Managerial Approach to the LAMBSA Liquid Egg Poduct - Case Study Example

1. The new LAMBSA liquid egg product is still at the introduction stage of the product life cycle (PLC). Basically, the concept of PLC posits to the effect that that every product has a life span which goes through stages until it is phased out (Cant, 2000). The cycle is made up of the following stages: introduction, growth, maturity and decline. A close analysis of the given case study shows that this product is a new entrant into the market. This means that the product is still at the first stage in terms of its life cycle. Given that the product is still new in the market, it can be seen that its performance is determined by the way it is perceived by the targeted customers. In this case, the product has not been that successful when it was introduced in the market and this is the reason why the introduction of this particular product ought to be reviewed. 2. As it stands, this is the only product the firm will sell to hotels and restaurants. Due to the fact that the product requires extra care in terms of storage, the product can only be sold to restaurants and hotels given that these firms will quickly use the product before it gets stale. The main idea behind this product launch is that it cannot be distributed or sold in the food sector given that it requires quality storage facilities so as to enable the firm to keep this product at a very low temperature rate. The main advantage of targeting the hotels and restaurants is that they have special storage facilities that can help them to store this product in a safe place. The other reason for targeting restaurants and hotels is that they use liquid eggs in the production of different types of food they offer to different customers. For instance, the bulk of confectionary products are made using liquid eggs and this will help the actors in this particular sector to save time since they will use already prepared eggs where they do not need to hire people to perform the task of breaking the eggs. The other advantage of targeting the hotels and restaurants is that their products often sell fast since they offer already prepared food to the customers. Therefore, hotels and restaurants are ideal to supply the new product since it will help the company to be in a better position to address the logistic problems such as storage that are likely to be encountered while distributing the new product to different markets. 3. This is a very important question to ask given that a marketer should clearly identify the targeted customers before establishing a product in the market. The success of a new product in the market mainly depends with the marketer’s ability to target the right people. This will also help the company to focus on product development so that it appeals to the interests of the targeted customers. If the target market is clearly identified, the marketers can be in a position to customize the products so that they attract a lot of customers. This can help the marketers to generate more revenues from the sales of a new product if their operations are focused. The other reason why the marketers should clearly define their target market is that it helps them to deal with issues related to logistics in the distribution of the new products to be offered. The marketers are in a better position to anticipate the problems likely to be encountered in distributing the product if the targeted customers are clearly identified. This also helps to inform the marketers to generate knowledge about the exact quantity of products they need to produce. Losses will be avoided if the company has information about the size of its targeted market. This also helps it to improve its effectiveness since it will be guided by the needs and demands of the customers in its operations rather than just producing products that may end up failing to attract buyers. This can lead to unnecessary losses hence such scenario ought to be avoided at all costs if the company is to successfully establish a new product in the market. 4. It is quite challenging to get the 8 million liters per year at the price being demanded by the boss. It is anticipated that the product will be sold at €1.45 per liter but it can be seen that this price is exorbitant since the customers are used to buy the same quantity of eggs at an average price of €0.90. This price is likely to deter the customers from buying the product as a result of the fact that it has a premium price while they can still get the same product at a relatively cheaper price. Whilst emphasis is put on quality of the new product, it can be seen that other customers are not worried about the aspect of quality since they prepare their products at higher temperatures that kill all the bacteria that might exist in the ingredients used. This anticipated target is a result of overzealousness since there are many factors that are likely to impact negatively on the performance of the new product. First and foremost, it can be seen that this target was reached after using assumptions to determine d the success of the new product since the company has been successfully launching new products in the market. This focused sales volume of 8 million liters per year is far-fetched given that similar products have also been introduced in the market but they did not reap the expected benefits. Therefore, this product is not completely new to the targeted customers since they have come across a similar product which however did not stimulate the interests of the targeted buyers. The 8 million liters per year may not be attainable due to the fact that the price is too high. The projected sales volume has to be lowered and the price of the product ought to be reviewed so as to come up with realistic data for the sales of the new product. In fact, the salespeople should use the market forces to determine the price of the new product so as to be able to attract potential buyers. 5. In drawing a marketing plan for this product, it is imperative for the marketing manager to make sure that ideas of different targeted people are incorporate in the design of the new product. This can be achieved through carrying out a thorough research about the needs and interests of the targeted people so that their ideas can be incorporated in the development of the new product. This can help to stimulate their interests towards the product. The sales people should also make an effort to interact with as many people as possible so as to gather their views towards the product. When the product is being launched in the market, it ought to start off at a low level so as to be in a position to ascertain the interests of the customers through monitoring their response to the new product. A pretest should be carried before the product is introduced on a full scale in the market. This helps the marketers to make informed decisions with regards to making alterations in terms of the quantity of the products to be offered. The increase in the volume of products offered on the market ought to be gradual so as to be in a position to adjust to the market conditions that prevail at a particular moment. Regular review of the performance of the product ought to be carried so as to be able to assess its performance on the market. This can be done through obtaining feedback from the customers which can help the marketers to make necessary adjustments to the product should the need arise. After a period of about six months after the introduction of the product in the market, decisions to expand the market can be made after assessing the preliminary performance of the new product. It is imperative to carry out product review throughout the product life cycle so as to enable the company to operate effectively. References Cant, MC 2000, Marketing Management, 4th Edition Juta and Co Ltd, CT. McCarthy, JE & Perreault, WD 1996, Basic Marketing: A Global Managerial Approach, 12th Edition, Irwin McGraw-Hill, NY. Kotler, P & Armstrong G 2004, Principles of Marketing, Pearson Education, Upper Saddle River: NJ. Kotler, P 1999, Kotler on Marketing: How to create, win and dominate Markets, Free Press, London. Porter, ME 1985, Competitive Advantage; Creating and Sustaining Superior Performance, The Free Press, New York. 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