Our company "Fridgeman" has been on the market for refrigerators a very long time.
In the last few years a strong competition grew up that made us think about a new product
idea in order to prevent any price wars that would possibly have killed our firm.
In a meeting that included members of all different departments of our company we
developed the idea of a high-tech refrigerator with a lot of automatic functions that make its
user able to save time and money in everyday life. For instance it will be able to order all
needs for foods automatically at the next supermarket so that the user just has to pick up a
basket full of food when he or she drives home. Moreover it saves energy, has a huge recipes
database included and can make its users suggestions for healthy meals they particularly need.
We defined careerists and busy single households to be our main target group but even
everyone who wants to save time or who does not have the motivation to do shopping will be
in our focus.
The product does not have to face any competition when it is introduced into a brand-new
market segment and we will keep a technological lead of one year towards our competitors.
This will enable us to come up with new innovations every time the other firms have copied
our old product features. Moreover we offer several services to support every customer in
case that there is a malfunction of the fridge.
The macroenvironmental forces offer a lot of opportunities to us especially the category of the
cultural environment which also includes Faith Popcorn's latest trends. For example the
development towards more single households and more people who withdraw into their
homes to mind the "big ugly world" offers a great opportunity to us. There is no actual danger
that will make the launch of our product very risky due to the fact that we keep control of our
production and distribution costs and that we are very experienced in manufacturing fridges.
The "FridgeMaster" will underline our high quality level because our company offers its
products on a premium market. Nevertheless our prices are affordable for a broad range of
people even for our new product. The standard version will cost 1399 DM within the first 6-8
weeks and after this period 1599 DM have to be paid. A product variation which is smaller
and runs on castors will cost 1449 DM. [...]
Table of Contents
Summary
Introduction
Chapter 1: product development process
1.1 Why we need a new product - the market situation
1.2 Generating ideas for a new product
1.3 Product features
1.4 Idea screening
1.5 How we prevented widespread mistakes in new product development
1.6 Results from our customer focus group
1.7 How our new fridge fulfils wishes
1.8 A short description of the target group(s)
Chapter 2: Fridgeman's macroenvironment
2.1 Introduction into the German macroenvironment
2.2 The demographic environment
2.3 The economic environment
2.4 The natural environment
2.5 The technological environment
2.6 The political environment
2.7 The cultural environment
Chapter 3: Market and Competition
Chapter 4: Marketing-mix
4.1 The product and the product levels
4.1.1 The core product
4.1.2 The actual product
4.1.3 The augmented product
4.2 Pricing and placing
4.3 Promotion-mix
4.3.1 Introduction
4.3.2 Advertising
4.3.3 Personal selling
4.3.4 Sales promotion
4.3.5 Public relations
Chapter 5: Conclusions
Objectives and Topics
The report aims to provide a strategic guide for the successful market launch of a new, innovative "FridgeMaster" refrigerator. It investigates how a medium-sized company can overcome intense price competition by developing a high-tech product that fulfills specific consumer needs, thereby establishing a technological lead and securing market share.
- Strategic product development and idea generation via synectics.
- Analysis of the macroenvironment and its impact on product positioning.
- Integration of the marketing-mix to target careerists and time-sensitive households.
- Detailed examination of pricing, distribution channels, and promotional strategies.
Excerpt from the Book
1.3 Product features
In the sequel we talked about some of the features such a fridge should offer to its users. We focused on the following functions (product image): the refrigerator should be able to...
...control the contents inside: what food is in the fridge and how much? How many days or weeks are left until it loses quality and goes off? The fridge will be able to receive these information by the barcodes which are printed on the packages.
...know the average consumption of every product and is able to propose which package size should be chosen in the supermarket. In addition to this it takes into consideration what you should consume before you go on holiday in order to empty the fridge until only goods are left which keep their quality quite long.
...offer a huge database with hundreds of cooking recipes, starting with plain snacks which take only two minutes to be prepared by the user, ending with complicated recipes, e.g. how to prepare goose. The user can select several ingredients using various criterion in order to find a meal that he can prepare right now with the things which are already in the fridge.
Summary of Chapters
Chapter 1: product development process: This chapter details the identification of market opportunities, idea generation through the synectics method, and the initial screening of product features.
Chapter 2: Fridgeman's macroenvironment: This section analyzes external influences, including demographic, economic, and cultural trends, to assess risks and opportunities for the product.
Chapter 3: Market and Competition: An evaluation of existing market shares and the competitive landscape to justify the company's new market segment strategy.
Chapter 4: Marketing-mix: This comprehensive chapter covers product levels, pricing strategies, distribution, and the integrated promotion-mix including advertising, personal selling, and PR.
Chapter 5: Conclusions: A summary of findings confirming that the "FridgeMaster" is a viable, necessary innovation to secure the company’s future against price wars.
Keywords
Product Development, Refrigerator, Marketing-Mix, Innovation, Market Segment, Consumer Behavior, Macroenvironment, Pricing Strategy, Promotion, Careerists, High-Tech, FridgeMaster, Customer Feedback, Household Automation, Market Launch
Frequently Asked Questions
What is the primary focus of this report?
The report centers on the strategic introduction of an innovative, high-tech refrigerator, the "FridgeMaster," into a new market segment to escape the risk of price wars in the traditional appliance market.
Who is the target audience for this product?
The main target group is identified as careerists and busy single households who have high incomes but limited time and motivation for daily grocery shopping and household chores.
What is the core goal of the company?
The primary goal is to gain a technological lead of one year over competitors by offering a "personal fridge" that automates food management and provides added value to the user.
Which scientific methodology was utilized for idea generation?
The company employed the "synectics" technique, which involves a representative group of employees in a relaxed, creative atmosphere to foster new product ideas without the constraints of conventional questionnaires.
What elements comprise the main part of the report?
The main body focuses on the product development process, macroenvironmental analysis, market and competition assessment, and a detailed marketing-mix covering the product, pricing, distribution, and promotion.
What are the characterizing keywords of the report?
Key terms include Product Development, Marketing-Mix, Innovation, Careerists, Household Automation, and Market Launch.
How does the "FridgeMaster" automate the user's life?
The fridge tracks food contents via barcodes, transmits data to supermarkets for restocking, provides recipe suggestions based on current inventory and health needs, and offers remote communication features.
Why did the company decide on the brand name "FridgeMaster"?
The name was chosen to convey a "winner image" for a pragmatic, high-responsibility target group while maintaining a clear, recognizable connection to the established brand "Fridgeman."
- Quote paper
- Ingo Titze (Author), 1999, Fridgeman's FridgeMaster Product Report, Munich, GRIN Verlag, https://www.grin.com/document/15066
