. Creating a successful new cooler could help Vincor gain an even larger share of the $230 million refreshment industry; however, reaching success in such a highly competitive market was a significant hurdle to...
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...to go from copycat brand to product leader? Samsung started out as a maker of cheap consumer electronic knock-offs. CEO Lee Kun-hee has taken major strides to make Samsung the company it is today. In 1993, Lee unveiled what he called the “new management,” which was a top-to-bottom strategy for the entire company. Under Lee’s new management, he took Samsung Electronics in a very ambitious new direction. His goal was to make Samsung become a premiere brand that would dethrone Sony as the biggest consumer electronics firm in the world. Instead of being a copycat, Samsung was to become a cutting-edge product leader. As part of Samsung’s revamped strategy and positioning, along with developing stylish and innovative new products, the company altered distribution to match. Samsung quickly abandoned low-end distributors such as Walmart and Kmart and built strong relationships with specialty retailers such as Best Buy. 2] Is Samsung’s product development process customer-centered? Team-based? Systematic? Customer-centered new-product development focuses on finding new ways to solve customer problems and to create more customer satisfying experiences. Samsung uses the product development process by using market testing. Samsung created the “Wow!” test which every new product had to pass. If the product did not pass the “Wow!” test it went straight back to the design studio. Team-based new-product development is an approach in developing new products in which various company departments...
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...Amplify the view that consumers are co-producers. ANSWER Production refers the processes and methods used to transform tangible inputs (raw materials, semi-finished goods, subassemblies etc.) and intangible inputs (ideas, information, knowledge etc.) into goods or services. Co-production thus reflects a conscious strategic decision by consumers to become involved in production-like activities. In other words, it refers to the involvement of consumers in the various value creating activities through which products or services are made. The following accounts for some of the reasons why consumers are considered as co-producers. In the first place, consumers are considered as co-producers because they undertake the consumer feedback activity. Direct contact between consumers and producers is one important effective way of achieving high quality and improved features in a product. Traditionally, when direct contact with producers is impossible, consumers channel their grievances as well as suggestions for products’ improvement through retailers/wholesalers who have a relationship with producers. The 21st century consumer no longer needs to go through the traditional process to pass on information to the producer. All they need to do is to visit the company’s website and make their views on product features known to the producer. For instance, a consumer who purchased an app from the android market can go right back there and write a review on the product. Such reviews usually help...
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...Unit 2 – Marketing and Brand Management Nissan is currently considering expanding its product line to introduce a new product. This product will complement the current products offered to consumers. The company would like to provide consumers with a differentiated innovation that will increase both sales of current products as well as the new product line. Nissan is involved in the transportation industry, namely the sale of various automobile models. The company earmarks 4% of sales to research and development, which is high for the industry. With the high prices of fuel, environment concerns throughout the world, the rising costs of automobile production as well as the rise of automobile insurance rates, the ability to provide a targeted group of consumers with an alternative to the automobile would be a benefit to the company and its shareholders. I am recommending that Nissan research the feasibility of producing electric scooters to complement the current product line. This product would appeal to the millennium generation in that it would provide them with affordable transportation, a new mode of travel that is not saturated in the USA and Canada, as well as a product that alleviates parking problems, pollution, and high costs. Currently in Canada, new drivers are required to wait 12 months before they can be road tested in order to obtain a driver’s license. This means that new individuals out of school that do not have a driver’s license must find alternative ways...
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...Manufacturing is facing some difficulties within their new product development strategies after a major customer pulled out of their agreement with Modine to produce the exhaust- gas recirculation cooler (ERG). From this point, the company has three options to regain their standings in the industry, one is to make the European market the companies focus, the second alternative is to attempt to do some internal re-structuring to bring back the originality of the product development process, and finally streamline internal funding strategies to allow for the company to be specific to a consumer when need be but also have to abilities to cover a range of consumers needs. After further looking into to each alternative we recommend alternative 1, making the European market their main focus, because of the quality of the European market and the proximity it gives with regards to very prominent automobile companies. As well some of Modine’s major finances are already coming from this market and there is a lot of room for growth for Modine in this existing market they are already present in. Problem Modine Manufacturing was faced with a huge set back in the production of their exhaust-gas recirculation (EGR) cooler when their major customer announced the cancellation of their agreement to produce the EGR cooler just as the project was near completion. The company couldn’t help but blame the violation of the new strategy for product development that was implemented, as well as the decision...
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