Product Mix and New Product Development Strategies Essay Example for Free

Product Mix and New Product Development Strategies Essay The Coca-Cola versus Pepsi competition is perhaps the most well known rivalry in the history of marketing. Coke has long enjoyed the home field advantage, having become entrenched as the most popular and identifiable cola throughout the world. Although it has carved itself a substantial portion of the market, Pepsi has struggled to match the sales revenue of Coca-Cola; until recently. Although Pepsi has never come close to equaling Coke cola market share, they have become more aggressive and adept than Coke in cornering the non-carbonated beverage market. It is in this market that Pepsi is seeking to obtain a sustainable competitive advantage over Coke. It their quest to acquire and develop new products, will the use of the PTSTP method help Pepsi develop new products in order to obtain a sustainable competitive advantage?A product is defined in three levels; core, actual, and augmented. The core of the product is the benefit it offers the consumer. For the example of colas, it could be refreshment, energy (sugar and caffeine), alertness, or just pleasure. The soda itself is the actual product. The augmented product for a cola could be the recognition and status gains perceived by drinking that particular brand. Or it could even be the weight loss from sticking to diet colas. For the development of new products, we first need to identify what consists of a new product. There are six categories of new products:1.New-To-The-World. This is a product that has no like product offered elsewhere. For example, when the first personal computer was offered to the public, this would be a new product. 2.New Product Lines. This is when similar products exist, possibly even under the same brand, but a new line of the product offers some tangible difference to those products already offered. For example, offering diet colas in addition to regular colas under the same brand. 3.Product Line Additions. This is the addition of a product that is directly related to one offered. For example, offering Vanilla Coke for sale alongside Coke. 4.Improvements/Revisions. This is a product which has already been offered,  but some change or revision has been made to the products properties. For example: New Coke, or anything labeled new and improved.5.Repositioned Products. The same product offered in a new market or directed towards a new target market. For example Pepsi bringing Sabritas chips into the US to target the Hispanic market. 6.Lower-Priced Products. This is simply reducing the price of an existing product to stimulate sales. New products affect the product mix of a company. Product mix is generally defined as the total composite of products offered by a particular organization. The product mix includes both individual products and product lines. A product line is a group of products which are closely related by function, customer base, distribution, or price range. To use Pepsi as an example, Pepsis product mix includes beverages and potato chips. The beverage product line consists of carbonated, non-carbonated, and water. Pepsi, Gatorade, and Aquafina all are individual products. PTSTP is a mnemonic for the five step process underlying Target Marketing and Positioning. The five steps are as follows:1.Identify competitive Products. 2.Define the Target market. 3.Determine the basis for Segmentation. 4.Determine if any Target markets are underserved. 5.Develop a Product for the underserved market. By using this method, a company can identify a gap in a particular market segment. This gap may be present because there is no product to fill it, or because the current product is reaching the end of its life-cycle, thus creating an opportunity for new growth. To answer the previous question, we will contrast the PTSTP method to Coca-Cola and Pespis development of the non-carbonated beverage market. Pepsi has continually struggled to match Cokes market share in colas and other carbonated beverages. Coke enjoys a 44% slice of the market compared to Pepsis 32%. During their 108 year rivalry, Pepsi has never come close to selling as much soda as Coke. Much of this is due to Cokes brand recognition. Although in 2006 Pepsi, for the first time, beat Coke in beverages sold. This was due to Pepsis embracement of the non-carbonated beverage market, where it led the market with a 24% share over Cokes 16%. Pepsi was able to recognize and take advantage of the growing non-carbonized market much earlier than Coca-Cola. Although cola sales have recently stagnated to less than 1% growth, non-carbonated beverages grew 8% in 2004. Much of the failure of Coke to expand into this market can be traced back to the stubbornness of Coke executives to expand beyond the soda market. Coke had an opportunity to acquire Quaker Oats in the 1990s, but passed on the opportunity. Instead, Pepsi acquired Quaker Oats in 2001. Among Quaker Oats assets were Gatorade and Snapple, both leaders in their markets. Although these product lines were already established, they represented new products to Pepsi, as they represented Pepsis introduction into the non-carbonated beverage market. As a result, Pepsi owns a commanding lead in the sports drink market, with Gatorade holding an 80% share to Cokes Powerade at 15%. Until 2001, Coca-Cola had been reluctant to embrace new products. They were not willing to extend their company and take the chance in the non-carbonated market, until they saw the success Pepsi was having. In addition to passing up on Quaker Oats, Coke lost a bidding war for the Sobe line of enhanced juices, and their bid for the Planet Java line of coffees and teas was not embraced by their independent bottlers. However, since 2000 Coke has been actively seeking new products in this market, including the acquisition of the successful Minute Maid juice line. The difference in philosophy has made the difference for Pepsi. In fact, losing the cola wars may have been the best thing for Pepsi. This forced Pepsi to look outside the soda realm in order to increase profits. As Pepsis CEO, Steven Reinemund believes that his companys growth is due to their constant quest for change, that Innovation is what consumers are  looking for, particularly in the small, routine things of their life. Pepsis willingness to embrace new product lines has given them the edge over Coke for the first time in history. Their offerings of Quaker Oats beverages, Sobe, and Aquafina have all been firsts for a soda company. As a result, they have gained the brand recognition over Cokes subsequent offerings, leading to an increased market share. In order for Pepsi to maintain their competitive advantage over Coke, they need to follow the advice of Reinemund, by remaining innovative. PTSTP can help them sustain this advantage. By identifying potential markets, and developing products for these markets, they can continue to capture new market shares. The beverage market is saturated with options for the consumer, with new products appearing everyday. Many of these products are variations on existing products. For example, energy drinks have become very popular in the past few years. As a result the market has become flooded with options. It will become increasingly difficult to introduce new products in this category. By using PTSTP, Pepsi can identify a new niche in this market, or a different market to exploit. Using the energy drinks as an example, the competitors range from Fuze, Red Bull, and many others. By defining the target market, they can identify that the same demographics both tend to buy sodas and energy drinks. Pepsi can then segment the market into young males (18-30). They then determine that the target market of combined soda energy drinks is underserved. They then develop a product to serve this market. Thus Pepsi Max is born. By using PTSTP, Pepsi has created a new product in soda energy drinks, Pepsi Max. It is this type of creativity and innovation that is embraced by Reinemund, and will serve to keep Pepsi with a sustained competitive advantage over Coke. Only by using a method such as PTSTP, can underserved markets be identified and exploited. References 1. http://business.enotes.com/business-finance-encyclopedia/product-mix2. Brady, Diane (). A Thousand and One Noshes: How Pepsi deftly adapts products to changing consumer tastes. Business Week. 14 Jun 20043. Foust, Dean. Things Go Better With Juice: Cokes new CEO will have to move quickly to catch up in noncarbonated drinks. Business Week. 17 May 20044. Brooker, Katrina. How Pepsi outgunned Coke: Losing the cola wars was the best thing that ever happened to Pepsi while Coke was celebrating, PEP took over a much larger market. FORTUNE 1 Feb 2006http://money.cnn.com/2006/02/01/news/companies/pepsi_fortune/index.htm5. http://www.marketingteacher.com/Lessons/lesson_three_levels_of_a_product.htm

