Week 7: Looking to the Future for Growth Discussion
International Markets (graded)
Kellogg Company (you know them as Kellogg's, makers of Rice Krispies, Corn Flakes, and a variety of other
cold cereal products) celebrated its 100th anniversary a few years ago in 2006. As with many companies, it has
attempted to expand internationally.
Click to view all the countries where Kellogg can be found.
Take a look a few of the websites for Kellogg Company in other countries. How do their marketing efforts in
these countries differ? Do they offer the same products everywhere? What are some of the major concerns and
considerations related to international expansion on which Kelloggs should reflect when deciding to venture into
these countries?
Responses
Response
International
Markets
Author
Professor Forbes
Date/Time
10/14/2012 7:48:39 AM
Big Business and Big Questions....
To be International or not to be International- that is but the question....Let's have
some fun!
RE:
International Bweleka Kasonso
Markets
10/17/2012 9:45:39 PM
I grew up in Zambia, Africa and we had Kellogg Corn Flakes and Rice crispies that were
imported from South Africa. The marketing efforts of Kellogg South Africa differ from those
in Kellogg North America. Kellogg South Africa has 18 products of which 16 are cereals and
2 are cereal bars; as you can see, they are all cereals. And the majority of the cereals are
several variations of cocoa pops. In North America, there are 216 products that include
cereal, frozen sandwiches and flatbreads, bars, pop tarts, waffles and so on. In Kellogg South
Africa has chosen to focus only on one type of breakfast while in North America the
company has included all kind of breakfast meals. The major concerns and considerations
related to international expansion on which Kellogg should reflect when deciding to venture
into other countries are mostly cultural. In many cultures, people prepare meals from stretch
and so the idea of frozen readymade meals or dried flakes and bars may not be received
favorably. In addition, they have to also consider that these meals would be perceived as food
for the well off in many countries in Africa (I mention Africa only because I understand how
such products are perceived from the point of view of Africans); case in point is Zambia, we
only ate corn flakes on special occasions like Christmas morning, New year and birthdays.
RE:
International Latonya Hughes
Markets
10/14/2012 12:28:29 PM
Well, from looking at the other websites in other countries for Kellog I found
that they differ in language. The language is in the primary language of that
country. I also noticed that they are advertising different products and the
design of the webpages are different. They are advertising to that particular
market - nationality in general. It was interesting to see how live the one is
from China, https://www.kellogg.co.kr/ - even the boxes has their language
on it, but I also notice that Kellogg's is still on each country's website as their
brand. No, they do not offer the same products everywhere. I believe some
of the major concerns is shipping the product to the other countries, targeting
to their consumers and creating a product that they will like and not that much
different from their products that they make within the U.S. They need to
know if it is cost effective to market and sell their products in other countries
compared to the US. Kelloggs have to consider the marketing mix which,
"includes tactics and programs that support product, pricing, distribution, and
marketing communication strategy" (Kotler & Keller, 2009 A7). The
marketing mix will be much more extensive and costly than just marketing
their products in the United States.
RE:
International Christine Moore
Markets
10/16/2012 3:40:57 PM
After poking around on the Kellog's website as well as those aimed
at targeting different countries, I would have to agree with Latonya
that the most evident difference between many of them was the
languages. While Kellogg's offers many different products, not all of
them are available in all countries. It is true that some of the concerns
would be the export and production costs of the items, I also believe
that culture has much to do with it as well. The influence of different
cultures and what is accepted would play an important role on
choosing where to market a specific product. I noticed that while
most websites took a standardized marketing mix approach some
offered some variations of the product depending on the country.
Take Pringles for example, most countries offered the basic flavors,
extremes and their short stack 40g versions, however, when
searching through China's website I found them to have a variation
unique to them called "Street Food". I have to think that the different
culture and food preference has much to do with this, as food that is
popular in China may not be popular in the US. In order for this
brand to succeed it forced Kellogg's to offer a variation of Pringles
only available in China in order to reach their intended market. This
would cause Kellogg's to go to the other extreme and rather than a
standardized approach use what our text describes as an "adapted
marketing mix. Where the producer, consistent with the marketing
concept, understands that consumer needs vary and tailors marketing
programs to each target group." (Kotler & Keller, 2009 ch. 21 p.
609).
RE:
International Ira Hughes
Markets
10/16/2012 10:11:20
PM
I knew that Kellog was a global brand but, I did not realize that they
were in so many countries. One important thing that we've come to
know about brand marketing is that companies cater to each segment and
market and find out their likes and dislikes. With that being said no one
person or country will be the same therefore companies must give their
customers in their respective countries what they want. It is so ironic
that a company out of Battle Creek, MI would have a reach so long.
RE:
International Professor Forbes
Markets
10/19/2012 6:41:04
AM
Christine, Ira, Latonya, & All...So...what is a
product extension....and what is a market extension
and what are the implications of each?
RE:
International Christine Moore
Markets
10/19/2012
9:43:37 AM
Product extension is the act of introducing
a product with which the company is
familiar, but that has features that
consumers are not yet aware of. A product
extension could be an upgrade or revision,
or product repositioning and additions to
existing products. Market extension is
along the lines of product extension but
rather is in relation to the production of
more variety of products for a particular
brand. Market extension is usually
mobilized by evolving consumer
needs. The market finds a need and
attempts to cater to that need by expanding
their brand to cover a broader market.
RE:
International Timothy Rinard
Markets
10/21/2012 9:14:02
PM
I find it very interesting the effects of going
international comapared to staying national,
depending on the product or service you are trying
to sell, there are many variables and things that
must be considered before you can decide to go
international, especially if your product is a food, as
their are many regulations on this.
RE:
International Drew Gallagher
Markets
10/15/2012 12:55:15 PM
For some reason that link wasn't working for me
http://www.kelloggcompany.com/company.aspx?id=38 it was
saying the page no longer exists. Anyway I did see the Chinese
website and wow that was mesmerizing. I would say that major
concerns and considerations would be how to actually vary the
products to succeed in a new market. Each market has there own
wants but how much will it ultimately cost to make the product
differently. I'm sure in China it would be well worth any changes
that were required considering they have over a billion potential
customers but would the same be true if it was a small country with a
small population.
RE:
International Professor Forbes
Markets
10/17/2012 5:29:59
AM
Christine, Latonya, Ira, & All...
