You are a marketing manager for Birds Eye Vegetables, and are exploring the poss
ID: 378050 • Letter: Y
Question
You are a marketing manager for Birds Eye Vegetables, and are exploring the possible introduction of a new line of organic salads, to be sold in single-serve, ready-to-eat packages. Please respond to all of the following questions in full. (To bolster your analysis, you may wish to conduct a bit of online research concerning the ready-to-eat salad market and/or the appeal of organic products, although this is not mandatory.)
Describe how the company might use the stages of the new product development process to shepherd the new product through, from idea generation through commercialization.
Choose an appropriate demographic target, explaining your rationale.
Which of the three popular alternative branding strategies would you recommend, and why?
Describe two different ways in which the new line of salads can be differentiated from the competition.
As marketing management seeks to penetrate the market, provide two examples of promotional pricing that the company might utilize.
With regard to the number of intermediaries, which strategy would you recommend for Birds Eye, and why? Where would you choose to make the product available?
Explain how opinion leaders can be used to help continue to grow the brand.
Develop a creative strategy to appeal to the segment you have chosen to target.
Explanation / Answer
DESCRIBE HOW THE COMPANY MIGHT USE THE STAGES OF THE NEW PRODUCT DEVELOPMENT PROCESS TO SHEPHERD THE NEW PRODUCT THROUGH, FROM IDEA GENERATION THROUGH COMMERCIALIZATION.
THE FIRST STAGE OF THE NEW PRODUCT DEVELOPMENT IS THE IDEA GENERATION. IDEAS COME FROM EVERYWHERE, CAN BE OF ANY FORM, AND CAN BE NUMEROUS. THIS STAGE INVOLVES CREATING A LARGE POOL OF IDEAS FROM VARIOUS SOURCES, WHICH INCLUDE
IDEA SCREENING
IDEAS CAN BE MANY, BUT GOOD IDEAS ARE FEW. THIS SECOND STEP OF NEW PRODUCT DEVELOPMENT INVOLVES FINDING THOSE GOOD AND FEASIBLE IDEAS AND DISCARDING THOSE WHICH AREN’T. MANY FACTORS PLAY A PART HERE, THESE INCLUDE –
THE PRODUCT IS READY, SO SHOULD BE THE MARKETING STRATEGIES. THE MARKETING MIX IS NOW PUT TO USE. THE FINAL DECISIONS ARE TO BE MADE. MARKETS ARE DECIDED FOR THE PRODUCT TO LAUNCH IN. THIS STAGE INVOLVES BRIEFING DIFFERENT DEPARTMENTS ABOUT THE DUTIES AND TARGETS. EVERY MINOR AND MAJOR DECISION IS MADE BEFORE THE FINAL INTRODUCTION STAGE OF THE NEW PRODUCT DEVELOPMENT.
SALAD READY IS A CONSUMER FOOD PRODUCT — FRESH, WASHED, BITE-SIZED, DETACHED LEAVES OF LEAF LETTUCE, CONTAINED IN A SEALED, TRANSPARENT, POLYPROPYLENE BAG.
THE PRODUCT CONCEPT FLOWS FROM THE EUROPEAN CULINARY TRADITION OF "SALAD" – A TASTEFUL SELECTION OF APPETIZING AND EYE-APPEALING GREEN LEAFY LETTUCES. THESE LETTUCES INCLUDE ROMAINE, RADICCHIO, MACHE, ETC
SALAD READY IS MANUFACTURED THROUGH AN INDUSTRIAL PROCESS. THE BAG CONTAINING THE LETTUCES IS MADE OF TRANSPARENT POLYPROPYLENE. PRESSURIZED AIR IS ADDED TO THE POUCH BEFORE SEALING TO ALLOW VAPOR EXCHANGE AND TO PROTECT LEAVES FROM BEING CRUSHED OR BRUISED.
THE RECOMMENDED SHELF LIFE VARIES BETWEEN 5 AND 20 DAYS, DEPENDING ON THE QUANTITY OF LETTUCE INVOLVED, THE COMBINATION OF LEAF LETTUCE TYPES, AND THE QUALITY OF THE CUSTOMER'S STORAGE FACILITIES.
