It is a fact that success of any product cannot be measured solely on its qualities but everyone agrees that quality play do play a crucial role in the eventual outcome. A look at potentially successful products at NewProductWorks provides an insight into the salient features of these products which are thought to rule their competitors.
We Expect Them to be Successes
Triaminic Cough Thin Strips is certainly an innovative method for the intake of cold medicine that is new to the market and provides a portability factor which can make it attractive to customers who do not want to stuff their pockets with tablet box or containers. While the Nair Glide-On Cream and Windex Multi Cleaner don’t provide a new concept, they certainly make up in simplicity and a popular brand name to what these products lack in innovation.
Resolve Dual Power Carpet Cleaner can provide the value for money in a maturing American economy with its 2 in 1 cleaning and oxidizing formula. Contrary to these products, Hershey Kisses is one of the most easily distinguishable products on the planet which if unwrapped and packed in sealed plastic bags is better suited than wrapped Hershey Kisses.
Jury is Out
Gerber Baby Powder is a concept that parents would like to test. It seems that rolling the powder on a wiggling baby might not be the major challenge but the actual concern lies in the effectiveness of the Baby Powder to reduce the ubiquitous Powdery mess. Mr. Clean MagicReach provides a complete solution to wipe off the dirt in nook and crannies by providing pre-soaked cleaning fluid pads but its feasibility remains a concern as consumers are always complaining about scrubbing pads becoming obsolete after a short use.
Through acquisition, the expansion of fresh seafood variety by Chicken of the Sea might prove to be a valuable strategy which is based on promoting a new product line under an already well established brand. Only time would tell if new taste will suit the taste buds of demanding connoisseurs. True Lemon is yet another product tailored to suit the lifestyle of health conscious consumers who are always in a hunt for low calorie diets. Its widespread presence should boost its marketability but such a novel concept might need sometime to infiltrate consumer minds.
Failures are in an inherent part of any business but sometime it is easier to distinguish one single cause of mishaps. The idea of introducing a scientifically designed tissue to tackle cold and flu might have been a good idea on paper but such scientific claims need strong evidence in support. Moreover, the brand name is synonymous with meaning, ‘To turn away’ or ‘Avoid’, which itself might not be a good choice. Likewise Premier Cigarette failed to realize that a part of the charm of cigarettes to smokers is the smoke itself. Smokeless cigarettes were doomed for failure as soon as it hit the market shelves.
Products such as Dr. Care, Wheaties Dunk-A-Ball series and There is a Monster in my Room spray, were shot lived due to their misinterpretation of how parents would perceive these items. While Gerber Singles was a design failure, Clairol’s ‘Look of Buttermilk’ and Gunderson & Rosario’s ‘Garlic Cake’ presented a baseless concept. In contrast, Wine & Dine Dinners as well as Country People & City People both were a research failure which couldn’t evaluate consumer sentiments.
Branding does play an important role which is evident by the research conducted by the Marketing Science Institute and various other experts. For a new business entity, the brand name can act as an effective proxy for quality when the link between the producer and the end consumer is non-existent or just beginning to evolve (Jaffee and Gordon, 1993). It is precisely for these reasons that precautions should be undertaken to develop a brand name.
The brand name chosen for the business in Colorado is “Ultimate take & Bake foods” which is a compliment to the original business name, Help You Cook. This brand endeavours to provide a business concept with a single glance at the name. Simply, ‘Take & Bake’ gives a notion that this business is associated with taking out the food as in a more generalised ‘Take Out’ food concept while ‘Bake’ signifies the art of cooking. The whole idea behind this brand name is to imbed an image in customer’s mind, instantaneously.
Brand Name Research
Initial research in this regard has suggested that there are businesses which have the words, Take & Bake as their brands. Examples include Take & Bake Pizza Franchise, Take & Bake Pizzeria and other local small business such as Belly’s Take N Bake in River Falls Minnesota and Red Peppers Take N Bake in Mount Pleasant, South Carolina. Still, the brand name ‘Ultimate take & Bake foods’ differs significantly so that consumers do not confuse it with other businesses.
A potential drawback to this brand name might be a perception that the word Bake is associated with the Bakery products or anything that is baked. Although, such a brand name would be feasible to market only the baked product but it is assumed that the entire business will not solely depend upon the brand name and instead be build on quality and several other factors. Furthermore, addition of the word, ‘Foods’ at the end may just be the catalyst needed to promote a variety of foods.
Orbitz & Airfare
The price competition for online airfare is getting intense. On looking for a competitive airfare from Portland, Maine to Los Angeles International Airport, Orbitz quoted a price of $397 which included all taxes.