So why do it? Does going international always make sense?
Why or why not?
RE:
International Ira Hughes
10/18/2012 4:47:12
PM
Markets
I believe the answer to that question lie in this question. What
are the goals of your company? If your company wants to be
a major player in its segment of the market they must push to
be global. Being global is where the largest returns lie
financially however, it is where the largest potholes lie
also. To succeed one must navigate not only foreign markets
but, also foreign politics. Many companies with big goals fell
to the lure of being international when the realization of doing
business globally was not only unethical but, unlike anything
ever seen on U.S. shores. On the other hand succeeding in the
U.S. only will still be tough. One may not be dealing with
international markets however, the lure of creating
(marketing) and keeping customers as well dealing with
logistical items still make for tough business practices.
RE:
International Jason Ho
Markets
10/15/2012 9:52:51 PM
Today's evolutionary technology allows us to live in an integrated, interdependent and
interconnected world. It creates enormous opportunities for small and mid-sized companies
to compete and thrive in international markets. Small businesses have the advantage of being
flexible, creative, ingenious and innovative. Since they are not cluttered with the layers of
bureaucracy that their larger counterparts have, they move quickly through the decisionmaking process. The playing field in the international arena is leveled for small businesses to
take the plunge-it lets them achieve growth and expansion and finally sharpen the
competitive spirit of their owners and managers.
RE:
International Rose Neal
Markets
10/16/2012 6:02:47 PM
When I looked at some of the other countries sites the main difference besides
the language is the labeling. I noticed on the German site that the colors are
not as vibrant as they are here. I also noticed that varieties tend to change
between countries.
One of the biggest things that Kelloggs or anyone else would need to be
mindful of is the difference in culture. In some countries what we consider
normal can be offensive or a sign of disrespect to them. Any company would
need to be careful of the difference in culture and language and they would
need to make certain that they are not incorporating an idea that may be
considered in poor taste.
RE:
International Professor Forbes
Markets
10/17/2012 5:32:10 AM
Jason, Rose,Yonny, & AllGreat start and thanks for you comments- going international can seem
real rosy but there can be serious risks- pricing strategies as we have seen
can be one- what are some others? Examples of international expansion
gone wrong? It can be this simple: What happened in the old story when
Chevy introduced the Nova in Latin America? How about when Buick
launched the Lacrosse in Canada? What other kinds of blunders are there
out there? What went wrong?
RE:
International Rose Neal
Markets
10/18/2012 5:10:13
PM
The story about the Nova that you refer to is actually just a
myth. It began because the word Nova in Latin America
although pronounced differently translates to "doesn't go" so
that actually could cause people to not buy the Nova for fear
that it really doesn't go.
That is a perfect example of the research that U.S companies
should research their products and possible meanings before
expanding to other countries because the translation could
stop them in their tracks.
RE:
International Daveed Yisrael
Markets
10/17/2012 8:31:47
PM
Most American companies entering Europe in late 90’s felt international
expansion in the UK was a great idea because of the similarities between
the US and the UK in culture, language and legal environment. WalMart, however, decided to enter Germany first. Wal-Mart expanded its
presence into Germany through acquisitions. It acquired the 21 stores of
Wertkauf in 1997. The Wertkauf stores offered both food and general
merchandise to the customers. The Wertkauf stores failed to provide the
required market penetration the Walmart organization desired . In 1998,
Wal-Mart acquired Interspar's along with 74 stores to raise the total
number of Wal-Mart stores in Germany to 95. With the acquisition of
Interspar's and Wertkauf stores, Wal-Mart became the fourth largest
hypermarket retailer in Germany. Right after acquiring the stores, WalMart hurried through with their renovation and put its brand name on
self while making sure its Every Day Low Pricing message went across.
But it was unable to cash in on its Every Day Low Pricing selling point
mainly because of the strong competition from German. Whenever WalMart attempted to lower its prices on items their German competitors
also lowered their prices to keep their customers. There were problems
in the external environment as well especially Wal-Mart faced several
problems on the legal front as well. It was accused of breaching various
German laws. Walmart also had difficulties with fitting in with
Germany’s culture, the company found it difficult to integrate the two
companies it bought and relating to the community.
http://www.icmrindia.org/casestudies/catalogue/Business
Strategy2/Business Strategy Wal-Mart German Misadventure.htm
RE:
International Professor Forbes
Markets
10/21/2012 6:24:19
PM
Thanks Rose and Daveed- Great work- It is clear
Kellogg really did their homework- what are some
of the international faux pas that one has to avoid to
help create success? What are some other examples
of products and companies that did not have a
smooth transition?
RE:
International Yonny Leon
Markets
10/16/2012 1:36:10 PM
Modified:10/16/2012 1:39 PM
I believe that a business that decides to go international the trade increases
sales and profits, it enhances the company's prestige, creates jobs, and offers
a valuable way for business owners to level seasonal fluctuations. Going
global doesn't have to be a scary proposition. If done right an organization
can realize the full potential of globalization and capture dramatic revenue
growth.
RE:
International Ryan Phillips
Markets
10/20/2012 1:21:23 PM
Great point and a prime example of this is the NBA. Since the late
90's, the NBA has done a great job in going global and taking the
game internationally. If I’m not mistaken the NBA is now made up
more of than 30% international players and certainly more to
come. Take for instance the Yao Ming situation. His presences
alone brought the NBA brand hundreds of millions of dollars. The
game is still growing and scouting international players will keep
brining great revenues for the NBA.
Products
Julie Hicks
10/16/2012 4:19:32 AM
The language and products offered in the U.S. definitely differ from some of the other
countries. Kellogg's has 28 products that are widely distributed in the United States.
Ireland has (7) Crunchy Nut, Special K, Nutri-Grain, Coco Pops, Rice Krispies, Corn
Flakes, and Pringles. Compared to the U.S., Ireland only has a quarter of the products.
According to the website breakfast is a huge factor in Ireland. "Together we consume
more than 360,000 bowls of Kellogg’s Corn Flakes every day in Ireland." The
company has focus on the nutritional values that matter most to the individual country
and that has made them the number one brand for breakfast in Ireland.
http://www.kelloggs.ie/company/history/kelloggsinireland.aspx
International
Markets
Professor Forbes
10/16/2012 5:13:09 AM
Outstanding points on the issues of going abroad...
