Essay about Techsonic Industries Inc. Humminbird New Products

2853 Words May 1st, 2006 12 Pages
1a. Risks and limitations of listening to customers during the NPD process:
• Using existing organizational systems often means completely missing the boat on the real customer and his real needs. This is the customer who values the products as a breakthrough. Products are frequently under-appreciated by firms when the new product is based on an existing platform. This leads to a wait and see attitude and the product is not given adequate support and often under-priced.
• The positioning strategy should be driven by the market, rather than by the ambitions of the product champions. The source of the problem is failure to understand how consumers' value product attributes. In all, over-appreciating a breakthrough or new technology that
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Techsonic spent the highest in the industry on print advertising. Humminbird products were advertised regularly in fishing and outdoor magazines. Boat shows and industry trade shows also played an important role in promoting Humminbird products. Techsonic used them to demonstrate its products to dealers and customers, as well as to introduce new products, assess the competition, and get feedback from the market. These means of communication allowed Techsonic to get more input from the customer and further its success.

2. Criteria used to evaluate the three new products:
• Customer Interest: Review what the market research concluded, Do the results compare favorably with those of past new products from Techsonic?
The new product needs to be something that the customer is interested in and sees a need or want for. The results must be favorable to past new products to ensure success.
• Market and Sales Potential: Review the projections for sales over three years, Do sales potential from first, second and third years exceed or compare to previous new products from Techsonic?
With each new product Techsonic wants to grab more market share and increase the overall market with higher sales volume. Comparing the sales potential to past new products allows Techsonic to get a forecast of the market's actions.
• Product Features: Does the product include features that are essential for purchase? Are customers interested in what this product offers? What makes this…

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