Lets look at three reasons why product development is undertaken for the correct reasons. In part one of this four part series we looked at the high failure rate of new products.
Author: Rob Berman
Rob Berman is a PRODUCT DEVELOPMENT / MARKETING Executive with a proven track record of success growing the top and bottom lines in small, medium and large companies as well as matrixed and multi-national organizations. Experienced in domestic and international markets. Effective in a fast paced environment with multiple priorities -- meet deadlines while consistently bringing new products to market, managing existing lines of business, driving communications and achieving financial targets.
I have been developing new products for 20 years. Over four posts I will discuss nine broad based reasons why new products are developed and examine them to illustrate the precarious nature of the new product development process.
I attended a presentation by Hal Lewis on leadership in non-profit organizations. His 10 points apply equally as well to leadership in the field of Marketing. Here are the 10 things every leader needs to know.
General Motors recently ran a series of ads about the quality of their cars. The gist of the message was about being a “world class” company. The proof of their “world class” status was a 60-day money back guarantee on new car purchases. The commercial got me thinking about what techniques companies use to prove their worthiness to customers and potential customers.
I recently read an article in the Wall Street Journal that described Heinz, the “King of Ketchup” making a move into Mexico.
Ketchup Versus Salsa
Salsa bypassed ketchup in the US as the most popular tomato-based condiment in 1992 according to the New York Times and National Public Radio.
Salsa actively moved into the home of Heinz and “conquered” American’s taste buds. Since salsa overtook ketchup, Heinz had not retaliated in Mexico until 2008 and 2009. A market that is not growing at home should be expanded overseas by an international firm. Heinz focused on emerging markets in other parts of the world like China, Russia, and Indonesia while ignoring an obvious, large country south of its US headquarters.
What is most interesting is that Mexicans use ketchup on foods like chicken, pasta, eggs, and pizza. These are not typical practices in the US but could increase sales volume.
So what were the Product Managers and Category Managers thinking?