The text really covers off some key points too and let's make sure we hit
those-Especially if the offerings and marketing differs by country and why....
let's keep it rolling…Also...
Let's examine those pricing strategies:
set a uniform price everywhere; set a market-based price in each country; set
a cost-based price in each country....What are the pro's and cons?
RE:
International Michael Soo
Markets
10/16/2012 4:00:41 PM
I don't think that price-fixing or setting a uniform price benefits anyone. I
think the best course of action is to set a market-based price. The very
practice of setting a market-based price involves determining what the market
can handle. This allows the company to make the most off the product
without losing sales due to a high price (essentially the benefits of both
uniform price and cost-based price).
By setting a uniform price, some markets will lag in sales due to an inability
to buy a product due to the high price, but in other markets, the company will
only make a small amount of profit.
In setting a cost-based price, the profit becomes more stable, but there is the
possibility of lost profits if the market is able to bear a higher price.
RE:
International Julio Rhymer
Markets
10/16/2012 6:49:04 PM
Many companies attempt to st a cost based price in each country but in some
cases where the country is poor can price themselves out the market. As per
the text, many multinational companies are plague with the issue of grey
market. "Grey market i consists of branded products diverted from normal or
authorized distributions channels in the country of product origin or across
international borders. Dealers in the low-price country find ways to sell some
of their products in higher-price countries, thus earning more. Often a
company finds some enterprising distributors buying more than they can sell
in their own country and reshipping the goods to another country to take
advantage of price differences." Kotlet/Keller
RE:
International Jason Ho
Markets
10/16/2012 9:34:42 PM
Developing an international pricing strategy for a new product is a highly complex. It starts
with determining the optimal price in single countries and, based on that, tries to harmonize
prices across countries in such a way that parallel trade is minimized, potential problems with
pricing. authorities are avoided, and total profitability across countries is maximized. The
perceived value and the optimal price should be in balance so that where a higher price is
charged it does not exceed the additional value delivered to the market.
RE:
International Rebecca Aub
Markets
10/19/2012 9:34:54 PM
Offerings can also be specifically packaged based upon the market and the need of the
consumer. In the US, we tend to purchase often in bulk, or large sizes of consumable
products. For a company selling Internationally in a market where people have limited
storage facilities, limited purchasing power or possibly refrigeration capacities, the same
product may do well, but in a considerably smaller size.
RE:
International Connie Brooks
Markets
10/19/2012 6:30:00 AM
market-based transfer pricing tries to align the incentives of profit centers
with the overall companywide goal. Market-based transfer pricing is ideal,
and achieves congruence of the company’s goals, when the market is
perfectly competitive. Pricing is a dynamic element in the marketing mix
since it directly dictates the susceptibility of the consumers to try or purchase
the products or services being offered. In this regard, pricing has been a
strategic tool among business organizations throughout the life cycle of the
products and services in the market because the prices offered affect how the
customers well behave in the long term along with its implications on the
perception of the market on the value proposition of the goods
International
Markets
Kristin Muchowski
10/16/2012 6:38:05 PM
I think if a company is large enough and can handle expanding in to another country,
go for it! There of course will be different legal and business standards you have to
work with, but there is only so much room to grow in to the United States, if you want
to grow larger you will have to start something new or expand in to other countries.
Before deciding whether or not to enter a new country you will of course want to
check out laws and regulations, the target market, the need for the product or service,
and just make sure that is the right fit so you dont set yourself up for failure. I think if
someone is large enough to grow internationally, they are more than likely pretty
business savvy and will take these things into consideration.
International
Markets
Andreana Collins
10/16/2012 8:32:51 PM
There are a number of things Kelloggs and other companies should consider before entering markets in
other countries. The first is deciding whether should even go abroad. Entering new cultural markets is
costly and many times unpredictable. Research might actually prove domestic sales to be a better
opportunity. The next factor is deciding which markets to enter. Companies choose how many markets
to enter by using a waterfall approach (gradually entering) or the sprinkler approach (entering many
countries at the same time). They also have to decide between developed markets, which include 20%
of the world’s population, and developing markets which represent the remaining 80%. Next is
deciding whether to enter the market using indirect exporting, direct exporting, licensing, joint ventures
and direct investment. Selecting the correct marketing program is yet another consideration. A
standardized marketing mix uses the same efforts in all markets. An adapted marketing mix recognizes
that different markets have different needs. Lastly, choosing a marketing organization is also a
consideration. They can market internationally through the use of export departments, international
divisions and global organizations.
Kotler, K., Keller, K. (2011). Marketing Management. [VitalSource Bookshelf].
Retrieved from http://online.vitalsource.com/9781256083979
Kellogg
Company
Daveed Yisrael
10/16/2012 8:58:58 PM
Kellogg should always consider adapting or altering their products to meet local conditions or
preference. The major considerations is realizing what the international culture needs and habits are and
avoiding the so called U.S cultural imperialism by forcing the organization product on the international
market. Other considerations that can help any concerns of Kellogg are product invention. The two
forms of product invention are backward invention, which suggest that a company reintroduce a earlier
products that are well adapted to a foreign country’s need and forward invention, which is occurs when
an organization creates a new product to meet a need in another country. Communication can also help
international expansion where companies run the same marking programs in other countries and they
use in their home country, called communicate adaption.
Product...
Professor Forbes
10/17/2012 5:29:04 AM
New Topic...
We still have some threads running on our international thoughts so let's keep them
fresh and..........
Let's talk Product......... I notice some people were heading down this path and we
started some earlier talks- Is new product failure an issue? Why do new products fail?
RE:
Product... Bweleka Kasonso
10/21/2012 5:47:56 PM
According to Forbes as many as 95% of new products fail every year. I think new products
fail because of poor strategy choice. It’s easy to say that you will offer a product at prices
lower than competitors but that may be the best strategy the your products. A poorly written
marketing plan may also lead to new product failure even if the product itself is exceptional
good. Another reason new products fail is the failure to successfully implement the marketing
plan; the marketing plan consists of the well thought out ideas on promotional activities that
if used may likely lead to success. Lastly, new products can fail because the target market is
not properly indentified or they simply resist the product.
