MKT 571 Week 3 Identify the steps of product development,
- Example: Swazzi,Inc. Brand introduces a Spring Line of premium-priced women clothing.
1.Idea screening narrows down all ideas into one big picture; use sequencing steps to develop product line
2.a “real, win, worth it” (R-W-W) framework : Real need/want for product? Win over customer’s (competitive advantage)? Worth calculated in profit margin (growth strategy)
- “Back to Carnaby Street” retro line inspired by the mod clothing of 1960s London
- Target market: 27-42 demographic, and especially in the upper incomes
- Swazzi expects a rate of return (e.g. profit margin) between 35% and 45%
- Price= Price is a factor that should be considered at this time. It’s a part of the product design, especially in fashion.
- REAL= Reliable industry data showing current customer clothing preferences à Carnaby Street.
- WIN (competition)= No (kept product line despite anticipated release of other chains). Swazzi’s high end clothing line of silks and suede is sufficiently differentiated such that any impact by a competitor would be negligible.
- PRICE AND PROFIT MARGIN: Price is crucial to determining profit. If a new product will ultimately prove to be unprofitable, you want to find that out as soon as possible.
- SUSTAINABLE ADVANTAGE: The last 50 years have shown that periodic interest by the general public in fashions of the 1960s can be substantial, and financially lucrative.
- (Pearson/Prentice Hall, 2012).
- Brands identify the source or maker of a product and allow consumers to assign responsibility for its performance to a particular manufacturer (Kotler, P. and Keller, K., 2012).
The brand name can be protected through registered trademarks; patents; copyrights and proprietary designs (Kotler, P. and Keller, K., 2012).
Creates mental structures that help consumers organize their knowledge about products and services in a way that clarifies their decision making and, in the process, provides value to the firm (Kotler, P. and Keller, K., 2012).
For branding strategies to be successful and brand value to be created, consumers must be convinced there are meaningful differences among brands in the product or service category. Brand differences often relate to attributes or benefits of the product itself.
-Having a strong brand will allow marketing advantages shown above and many more including greater margins, additional trade cooperation, and licensing opportunities (Kotler, P. and Keller, K., 2012 ).
-Brand knowledge plays an important role in the process because it will determine the future direction of the brand (Kotler, P. and Keller, K., 2012).