After several new product failures, the company began using customer input to help develop new products. In 1989, the fishing electronics industry is experiencing a downturn, and the company's sales and profits are slipping. The company, which has one product line (depth sounders) and a strong brand (Hummingbird), has conducted substantial market research on three new products. These products are project 901, hummingbird VHF Radio, Locator/ GPS navigator. Of these, project 901 is an extension of the depth sounder product, while the other two would be new product lines for the company. Top management is deciding which one or more of the three new products it should proceed with. In this paper, I will discuss the positive and …show more content…
· From Exhibit 5, 901 project is a clear winner because it scored high on the dimensions of uniqueness and purchase likelihood.
· 901 earned high uniqueness score of any techsonic product and highest intention to buy score since the original LCR in 1984
· Fresh water fishers and mid sized boat owners were the most likely to buy the product. From exhibit 4, techsonic already is a market leader in freshwater LCD units and 901 would increase its market share.
· Based on techsonic retail pricing plan of $441 for standard unit and $629 for deluxe unit, 901 would represent sales of $71.2 million.
· Important perceived benefit of 901 is that it helped customer find fish faster and see them better, which is exactly what the customers are looking to get from a depth sounder product.
· 901 can make fishing easier and hence more fun for the customers.
· Exact features that customer wants in standard and deluxe models was easily obtained through market research
· MRF suggested retail price of $529 for standard model and $629 for deluxe model Which is more than what techsonic had initially estimated
· Techsonic can continue to distribute project 901 products through mass market channels since customers are already aware of depth sounders.
Negative Aspects of the product
· Project 901 is an extension to LCD depth sounder and won't compete with Morpal's Flashers or Chart
· Project 901 would attract only
Techsonic Essay717 Words | 3 Pages
Techsonic Industries, Inc.: Humminbird New Products Problem: Techsonic is requires help to decide which products to invest in for the company’s future long term planning. These products will be introduced at the upcoming trade show where Techsonic typically likes to unveil their new products each year to excite and engage potential customers of their products that will be coming to market. There are three products that Techsonic is considering, VHF radio, a navigation device (two new products…