Source:
http://www.msnbc.msn.com/id/36005036/ns/business-forbes_com/t/new-improved-failed/
RE:
Product... Andreana Collins
10/19/2012 7:43:38 PM
New product failure is definitely an issue. Marketers can funnel millions into
a new product and do all the research in the world, yet failure is still a very
real possibility. Sometimes consumers just don't respond to an offering the
way a company wants it to. Let's think about a few notorious product fails
like Crystal Pepsi, McDonald's Arch Deluxe burger and New Coke. These
offerings were introduced by three hugely popular companies that predicted
sales to soar. Despite marketing efforts, there just wasn't enough consumer
interest to keep them around. According to our book product failure can
occur for a number of reasons other than consumer disinterest.
1. Market/Marketing failure
2. Financial failure
3. Timing failure
4. Technical failure
5. Organizational failure
6. Environmental failure
All of these things, alone or in any combination, can contribute to the failure
of a new product. Failure no doubt results in the loss of precious time and
money, however I think marketers also see it as a lesson learned. There's a
great quote that says, "Failure is only an opportunity to begin again, this time
more wisely". Any mistakes that lead to the downfall of a new product will
help marketers become better prepared for their next product launch.
If you're feeling nostalgic, here's a list of 20 product failures:The 20 Worst
Product Failures
Kotler, K., Keller, K. (2011). Marketing Management. [VitalSource
Bookshelf]. Retrieved from http://online.vitalsource.com/9781256083979
RE:
Product... Cary Mitchell
10/19/2012 8:06:10 PM
New products fail for many reasons is this a issue, I think that it is not a real
big issue but it happens. Everyone remembers hugo automobiles and their
cars and how unreliable they were. This new car failed within a couple of
years Some of the reason for failed products can be traced back to the
marketers. Here are some:
1. The wrong demographics was targeted,
2. strategy was all wrong in positioning,
3. questionable pricing could be it,
4. poor implementation,
5. the most is that company do not wait for product to gain momentum and
pronounce it is over.
RE:
Product... Connie Brooks
10/19/2012 6:33:37 AM
Product or service being too complex for the customer requires new actions,
learning, and habits by the user. Launching a product that either is not fit for
use, or which does not offer something new or better than existing competitor
products. Of course, there's no point in launching something new if your
managment team don't have the ability or the capabity to be entrepreneurial
and innovative the market. Ppeople and management are a major factor in
failure.
RE:
Product... Yonny Leon
10/18/2012 5:32:30 PM
Marketing a product takes planning and research. Fortunately, there are many
ways to get the word out about your product and encourage consumers to
buy. The key is to develop a comprehensive marketing plan that makes use of
innovative electronic options like QR barcodes as well as traditional print
advertising. Once you define your market and brand your product, you can
decide on activities and strategies to achieve your sales goals.
RE:
Product... Ira Hughes
10/20/2012 1:34:03 PM
New product failure is always an issue however, marketing managers are not prone to think
about about failure only success. The truth is however, eighty five percent of new consumer
products fail. There are to many reasons to count as to why failure in the marketing of
consumer products occur. I would like to examine a few. Here is an interesting
reason: How about the fact that this is an ego driven business. Marketing managers
unfortunately believe everything that they touch will turn to gold. Let's remember there is an
85% failure rate. Consumer behavior is hard to gauge although a lot of research is done
before a product goes forward one still is uncertain how the consumer will respond. Also, we
are a copy cat society. Automobile manufactures are still bringing out new SUV's (look at
the article below). It is very hard to ascertain when society is ready for something
new. Wishful thinking, ego, and perception are often not a prescription for success.
http://www.caranddriver.com/features/2015-bentley-suv-future-cars
RE:
Product... Michael Soo
10/17/2012 11:26:13 AM
New product failure can be an issue for some companies. Among the many
reasons that new products fail are a fear by new customers to try something
new, lack of distribution, or even that the product creates too big of a change
from the previous version. Many consumers are scared to venture out from
their bubble of safety after they have found a product that satisfies their
needs, and this causes problems for new products.
RE:
Product... Deiny Moretta
10/17/2012 1:00:13 PM
A new product largely depends on the product quality and the marketing tactics of the firm,
there are many occasions were the product failed miserably even after using the best
technology and quality the reason is that the new product is not worth for the customers. A
new product often fail because faulty of product idea. A good idea can revolutionize the
market but a bad idea may prove bitter to the firm or it may backfire.
RE:
Product... Professor Forbes
10/21/2012 6:25:50 PM
Well Done! Be sure to know how we can get our product to market
in the face of these threats to failure-
RE:
Product... Kristin Muchowski
10/17/2012 1:37:48 PM
I think it is probably easier to go to an international market with a product
that has credibility already. I think new products fail because products failure
because either they did not do enough market research how, when, where to
introduce the product, their was no need or interest, or because the lack of
advertising! I believe advertising is crucial when introducing anything new
to a market.
RE:
Product... Semyya Cunningham
10/17/2012 4:13:32 PM
New products fail all of the time. Companies will sometimes test out new
products on certain segments of the population and not others before
taking the product nationwide or international. Apple Slice. Crystal
Pepsi. In Haiti; pure cane sugar Coca Cola; etc.
RE:
Product... Anish Varghese
10/17/2012 4:18:57 PM
Yes, new product failure is definitely an issue. According to
our text book, new-product development can be quite risky. New
products can fail for many reasons such as ignored or
misinterpreted market research, overestimates of market size,
high development costs, poor design, incorrect positioning,
ineffective advertising, or wrong price, insufficient
distribution support and competitors who fight back hard.
RE:
Product... Indisha Mussington
10/17/2012 9:19:44 PM
I can agree with all of these concepts. However, in today's
marketplace I think we need to highlight another concept mentioned
in our text and that is shorter product life cycles. Due to the
marketplace being more global, the likelihood of a new product
being copied or knocked off is increasing high. This diminishes the
timeframe a new product has on the market. The ipad is a good
example. When it first came out it was really the only tablet in the
market, now you can find other tablet manufactures who produce a
cheaper copycat product. Therefore, the rate at which new products
are copied and possibly manufactured at a lower price may also
contribute to new products failing.
