Case Study Week #1 Week-2 MKT 320

Topics: Milk, Curd, Dairy product Pages: 5 (904 words) Published: April 20, 2015


Case Study Review

After being in a market for X amount of years and being successful, other people will try to get in to get a piece of the pie. We have seen this over the years with numerous different products / services. One that I can think of off the top of my head was the evolution of online media. I remember as a kid when AIM “AOL Instant Messenger” was the coolest way to communicate with your friends and family. A couple years after that MySpace was introduced to the public and that went viral as well. Today we have numerous sites such as Twitter, Facebook, Myspace is actually still around as well, Instagram, and so on. The point that I’m making is eventually you will encounter competition and as time goes on ideas are constantly being used up!

Mr. Roth was dealing with this in the sense that milk prices were deflating due to competition that was coming to his town. Because of this competition and the cost of dairy items plummeting, something had to be done to turn the company back to turning higher profits. The idea in focusing on a product that the other competitors are not was a genius idea. Everyone was I’m sure focused on milk and cheese being that those are two of the more popular dairy items that were focused on back in those days. By zoning in on a dairy product that was overseen by the competitors it gave Mr. Roth’s company the edge over the market. By simply changing the amount and look of their yogurt they would be able to turn a profit, as well as still promoting their name possibly leading to more sales of the company’s other products.

I feel as though putting the package and size change in a test would be a critical stage in implementation of this new idea. As the article said, they did try testing in internally and I’m sure they are glad that they did. The original product had flaws that wouldn’t have been acceptable to customers and would put a bad name behind the company’s products. But that’s not the only reason why tests need to be done. You have to see how the consumer reacts to the new changes of the products and packaging. Getting feedback on how the consumers feel about the change will determine if the company decides to stick with their new implementation. “Living in the current time and reading an article that pertains back to the 1970’s I’d have to say that the idea caught on and stuck!”

When implementation of a new idea happens you obviously want to know how your market will react to it. The things that the company needs to know is if the product will be more efficient for their target consumers, if the costs will be appropriate, and obviously if the product will be a hit! According to blackblot.com1 it’s common that companies use a two year after launch date where if a company decides that the product turns out to be a complete failure that there will be no chance to regain their investment made thus far in the product which includes the development costs / shipping / distribution. As far as seeing if the product is an actual failure or success, the product gets broken up into 4 categories – Financial, Marketing, Product Level, & Customers. As far as how useful the proposed test in addressing the management problem goes, I feel as though Mr. Roth hit the nail right on the head. As I said before, focusing in on a product that will most likely be overseen by the competitors gives the company an edge in regards to the product. The article provided the sales of the new implemented idea and from the looks of it, was a total success. The first month you could see that the 6oz container of yogurt was out selling the previous year by significant numbers, almost by 10,000 units. From continuing to look at the chart you could also see that as time went on, sales per unit were skyrocketing. More people were buying the 6oz container vs the 8oz container, and sales of the 1-lb tubs were also dropping steadily due to the population purchasing the pack of 6, 60z yogurts.

I’m not...

References: Measuring Product Success or Failure. (n.d.). Retrieved March 14, 2015, from http://www.blackblot.com/kb/product-management/measuring-product-success-failure/
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