...Starbucks WEEK 2 Starbucks New Market Entrance Starbucks strategic goal is to increase market share of the non-coffee drinker; they have begun by introducing an extension of a product line targeted to this segment. To ensure market growth, Starbucks has repositioned one of its current products, the Frappuccino line, this product has been extended to include 3 new flavors; Double Chocolate Chip Crème, Vanilla Bean Crème, and Strawberries & Crème, introduced throughout the summer months. Faced with the challenge of entering a new competitive market Starbucks must compete to retain brand recognition of its primary products, yet increase awareness of its new product line. Situation Analysis Company Starbucks is the leading retailer for roaster and brand specialty coffee in the world (See Figure 1). It has over 7,500 stores, which are located in the United States, Canada, Europe, Asia and the Middle East . Besides high quality coffee drinks, Starbucks sells bottled coffee drinks, such as Frappuccino® and Starbucks DoubleShot™. Starbucks revenue is growing by 20% a year and is opening approximately three stores every day. Starbucks is capable of managing its successful operations by having steady market growth. It achieved this by financing through their cash flow instead of franchising, selling stock or increasing their financial leverage . Its strategy to success is “blanket an area completely.” This approach is to “cuts down on delivery and management costs, shortens customer...
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...geographic, demographic, psychographic, and behavioral variables. Geographic segmentation calls for dividing the market into different geographical units such as nations, regions, states, counties, cities, or even neighborhoods. Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality characteristics. People in the same demographic group can have very different psychographic makeups. Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product. Buyers can be grouped according to (1) occasions when they get the idea to buy, actually make their purchase, or use the purchased item, (2) the benefits people look for in the product class, (3) user status (nonusers, ex-users, potential users, first-time users, and regular users of a product), (4) usage rate (light, medium, and heavy product users), and (5) loyalty status. Example: Starbucks Coffee uses a combination of geographic, demographic, behavioral, and psychographic segmentation. It opened its doors primarily in urban locations (in...
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...stages in the product life-cycle. Discuss the strategies that marketers could utilize as the product goes through each stage of the product life cycle. First is introduction stage, this stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sector. Example is 3D TVs which need to compete with the LCD’s TV in pricing and cost. The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage. Example is Smartphone. Nowadays, people getting interest to buy smartphones as they can fully utilize the phone to help them in daily activities. During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications...
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...1. What is sustained growth? It’s the growth between revenues and profits over a sustained period. Why is it important? Human capital is the most single factor for sustained growth. Entrepreneurs know that growth means there is hope for another day of success. When there a demand on your product is rising, you grow your company. 2. Describe economies of scale and economies of scope as rationales for firm growth. . Economies of scale are the cost advantages that a business can exploit by expanding their scale of production. The effect of economies of scale is to reduce the average costs of production. Some examples of how economies of scale work: Technical economies of scale: Large-scale businesses can afford to invest in expensive and specialist capital machinery. For example, a supermarket chain such as Acme or Wegman’s can invest in technology that improves stock control. It might not, however, be viable or cost-efficient for a small corner shop to buy this technology. Specialization of the workforce: Larger businesses split complex production processes into separate tasks to boost productivity. By specializing in certain tasks or processes, the workforce is able to produce more output in the same time. Marketing economies of scale: A large firm can spread its advertising and marketing budget over a large output and it can purchase its inputs in bulk at negotiated discounted prices if it has sufficient negotiation power in the market. A good example would be the ability...
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...Subsequently, it was converted into a Public Limited Company on July 12, 2005 and the name of the Company was changed to Aishwarya Telecom Limited and a fresh Certificate of Incorporation obtained from the Registrar of Companies, Andhra Pradesh, Hyderabad. The Registered Office of the company is located at 3-C Samrat Commercial Complex, Saifabad, Hyderabad, Andhra Pradesh. ATL is based at Hyderabad with production at Yanam in Pondicherry state and Dehradun in Uttrakhand State, with branches in New Delhi and Mumbai. STAGES OF THE OLC The five stages of OLC illustrate changes in organizational structure and managerial processes as the business proceeds through developmental stages. Each stage is discussed, with specific emphasis on the product creation and delivery aspects of the stage. INCUBATION STAGE OR START-UP STAGE Aishwarya Telecom Limited (ATL) started its operations in the year 1995 with specialization in designing, manufacturing and marketing of Telecom Test & Measuring equipment for Copper, Optical and Data Networks. ATL is having strength of 61 employees. Initially, ATL concentrated on catering to the Public Sector...