RE:
Product... Drew Gallagher
10/17/2012 10:16:23
PM
Indisha, great point about copycat products, the ipad was
lucky enough to survive and even thrive after the copycat
products came out. HD DVD was not so lucky as they were
overtaken by copycat Blue Ray. Sometimes the company
doing the copycatting has advantages that the original
company can't compete with. Sony was behind the Blue
Ray product and did a better job of selling Blue ray which
they did to Warner Bros and signed an exclusive deal with
Wal-Mart. Instead of focusing on the final consumer they
focused on the distribution channels and dominated HD
DVD out of business.
RE:
Product... Latonya Hughes
10/17/2012 11:51:50
PM
Indisha and Drew, I agree with you both about
products not being able to stay on the market long
because of manufacturers making similar products
at a cheaper price. I look at the Ipod in this
situation and how so many manufacturers started
making mp3 players a lot cheaper. I know a lot of
people were buying the Zune and others. Most
people have stated when I asked 'What's the
difference?" the cost and brand. Yes, those
products were cheaper, but I went with the Ipod
because I am familiar with the quality and the
brand, even though the cost was cheaper. However,
in the long run, not sure if it would be cheaper to
buy another brand, because I had most of my music
from Apple and they do not allow you to transfer it
to a non Apple device other than listening to your
library over the computer. The following website
discusses the difference between and Ipod and mp3
player is the brand as well.
http://mp3-players.toptenreviews.com/harddrive/the-difference-between-ipod-and-an-mp3player.htm
RE:
Product... Kristin Muchowski
10/18/2012 6:58:40
AM
When dealing with a new product or a
competitive exsisting product, you must
make sure that your product sets itself apart
from everything else out there. If you can
undercut the price, or come up with an
amazing feature the other does not have, I
believe you will be more successful in the
market place. I think all too often people
are just to late when joining the "in"
product, if its already a big hit you are
more than likely many many steps behind
and should focus on the next big thing to
hit the market.
RE:
Product... Professor Forbes
10/19/2012
6:39:37 AM
Michael, Kristin, Anish, Et.al....
New products can be everything
from new-to- the-world products
to minor revisions to existing
lines...What are the possible
gyrations here? Does one category
succeed and/or fail the most and
why? What category do most new
products fit into and why?
RE:
Product... Anish Varghese
10/21/2012
12:57:09 PM
Most consumer
companies deal with
the dilemma of how to
brand the next
generation of an
existing product.
Product upgrades make
up the majority of
corporate research
and development
activity. Many
companies choose
either the sequential
naming approach for
example Sony's
successive
PlayStation,
PlayStation 2, and
PlayStation 3 video
game consoles, or the
complete name change
approach such as
Nintendo's Nintendo
64, GameCube, Sony
Wii. Changing the
brand name may induce
excitement among
prospective consumers
who value new bells
and whistles over
small improvements
while on the other
hand, customers may
worry that new
features pose the
risk of new glitches
and a steep learning
curve.
RE:
Product... Kristin Muchowski
10/19/2012
8:21:09 AM
I believe that creating a
new product is always
much more risky than
changing an existing. If
you can improve on a
current product that you
know has been successful
in the market place, and
make it even better than it
was before due to a glitch
or just improvement on a
product. Example, the
iPhone... its awesome, but
they keep making "new
and improved" versions
that consumers continue
to spending millions and
millions of dollars on a
new phone every few
years because it has some
new feature on it.
RE:
Product... Ryan Phillips
10/21/2012
5:38:02 PM
I certainly agree
with your
point. Consumers
love product
performance but
more importantly
brand
recognition. You
illustrated a great
example with the
IPhone. For
starters I have
never purchased
one and not really
a fan but
obviously
millions of
customers
are. As you
stated, consumers
have purchased
this same phone
with new
upgrades over
and over for the
past 5 years or
so. The main
reason is due to
an existing
product or brand
that they are
familiar with. As
you stated newer
products don’t
have that
consumer loyalty
which causes
newer products to
fizzle out more
quickly.
10/19/2012
9:46:40 PM
RE:
Product... Rebecca Aub
A product can also be successful because
of cross products provided by the same
company. For example the Ipod vs the
walkman. Initially Sony's walkman was
extremely successful. Once the Ipod
was unveiled along with I tunes,
however, the walkman became obsolete.
There was an ease of usage, a vast library
of downloadable music, the device was
smaller and overall more appealing. What
also helped was the timing of the product
roll -out and the marketing of both
working together to differentiate from
the competitor.
RE:
Product... Professor Forbes
10/21/2012
6:22:07 PM
Great Work- let's be sure
we have a solid bead on
why new products fail!
RE:
Product... Jason Ho
10/17/2012 9:45:40 PM
Great Post Arnish, most of the decision making failure occurs due to not involving
right persons to the extent it is required.It may be due to the time pressure which is
always unrealistic.Launching a new product is a second phase and little can be
done at this phase.A proper market planning is a must before execution of any new
idea and of course basic principles need not to be ignored.Ignoring even a small
step or not following proper sequence of decision making leads to most of failure.
RE:
Product... Connie Brooks
10/17/2012 6:29:57 PM
New products can fail for a varity of reasons.
No protocol – clear statement of target market, its needs, what product would
do
Too small a target market – must be large enough to be profitable
Poor product quality/performance – product has to work adequately, meet
customer needs
Insignificant point of difference – product is not a great improvement on
competitive offerings
RE:
Product... Jennifer Magana
10/17/2012 7:19:35 PM
I read a concerning statement that 90% of new products fail. The article
below explains for common reasons why most products fail. If proper
marketing research is conducted, the products are more likely to do well in
the marketplace. The article states that the reasons that a product fails are as
follows: 1. Lack of Demand 2. Marketing Research 3. Target Market 4.
Flawed Product. Lack of demand occurs when market research showed a
higher demand for the product, but the consumers did not actually purchase
the product. This can be caused by many factors including bad economic
times which causes consumers to purchase less products.
http://smallbusiness.chron.com/four-reasons-new-product-fails-18004.html
RE:
Product... Julie Hicks
10/18/2012 6:01:03 AM
Most new products fail because they don't work as they are advertised to-do.
Some feel products fail because the target market for the new product was all
wrong; not right product to delivered to the consumer; price was too high, or
the just simply "do not address a big enough consumer need."
http://www.edisoninnovations.com/Solving/why-new-products-fail.html
RE:
Product... Julio Rhymer
10/17/2012 9:53:49 PM
One example of product failure was when Coca Cola introduced a new
formula of of coke. The introduction of the new coke almost drove loyal
customers of the brand to its rival PepsiCo. This product was a huge failure
and forced the company to go back to the original formula because of the
terrible customer reaction to its new product replacement. When new
products fail a company can cut its losses and move on but it must realize that
it has to come back to its loyal customer with some assurance of the rest of its
products are a better quality.