THE SALAD READY PRODUCT LINE WILL INCLUDE:
THE RELATIVE SIMPLICITY OF THE TECHNOLOGY AND ITS PRODUCTION CAPACITY FLEXIBILITY PERMIT QUICK AND INEXPENSIVE ADAPTATION OF THE PROCESS TO NEW PRODUCTS. THE PRODUCT CHARACTERISTICS THAT COULD BE MODIFIED IN THE COURSE OF BUSINESS ARE:
CONTENTS
PACKAGING
SALAD READY HAS A HIGH CAPACITY FOR ADAPTATION TO REGIONAL DIFFERENCES, DIFFERENT MARKET SEGMENTATION NEEDS, AND FOOD CONSUMPTION TRENDS, BECAUSE IT CAN EASILY ACCOMMODATE VARIATIONS AROUND ITS BASIC TWO-FOLD CONCEPT OF FRESHNESS AND CONVENIENCE.
CHOOSE AN APPROPRIATE DEMOGRAPHIC TARGET, EXPLAINING YOUR RATIONALE. THE TESTING RESULTS HELP THE BUSINESS IN COMING UP WITH THE FINAL CONCEPT TO BE DEVELOPED INTO A PRODUCT.NOW THAT THE BUSINESS HAS A FINALIZED CONCEPT, IT’S TIME FOR IT TO ANALYSE AND DECIDE THE MARKETING AND OTHER BUSINESS STRATEGIES THAT WILL BE USED. ESTIMATED PRODUCT PROFITABILITY IS ESTIMATED, MARKETING MIX, AND BRANDING STRATEGIES ARE DECIDED FOR THE PRODUCT.OTHER IMPORTANT ANALYTICS INCLUDES
COMPETITION OF THE PRODUCT
ALL INDICATIONS ARE THAT THE U.S. MARKET IS POISED FOR GROWTH IN THE GREEN, LEAFY LETTUCES CATEGORY, AND THAT SALADS ARE INCREASINGLY IMPORTANT AS A COMPONENT OF EVERYDAY AMERICAN DIETS.
FRESH FRUITS AND VEGETABLES ARE ALREADY THE FASTEST GROWING CATEGORY IN U.S. SUPERMARKETS. THIS FACT IS PROPELLED BY THE STRONG CONSUMER TREND TO EAT MORE FRESH PRODUCE. PER CAPITA FRESH VEGETABLE CONSUMPTION IN THE UNITED STATES (EXCLUDING POTATOES) INCREASED TO A RECORD 100.9 POUNDS IN 1982, UP FROM 89.1 POUNDS IN 1972. ACCORDING TO THE USD A, WHICH TRACKS TRENDS IN THE SALE OF SPECIFIC VEGETABLES, FRESH LETTUCE CONSUMPTION INCREASED 28% BETWEEN 1962 AND 1982.
MOST OF THIS LETTUCE CONSUMPTION TAKES PLACE IN THE FORM OF SALADS, ALTHOUGH SOME IS USED AS GARNISH ON SANDWICHES. A STUDY DONE FOR PROGRESSIVE GROCER MAGAZINE IN 1984, BY LEO J. SHAPIRO ASSOCIATES, POLLED AMERICAN CONSUMERS AT RANDOM ABOUT THEIR SALAD USAGE. THE RESULTS, WHICH ARE PROJECTIBLE TO THE POPULATION AT LARGE, WERE:
OVERALL MARKET SIZE FOR LETTUCES
WE ESTIMATE THAT THE OVERALL LETTUCE MARKET, INCLUDING BOTH ICEBERG, OR "HEAD," LETTUCE AND GREEN LEAFY LETTUCES IS A $2.5 BILLION MARKET AT RETAIL, AND A $1.03 BILLION MARKET AT FARM LEVEL. OF THIS, GREEN LEAFY LETTUCES COMPRISE ROUGHLY 20% OF THE RETAIL MARKET ON A WEIGHT AND VALUE BASIS.
CONSUMER AND DEMOGRAPHIC TRENDS
THE MAJOR CONSUMER AND DEMOGRAPHIC TRENDS WHICH PLAY A KEY ROLE IN SELECTION OF FOOD PRODUCTS ARE AS FOLLOWS:
LEAF LETTUCE USAGE AND TRENDS
AMERICAN CONSUMERS ARE DEMANDING A GREATER PERCENTAGE OF LEAF LETTUCES IN THEIR DIETS VIS-À-VIS THE TRADITIONAL ICEBERG LETTUCE USAGE.