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...Grub n’ Go Part III MKT/421 September 19, 2011 Amber Topping As a unique food delivery service organization, Grub N’ Go sets itself apart from the rest of the competition through its highlighted attributes of restaurant-quality food delivery and customer priority service. Just as any other organization, Grub N’ Go starts life in the product life cycle as an idea and flows into the business it is now. In order for the company to continue growing, certain positioning and differentiating strategies must be implemented for the service and how to apply the pricing for deliveries and marketing. Grub n’ Go’s service is simple; food delivery. The attributes or characteristics of Grub n’ Go’s service are variety, value, timely, and friendly. Grub n’ Go will offer a variety of food from numerous restaurants delivered for a reasonable service fee in a timely manner by a friendly staff. In the market of food delivery service customers have many choices from restaurants that offer delivery; however, the delivery is only for one particular restaurant’s food. In traditional food delivery customers are limited to the restaurant’s menu and if a restaurant does not offer delivery service dine-in, carry-out, or choose another restaurant is the choices for the customer. One of the main attributes of Grub n’ Go is the ability to order from multiple restaurants and receive delivery to one location. Grub n’ Go can partner with numerous restaurants to bring a variety of choices to consumers...
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...1. How was Samsung able to go from copycat brand to product leader? Samsung was able to go from copycat brand to product leader by using a “new product development” strategy (Kotler and Armstrong, p.261). According to Kotler/Armstrong new product development is defined as the development of original products, product improvements, product modification, and new brand through the firm’s own product development. In 1993, the CEO and chairperson, Lee Kung Hee decided to revamp the company’s management because he was not content to remain the best of the knock-off brands. Rather, he set high goals (to become the biggest consumer electronics company and to surpass Sony) and established a strategic plan to accomplish those goals. Samsung accomplished its goals in less than two decades. The first step that he took was idea generation. He hired a “fresh new crop” of young designers to produce new ideas that could get the company in the direction that he wanted it. Sleek, bold and beautiful products were the aim so that they could target high-end users to the company. Next idea screen was also implemented in the development stage. Each product had to pass the “Wow” test otherwise; it would have to go back to the drawing board for further improvement Samsung then went a step further by testing new product concepts. From Blu-Ray players that changed colors, Eco-fit monitors with transparent stands that gave the appearance of a floating monitor, to a small Pebble MP3 player that...
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...with supplier integration into new product development under conditions of technology uncertainty Gary L. Ragatza,*, Robert B. Handfieldb, Kenneth J. Petersenc a Department of Marketing and Supply Chain Management, Eli Broad Graduate School of Management, Michigan State University, East Lansing, MI 48824-1122, USA b North Carolina State University, Raleigh, NC, USA c University of Oregon, Eugene, OR, USA Abstract In many industries, firms are striving to integrate material suppliers earlier into the new product/process development process. This involvement may range from simple consultation with suppliers on design ideas to making suppliers fully responsible for the design of components or systems they will supply. In this paper, we develop and test a conceptual model of the effect of elements of the supplier integration process on cost, quality, and new product development time, under conditions of technology uncertainty. Technology uncertainty is operationalized here, as the degree to which the product or process technologies employed in the project are new, complex, and/or rapidly changing. The results suggest that technology uncertainty have a negative impact on cost results, but no direct effect on quality or cycle time. The results also show that certain elements of the supplier integration process are more likely to be employed under conditions of technology uncertainty, leading to significant improvements in cost, quality, and cycle time objectives. D 2001 Elsevier...