RE:
Product... Ryan Phillips
10/17/2012 10:27:36 PM
There are several reasons why new products fail. One of them could simply
be competition, price, out dated technology, lack of marketing, and cost. I
see example of this every week stemming from my side job marketing
different liquor brands. Working in the liquor business you have your
classics, things people will know, remember, and almost certainly
purchase. On the other hand you have a lot of up and coming liquors who are
just trying to make a name for them. These smaller companies will pay folks
like me to sit at liquor stores and promote, demo, and sample their products
for name recognition. Yes popular brands still market but they can either do
more or less advertisement due to their brand they've already
build. Unknown companies really don't have that same option of cutting back
spending and often times they run out of money which causes their product to
fail.
Product
Professor Forbes
10/18/2012 7:50:09 AM
Great Work- We have encapsulated most of them from the text...
Here are some add insA key executive pushes a favorite idea in spite of negative or contrary research- ever been
through this? I have and it is amazing how no one wants to say no to the top dog.........
I think we hit on the idea may be good but the market is overestimated- any examples you can
think of?
Also...........
The actual product may not be well designed...
The product is incorrectly positioned in the marketplace- not advertised well or overpriced....
Development costs are higher then expected...
Competitors fight back harder than expected......
Any examples of these in action?
And this starts us down the next path...and... Let's keep it rolling....
So what factors can hinder new product development? Any one you see particularly
problematic?
RE:
Product Julio Rhymer
10/20/2012 9:26:07 AM
In doing some research i have found there have been many products launches
that were dismal failures from major corporations. Despite seeing that a
product is not producing some companies stick with the product for years. As
in the case of Microsoft and the VISTA operating system which was dismal
failure for five years. I have attached a site that discusses this and other
products that have been failures.
http://saleshq.monster.com/news/articles/2655-the-20-worst-product-failures
RE:
Product Daveed Yisrael
10/18/2012 8:46:22 PM
Modified:10/18/2012 8:47 PM
When starting a new- product development, the decision process can become problematic
when questioning if the new product worth it? Is the product is compatible with the
company’s strategies? Is there a cost effective marketing strategy? Is the customer’s need and
will the product meet sales expectations? Other factors that can hinder new product
development is having a n ne w id ea t h at i s fa vo r it e t o h i g h l e vel e xe c ut i ve s
ho we ver in spite o f ne g a ti ve mar ke t re s earc h fi n d in g s, t he id e a i s go o d b ut
ma r ket s ize i s o ver e st i ma ted , t he act u al p ro d uc t i s no t we l l d e si g n ed , t he
ne w p r o d uc t is ei t her i n co rrec tl y p o s it io ned i n t he mar ke t o r no t ad v ert i sed
ef f ec ti ve l y, p r o d u ct i s o verp ric ed , d e v e l o p m e n t c o s t s a r e h i g h e r
t h a n e x p e c t e d , the co mp e ti to r s fi g ht b ac k har d er t ha n e xp e cted , a nd
Cap it al s ho r ta ge s: So me co mp a ni e s ha ve go o d id eas b ut ca n no t rai s e t h e
f u nd s ne ed ed to r e se arc h a n d p ro d uce them.
http://www.scribd.com/doc/56355734/61/CHALLENGES-IN-NEWPRODUCT-DEVELOPMENT
RE:
Product Jennifer Magana
10/18/2012 10:59:53 PM
I worked for a manufacturing company and there I experienced a situation
where the president pushed to manufacture a product against the advice of the
marketing department. The product was an innovative idea for a machine that
could pick up a house in sections and move it to its final location. The idea
was that it would cut down on costs to manufacture the homes in one location
then move them to the land that the owner had purchased. The contract that
the manufacturing company was over five million dollars over a few
years. Two things happened that made the product fail. One was that the
housing market went into a steep decline so the demand for new homes
dropped significantly. The second thing was that product had too many flaws
because it was a good idea, but not executed properly.
RE:
Product Indisha Mussington
10/18/2012 3:07:44 PM
Netflix is a great example of executives pushing something that someone
should have raised their hand and said that it wasn't a good idea. In 2011,
Netflix announced a price increase along with the discontinuation of certain
services like $9.99 DVD streaming. In addition, STARZ, which supplies
Netflix with movies had decided not to renew contracts with Disney and
Sony. The result of this decision cause mass customer exodus from Netflix in
the millions. Netflix is still trying to recover. Which means that they are
spending money that could be used on new product development on luring
customers back.
http://www.huffingtonpost.com/2011/09/15/netflix-price-increase-subscriberloss_n_964026.html
RE:
Product Jason Ho
10/18/2012 9:11:41 PM
Good Post Indisha, I used to be a Netflix subscriber until they announced the price
hike. Indeed, Netflix's brand did take a hit last year in response to the company's
poorly executed pricing change, but it remains far more popular than Wall Street
banks that were bailed out of financial ruin by U.S. taxpayers. That said, maybe
we're on the cusp of an era of generally increasing shareholder activism. Lord
knows many of us who have been observing public corporations in action for a
while think such a development is long overdue.
RE:
Product Michael Soo
10/21/2012 8:24:27 PM
Jason and Indisha, I am a fairly recent Netflix subscriber. I
agree that the increase in price has caused a decrease in
subscriber base, but I think that this is a temporary loss of
subscribers. I think that given the massive move towards
total connectivity, Netflix and other movie/TV subscriber
services will begin to regain their lost subscribers. As cable
and satellite services cost more and more, a $10/month
service charge or even two $10/month service charges will
seem like a drop in the bucket.
I agree with Jason that the popularity of banks is far less
than that of Netflix, given the shareholder reactions.
Although, these can be tough to compare, since they are in
very different markets, and the market capitalization's and
executive pay are much larger for the banks than a small
company like Netflix.
Product...
Professor Forbes
10/19/2012 6:38:47 AM
Thanks Folks......Lets continue the outline the list of what factors can hinder new
product development.. and lets dig in a bit on more examples of what these are and
mean...
