l 14 Company: Nike (NKE) and all other sponsors Crisis: A scandal was unleashed when Golf star Tiger Woods crashed his car into a tree near his home. It was soon discovered that he and his wife had been fighting because Woods had been cheating-- with more than a dozen mistresses. Pre-Crisis Stock Price (NKE): November 25, 2009 - $65.70 Post-Crisis Stock Price (NKE): December 9, 2009 - $61.95 Decrease: 5.71%.
I NTERNET CREATES OPPORTUNITIES Unusual new products can be created on the net quickly – ‘pods’ on lectures and items of interest. Online travel agents like Expedia, Orbitz, and Travelocity, for example, are attacking offline competitors in four areas: They offer a hard-to-find serviceExpediaOrbitzTravelocity airline comparison shopping; they enable customers to find the lowest price; they bring together a seemingly complete selection of all available flights that meet the traveler’s criteria; and they leverage the need to get the most current information for this kind of purchase decision Music - tribute to Frank Sinatra done within a few hours after his death. all 31
P RODUCT M IX S TRATEGIES, CONT. Firms will select one of the following strategies, based on marketing objectives, risk tolerance, resource availability, etc. 1. Discontinuous innovations are new-to-the-world products. (television; CDs; the PC) 2. New-product lines are new products in a different category for an existing brand name. (solid bar, powder, liquid detergents) 3. Additions to existing product lines. (various burgers at McD) 4. Improvements or revisions of existing products. 5. Repositioned products can be targeted to different markets or promoted for new uses. 6. Me-too lower-cost products. l 10- 33
A CTIVITIES THAT F EED S TRATEGIC P LANNING FOR N EW P RODUCTS Ongoing marketing planning (e.g., need to meet new aggressive competitor) Ongoing corporate planning (e.g., senior management shifts technical resources from basic research to applied product development) Special opportunity analysis (e.g., a firm has been overlooking a skill in manufacturing process engineering) 2-34
S OURCES OF I DENTIFIED O PPORTUNITIES An underutilized resource (a manufacturing process, an operation, a strong franchise) A new resource (discovery of a new material with many potential uses) An external mandate (stagnant market combined with competitive threat) An internal mandate (new products used to close long- term sales gap, senior management desires) 2-35