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...New-Product Development and Product Life-Cycle Strategies 1) What are the two ways that a company can obtain new products? A) line extension and brand management B) internal development and brand management C) new-product development and acquisition D) service development and product extension E) market mix modification and research and development Answer: C Diff: 2 Page Ref: 258 Skill: Concept Objective: 9-1 2) Product improvements, product modifications, and original products can all be classified as ________. A) pioneer products B) new products C) product concepts D) product ideas E) test products Answer: B Diff: 1 Page Ref: 258 Skill: Concept Objective: 9-1 3) Which of the following is NOT a potential reason for a new product to fail? A) an underestimated market size B) a poorly designed product C) an incorrectly positioned product D) higher than anticipated costs of product development E) ineffective advertising Answer: A Diff: 2 Page Ref: 258 Skill: Concept Objective: 9-1 4) Which of the following is NOT a challenge presented by the product life cycle that a firm must face? A) All products eventually decline. B) Changing tastes, technologies, and competition affect the marketing of the product as it passes through lifecycle stages. C) A firm must be good at developing new products to replace aging ones. D) A firm must be good at adapting its marketing strategies. E) It is difficult to plot the stages as a product goes...
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...PRODUCT LIFE CYCLE SUBMITTED BY MASHHOODA MOHAMMED SHOEB KHAN BACHELOR OF BUSINESS ADMINISTRATION IN GENERAL FIRST YEAR - FIRST SEMESTER FACULTY GUIDE-MRS PRIYANKA CHANDANANI ASSISTANCE PROFESSOR – ECONOMIC ACKNOWLEDGEMENT I would like to express my special thanks of gratitude to my faculty guide Mrs Priyanka Chandanani who gave me the golden opportunity to do this wonderful topic Product Life Cycle which also helped me in doing a lot of research and I came to know about so many new things. I am really thankful to her Secondly I would also like to thank my parents and friends who helped me a lot in finishing this project within limited time I am making this project not only for marks but to also increase my knowledge THANKS AGAIN TO ALL WHO HELPED ME ABSTRACT The product lifecycle model can be understood as a three-stage model of technological development associated with a particular product technology. In the explorative stage many different designs are developed, in the development stage products become standardized into a dominant design, and in the mature stage only incremental changes occur within the dominant design. Although the product lifecycle model is widely accepted and often applied in empirical research, innovation...
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...Target Market Strategy Market-Entry Timing, and Marketing Strategy In addition, in thе third part, thе author analyѕе how L’Orеal followѕ a nеw product dеvеlopmеnt ѕcrееning procеѕѕ. Thе ѕix ѕtagеѕ involvеd in N.P.D will bе talkеd about in thiѕ part, еѕpеcially thе Idеa Ѕcrееning procеѕѕ to ѕhow how L’Orеal’ѕ nеw productѕ can offеr a clеar bеnеfit and provе itѕеlf accеptablе in uѕе. Importance of developing new products for L’Oreal Drivеn by conѕumеr dеmandѕ and with thе dеvеlopmеnt of nеw tеchnology, many companiеѕ havе to bring ѕomе nеw productѕ to thе markеt, if thеy want to rеmain thеir compеtitivе advantagе and ѕuѕtain thе profitablе growth. That iѕ why nеw product dеvеlopmеnt can bеcomе thе moѕt important buѕinеѕѕ procеѕѕ. In thiѕ L’Orеal caѕе, innovation iѕ itѕ driving forcе, in tеrmѕ of both tеchnology and faѕhion, L’Orеal haѕ invеѕt ѕo much in innovation, innovation iѕ quitе important and еѕѕеntial to L’Orеal which wantѕ to kееp continuouѕ growth and pеrform wеll in thе global markеt, and thеrе arе many formѕ of innovation, nеw productѕ and ѕеrvicеѕ arе onе aѕpеct of thеm, it iѕ vеry important for L’Orеal to know how to idеntify innovation opportunitiеѕ and tranѕform ѕomе good and uѕеful idеaѕ into nеw product dеvеlopmеnt. Thеrе arе ѕеvеral itеmѕ to conѕidеr about why L’Orеal haѕ to dеvеlop nеw productѕ. Customers Bеcauѕе N.P.D iѕ a Cuѕtomеr-Drivеn Procеѕѕ. Ѕo a diѕcuѕѕion of cuѕtomеr nееd analyѕiѕ iѕ nеcеѕѕary. Gеnеrally ѕpеaking, N.P.D...