RE:
Product... Deiny Moretta
10/19/2012 2:10:04 PM
Environment is another factor that can hinder a new product fail. Many people (potential
customers) are concerned about their environment and the damage to it caused by industrial
production. When designing a product it may be wise to ensure that the materials can be
recycled or the product itself can be manufactured from a large proportion of recycled
material.
RE:
Product... Semyya Cunningham
10/19/2012 8:48:45 PM
A few reasons for product failure are poor design, overprice, overestimation of market size, target market positioned incorrectly, poor
advertisement, etc. It's very difficult to launch a successful new product
even when coming from an established company.
RE:
Product... Latonya Hughes
10/20/2012 1:31:59 PM
The website listed states there are four reasons why a new product is not
successful or fail. The four reasons they mention are: Failing to listen to the
customer, Failing to align product executions with company strategy, Failing
to automate innovation processes, and failing to mitigate planning and
execution risk. I am going to elaborate on the first.
"1. Failing to incorporate the ‘voice of the customer’ into the process:
This seems like an obvious requirement, but many companies seem tone-deaf
to the customer’s voice in the product design stage. One way to better capture
customer input is by social media channels — but at this point, only 25% are
using Web-based methods for idea capture and engaging key stakeholders. In
fact, customer feedback is collected by 75% of companies “in an archaic
fashion such as at trade shows where business card are exchanged, and little if
any organized follow-up ensues.”
I have taken many voluntary surveys from different restaurants and retail
stores about my experience as a customer from a service or product that I
have invested in. I am confident that I am the only one that has expressed
how I feel about a certain product or service, but have seen no changes in the
service or product. The strange thing is that I have spoken to other that have
said the same things and they haven't seen changes either. You have to listen
to your customers, as they are the ones that are buying. However, I have
known several fast food restaurants like McDonald's advertising commercials
stating "The McRib is back from our customer feedback for a limited
time". This is only a few and others do not do the same.
http://www.smartplanet.com/blog/business-brains/four-reasons-new-productlaunches-fail-and-what-can-be-done-about-it/11908
RE:
Product... Drew Gallagher
10/21/2012 3:08:32 PM
Failing to incorporate the voice of the customer into the process does
seem like a quite obvious reason for failure. However, this isn't
always as easy to determine as you would think. Windows 8 is a
perfect example of this. This is a product that is about to be released
and it will be interesting to watch the whether or not this product
suceeds or not. Due to losses in market share to phones and tablet
computers they are overhauling Windows 8 to more resemble the
new wave of computing. This could upset a number of customers
they currently have because they are used to Windows and how it
runs and prefer it. So do you base your decision on the customers
you currently have or the customers you have already lost and hope
to get back?
RE:
Product... Anish Varghese
10/20/2012 9:17:46 AM
New technologies have shortened the product life cycle. The
companies which fail to develop new products are putting
themselves at great risk. At the same time the development of
a new product is also risky due to the chances of failure. A
new product may fail due to putting a new idea inspite of
negative market research findings. Sometimes the idea is good
but market size is over estimated and the actual product is
not well designed.
Kellogg's
Andreana Collins
10/19/2012 8:16:28 PM
Kellogg's is truly a global company. It sells its products in a number of different
countries across the globe. The biggest difference among the websites are the
languages used. Overall the websites for different countries have the same familyoriented theme. If you look at Kellogg's Italy and New Zealand, you'll notice they
have similar pictures of happy couples and families. Kellogg's wants consumers
everywhere to associate their products with warm memories. For the most part the
different countries offer the same products. There are however a few exceptions. For
example, you can purchase Kellness granola cereal in Argentina, but not in the United
States.
Marketing
Audit
Professor Forbes
10/20/2012 9:16:35 AM
FolksWhat is...a Marketing Audit? What does it entail? What are the key characteristics?
Any one particularly resonate with you as necessary and why? What is the goal of this
exercise? Why do it?
RE:
Marketing Christine Moore
Audit
10/21/2012 6:32:00 PM
A marketing audit as stated in our Kotler text is a comprehensive, systematic,
independent, and periodic examination of a company’s or business unit’s
marketing environment, objectives, strategies, and activities, with a view to
determining problem areas and opportunities and recommending a plan of
action to improve the company’s marketing performance. It includes a
detailed plan of action stemming from a set of meetings. It is conducted not
only at the beginning of the process, but also at points during the
implementation of the plan. The marketing audit considers both internal and
external influences on marketing planning, as well as a review of the plan
itself. In many ways the marketing audit examines opportunities and threats,
and allows the marketing manager to make alterations to the plan if
necessary.
RE:
Marketing Connie Brooks
Audit
10/21/2012 3:40:08 PM
The marketing audit can be viewed as an umbrella that covers efforts to
assess customerneeds and wants and to understand community patterns. The
external environment isexamined on both micro and macro levels, including
scanning for developing trends. Inaddition to this analysis of the external
environment, the marketing audit also analyzes theinternal environment. The
audit provides the marketers with an in depth view of the marketing
activitiesthat are going around in the concern. It brings out a complete picture
of the entireoperations of the concern. While revealing the various drawbacks
the audit processalso leads to efficiency. This process can also be used to lay
down an improvedmarketing plan.
RE:
Marketing Andreana Collins
Audit
10/21/2012 5:22:06 PM
According to our text a marketing audit is a comprehensive, systematic,
independent, and periodic examination of a company's or business unit's
marketing environment (Kotler & Keller, 2011, p. 656). I found a useful
article that lists the five essential questions of a marketing audit. They are as
follows:
1. Does the marketing plan match up with the overall goals of the business?
2. Do the individual marketing tactics of campaigns support the overall plan?
3. What are we measuring and why?
4. Do we have the right people in place, and if not, how do we address the
holes?
5. What is our plan for consistent improvement- specifically efficiency
improvement- over time?
I think these questions really put all the elements of a marketing campaign
into perspective. In essence, they clean house. They identify and adjust the
areas for improvement and increase the areas that are performing well.
Kotler, K., Keller, K. (2011). Marketing Management. [VitalSource
Bookshelf]. Retrieved from http://online.vitalsource.com/9781256083979
Here's a link to the article: Conducting a Marketing Audit: The 5 Essential
Questions
RE:
Marketing Cary Mitchell
Audit
10/20/2012 3:01:07 PM
A marketing Audit helps small business or any company determine the best
strategy and tactics to introduce products to the consumer. This audit report
contains several things: Market Environment, Competitive environment,
Economic environment, internal factors, and external factors.
