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.
Tag: Rob Berman
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.
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?
Often, we are deluged with junk mail. Recently, my credit card company decided to increase the value of my credit card statements by making them easier to read. My Clarity Commitment TM Credit Card, “Is intended to provide you with a clear and straightforward description of your Bank of America credit card rates and fees.”
Clearer Offer
The clearer documents were certainly in plainer English than traditional credit card communications. Why was the credit card company offering to help me? The answer — only because the US Congress passed a law called Credit Card Accountability Responsibility and Disclosure (CARD) Act. The law required them to be clearer so they touted their new clarity.