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...Understanding the Product Life Cycle (PLC) is of critical importance to a firm launching a new product. It helps a firm to manage the risk of launching a new product more effectively, whilst simultaneously maximising the sales and profits that could be achieved throughout the product's life cycle. 1. What is the product life cycle? The PLC indicates that products have four things in common: (1) they have a limited lifespan; (2) their sales pass through a number of distinct stages, each of which has different characteristics, challenges, and opportunities; (3) their profits are not static but increase and decrease through these stages; and (4) the financial, human resource, manufacturing, marketing and purchasing strategies that products require at each stage in the life cycle varies (Kotler and Keller, 2006). Whilst there is a common pattern to a product's life cycle, which is bell-shaped in nature, this pattern does vary depending on the specific characteristics of a given product. These life cycle patterns are illustrated and discussed in the subsequent section. 2. What are the main aspects of the product life cycle? The typical PLC consists of five main aspects: (1) product development; (2) introduction; (3) growth; (4) maturity; and (5) decline. In the diagram below, the respective sales (in red) and profits (in blue) across these five stages are illustrated. Figure 1 The PLC begins with product development, during which time the firm devises and creates...
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...AberdeenGroup New Product Development: Profiting from Innovation Business Value Research Series December 2005 The New Product Development Business Value Research Series Executive Summary eveloping a new technology or solution that fills a need for a customer is fulfilling. This feeling of accomplishment is not accompanied by the pleasant jingle of coins in the corporate pockets, however, unless the idea makes its way out of the innovator’s head, off of the planning board, and eventually off of the engineer’s harddrive. Product development teams and executives alike need to measure the success of innovation the way the corporation measures success – by the bottom line. Turning a concept into a profitable product or product platform is not an easy job, and requires people from multiple disciplines to work together. New product development (NPD) is a complex, collaborative process that requires coordinating the innovation efforts of many to meet a common goal. The following is a list of participating groups that may be required for a product to successfully come to market: • • • • • Marketing Engineering Procurement Regulatory Manufacturing • • • • • Design Suppliers Sales / Channels Finance Legal • Manufacturing Engineering D Different organizations and individuals are responsible for one or more aspects of the product, and few of these aspects can stand alone. Decisions made in one facet of a product impact many others. Aberdeen’s Product Innovation Agenda benchmark...
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...Product Life Cycle-------Nick Combs The concept of product life cycle concerns the life of a product in the market with respect to business/commercial costs and sales measures. The product life cycle proceeds through multiple phases, involves many professional disciplines, and requires many skills, tools and processes. Product life Cycle management makes three assumptions. They are: Products have a limited life and thus every product has life cycle. Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller. Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage. The product life cycle is broken down into 4 stages. The first is the market introduction phase. In this phase, cost are very high, there is very small competition, customers have to introduced to the product and there is very little profit. The second stage is the growth stage. Here, costs are reduced due to economies of sale, you begin to see a profit, consumers are aware of the product, there is more competition which leads to decreases in price. The third stage is the maturity stage. Costs are lowered as a result of production increasing and experience, increase in competitors in the market, and industrial profits start decreasing. The last stage is the saturation and decline stage. Here we have sales declining, profitability falls due to an abundance of competition and costs...
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...Abstract: Handicrafts and Textile Handicraft business is related to the accumulation of handmade product from over the country and to sell them in retail shops or to export in another countries. People have a great passion for this type of product because it contains flavour of culture and it has a variety of design. The SWOT analysis of the Handicraft Product can help us to determine the current situation of business, challenges and gaps between demand and supply, source of raw materials and manpower, potentiality of employment, and its prospect for future. Bangladesh is a developing and overpopulated country; thus labor intensive technology can be more appreciable than capital intensive technology for the industries. Application of a large amount of low compensated workers to produce handicraft product will be beneficial for us from dual aspects. The first one is reduction in un-employment thus poverty alleviation and the second one is the earning of handsome amount of foreign currency. . The paper is concerned with narration of the themes. To prepare this paper I visited some local and export oriented handicraft organizations in Dhaka, Narayanganj etc. and discussed with the organization authorities about their business profile and production aspect. I also visited EPB, Bangladesh to get handicraft goods export data of previous fiscal years, Banglacraft and ECOTA for Handicraft business related information.IntroductionThe importance of the Textile Handicrafts and Handicraft...
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