MKT 300 4th Edition Lecture 12 Outline of Last Lecture I. Quantitative TechniquesII. Step 4: Analyzing Data and Developing InsightsIII. Step 5: Action Plan and ImplementationOutline of Current Lecture I. Why Develop New Products?II. Developing New ProductsIII. Innovation and ValueCurrent LectureI. Why Develop New Products?a. Important that companies innovate constantlyb. GoPro’s new product Commercial: POV action camerac. Have to keep up and change with the timesII. Developing New Productsa. July ’14: Campbell’s announced launch: 200 new products because of the shift in food businessi. Consumers want fresh and simpleii. “Real food that matters for life’s moments” –new sloganiii. Millennial moms with kids ages 4-11: Bolthouse Farmsb. Kraft: in 3 months, seventy new productsc. General Mills: fifty new in half a year, 100 new in second halfd. Because of busy lifestyle: “smart bleach” to use on everything by CloroxIII. Innovation and Valuea. Changing consumer needs: Target’s “Made to Matter” product linei. Desire for ‘small nitch’ products1. Small brands are becoming big; desire has turned away from established companies2. Smaller may be healthier/more natural3. Larger have to be more innovativeThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.4. Coke bought share in Monster/coconut water; General Mills bought Annie’s; Amazon bought Zappos5. “The Big Craft Beer Movement”: small companies making big dogsnervousa. Hybrid brews: mix-tales (Millennials not drinking as much beer)ii. More natural/healthy: gluten free (pasta out of spinach/flour)1. “Permissible indulgence:” healthy snacka. Chips out of seaweed: Annie Chunkb. Coca Cola “Life”: lower calorie, green logo, launch with limited edition, sugar and Truvia sweeteneri. 80 Calories: initially released in Argentina/Chileii. FairLife milk from Coke: high protein/calciumc. Dunkin’ Go granola bar, Belvita breakfast bars by Kraft (launched in US after success in Europe)d. Quaker Breakfast Shakes: quick, but nutritiousb. Market Saturation & Managing Risk through diversityi. Nothing new coming out is revolutionary: just new flavors, better versionsii. Why we need to innovate constantlyiii. Mattel’s View-Master: view different slides (old timey) by using smart phoneiv. Dyson: Making Homemaking Sexy: James Dyson and new hardwood vacuum1. Can’t rely on just one product: manage risk through diversity2. Spread risk across large portfolioc. Fashion Cycles: bacon/pumpkin spicei. The Great Pumpkin Frenzyii. Pop tarts, marshmallows, Vodka—“pumpkin-ocity”iii. Samuel Adams pumpkin beeriv. “Selling a feeling, not just flavor”v. Limited time: scarcity draws in