IN A 1984 STUDY DONE FOR THE CALIFORNIA ICEBERG LETTUCE COMMISSION, CONSUMER RESEARCHERS FOUND THAT ALMOST 5 PERCENT OF THE AMERICAN PUBLIC USED LEAF LETTUCE EXCLUSIVELY.
CURRENT LETTUCE USAGE
ALTHOUGH ICEBERG RETAINS ITS STRONG HOLD IN THE SUPERMARKET BASKET, LEAF LETTUCES ALREADY HAVE LOYAL FOLLOWERS. WE BELIEVE THAT THIS FOLLOWING IS GROWING.
TYPE OF LETTUCE MOST PREFERRED
DEMOGRAPHICS OF CONSUMERS AND PURCHASERS
ALTHOUGH WE BELIEVE THAT THE DEMOGRAPHICS OF LEAF LETTUCE CONSUMERS ARE MORE UP-SCALE THAN THOSE OF ICEBERG LETTUCE CONSUMERS, BOTH ARE MEMBERS OF THE "SALAD USER" CATEGORY.
NINETY-EIGHT PERCENT OF ALL HOMES SERVE SALADS. "HEAVY USERS" WERE IDENTIFIED IN A 1984 STUDY BY THE CALIFORNIA ICEBERG LETTUCE COMMISSION AS DIFFERING FROM THE HOUSEHOLD POPULATION IN GENERAL BY BEING MIDDLE AGED, BETTER EDUCATED, AND MORE AFFLUENT.
WOMEN REPRESENT FOUR OUT OF FIVE DAILY SALAD CONSUMERS, AND THREE OUT OF FOUR PEOPLE WHO CONSUME SALAD FOUR TO SIX TIMES A WEEK BASIS. IN ETHNIC TERMS, WHITES ARE THE HEAVIEST SALAD CONSUMERS OVERALL; 92% OF THOSE EATING SALADS DAILY ARE WHITE. LEAF LETTUCE PURCHASERS ARE MORE UPSCALE CONSUMERS THAN SALAD USERS AS A WHOLE.
USAGE PATTERNS IN REGIONAL MARKETS
HIGHER SALAD CONSUMPTION OCCURS IN SUBURBAN AND CENTRAL CITY AREAS THAN IN NONMETROPOLITAN (RURAL) AREAS; THIS IS A CONSTANT THROUGHOUT OUR EXAMINATION OF REGIONAL MARKETS.
HOUSEHOLD USAGE OF FRESH LETTUCE IS TRACKED BY THE FOOD INSTITUTE, WHICH SHOWS THE FOLLOWING DIFFERENCES REGIONALLY:
FRESH LETTUCE-ANNUAL AVERAGE HOUSEHOLD USAGE
"FACTS IN FOOD CONSUMPTION"
THE FOOD INSTITUTE, 4/85
PERCENTAGE OF HOUSEHOLDS USING LETTUCE - ANNUAL AVERAGE
FACTS IN FOOD CONSUMPTION
THE FOOD INSTITUTE, 4/85
IT CAN BE SEEN THAT THE WEST AND NORTHEAST CONSISTENTLY RANK HIGHEST IN TERMS OF BOTH USAGE PATTERNS; POUNDS CONSUMED AND PERCENTAGE OF HOUSEHOLDS USING.
THIS REGIONAL PATTERN HOLDS TRUE FOR THE PERCENTAGE OF CONSUMERS WHO HAVE PRIOR PURCHASE EXPERIENCE WITH LEAF LETTUCE:
PERCENTAGE OF CONSUMERS WHO HAVE PURCHASED LEAF LETTUCE
VANCE RESEARCH/THE PACKER
CONSUMER ATTITUDE INFORMATION BY REGION IS NOT CURRENTLY AVAILABLE TO US ON SALAD OR SALAD READY PRODUCTS, BUT A WORKING ASSUMPTION IS THAT CONSUMERS IN THE NORTHEAST HAVE MORE "REFINED PALATES" AND SOPHISTICATED TASTES THAN THE NATION AS A WHOLE, AND THAT CONSUMERS IN THE WESTERN STATES TEND TO ENJOY FRESH FOODS, PARTICULARLY PRODUCE.
WHICH OF THE THREE POPULAR ALTERNATIVE BRANDING STRATEGIES WOULD YOU RECOMMEND, AND WHY?