Escape Mechanisms in The Glass Menagerie Essay -- Glass Menagerie essa

Escape Mechanisms in The Glass Menagerie In Tennessee Williams’ play, The Glass Menagerie, all four members of the Wingfield family have chosen to hide from reality. Amanda tries to relive her past through Laura, and denies anything she does not want to accept. Laura is terrified of the real world, and choses to hide behind her limp, her glass menagerie and the victrola. Tom hides from his reality by going to the movies, writing poetry, and getting drunk. Mr Wingfield hides from his reality by leaving his family and not contacting them after he has done so. Each member of the Wingfield family has their own escape mechanism which they use to hide or escape from the real world. Amanda has chosen to hide from reality by trying to relive her past. She is living in the unreality of her youthful memories and sees herself as still being as young as Laura when she says to her, ‘No, sister, no, sister – you be the lady this time and I’ll be the darkey’ (p 237). She reminisces about ‘one Sunday afternoon in Blue Mountain’ (p 237) when she received seventeen gentleman callers, and then tries to relive this through Laura. She arranges for Tom to bring home some nice young man... ...1987. 85-94. Levy, Eric P. "‘Through Soundproof Glass’: The Prison of Self Consciousness in The Glass Menagerie." Modern Drama, 36. December 1993. 529-537. Rasky, Harry. Tennessee Williams: A Portrait in Laughter and Lamentation. New York: Dodd, Mead & Co., 1986. Thompson, Judith J. Tennessee Williams’ Plays: Memory, Myth, and Symbol. New York: Peter Lang, 1989. Williams, Tennessee. The Glass Menagerie. In Literature: An Introduction to Reading and Writing, 4th ed. Ed. Edgar V. Roberts and Henry E. Jacobs. Englewood Cliffs, NJ: Prentice Hall, 1995. 1519-1568.

