1) What are at least five new product ideas that could really increase new reven

Question

1) What are at least five new product ideas that could really increase new revenue for Olive Garden Restaurant?

2) Out of the ideas you list which one do you think would really have the best chance of succeeding in generating additional revenue and not just cannibalizing the existing products sales?

3) Explain why your best choice seems stronger than the others?

4) Regarding new product development in general, list at least three major factors that you feel might contribute most to launching successful new products for any type of product or service being introduced?

Explanation / Answer

Since 2007, the restaurant industry's sales growth declined as a result of falling consumer spending and other macroeconomic factors. Darden has recovered strongly from the recession, with net income increasing from $372.2 million in fiscal 2009 to $404.5 in fiscal 2010.

They have more work to do in order to convince consumers that the quality of Olive Garden's menu has improved. Company’s shareholders elected a completely new board, handpicked by activist investor Starboard Value. The new board has promised to cut unnecessary costs go back to the basics in terms of food quality and explore new options for Darden's real estate portfolio.

I think High quality fresh food, soups and sauces made from scratch, More tailored marketing and promotional strategy that leverages brand equity with core guests is more desirable ideas for restaurant.

But here I will go with “High quality fresh food, soups and sauces made from scratch” because for any kind or level of restaurant food/eatable items is most important and desirable things for customer, So if restaurants keep their food items quality high and good in taste then customer definitely come to your place every time. But restaurant have to serve better, fresh, quality food for customer.

Product

Here new product must meet real customer needs to be successful. It may offer technical features and levels of performance that are superior to any other product on the market, but if those features are not important to customers, the product may have little appeal.

Market Awareness

Market awareness is a major factor in success. It have to must acquire customers for the new product quickly to jump-start the launch and maintain momentum, according to the magazine “Fast Company.” Highlight the new product on website and email customers and prospects with brief details and a link to the news product page on website.

Differentiation and Positioning

The small-business owner wants to move customer prospects who are now aware of the product closer and closer to making a purchase, until they actually buy the product. The business owner must have a clear, concise marketing message that shows why the product is a different and better solution to the customer’s need than what the customer is currently using

Creating a Distribution System

For the product to be a success, the small-business owner must set up a distribution system that allows the product to be available to its target markets. Ideally, the distribution system will have several channels so the prospective customers have multiple opportunities to buy it.

Sales Motivation

The commitment of your sales team is a key success factor in a new product launch. Sales representatives must have the motivation and the knowledge to sell the new product with conviction. By explaining the size of the market and the opportunity to win new customers and increase sales, you can motivate the sales team.

Marketplace Need

The first step in marketing is to research the marketplace to discover needs and preferences. This contributes to the development of a marketable product or service solution that has a high potential for success.

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