PRODUCT CHARACTERISTICS AND PRODUCT MIX
THE INITIAL PRODUCTS OFFERED BY LYONS & COYNE, INC. WILL BE:
CONTENT
PACKAGE SIZE
ALL PRODUCTS WILL SHARE THE FOLLOWING CHARACTERISTICS:
PRICE
FOB PRICES WILL BE SET WITH THREE OBJECTIVES IN MIND:
PRODUCT COST WILL NOT VARY GREATLY WITH SIZE OF PACKAGE, SINCE THE FORM-FILL-SEAL MACHINERY HAS MAXIMUM SPEED REGARDLESS OF SIZE. THUS, PRICE WILL DECREASE WITH VOLUME OF PRODUCTION. WE ESTIMATE THAT THE EXPERIENCE CURVE EFFECT WILL ALLOW A DECREASE OF COST OF 20% WHEN SALES VOLUME DOUBLES.
ALLOWING FOR 15% PROFIT BEFORE TAXES, THE FOB PRICE WILL BE:
FOB PRICE WILL BE ADJUSTED EVERY WEEK IN ORDER TO TAKE INTO ACCOUNT DAILY VARIATIONS IN THE PRICE OF THE RAW MATERIAL (RAW MATERIALS ACCOUNT FOR 20% OF PRODUCT COST).
LYONS & COYNE, INC. PRICING POLICY WILL BE FLEXIBLE ENOUGH TO MAINTAIN MARKET POSITION ONCE COMPETITION ARRIVES. THIS WILL BE DONE BY PROVIDING FOR BETTER QUALITY AND EXTRA FEATURES WITHOUT NECESSITATING DRAMATIC PRICE REDUCTIONS WHICH MAY JEOPARDIZE "POSITIONING" AS A HIGH QUALITY PRODUCT.
DESCRIBE TWO DIFFERENT WAYS IN WHICH THE NEW LINE OF SALADS CAN BE DIFFERENTIATED FROM THE COMPETITION.
1. YOU CAN DIFFERENTIATE YOUR PRODUCT BY SIZE
2. YOU CAN DIFFERENTIATE YOUR PRODUCT BY ORIGIN
3. YOU CAN DIFFERENTIATE YOUR PRODUCT BY BRANDING
4. YOU CAN DIFFERENTIATE YOUR PRODUCT BY YOUR PACKAGING
5. YOU CAN DIFFERENTIATE YOUR PRODUCT BY ADDING A SIMPLE FEATURE OR INGREDIENT
6. YOU CAN DIFFERENTIATE YOUR PRODUCT BY OFFERING A BONUS
AS MARKETING MANAGEMENT SEEKS TO PENETRATE THE MARKET, PROVIDE TWO EXAMPLES OF PROMOTIONAL PRICING THAT THE COMPANY MIGHT UTILIZE.
A BUSINESS MUST HAVE A MARKETING PLAN IN ORDER TO PRODUCE, COMMUNICATE, AND SELL PRODUCTS AND SERVICES. USING RESEARCH ON SEGMENTS OF THE TARGET AUDIENCE, A MARKETING PLAN IS WRITTEN. ONCE THE PLAN HAS BEEN DEVELOPED, A BUDGET IS SET FOR THE PROMOTIONAL CAMPAIGN.
PROMOTION
PROMOTION IS WHEN A BUSINESS DECIDES WHICH FORMS OF COMMUNICATION IT WANTS TO USE IN THEIR MARKETING PLAN. RESEARCH IS DONE THAT DETAILS MARKET RESEARCH, SEGMENTATION, AND BUDGET. LARGE COMPANIES MIGHT CHOOSE TO DO A NATIONAL CAMPAIGN, ESPECIALLY IF THE BRAND IS ALREADY FAMILIAR TO THE CONSUMER. SMALLER BUSINESSES, WITH FEWER RESOURCES, MIGHT USE DIRECT SELLING UNTIL THEY HAVE A LARGER BUDGET FOR ADVERTISING.
