Master of Business Administration Xavier University, Cagayan de Oro City Case Analysis 2 PACKAGED PRODUCTS Submitted by Corazon Caseres Lagamayo MBA-2 Submitted on July 03, 2010 I. FACTS OF THE CASE • Packaged Products specializes in the production of cereals and ready-to-bake products • Given the continued growth, Mr. Robert Yamani, marketing director, proposed to continue to be a new-product oriented by introducing one new product or an improved product every year. • A sizeable portion of consumers has negative attitude towards some of the new products in the supermarkets.
II. POINT OF VIEW This case analysis would like to solve this case from the point of view of the division’s marketing research manager. III. PROBLEM DEFINITION What answers should Nancy Schmidt prepare for each of the points raised by Mr. Yamani? IV. OBJECTIVES 1. To come up with clear analysis of the focus group interview to Mr. Robert Yamani 2. To identify win-win strategies that will both benefit Packaged Products and its consumer V. AREAS FOR CONSIDERATION 1. Current identity of Packaged Products: There is a need to review of how the public perceived Packaged Products.
There is a need to know what the established credibility of the company is because this will tell how the company is shaping its direction. 2. New Product Objective: It is important to know the rational behind the company’s new product objective and its significant contribution to the company if pursued. 3. Focus group interview information. In order to answer Mr Yamani and be able to come up with win-win strategies there is a need to assess the information derived from the published focus group interview.
The information should be assessed in terms of its relevance, impact, and significance to Packaged Products. VI. ALTERNATIVE COURSES OF ACTION 1. Nancy Schmidt to provide clear answers to Robert Yamani’s concern by stating this; o Significance to Packaged Products ? Convenience to food products is not much appreciated but to household products it’s only alright o Need for a series of Focus Group Interviews ? Consumers said that in order for manufacturers to retain them, they just need to stabilize their old product and show some creativity; ?
Ensure that new products are with nutritional value and with complete labels. Manufacturers should not fool the consumer. Tell them the truth and give them their money’s worth ? Quality of the product remains the top most concern of consumers ? Changing the package is also effective to catch consumer’s attention however; the consumer’s expectation that the new one will beat the old product should be met. Otherwise, they will not buy the new one. ? Sensory testing remains effective to drive consumers to taste the new product ?
Establish a 24-hour consumer service to cater the complains of the consumer the soonest time as possible o Concept for a large Statistical Study ? There is a need to conduct study on consumer‘s attitude towards their competitor’s product. The unhappiness on the old products drives the consumer to try the new ones. a. Advantage/s i. Schmidt will be able to help strategize Packaged Products by providing a clear analysis of the said FGD ii. Yamani will continue to trust Schmidt iii. Schmidt will be able to prove her worth b. Disadvantage/s i. Time consuming for Schmidt i. Yamani may not be convinced of her answers 2. Nancy Schmidt to conduct triangulation of her findings and analysis a. Advantage/s i. Validate Schmidt findings and analysis ii. Come up with concrete and strong analysis of the FGD information iii. Yamani will continue to trust Schmidt b. Disadvantage/s i. Time consuming ii. Uncooperative systems will delay Schmidt delivery of result to Yamani 3. Nancy to ignore Yamani’s concern and let somebody to do it for her a. Advantage i. Schmidt can devote her time to her other tasks b. Disadvantage/s i.
Schmidt will surely be grounded for not obeying Yamani ii. Destroy Schmidt performance record iii. Ability to delivery tasks will be questioned iv. Answers may not be reliable or correct VII. CONCLUSION Based on the above findings, I therefore conclude that there is a need for Packaged Product to reconsider its new product objective. After all, a company cannot become a new-product oriented if its undertaking is not grounded on consumer’s feedback. VIII. RECOMMENDATION I strongly recommend the first course of action. First, there is a need to look at the current product of the company.
It is important to reconsider the convenience value that Packaged Products is providing. Also, in order to better understand the perspectives of the consumer to Packaged Products items, there is a need for a series of focus group interviews. The result shows that consumers have major concerns to new products on its packaging, pricing, and value-added component. Lastly, Packaged Products need to justify the need for a statistical study about consumer’s attitude towards their competitor’s product. This way Packaged Product could better position themselves in the market.
Appendix 1: FGD Findings Attract Products – Consumers buy products that not only benefit them but the entire family – Visual presention is the first thing (color and writing) – When the unhappiness of the old products is resolved with the new product – Product with additional nutritional value – Packaged with complete labels – Because a friend told them or was able to get sample of the product Value Added – Consumer writes to the manufacturer but some did not response – Some consumers do not have time to sit and write their complains Dissatisfaction The more that consumer now return products once they are dissatisfied – Supermarkets don’t care once there are returned items after all they are not the manufacturers – Putting on new product when the old one is still on the shelf Choice – Consumer consults the members of the family when purchasing new products – Some manufacturers changed the packaged and kids are suspicious – There are consumers who try new products before any one does Difference – Packaging comes with price unit – Added more preservatives and gimmicks – Consumer knows that packaging is intentionally designed to be appealing to them to strike an attention.
Some were captivated while others remain practical. – Put add ons (extra bag) and making less value on the product. Consumer wants to get their money’s worth. – Others play on the size of the product and claim that savings will be availed if these are purchased but there are consumers who simply buy in bulk and do not want those in smaller sizes. – Added convenience however not being appreciated to food; It kills taste and consumer’s concern is the one that affects the well being of their life especially their family. Suggestions – Manufacturers just need to stabilize their products instead of producing a new one.
Show a new way of using their products. – Consumer wants quality and are not dissatified with the good stable ones. – In advertising the products, tell consumer what it will do, tell us the truth, how will they use it – Content, product, price in advertising; Saves time in roaming around supermarket Appendix 2: FGD Analysis (Significant,FGD,Concept for Study) 1. There is a need to conduct stiudy on consumer attitude towards their competitor’s product. 2. Ensure that new products are with nutritional value and with complete labels. 3. Sensory testing remains effective to drive consumer to taste the new product. . Establish a 24-hour consumer service to cater the complains of the consumer the soonest time as possible. 5. Changing the package is also effective to catch consumer attention however; the consumer’s expectation that the new one will upbeat the old product should be met. 6. Quality of the product remains the top most concern. 7. Don’t fool the consumer. Tell them the truth and give them their money’s worth. 8. Convenience to food products is not much appreciated but to household products it’s only alright. 9. If one is to retain a consumer, one must just stablize the old product and show some creativity.