Responsiveness Framework in Product Innovation Policy

Introduction

The low-or low-to-middle income classified target market is the Nation of Haiti. "Some four-fifths of its population lives in absolute poverty, and as much as three-fifths of the population is unemployed or underemployed" (Lawless & MacLeod, 2019), and makes Haiti the Western Hemisphere's poorest nation. Over half of Haiti's population resides in rural communities with mud roofs, floors, and walls in two-room domiciles. The purchasing power parity totaled $19.97 billion in 2017. "GDP Per Capita in Haiti averaged 722.71 USD from 1996 until 2017, reaching an all time high of 773.

42 USD in 1999 and a record low of 662.28 USD in 2010" (Trading Economics, n.d.). "Based on the most record household survey (2012), over 6 million Haitians live below the poverty line with less than US$2.41 per day, and more than 2.5 million fall below the extreme poverty line (US$1.23 per day)" (The World Bank, 2019).

The selected product for adaptation in Haiti is the JBL Xtreme 2 Portable, Waterproof, Wireless, Bluetooth Speaker, which maintains a price point of $189.95 on Amazon and is available in five different colors.

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Additional features and benefits, include a 10,000mAh Li-ion rechargeable battery, four drivers, fifteen hours of playtime, a USB charging port, wireless connectivity to two tablets or smartphones, integrated hooks, bottle opener on the carrying strap, sturdy metal base, and delivers a rich, deep, dynamic sound" (Amazon, 2018).

To characterize the brand and product positioning within the United States market, the brand is presently positioning itself by being marketed on www.amazon.com, www.bestbuy.com, the company's website www.jbl.com, www.walmart.com, www.ebay.com, www.crutchfield.com, www.target.com, and a few other e-commerce websites. The target market of JBL usually consists of middle to high class consumers, however the brand desires to increase its reach to ensure their products are affordable to all consumers (Bhasin, n.d.). On Amazon, the brand maintains a customer satisfaction rating of 4.3 out of 5 stars from 167 reviews.

A JBL competitor on Amazon sells the Ultimate Ears MEGABOOM 3 Portable, Bluetooth, Wireless Speaker (Waterproof) (Amazon, 2018), which maintains 4.1 out of 5 stars from 116 customer reviews and a lower price. The JBL Xtreme 2 Portable, Waterproof, Wireless, Bluetooth Speaker's positioning compared to the Ultimate Ears MEGABOOM 3 Portable, Bluetooth, Wireless (Waterproof), Speaker illustrates that most buyers perceive JBL's Xtreme 2 Speaker as the better product with a close price point.

Globalization versus Responsiveness

The JBL Xtreme 2 Speaker is 7.9x12.1x18.1 inches, weighs 7.33 pounds, and targets families and unmarried consumers in the United States, as well as foreign markets. The target market factors stem from globalization. The product's positioning entails "Extending their unique home-grown capabilities abroad" (Kotabe & Helsen, 2017), or entering comparable markets based upon prior knowledge and capacity.

Target Market Challenges and Adaptations

The product-related problems or challenges faced by Haitian consumers, include power or electricity shortages and access. "The electricity sector in Haiti is among the most challenged in the region. Only about one-quarter of the population had access to electricity prior to the 2010 earthquake, and that remains the case today" (USAID, 2018).

For the target market, the two adaptations to the JBL Xtreme 2 Speaker are;

1) USB Charge-In to power additional devices

2) Solar powered and solar charging

Summary of Recommendations to the Company's CEO

Since there are trade-offs (advantages and costs) within the I-R framework, Amazon should comprehend these factors prior to considering adapting JBL's Xtreme 2 Speaker. The advantages of building a brick-and-mortar store in Haiti, include few regulatory issues, customs duty and tax incentives, trading relationship history (Export.gov, 2019), plus easier access to popular, affordable products, which appeal to the target market of low-or low-to-middle income Haitian consumers. The trade-off of building a brick-and-mortar store in Haiti is the cost. Amazon would be tasked with utilizing an existing, adequate structure, or manufacturing a new one, unreliable electricity, plus other logistics, such as the transportation of building materials and store products, which will result in increased costs. Amazon should consider setting up a Societe Anonyme (SA), also referred to as a public limited company, obtain a Haitian representative, or registering a branch office. "The Haitian SA is the most common corporate structure used by investors entering the Haitian market" (Grekis, n.d.), and warrants the incorporation of three shareholders with one being a Haitian national. Setting up a business in Haiti, means incurring the following expenses;

SA LLC

20 Weeks to set up

1 Year - $23,400

Additional Annual Costs - $6,900

Marketing, product development, and manufacturing can collaborate to maximize integration benefits while remaining responsive to the target market if Amazon establishes a powerful link between these three factors. "A powerful linkage is necessary to ensure that issues are on the table at the beginning of the project and also as they develop throughout the project" (Kotabe & Helsen, 2017). Marketing will communicate their strategy, global effects, and information regarding the competitive landscape to manufacturing and research and development, which saves time during decision-making. Additionally, the collaboration of marketing, product development, and manufacturing fosters expediency, collective and individual mutual ownership, a genuine team atmosphere, and creates the personal/business relationship necessary among each category/department, since it permits a greater understanding of each other's obligations and tasks (Kotabe & Helsen, 2017). This results in marketing initiatives, such as informative marketing that responds to the target markets needs or desires, which educates and informs them about the product and its benefits (Berthold, n.d.).

Responsiveness might impact Amazon's launch time, take-off, penetration, and diffusion, since "Decision making is a slow process and attempting to rush the process will be viewed negatively" (CultureWizard, 2019). Haitians require small talk prior to discussing business, since it allows them to know Amazon better. Further, high-pressure tactics are viewed as contentious, although bargaining is welcomed. Finally, slow negotiation practices (CultureWizard, 2019) will also affect Amazon's time to launch, take-off, penetration, and diffusion, which may prove atypical if the company's previous expansion efforts were achieved expeditiously.