Internet Exercise
Chapter 9 Product Management and NewProduct Development
http://www.wsj.com/articles/burger-king-to-start-selling-hot-dogs-1455123632
Madov’s article «Burger King Adds the 'Whopper of Hot Dogs' to Menu» vividly describes a new product being introduced by Burger King. Actually, this the first time when a hot dog appears on Burger King's menu, representing old school of fast food. A large-scale ad campaign will support and promote a new product both on social media and TV. The demand for a new product is surprisingly explained by internal research. The introduction of a new product should be smooth and successful as the company created training videos about the hot dogs to be demonstrated internally that will also be released publicly later. Videos feature a well-known rapper Snoop Dogg for employees who speak English and a well-known TV personality Charo for Spanish-speaking staff accordingly. An added value gives the usage of the same Whopper grill for hot dog cooking process, which will even ease the introduction.
Application to Chapter
This article relates to Chapter topic by showing the first stage of product development, which is the market introduction of a new menu addition. Market introduction is supported by a great ad campaign which relates to the required informative promotion at this stage to tell potential customers about the advantages and uses of a new product, which will lead to the increase of customers' visits to the restaurant and, finally, increase company's profits. The article illustrates company's investments into the future with the hope of a great increase of their profit in the future, which again demonstrates the relation to chapter topics.
Product Management and New Product Development
Item 1
Burger King's Grilled Dogs
According to the ad and fast food consumers, it should be said that the new product aims at people who belong to a lower-middle class who are budget-conscious. However, it doesn't exclude the target audience represented by college students who are always on the run and short of time or simply fast-food lovers who can belong to different social classes. Therefore, the age of consumers may vary from 15-45 years.
As for product class, hot dogs can be considered as convenience goods in the category of «fast food» competing with similar products offered by other fast food chain restaurants.
Taking into consideration the review articles, it should be said that «grilled dogs» are at their stage of market introduction with big hopes for a successful start.
As product development cycles influence marketing strategy, a good marketing manager should consider the relevant promotion of a new product, focusing on
a good advertising campaign so as, first of all to inform potential customer about the new menu addition that they should try and, secondly, to keep them interested in coming for a new grilled dog again and again. Obviously, the marketing manager should pay attention to the product itself, putting the light on its uniqueness and advantages of being traditional old school fast food product. Price mix is also worth paying attention to.
Item 2
Judging by the ad, the target consumers are small business owners of freelancers working in the service area.
As for product class is concerned, the advertised product, in particular, the Square reader for both chip and magnetic stripe cards, rather belongs to shopping goods, representing “appliances” category.
As the ad states, this is the introduction of a new Square reader, which means it is in the market stage of the product lifecycle. The company improved the older version of the card-reader that they introduced five years ago according to the customers' needs and preferences.
If I were a marketing manager, I would focus on the following marketing mix planning: price, place and promotion. Speaking about price mix, I would choose market penetration strategy setting quite low prices to attract more customers and additional sales at the very beginning. Afterwards, I would thoroughly think of channels of product distribution enlargening the list of retailers and countries for online-shopping.
Item 3
The target audience for this product seems to be represented by women and men who care about their appearance and dental health. The image of Alison Sweeney in the ad magazine based on beauty stereotype only confirms this fact.
This product, exactly like the previous one relates to the shopping goods, representing beauty products.
Judging by some statements like «The manual toothbrush was reinvented» or «Love it or your money back», underlines the fact that this is a new product being introduced by the company. Obviously, it is at its market introduction stage of product life cycle.
As a marketing manager, I would focus on product and promotion mix, as the product quality is very important here, taking into consideration the fact that people are offered to try the product and be given money back in case they are not like it. Definitely, informative promotion is vital at this stage so as to assure potential customers in product advantages and in the necessity to try it.
Item 4
According to the given ad, the target audience is represented by young people both male and females who care about tasty and healthy breakfasts. Young moms can also belong to the target audience as they care about healthy eating habits of their children.
The product belongs to the convenience goods, representing «healthy foods» category.
«Together at last» and «New Kellogg's Raisin Bran with Cranberries» demonstrates that this product has just been introduced into the market, being at the very beginning of PLC.
As a marketing manager, I would concentrate on promotion needed at the market introduction stage and price policy as well to make it attractive and desirable for potential consumers and at the same time affordable.