HP Pendrive Creative Brief Essay

The HP Brand is a â€Å"lifestyle† brand that provides electronic gadgets. PROJECT BACKGROUND Wheather you are very much active in computer and need to transfer lots of office presentations,works,songs,movies HP provides pendrives to fit your kind of lifestyle.It had developed itself to cater to those who are active and value transfering files,music,movies etc.HP provides a varity of pendrives for the purpose of being used from being extremely active to just relaxing.Where their pendrives fit a whole spectrum of daily activities,the problem still exists of getting computer users to choose the HP Pendrives over its competition. Hp Pendrive needs to prove that it is a brnd of EVERY lifestyle.Therefore,the purpose of this campaign is to show HP Pendrives being used and abused in all kinds of everyday lifestyles. TARGET AUDIENCE 15-70 years old males,females who involve with computer to whatever lifestyle they live.The audience will cover the entire spectrum of â€Å"computer users† from hard-core corporate person to those who study in school.Whatever the activity, the key is that they involve to share files,movies,musics etc. Advertising Objective Create consumer demand and awareness for HP Pendrive. CONSUMER MESSAGE Pendrive made specifically for your lifestyle. KEY CONSUMER BENEFIT HP provides durable and quality pendrive,no matter what you are doing. BENEFIT SUPPORT > Durability allowing you to continue with your active daily lifestyle without worrying abou ruining your pendrive. > HP provides upto 64 GB pendrive. > Small in size.So, it is easy to carry anywhere. COMPETITION Transcend,Sony,Kingstone.

The United States Transition From Age Of Sail - 1621 Words

The United States Transition from â€Å"Age of Sail† to Steam and Steel Navy William Hunt, the secretary of the Navy in 1881, once wrote: â€Å"the conditions of the Navy imperatively demand the prompt and earnest attention of Congress. Unless some action be had in its behalf it must soon dwindle into insignificance.† Without technology advancements or change, the Navy would soon fall apart. The â€Å"Age of Sail† lasted from about the sixteenth century through the mid-nineteenth century. It was a time in which our nation was fighting with wooden ships stacked with canons, and underdeveloped technology. Slowly, this started to change. As a country, the need for change began in the mid-nineteenth century, before the Civil War. The first of these†¦show more content†¦Although it was â€Å"innovative† it was not optimally efficient, nor abundant. â€Å"In 1815, the entire United States naval force consisted of 18 warships – the USS Independence, a 90-gun ship-of-the-line, 5 frigates, 2 sloops-of-war, 7 brigantines and 3 scho oners† (Potts). The entire U.S. Navy consisted of eighteen warships which they soon realized was not enough and motivated them to advance their technology. After the War of 1812, to aid sea commerce and whaling fleet efforts that followed the whale migration around the globe, the United States needed new ships to fight the British. The first USS Yorktown was commissioned in 1840 and it was the most advanced ship of its time during the â€Å"Age of Sail†. It included three masts, eighteen sails, tactically placed canons, lifeboats, and anchors. While the U.S. were launching this vessel, Great Britain was rapidly advancing their technology into a steel and steam navy. The Napoleonic Wars left Great Britain as the most powerful naval country in the world. No two of their rivals combined came even close to competing with the Royal Navy. With that, the United States Navy was inspired as well as threatened by the technology advances, and they too sought change. Time was not the only factor that was decisive on the progressions. The need for new and more efficient methods was the driving factor. Robert Fulton, the builder of the first s team-powered warship,