BCOR 360 Exam 2

What were the key factors of R&D success discussed by PwC:

1. Spending 2. Strategy 3. Deep Customer Insight 4. End-to-End Process 5. Visibility 6. Digital Tools

5

2 Introduction

Only ___ of new consumer packaged goods reach the threshold of a highly successful launch: ___ first-year sales.

3%, $50 million

4.

4 The Big Picture: The Cycle of Satisfaction

BCG Growth-Share Matrix

The Boston Consulting Group planning tool that evaluates business units in terms of their growth potential and market share.

The lifecycle of a hit product goes as follows: Begin as a___, grow into a star, mature into a ___, and decline into a dog.

question mark, cash cow

The lifecycle of an unsuccessful product is ___ circuited: Begin as a question mark and die as a dog.

short

When it comes to R&D success, ___ is more important than size of R&D budget, quality of engineers, technology deployed, or market research intensity.

deep insight into customers' needs

Which of the following is not a stage in the product life cycle? a. Introduction b. Growth c. Maturity d. Decline e. None of the above, they are all part of the product life-cycle stages

e. None of the above, they are all part of the product life-cycle stages

Do you prefer to wait for other people to test new products so that the maker—e.g., Apple, BMW, or Samsung—can get the bugs out before you buy? If so, you fit with the_____.

early majority.

Great products come from diligent ___ and disciplined ___ ___ processes.

effort, product design

You need to pay close attention to customers in ___ phase of the innovation process.

every

Low growth products should generate ___.

excess cash.

The lifecycle of a ___ product goes as follows: Begin as a question mark, grow into a(n) ___, mature into a cash cow, and decline into a ___.

hit, star, dog

Have you ever camped out overnight to get your hands on the latest iPhone, PlayStation, or (fill in the blank) before anyone else? If so, you are likely an _____.

innovator.

Do you wait for a friend or family member to give you the product as a gift? If this describes you, you are a ___.

laggard.

Do you view innovation hesitantly? Simply put, do you view innovation as "nice and all," but you don't believe it will live up to the hype and you aren't willing to pay more for it. If so, you belong to the ___.

late majority.

Describe the Introduction stage in the Product Life Cycle?

Bringing a product to market begins with development and launch. High introduction costs often lead to losses, but these expenditures are necessary to get a product off to a good start and a successful run.

Describe the Decline stage in the Product Life Cycle

During decline, efficient operations, including perhaps global sourcing, are needed to support a product with fading sales volume and vanishing profits. You might think the best thing to do would be to eliminate these products. However, you may have customers—who buy other products from you—that continue to rely on these old standbys.

Describe the Maturity stage in the Product Life Cycle

During early maturity, sales continue to grow—but at a slower pace. Two challenges loom on the horizon. The market is becoming saturated. Fewer customers are entering the market. Worse, competition is intensifying. Low-cost rivals from global markets threaten to drive prices—and margins—down.

Describe the Growth stage in the Product Life Cycle

During the growth stage, sales take off. This is when the early adopters and early majority begin to buy and use the product. To build momentum, you increase advertising and promote positive word of mouth. Sourcing and manufacturing must ramp up volumes to support growing sales. Logistics must quickly, but as inexpensively as possible, expand distribution. Rivals are now starting to aggressively enter the market with viable products.

What are the stages in the Product Life Cycle?

Introduction, Growth, Maturity, Decline

What is your goal during the maturity stage of the product lifecycle?

Marketing's job is to create a fresh storyline, perhaps by finding niche markets where the product can fulfill new needs. Product enhancements and extensions can also extend a product's life. (Cheerios) The supply chain task during maturity is simple and straightforward (but very hard to do): Provide product access at the lowest possible costs.

T / F In order to have a successful product strategy you need to have products in every stage of the life cycle—with new products constantly being born.

T Your job is to make sure you maintain a "full" product pipeline and a diversified product portfolio (products in every stage).

What is your goal during the growth stage of the product lifecycle?

To build momentum, you increase advertising and promote positive word of mouth. Sourcing and manufacturing must ramp up volumes to support growing sales. Logistics must quickly, but as inexpensively as possible, expand distribution.

What is your goal during the decline stage of the product lifecycle?

You might think the best thing to do would be to eliminate these products. However, you may have customers—who buy other products from you—that continue to rely on these old standbys. Even as you support these customers, you need to plan for spares, production-line transition to new products, and materials and equipment disposal.

What is your goal during the introduction stage of the product lifecycle?

Your goal is to "find a need and fill it." During introduction, you promote demand and assure product availability.

Approximately what percent of new consumer products launched each year fail? a. 95% b. 33% c. 64% d. 85%

a. 95%

Are you always looking for something new, embracing new technology or fashion, but prefer a more measured approach than camping out and taking risks? If so, you are probably an early ___.

adopter.

According to Bruce Henderson, the lifecycle of a successful product goes as follows: a. Investment, operation, maintenance, end-of-life b. Begin as a question mark, grow into a star, mature into a cash cow, and decline into a dog c. General concept, system scope & project plan, detailed design & execution, product transfer d. Materials, manufacture, distribution, use

b. Begin as a question mark, grow into a star, mature into a cash cow, and decline into a dog

According to the BCG matrix, to be successful, a company should have a portfolio of products with different ____________and different ______________. a. Agreements; growth rates b. Growth rates; market shares c. Market shares; costing rates d. Capacity planning; costing rates e. None of the above

b. Growth rates; market shares

What is the supply chain task during the maturity stage of the product? a. Provide delivery terms and acceptance provisions detailing how and when the buyer will accept the products b. Create connectivity to cause businesses to transform themselves c. Provide product access at the lowest possible cost d. Determine the amount of capacity required to produce in the future

c. Provide product access at the lowest possible cost

High growth products require ___ to grow.

cash inputs

3M's chief technology officer, explains: "Our goal is to include the ___ at the basic research level and throughout the product development cycle, to enable our technical people to actually see how their technologies work in various market conditions." - Fred Palensky

voice of the customer

Only a diversified company with a balanced portfolio can use its strengths to truly capitalize on its growth opportunities. The balanced portfolio has:

· stars whose high share and high growth assure the future; · cash cows that supply funds for that future growth; and · question marks to be converted into stars.