This paper contains two separate marketing case studies. The first concerns that of Maria, former sole proprietor of Tornado Tacos, who is now part of the product development department of the major food company Manchester Foods. The second case study concerns that of Heather, a manager who must persuade company leaders of the need for more sales reps in her department at Wellness Foods.
New Product Development Group
Gerry assumes that because Maria has been successful as a small entrepreneur that her business will easily be integrated into a much larger-scale operation. Although her product has national distribution, this does not necessarily translate into widespread market demand for all demographic groups. Food is very regionalized in terms of eaters' preferences (for example, deep dish pizza is popular in Chicago while 'skinny' pizza is popular on the east coast). Maria's tacos may have an audience, but it does not necessarily coincide with that of Manchester Food's audience. Furthermore, some foods work well as small scale operations but do not as a mass-produced product. For example, on the streets of New York, halal food in like grilled lamb in pitas is very tasty and affordable but this has not translated into generic fast food success for this item. Maria's idea for Sudden Seafood seems more of a niche product: neither appetizing nor with a clearly-defined audience for all but a handful of consumers.
2. Maria is certainly being too sensitive to criticism. She is a small purveyor who has had the extreme good fortune of being given a wider audience for her product. Rather than attempting to work with Manchester Foods, she is being very resistant. This shows that Maria's mindset has not shifted. She is no longer the sole person in charge of her single product. Instead, she is part of a larger organization and must adjust her worldview to that of Manchester Foods' worldview. As a sole proprietor, she had the luxury of not using the tools of market research if she did not want to use them. In fact, the expense of market research may not be justified given the size of her original company Tornado Tacos. However, for a larger organization, effective market research is essential. Maria is not only being stubborn, she is failing to avail herself of the useful resources that could potentially be provided to her in the context of her new relationship. In other words, Maria needs to provide data-driven evidence that her strategy will work and she must become more of a team player.
3. The larger the organization and the larger the potential audience, the greater the investment must be made in justifying the launch of new product. Although creativity can be important and spontaneous, creative exercises may be allowed when promoting a product on a 'small scale' level more intensive market research (such as focus groups and surveys) are preferred when shaping the PR campaign and deliverables of a risky new item on a mass scale.
4. The success for Maria's new products seems unlikely. The target market for health convenience seafood is very narrow and very limited in both its geographic and demographic outreach. The market for Maria's energy drink goes against current trends in soda demand (and may even flout the law, given the rise of anti-soda legislation in many major cities). Also, the two small audiences likely to want the products (health-conscious people who use convenience food and people looking for sugary, caffeinated drinks) are not enough to support widespread demand.
Case study: West Coast Wellness On The Go
Q1. Heather seems to be reasonably successful in her ability to negotiate with management. True, she was not able to obtain all of her demands. However, it is very likely that she entered into the negotiation knowing that she was potentially asking for 'too much' and expected to 'bargain down' if necessary to achieve her objectives. The market is already super-saturated given the current business model according to company higher-ups. Heather is asking for three new 'wellness reps' who she believes can overcome this market tendency. Heather makes a persuasive argument based upon current trends that because employers will note that their costs will go down in the long-term, there will be a growing demand for the company's services. Heather asks management to think in terms of the 'long-term' rather than the short-term perspective.
Q2. Heather 'left on the table' the possibility of hiring more reps, if the new hire 'works out' and market demand continues to expand for the company's services. Her desire for a new sales rep has not been invalidated: rather it has been postponed and the company is instead taking a 'wait and see' approach. Heather will need to have proven results if her full plan is to be realized, which seems reasonable.
Q3. First and foremost, Heather displays the leadership quality of tenacity. Despite the initial objections of the company, she refused to back down in her demands. However, she also displayed the leadership quality of having strong organizational skills. Heather makes a case for the potential to expand sales based upon logical as well as emotional arguments. She is extremely persuasive as a leader. She makes an argument and counters the counter-arguments effectively in a detail-oriented manner that uses logos, pathos, and ethos.
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