The price was quoted for one passenger flying on April 3rd and returning on 11th April. Its web portal provided a breakdown of price that included a $52 tax on an original price tag of $348. The flight included a stop at JFK International in New York. Both Delta and United Airlines were quoting a similar price whereas US Airways was almost $25 for the same intermarries and Northwest as well as Continental was seen as quoting more than $650. Such a price difference may be explained in part due to the frequency of flights of each airline.
In contrast, a search on other engines such as Side Step, Booking Buddy and Fare Compare all revealed similar statistics with the same results. The only difference was in the layout and other options which allowed travellers who were flexible with their travel plans to seek a more competitive airfare. Orbitz provides travellers an option to locate best prices before and after the set date of travel. It is also interesting to know that airfare website Farecast.com, which is a recent acquisition by Microsoft and a winner of 2008 Webby Awards, provides a graphical representation of the highest, lowest and average airfare on a schedule route (Farecast).
On evaluating the Microsoft website and its partner farecompare.com it was found that the prices might not necessarily differ to a great extent and it is just for very few routes that farecompare.com might be able to provide a better airfare on these routes. After certain changes to the overall plan, the quote was $380, only $17 less than what was quoted by Orbitz.
Orbitz Pricing Strategy & its Objectives
It should also be noticed that Orbitz was initially started by five major American airlines to tackle the growing monopoly of Travelocity.com and to some extent Expedia. Originally the project was called T2, which some saw as meaning Travelocity Terminator (Orbitz). On evaluating multiple websites for airfare, it seems that nearly all the major websites are quoting similar prices which might diminish the impact of Orbitz objective to create a monopoly in airfare.
Impact on Travel Agents
The traditional brick and mortal travel agencies are being replaced by the Internet Savvy consumers who are finding it convenient to locate a competitive price on the web instead of going to their travel agents. These web retailers, as they are called, are now competing directly with major airline ticket consolidators and travel agencies. Recently, travel industry officials are complaining that airlines like Delta and American Airlines are trying to get them out of business by reducing the already low commissions (Fairbank, 1998).
Since the Internet price wars, most brick and mortar travel agents were relying on International airfares to get them a higher commission but that too has been reduced to 8% and a maximum of only $100 round trip. Still, there are air tickets that are only available through a travel agent but the difference in price for local airfare isn’t too extensive to go to brick and mortar store unless it is a Packaged Journey or a restricted class of air ticket.
A Case Study
A Cincinnati based website http://www.air-fare.com , through its airfare advisory service tracks down every available airfare from major US cities and help public locate the lowest airfares which are only provided to local brick and mortar travel agents (Airfare Advisory). Customers can even get these prices with Air-Fare Reservation Links.
Such ease provide a clue to the success of established travel companies like Air-Fare which are utilizing Internet to integrate the advantages of Internet Only airfare and traditional tickets to diversify their portfolio. Nowadays, technically it is possible for a Home Based Travel Business to outsmart the tradition brick and mortar travel agencies due to little or no difference in commission and low operating costs.
Business Pricing Model
The concept of prepared meal is not new but it certainly appeals to busy families who are devoid of time and need a home cooked meal. Entry in this market is also favoured by recent adoption of healthy and green food and when the idea of single breadwinner is becoming fast obsolete. ‘Ultimate take and Bake foods’ brand and its company ‘Help You Cook’ seek to foster the idea of prepared meal by providing attractive, quality and reasonably priced food. Its pricing objective is to create ‘best value for your money scenario’.
Already, there are food businesses in Colorado Springs that are providing such a service. Cere’s Kitchen Natural Healthy Meal www.cereskitchenco.com, located at Briar Village Point is such an example. Another large franchise operating in Colorado Springs is Dream Dinners www.dreamdinners.com. Both of these businesses operate on a similar concept.
In order to distinguish itself, Help You Cook will initially utilize a competition based pricing with a goal to make prices even more competitive by selling healthy meals lower than the average price of a local restaurant but also keeping it slightly less than similar businesses. Accompanying this pricing strategy will be an emphasis on marketing these food products as high quality which will help achieve the objective of ‘best value for money’.
Airfare Advisory. Retrieved March 21, 2009, from INTRENET Air Fares Web site: http://www.air-fare.com
Fairbank, Catie (1998 Nov 22). Travel agents say airlines’ commission caps are unfair. The Seattle Times,
FareCast. Retrieved March 21, 2009, from Microsoft Web site: http://farecast.live.com
Jaffee, S, & Gordon, P (1993). Exporting High-value Food Commodities .World Bank Publications.
Orbitz World Wide Inc.. Retrieved March 22, 2009, from Hoovers Web site: http://www.hoovers.com/orbitz-worldwide/–ID__101230–/free-co-factsheet.xhtml