5-month sale: 74 boxes vs.First-year target: 1,350 boxes
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1. Offer some very rich lessons about new product development and launch. It also enables us to integrate some of the other marketing mix variables including channels, pricing and promotion. Offer some very rich lessons about new product development and launch. It also enables us to integrate some of the other marketing mix variables including channels, pricing and promotion.
3. Key Discussion Points Good product or bad product?
Why isn’t it selling?
How can we get the sales back on track?
What lessons about NPD can we learn?
4. What is the EVC of Kathon MWX?
5. Why is R & H Optimistic about MWX? “There is an unmet market need!”
Several customers requested for it
Large potential: 150,000 potential customers; $20MM potential
“We are capable of satisfying it!”
Kathon 886 most effective biocide for large tanks
We have great engineers!
“We have a super product!”
Kathon MWX can effectively extend metalworking fluid life.
Safe, easy to use.
6. Distribution Channels
7. Distributor Revenue per 50-gal Tank
8. Why Isn’t MWX Selling? Product
No sensed need from end customers
Who makes decisions? (DMU)
Is fluid life important to them?
Too low (not realizing the economic value; low quality perception)
Channel lacks incentive to push (partly due to cannibalization)
9. 6 reps had most biocide customers; spent 20-30% time on all biocide customers ? 1.5 FTE to sell biocides!
10. Who Educates the Market? Strategic Options
11. Strategic Options 1: Push thru formulators
+ We call on formulators
- Do not reach end customers owners directly
- We are asking them to cannibalize their primary line of business Pull on end customers seem to be the optimal option but not feasiblePull on end customers seem to be the optimal option but not feasible
13. Rohm & Haas: What Went Wrong? Do not understand end customers
Company lacks mass marketing capabilities
14. Opportunity Analysis
15. Key Lessons It takes more than a “good product” to have a successful marketing venture
Educating potential customers;
Developing an effective and economical channel strategy;
Obtaining organizational commitment and support.
Merely “listening to” the customer is not enough.
NPD requires a disciplined, measured approach