THE FIRST STEP FOR THE MARKETER IS TO DEVELOP A MARKETING COMMUNICATIONS STRATEGY. THE STRATEGY WILL DEFINE THE CONSUMER, THE BEST WAY TO REACH THEM, AND WHAT THE MESSAGE SHOULD BE. THIS PROCESS IS CALLED THE MARKETING MIX. THE PROCESS GOES THROUGH THE FOLLOWING STEPS:
1. SEGMENTATION
2. TARGETING
3. POSITIONING
4. MESSAGING
BRANDING
BRANDING IS A CENTRAL THEME IN PROMOTIONS, AND KEY TO POSITIONING A PRODUCT. BRANDING IS A PART OF ALL ASPECTS OF A PRODUCT -- FROM ITS PACKAGING TO ITS WEBSITE. THE MORE CONSISTENT THE BRANDING, THE MORE LIKELY THE CUSTOMER WILL REMEMBER THE BRAND.
HAVING A SUCCESSFUL BRAND MEANS A CUSTOMER WILL PAY MORE THAN FOR BRANDS IT DOESN'T KNOW OR TRUST. THIS TRUST IS REFERRED TO AS "BRAND EQUITY" AND IS INCREDIBLY VALUABLE TO THE MARKETER. IT IS ALSO ESSENTIAL THE BRAND TAKE INTO ACCOUNT ALL UNIQUE SELLING POINTS (USPS), AS THESE ARE THE EASILY RECOGNIZED PARTS OF A MESSAGE.
IF POSSIBLE, USING CORPORATE IDENTITY IS A GREAT WAY TO PROMOTE A PRODUCT, ESPECIALLY IF IT IS USED CONSISTENTLY. THINK OF THE KELLOGG'S LOGO. YOU SEE THE LOGO ON A NEW BOX OF CEREAL, AND SINCE YOU ARE FAMILIAR WITH THE BRAND, YOU ARE MORE LIKELY TO TRUST IT. THIS IS THE IDEAL SITUATION
ADVERTISING
ADVERTISING IS THE ACT OF COMMUNICATING DIRECTLY TO AN AUDIENCE USING MEDIA SOURCES, SUCH AS TELEVISION, PRINT, RADIO, AND ONLINE. A SUCCESSFUL CAMPAIGN WILL KEEP THE CUSTOMER INSIGHT IN MIND, WHILE COMMUNICATING THE BUSINESS'S MISSION AND BRAND. ADS CAN BE DIRECTED TOWARD CERTAIN DEMOGRAPHICS, IMPROVING THE CHANCE OF A SUCCESSFUL CAMPAIGN.
A SUCCESSFUL AD MAKES THE VIEWER WANT TO LEARN MORE ABOUT THE PRODUCT, AND GIVES THE VIEWER MEANS TO PURCHASE THE PRODUCT. THE BEST AD TECHNIQUES WILL ENSURE A VALUABLE CAMPAIGN, WHICH WILL RETURN VALUE TO THE COMPANY.
WITH REGARD TO THE NUMBER OF INTERMEDIARIES, WHICH STRATEGY WOULD YOU RECOMMEND FOR BIRDS EYE, AND WHY? WHERE WOULD YOU CHOOSE TO MAKE THE PRODUCT AVAILABLE?
HE MOST EXTENSIVE FORM OF PARTICIPATION IS 100% OWNERSHIP AND THIS INVOLVES THE GREATEST COMMITMENT IN CAPITAL AND MANAGERIAL EFFORT. THE ABILITY TO COMMUNICATE AND CONTROL 100% MAY OUTWEIGH ANY OF THE DISADVANTAGES OF JOINT VENTURES AND LICENSING. HOWEVER, AS MENTIONED EARLIER, REPATRIATION OF EARNINGS AND CAPITAL HAS TO BE CAREFULLY MONITORED. THE MORE UNSTABLE THE ENVIRONMENT THE LESS LIKELY IS THE OWNERSHIP PATHWAY AN OPTION.
