COMM 296 Lecture Notes - Lecture 10: Kfc, Capri Sun, Lemonade
Document Summary
Lo 12-1 identify the reasons firms create new products. Managing risk through diversity: innovation = company creates broader portfolio of products = diversity risk and enhance firm value better than a single product. Fashion cycles: no reason for customers to buy more if selection of products were always for sale with no new products (ex: fashion designer produce entirely new product selections a few times per year) Improving business relationships: improve relationship w/ suppliers (ex: capri sun lemonade flavor selling poorly b/c of placement of packages in pallets at the bottom of the stack; kraft offered chimney stacks for each flavor = improve retail sales) Lo 12-2 describe the different groups of adopters articulated by the diffusion of innovation theory. Not all pioneers succeed; many imitators capitalize on weaknesses and gain advantage of the market. Crucial to the success of any product/service b/c they help product gain market. Acceptance = talk and spread positive word of mouth.
