Date post: | 02-Jun-2018 |
Category: |
Documents |
Upload: | rohan-singh |
View: | 214 times |
Download: | 0 times |
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 1/37
Group 3
Mohini Sahu A07
Prabhu Das A20
Rohan Singh A26
1/11/2015Food Brands - Cannibalization 1
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 2/37
1/11/2015Food Brands - Cannibalization 2
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 3/37
1/11/2015Food Brands - Cannibalization 3
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 4/37
The first documents the growing percentage of LaTreat
sales connected with promotional offers
A second graph disaggregates LaTreat's promotion-
related sales by four buyer categories Bill had created
from BehaviorScan data
1/11/2015Food Brands - Cannibalization 4
"Loyalists" werelong-time
customers whoincreased their
purchases inresponse to a
deal
"Trial users"bought LaTreat
forthe first timebecause of thepromotion; whoseemed to be
turning
into loyalcustomers
"Accelerators“customers: Used
coupons orrebates to
stock up onproduct theywould have
bought anyway
"Switch-on-deal“ were
nonusers:Bought LaTreatwhen there
werepromotions butdemonstrated
little
long-termloyalty
A majority ofredeemers fall
into the last
two categories
“Loyalists"accountfor a shrinking
percentage
of sales
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 5/37
1/11/2015Food Brands - Cannibalization 5
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 6/37
Conflict of opinion arising in the top management
regarding the cannibalization of the product
Bill approaches Bob Murphy; Barbara Mayer
1/11/2015Food Brands - Cannibalization 6
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 7/371/11/2015Food Brands - Cannibalization 7
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 8/37
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 9/371/11/2015Food Brands - Cannibalization 9
WHAT WENT WRONG
WITH PARADISE FOODS
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 10/371/11/2015Food Brands - Cannibalization 10
“STATUS QUO” is the
religion for the senior
management
It sent a message
that it is not serious
about new products
Withdrawal of a new
product is the right
decision” Personal Interest over
Organizational goalsand objectives
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 11/37
1/11/2015Food Brands - Cannibalization 11
Not prepared forcompetition
COMPETITOR CAME UP WITH A RIVALPRODUCT CALLED SWEET FANTASY
SWEET FANTASY HAD A QUICK ANDSUCCESSFUL PRODUCT LAUNCH
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 12/37
No marketing research techniques were used appropriately and
effectively
No consumer behaviour data on the frozen specialty dessert
category
No proper research done by Bill Horten
Lacked Objectivity
Experience in applying complex research
The perspective that comes from having wrestled with many
previous launches
1/11/2015Food Brands - Cannibalization 12
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 13/37
Cannibalization refers to a reduction in the sales volume, sales
revenue, or market share of one product as a result of the
introduction of a new product by the same producer
Eg: Introduction of diet coke may eat up some of its sales ofregular coke
1/11/2015Food Brands - Cannibalization 13
vs
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 14/371/11/2015Food Brands - Cannibalization 14
KEEP YOUR
CANNIBALS INTHE FAMILY
JERRY DELLA FEMINA
IF YOU MUST BE THE VICTIM OF ACANNIBAL, MAKE SURE THE CANNIBAL IS A
MEMBER OF YOUR FAMILY
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 15/371/11/2015Food Brands - Cannibalization 15
SWEET DREAM NEEDS
A CHAMPION TO BEAT
THE ABOMINABLE NO
MEN
JERRY DELLA FEMINA
EVERY NEW PRODUCT NEEDS A CHAMPIONIN UPPER MANAGEMENT
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 16/37
New power tools of the packaged goods industry
Supermarket scanners
Electronic test market facilities
Computer based marketing models
Easier for companies to get data, rather thaninterpreting with necessary sophistication
1/11/2015Food Brands - Cannibalization 16
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 17/371/11/2015Food Brands - Cannibalization 17
Marketing plan to launch a new Carpet
Deodorizer
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 18/37
• They Became their own cannibals
• Knocked off own product
• Priced it a few cents below that of competitors
• Introduced product within four months
What did they use?
1/11/2015Food Brands - Cannibalization 18
Quick planning &
executionHighly visible
advertising launch
They cut their
budget down to
nothing
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 19/371/11/2015Food Brands - Cannibalization 19
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 20/37
Incorporating a new character, Joe’s way of functioning
A test marketing analyst with a deal of experience in new
product launches
Designing a research program after consulting with the
managers
Would help in reducing the risk of launching Sweet Dream
and increase brand competition
1/11/2015Food Brands - Cannibalization 20
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 21/37
La Treat alone
La Treat + Sweet Dream
1/11/2015Food Brands - Cannibalization 21
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 22/37
Eating into existing product line?
Attracting new consumers?
1/11/2015Food Brands - Cannibalization 22
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 23/37
Extrapolating from test markets-difficult
Freezer space availability
Attention from sales force & distributors
Regular & heavy promotion required
1/11/2015Food Brands - Cannibalization 23
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 24/37
Joe, would anticipate cannibalization
Developing “source of volume”
He would help in forecasting Sweet Dream’s post launchperformance based on the test market results and Paradise’sagenda for the product
Joe can present the final presentation to the managingcommittee as they would require (long or short)
1/11/2015Food Brands - Cannibalization 24
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 25/37
Successful Cannibalization Successful Line Extensions
1/11/2015Food Brands - Cannibalization 25
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 26/37
LaTreat is now an oldproduct in a novelty
driven category
Fate of the entire
frozen specialitiesline is endangered
New premium-pricedindulgent dessert
required
LaTreat will anywaysbe cannibalized by
competitors
1/11/2015Food Brands - Cannibalization 26
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 27/37
GraduallyCannibalize
LaTreat
Favorableabsolute
contributionmargin level
Overallprofits
increasewith more
SKUs
1/11/2015Food Brands - Cannibalization 27
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 28/37
More shelf space
Incentivize retailers
Coordinate strategy tomaximize combined
profits
1/11/2015Food Brands - Cannibalization 28
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 29/37
Priority: Retainingexisting customers
PenetrativeMarketing
Improved share infrozen specialties
category
1/11/2015Food Brands - Cannibalization 29
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 30/37
End divisionbetween new &
establishedproducts
Senior managersshould be new
productchampions
Formulatestrategic plansto strengthen
productofferings
1/11/2015Food Brands - Cannibalization 30
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 31/37
Generate consumerattitude data
Are product offeringspalatable?
Perception of SweetDream relative to
LaTreat
Differentiate productcharacteristics
Taste
Texture
Calorie content
1/11/2015Food Brands - Cannibalization 31
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 32/37
Why there is a market opportunity for
Sweet Dream in the first place
1/11/2015Food Brands - Cannibalization 32
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 33/37
1/11/2015Food Brands - Cannibalization 33Bill Horton Senior Management
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 34/37
1/11/2015Food Brands - Cannibalization 34
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 35/37
1/11/2015Food Brands - Cannibalization 35
• Attacking LaTreat with the mined data
• Barbara’s career thrives on established products
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 36/37
No launch decision should be based on a false sense
of security rather than hard data
Novelty is critical asset in frozen goods category
Product Life Cycle should not be miscalculated
If need be, be your own cannibal
1/11/2015Food Brands - Cannibalization 36
8/10/2019 Product Management_ Food Brands
http://slidepdf.com/reader/full/product-management-food-brands 37/37