Techsonic Industries Inc. Humminbird New Products

2869 WordsFeb 20, 200612 Pages
1a. Risks and limitations of listening to customers during the NPD process: • Using existing organizational systems often means completely missing the boat on the real customer and his real needs. This is the customer who values the products as a breakthrough. Products are frequently under-appreciated by firms when the new product is based on an existing platform. This leads to a wait and see attitude and the product is not given adequate support and often under-priced. • The positioning strategy should be driven by the market, rather than by the ambitions of the product champions. The source of the problem is failure to understand how consumers' value product attributes. In all, over-appreciating a breakthrough or new technology that…show more content…
Customers must be interested in what the product is offering compared to competitors. • Margins: Are dealers' margins at least 15% in all channels? Dealers want to make money on selling Techsonic's products. The projected margin for dealers needs to be 15% to ensure profits. • Profit and Loss Forecast: Is the EBI&T substantially larger than the total capital expenditures? This forecast needs to show that Techsonic will make money from introducing this new product to the market. If there is a substantial positive difference in the EBI&T and total capital expenditures, Techsonic will show profits. 3. Project 901, VHF Marine Radio, Navigation Products: • Customer Interest: -The market research concluded that the 901 was a clear winner because it scored high on the dimensions of uniqueness and purchase likelihood. The results compared very favorably with those of past new products from Techsonic. It earned the highest intention-to-buy score since the original LCR in 1984. -The market research concluded that most boaters would be purchasing a VHF radio as a replacement for an older unit. The VHF was a popular method of communication among boaters, but used primarily for safety: to communicate for help in an emergency and to find out the weather. Only 7% of Humminbird's customers owned a VHF radio, and 42% owned a CB radio. Since the VHF was going to be a replacement for CB radios Techsonic can get that 49% of its customers to using the new product. Many of the

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