Andrea Torres has to decide whether to conduct further product tests,
conduct a test market or launch nationally. What would you advise?
Miss Torres might be
tempted to push ahead with a national rollout, to beat the opposition and leave
them in the dust, and deal with the consequences as they arise. According to
the paper by Joan Schneider, this would be a mistake – not only would it not
have the ability to support fast growth, if the product doesn’t meet the
expectations that were claimed, it will get “bashed”. (Schneider & Hall 2011)
As mentioned in Question 4
above, she needs to conduct a conjoint analysis. However, this might be too
late now due to the competitors closing in on the market, and there is not much
time left to test.
The advice that I would
give Miss Torres would be to use the resources she already has by being with an
established company. Compared to other new products appearing on the market who
do not have much experience, here Miss Torres has the opportunity to jump to
the top fast, by building on previous success.
Miss Torres should proceed
with a national rollout of the product, using the distribution system in place
for the other products to promote the product with free samples. This would be
the opportunity to promote the product as it is pushed out into the market,
claiming that first place in the industry.
Waiting to test the product
in other markets could lead to competitors jumping ahead, and as mentioned in
the case study, three years or more before the launch would not be feasible to
wait. With the results of the tests actually conducted indicating that the
product is likely to succeed, further testing with close-to-actual market
conditions would only provide more precise information that, ultimately, will
still be different from the actual launch.
When it comes to brands, I
would advise Miss Torres to use the Montreaux product name. As the product has
a French-Swiss association, while it does not appeal to the nationalism, as a
premium product it would give a strong impression of high quality from a nation
known for its superior chocolate.
In the packaging of the
product, the emphasis should be placed on the healthy messaging in combination
with the taste, and in particular they should use a stand-up pouch, as
recommended in the market research. It should be available in supermarkets, and
mainstream channels, with a premium pricing structure.