Spring+2010+Section+09-SS+Week+4

=__Products, Services and their Lifecycle__=

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 * Tonight: Fly Over – Moving from the Strategic to the Tactical** Innovation Research & Development Value Proposition & Its Lifecycle Product/Service (Solution) //The Value Proposition (Guy Kawasaki – Art of the Start)// **DICEE: Defines great innovation** Deep Intelligent Complete Elegant Emotive======

|| **Don’t let the bozos grind you down** **Product lifecycle curve:** how do you jump from one curve to the next?

 * Recognize when your product has peaked in terms of sales and market capacity.
 * Decide on a course of action - either increasing or accessing new markets (temporary fixes) or introducing a new product (permanent affect).
 * Don't spend your time making ice cubes when you could be making freezers.

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1 – **Rule Makers** are the industry leaders and have an advantage in the market in which they can typically dictate pricing and market positioning. They serve the largest segments and make the most money.======

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 * 2 – Rule Takers** in the industry are those who can benefit from doing what someone else has already done. In this strategy, companies simply copy what has been successful to other and simply live in the shadow of the industry leaders and can make a profit at it. They have a low market share and low risk.======

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3 – **Rule Breakers** are the innovators in business, they are always thinking of ways to stay ahead of the competition and attract new customers. In this strategy, risk is high but given the right circumstances, they are able to introduce new product and create value unlike something the consumer has not seen before.======

**Trade-Off or Conjoint Analysis** **Market Development Model** **United Beverages Case Study [[image:Bellywashers.gif align="left"]]**

 * Conjoin Analysis
 * Helps answer how important each product attribute is to your consumers
 * Helps answer how much of each product attribute your consumers want
 * Analysis done by putting various product attributes together and having a test group rank each "package" from most desirable to least
 * Basic statistical analysis then done to determine the optimal levels of each attribute

//__Insight from Christensen:__//
 * As product is commoditized in ove part of the value chain, it is decommoditized somewhere else.
 * Superior products are decommoditized group.

Don't be afraid to polarize people. You cannot please all the people all the time, but you can please a subgroup of the people most of the time and reap monetary rewards in the process.
 * Polarization**
 * Need to know where you are in the lifecycle and how you fit in.

A recent study by the CMO Council shows that even though over $2B is spent on loyalty programs, only 13 percent of marketing respondents believe they have been highly effective in leveraging loyalty and brand preference among members, and nearly 20 percent don't even have a strategy for this. In essence, marketers are not taking advantage of their loyalty programs to engage with their customers in a more personalized way and build brand loyalty.. Read more at: [] or []
 * Related to the Rosewood Hotel Case Study - A recent study sheds light on the value of loyalty programs**

Rosewood management need to increase the hotel and resort guest multi-property visits by cross-selling the Rosewood brand. The best course of action is to elevate the Rosewood brand guest awareness to increase customer lifetime value (CLV). Management should be aware of the potential defectors that are not calculated a CLV analysis. Branding strategy should include focus groups and survey of long term employees and guests of both conversion and new build properties. Surveys can assist in identifying potential brand liabilities and equity proposition in creating the newly branded Rosewood Hotel and Resorts.