I am writing to you in response to your concerns regarding the market test on the new cups and carriers that Clover Valley is introducing to the customer. The purpose of this research is to see if the new packaging is worth the change and if the consumer will accept the new change. It will also tell us if the new six container holder will be effective. I do agree that the new carrier should be tested and it should be tested in other areas that are not our competitors. I also believe that it should be in our market as well as our competitors.
One of the most important parts of testing a new product or design should always start with our competitors in mind. Knowing what our competitors are offering and how well it is accepted by the consumer should be the basis of our decision of even deciding if it should be tested and tried. Knowing our market and what is out there gives us a good lead on how to impact our consumers in a good way. This leads to why we should consider and include our competitor’s customer views as well as our non-competitor customer views just for comparison.
By not including our non-competing stores, we are only hindering our abilities to fully see what will really sell and what won’t sell. May I suggest that we only limit to one competitor? This will give us more money for our budget and we won’t be throwing all our money into several competitors’ when only one will give us what we need. If a test is necessary, what should be the criteria for success or failure? I believe the main point to press should be how sales are impacted. Most of the time, sales can increase by the look of a package for an item, alone.
A lot of the times if the packaging to an item is presented well, customers will by because of the look. Surveys have been conducted on the appearance of a product and what targets the consumer. In that discovery, if the item moved towards women and the packaging was elegant, they would be the consumer most likely to purchase the product. This really helps in defining our target market. I believe there are four important factors that should be looked at to determine the success or failure of a product.
The first one I will speak about is Cost. Cost is a huge issue when it comes to trying out a new product. We will be able to lower the cost of our testing by limiting ourselves to one competitor and shopping our competitors. The next factor is Market Share. If our customers are satisfied, then our market share would definitely increase as a result. The third factor is handling. When a package is easy to handle (open and close) then we will have more success with it. I believe we will be able to do this by combining the six packs together.
The fourth and final factor is Reusable. Is our product recyclable? In the age of green technology, it is important that we are able to recycle our product. This also helps with cost! The second thing I wanted to discuss is how useful the proposed test will be in addressing the management problem. Are there any changes that should be made so that we don’t make the mistake from the product side and management side of it? The answer is yes! What changes can we make in order to avoid potential disaster of the product?
Management will need to come together as a team and delegate out tasks that will lead us in the right direction. When there is a team effort behind product testing, there will be success. I think by getting everyone’s opinion on the new test will make it diversified and successful. The proposed test will be beneficial for increasing the sales and it will also help in identifying mistakes in the team that have been made previously. As I mentioned getting everyone’s opinion on the new style of packaging I think will also open the door for creativity in our employees.
My last thing I would like to talk about is the Evaluation of Cost/value of the research. What will it cost and will it be worth it is the main concern and question. Evaluation does not need to be expensive. A good rule of thumb is to estimate it between five to ten percent of the total budget. This will include the time the staff spent on evaluation, out of pocket costs as well as the value of time. We will focus on questions such as need to know and nice to know. That will cut back on the cost of the evaluation.
Here is how I will set up cost structure: 1. Salary and benefits for program staff who will be involved. 2. Funds to pay an external evaluator 3. Travel expenses 4. Communication Tools (postage, telephone, etc. ) 5. Printing of surveys, reports etc. 6. Supplies and equipment (computers) Once I am able to get your approval, I will start on this immediately. In closing, I would like to suggest the idea on which we are working on now to implement it as our new marketing strategy.
I believe it will be a terrific success for the growth and sales of our company. Reputation will favor us and we will be on our way to a much needed discovery! This will also open up so many creative avenues for our company and allow our employees to expand their thinking into new areas! It will help us come together as a team and build long lasting relationships with our competitors as well as our company. In the end, I want to say a big thank you for understanding our needs and giving such fantastic direction! Sincerely, Vince Roth