THESE FORMS OF PARTICIPATION: EXPORTING, LICENSING, JOINT VENTURES OR OWNERSHIP, ARE ON A CONTINUUM RATHER THAN DISCRETE AND CAN TAKE MANY FORMATS. ANDERSON AND COUGHLAN8 (1987) SUMMARISE THE ENTRY MODE AS A CHOICE BETWEEN COMPANY OWNED OR CONTROLLED METHODS - "INTEGRATED" CHANNELS - OR "INDEPENDENT" CHANNELS. INTEGRATED CHANNELS OFFER THE ADVANTAGES OF PLANNING AND CONTROL OF RESOURCES, FLOW OF INFORMATION, AND FASTER MARKET PENETRATION, AND ARE A VISIBLE SIGN OF COMMITMENT. THE DISADVANTAGES ARE THAT THEY INCUR MANY COSTS (ESPECIALLY MARKETING), THE RISKS ARE HIGH, SOME MAY BE MORE EFFECTIVE THAN OTHERS (DUE TO CULTURE) AND IN SOME CASES THEIR CREDIBILITY AMONGST LOCALS MAY BE LOWER THAN THAT OF CONTROLLED INDEPENDENTS. INDEPENDENT CHANNELS OFFER LOWER PERFORMANCE COSTS, RISKS, LESS CAPITAL, HIGH LOCAL KNOWLEDGE AND CREDIBILITY. DISADVANTAGES INCLUDE LESS MARKET INFORMATION FLOW, GREATER COORDINATING AND CONTROL DIFFICULTIES AND MOTIVATIONAL DIFFICULTIES. IN ADDITION THEY MAY NOT BE WILLING TO SPEND MONEY ON MARKET DEVELOPMENT AND SELECTION OF GOOD INTERMEDIARIES MAY BE DIFFICULT AS GOOD ONES ARE USUALLY TAKEN UP ANYWAY.
ONCE IN A MARKET, COMPANIES HAVE TO DECIDE ON A STRATEGY FOR EXPANSION. ONE MAY BE TO CONCENTRATE ON A FEW SEGMENTS IN A FEW COUNTRIES - TYPICAL ARE CASHEWNUTS FROM TANZANIA AND HORTICULTURAL EXPORTS FROM ZIMBABWE AND KENYA - OR CONCENTRATE ON ONE COUNTRY AND DIVERSIFY INTO SEGMENTS. OTHER ACTIVITIES INCLUDE COUNTRY AND MARKET SEGMENT CONCENTRATION - TYPICAL OF COCA COLA OR GERBER BABY FOODS, AND FINALLY COUNTRY AND SEGMENT DIVERSIFICATION. ANOTHER WAY OF LOOKING AT IT IS BY IDENTIFYING THREE BASIC BUSINESS STRATEGIES: STAGE ONE - INTERNATIONAL, STAGE TWO - MULTINATIONAL (STRATEGIES CORRESPOND TO ETHNOCENTRIC AND POLYCENTRIC ORIENTATIONS RESPECTIVELY) AND STAGE THREE - GLOBAL STRATEGY (CORRESPONDS WITH GEOCENTRIC ORIENTATION). THE BASIC PHILOSOPHY BEHIND STAGE ONE IS EXTENSION OF PROGRAMMES AND PRODUCTS, BEHIND STAGE TWO IS DECENTRALISATION AS FAR AS POSSIBLE TO LOCAL OPERATORS AND BEHIND STAGE THREE IS AN INTEGRATION WHICH SEEKS TO SYNTHESIZE INPUTS FROM WORLD AND REGIONAL HEADQUARTERS AND THE COUNTRY ORGANISATION. WHILST MOST DEVELOPING COUNTRIES ARE HARDLY IN STAGE ONE, THEY HAVE WITHIN THEM ORGANISATIONS WHICH ARE IN STAGE THREE. THIS HAS OFTEN LED TO A "REBELLION" AGAINST THE OPERATIONS OF MULTINATIONALS, OFTEN UNFOUNDED.
FRESH LETTUCE-ANNUAL AVERAGE HOUSEHOLD USAGE
THE FOOD INSTITUTE, 4/85
PERCENTAGE OF HOUSEHOLDS USING LETTUCE - ANNUAL AVERAGE
PERCENTAGE OF CONSUMERS WHO HAVE PURCHASED LEAF LETTUCE
EXPLAIN HOW OPINION LEADERS CAN BE USED TO HELP CONTINUE TO GROW THE BRAND
THE PROCESS BY WHICH ONE PERSON INFORMALLY INFLUENCE THE ACTION OR ATTITUDE OF OTHERS WHO MAY BE OPTION SEEKERS OR MERELY OPINION RECIPIENTS
IMPACT OF OPINION LEADERS
HOW MEASURE OPINION LEADERSHIP
PERSONALITY OF OPINION LEADERSHIP
DEVELOP A CREATIVE STRATEGY TO APPEAL TO THE SEGMENT YOU HAVE CHOSEN TO TARGET.