Market environment covers your industry from the type of product to the
color and price you should charge..
Competitive environment this report helps to determine your competitors and
what they charge for products and how to introduce your product over theirs.
Economic environment shows a company what the market habits of the
consumers are doing.
Internal factors show how a company processes work and how to improve
them.
What I think is important is the competitive environment because you need to
know what the others are doing and how much to charge for your products
and or services. The goal is to see what options your company have in any
market and the best strategy is for the product. Every company should do it
based on what the overall habits of the consumer and to find out what they
are looking for and if it is the right time to introduce something new from the
company.
RE:
Marketing Jennifer Magana
Audit
10/20/2012 5:25:43 PM
The marketing audit is a great way to keep the marketing plan on track. A
marketing audit is when the marketing plan is evaluated during various points
of time during the execution of the marketing plan for internal and external
influences. The audit will use processes such as the SWOT analysis to
evaluate the internal influences. I think that this process is necessary because
the internal and external environment is constantly evolving and
changing. To provide the best marketing services, the marketing plan must
be aware of all environmental factors that could affect the marketing
plan. The goal of the marketing audit is to bring to light new oppurtunites
and threats and adjust the marketing plan accordingly.
http://www.marketingteacher.com/lesson-store/lesson-marketing-audit.html
RE:
Marketing Rose Neal
Audit
10/20/2012 8:46:50 PM
A marketing audit can be very beneficial in many ways. It can provide
insight into how a plan is doing and whether changes need to be made before
it gets too late. It can also help to see if a new direction needs to be taken. It
is a good thing to do because a marketing plan can become mundane and
stagnate and an audit can help to revamp or change a plan to keep up with
consumer wants and needs.
RE:
Marketing Professor Forbes
Audit
10/21/2012 6:21:29 PM
Great work- Again -what are the key characteristics? Any one
particularly resonate with you as necessary and why? How is it like
the SWOT we did in those plans?
RE:
Marketing Julio Rhymer
Audit
10/21/2012 9:09:31
PM
A marketing audit normally ask five important questions:
1. Does the marketing plan match up with the overall goals
of the business? If so, how? If not, why not?
2. Do the individual marketing tactics or campaigns support
the overall marketing plan? If so, how? If not, why not?
3. What are we measuring and why?
4. Do we have the right people in place, and if not, how do
we address the holes?
5. What is our plan for consistent improvement –
specifically efficiency improvements – over time?
These questions allow a company to determine if their
marketing plans needs improvement and are having an
impact.
RE:
Marketing Semyya Cunningham
Audit
10/20/2012 9:27:17 PM
Professor Forbes and Classmates, I located an interesting article online
outlining how to do a marketing audit; the questions that should be
asked. According to Sweeney, the following questions should be asked:
"Does the marketing plan match up with the overall goals of the
business? Do the individual marketing tactics or campaigns support the
overall marketing plan? What are we measuring and why? Do we have
the right people in place, and if not, how do we address the holes? What
is our plan for consistent improvement – specifically efficiency
improvements – over time?"
These questions seem fair to me. It really hits home how very important
the marketing plan then really is. It seems it will be referred back to
time and time again. All businesses should have a commitment to
continual improvement. A marketing audit goes hand and hand with
that.
http://www.marketingtrenches.com/marketing-strategy/conducting-amarketing-audit-the-5-essential-questions/
RE:
Marketing Bweleka Kasonso
Audit
10/20/2012 10:05:54 PM
A marketing audit occurs when an organizations marketing activities are comprehensively
and systematically reviewed on a regular basis. The characteristics of marketing audit are
comprehensive, systematic, independent and periodic. The purpose of a marketing audit is to
analysis marketing activities for effectiveness, to evaluate the marketing activities for
effectiveness and to recommend improvements or leave the plan as is.
Sources:
TP Marketing Group. (2009). Marketing audit. Retrieved from http://www.marketingaudit.co.uk/
Lorette, K. (n.d.). Implementation phase of the strategic marketing process. Retrieved from
http://smallbusiness.chron.com/implementation-phase-strategic-marketing-process-5042.html
RE:
Marketing Anish Varghese
Audit
10/20/2012 9:29:52 AM
“A marketing audit is a comprehensive, systematic,
independent, and periodic examination of a company’s or
business unit’s marketing environment, objectives, strategies,
and activities, with a view to determining problem areas and
opportunities and recommending a plan of action to improve the
company’s marketing performance.” (Keller 656) It is also the
fundamental part of the marketing planning process. It is
conducted at the beginning of the process at a series of
points during the implementation of the plan.
Keller, Philip Kotler and Kevin. Marketing Management, 13th
Edition. Pearson Learning Solutions.
<vbk:9781256083979#outline(29.5.4.1)>.
RE:
Marketing Julie Hicks
Audit
10/21/2012 11:03:04 PM
Great definition, Anish!
Some questions come to mind when doing a marketing audit.
Does the plan fit the business?
Does it support the plan?
Why is this being measured?
What are the plans for improvements?
Do we have the right people to address inefficiency?
RE:
Marketing Yonny Leon
Audit
10/20/2012 11:47:40 AM
The marketing audit is a fundamental part of the marketing planning process.
It is conducted not only at the beginning of the process, but also at a series of
points during the implementation of the plan. The marketing audit considers
both internal and external influences on marketing planning, as well as a
review of the plan itself.
RE:
Marketing Indisha Mussington
Audit
10/21/2012 5:55:57 PM
I like what you pointed out about marking audits occurring during a
series of points during the implementation process Yonny. In order
to be successful you must evaluate your processes often to make sure
they are still relevant. That is why the task environment portion of
the marketing audit resonates with me. In the task environment,
Markets, customers, competitors, distribution & dealers,suppliers,
facilitators & marketing firms and publics are being audited. This to
me makes up a significate portion of a marketing
foundation. Therefore, it is necessary to continuously audit these
areas.
Closing...
Professor Forbes
10/21/2012 6:21:05 PM
Closing thoughtsFolks thank you all for all your dedication in the threads in our "learning
journey". This week we covered off some great topics here- International
Markets and the challenges to create success here and new product
development challenges. Great Work!!!