BU362 Lecture Notes - Lecture 5: Clorox, New Product Development, Brand Equity
Document Summary
Not evolving with the trends of the market and not connecting effectively with consumers. Market leader losing market share in a flat market. Competitors are penetrating from both ends high price and low price. Hard to differentiate the products commodity market. Comply with values of sc johnson brand and other regulations. James dunbar: one person trying to make a decision. Customer are either buying less or switching to competitors. Product features: inferior to products with harsh formula. Economy decides income price sensitivity. Flat market share (mature, saturated, commodity market) Commodity hard to differentiate in the market. Tough competition from both ends low and high. Mr clean: good brand awareness, harsh formula. New product development: new product powerful and eco-friendly, product modification (new scent) Market penetration: price cut, promotion pull strategy, promotion push strategy. New market development: more eco-friendly customers. Sg johnson comply to their policy. If resources constraint is not a serious issue then go new product development.