BEFORE THE PRODUCT IS READY TO BE MANUFACTURED AND PLACED ON THE MARKET, SEVERAL STEPS ARE REQUIRED. LISTED BELOW, THEY ARE SCHEDULED OVER A THREE-MONTH PERIOD.
PACKAGE DESIGN PHASE NO. 1
PRELIMINARY TO CONSUMER RESEARCH:
FOLLOWING ARE THE STAGES OF THIS TASK: INVESTIGATE PACKAGES CURRENTLY USED; IDENTIFY GRAPHIC ELEMENTS SUPPORTING MARKETING CONCEPTS; DESIGN THREE OPTIONS FOR EACH MARKETING CONCEPT; CHECK WITH CONSUMER FOCUS GROUPS; SELECT AND REFINE DESIGN. THE DIRECT COST OF PACKAGE DESIGN IS $3,000
CONSUMER RESEARCH
AS OF TODAY, A SURVEY OF SECONDARY BUYERS (STORE BUYERS) HAS BEEN CONDUCTED. END-CONSUMER REACTIONS TO THE PRODUCT HAVE TO BE CHECKED FORMALLY: WHO WILL BUY? AT WHAT PRICE? IN WHAT PACKAGING? WHERE IN THE STORE? HOW WILL THEY USE THE PRODUCT? ETC. QUANTITATIVE AND QUALITATIVE METHODS WILL BE USED.
QUALITATIVE METHOD: CONSUMER FOCUS GROUPS (1 IN BAY AREA; 1 IN LOS ANGELES; 1 IN NEW YORK). DIRECT COST IS $6,600.
QUANTITATIVE METHOD: MALL INTERCEPTS SURVEY (6 MALLS IN BAY AREA); 50 PEOPLE INTERVIEWED. DIRECT COST IS $12,000.
THE TWO METHODS REQUIRE ACTUAL SAMPLE PRODUCT TO BE PRESENTED AND TESTED BY PEOPLE INTERVIEWED. TWO HUNDRED BAGS WILL HAVE TO BE IMPORTED. DIRECT COST OF SAMPLE IMPORT IS $1,000.
BRAND-BUILDING EFFORTS ARE ENVISIONED AS A RESULT OF THIS RESEARCH. SIZE OF THE MARKET WILL BE DERIVED FROM THIS RESEARCH AS WELL.
BEFORE THE PRODUCT IS READY TO BE MANUFACTURED AND PLACED ON THE MARKET, SEVERAL STEPS ARE REQUIRED. LISTED BELOW, THEY ARE SCHEDULED OVER A THREE-MONTH PERIOD.
TRADE SECRET TRANSFER AGREEMENT PREPARATION
PRELIMINARY AGREEMENT BETWEEN THE FRENCH COMPANY THAT CURRENTLY EXPLOITS THE PRODUCT PROCESS AND LYONS & COYNE, INC. HAS TO BE DEVELOPED INTO A DOCUMENTED FORM AND PROGRAM THAT CAN BE TRANSFERRED LATER. THOROUGH DESCRIPTION AND DOCUMENTATION OF THE PROCESS HAS TO BE DONE, TRAINING PROGRAM MUST BE DEFINED, AND CONSULTANCY MUST BE DETERMINED AND VALUED. DIRECT COST IS $4,000.
PLANT ENGINEERING DESIGN AND INSTALLATION AND OPERATIONAL COSTS STUDY
ONCE A LOCATION HAS BEEN SELECTED, IT WILL BE NECESSARY TO EVALUATE HOW TO IMPROVE THE COSTS OF SUPPLEMENTARY EQUIPMENT INSTALLATION REQUIRED BY THE MANUFACTURING PROCESS. OPERATIONAL COST WILL BE REFINED AS WELL.
PRELIMINARY DESIGN FOR CONTRACTOR BIDS WILL BE DRAWN FROM THIS STUDY AS WELL AS INVESTMENT FIGURES FOR START UP. DIRECT COST FOR THE PLANT ENGINEERING STUDY IS $12,000.
FOB PRICE WILL BE ADJUSTED EVERY WEEK IN ORDER TO TAKE INTO ACCOUNT DAILY VARIATIONS IN THE PRICE OF THE RAW MATERIAL (RAW MATERIALS ACCOUNT FOR 20% OF PRODUCT COST).
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