Applpoly Case Study
In our textbook, it says to move quickly and also avoid expensive new-product failures, companies should follow an organized new-product development process: (1) idea generation, (2) screening, (3) idea evaluation, (4) development (of product and marketing mix), and (5) commercialization. The hypothesis to have marketers to discover product flaws early, and find the remedy to it, has proven unprofitable. This process requires much analysis of the idea before the company spends money to develop and market a product.
However, ApplPoly reversed the step (3) and step (4), so it came to the dilemma. In step (3), an idea is evaluated more carefully, and at this time an actual …show more content…
Preston could still carry out demonstration/ promotion of six out of seven of her products: 1. Bulk storage, 2. Cold storage, 3. Educational construction, 4. Covers for industrial tanks, 5. Light commercial construction, and 6. Planetariums (p.652). By eliminating the 7th, recreational construction and targeting countries with colder climates, Preston could avoid the two major problems challenged, they are: fire safety and kids poking holes in the foam. Light commercial construction such as the roof of a water tank could still be done. Not all the proposed products are subject to fire hazard and other problems mentioned.
Strategy 2 Market penetration
Basically, according to the text and our investigation, the main weaknesses of foamed dome are poor fire-proof and poke-proof ability. So besides opening new market geographically and wait for the market to accept it, Abby can also develop new usages or make improvements and/or slight adjustments to their current product to avoid those disadvantages. One thing they should realize is that, foamed-dome technique does not necessarily lead to domes, any products in dome shape or similar shapes can be taken into consideration. The machine seems to be able to bend and bond together; thus opens up many other applications and variations to their final product.
To avoid possible fire issues, we suggest Abby to develop