Selection as a new product development process: the case of Vertical Branding, Inc.

Summary
The article is about a new product development process that has particular application to a specific successful company. Unlike most marketing organizations, the company, Vertical Branding, Inc. (VBI), concentrates more on selecting new product concepts than developing them.When we look at the articles, very few of them dealing with the practical realities of product selection.Product selection involves both concept screening and economic analysis. Selection is critical for success and customer satisfaction.There are one or two different product selection situations.They depend on design of new products from existing product concept or what the companies give them. The nature and scope of each new product developmen(NPD) task is vastly different. When companies develop new product concepts with specific market segments in mind the chance of product failure declines. Moreover, designing a product customized for the target consumer is at the heart of the marketing concept.
There was remarkable sample about Miller’s success in development and promotion of
product.Miller Brewing evaluated a chance that bought the Meisterbrau Brewing Company and its brands. Among them was a brand called Lite beer.Lite Beer was unsuccessful brand because of incorrected target.Miller brought Lite Beer then number of three brand in the country after Miller’s remarketing.
Concept screening is not easy and there are errors such as involve screening out a good concept that would be profitable if marketed.The other error is described as accepting a product that will fail and cost the company money. Both types of errors can cost money but the second error is the more harmful of the two. Bad products not only lead to losses, but also they can tarnish a company’s image and poison future product development. Thus, effective concept selection is vital for success.
Vertical Branding, Inc
VBI is a marketing organization that selects product concepts from a variety of new product ideas and existing products. It describes itself as a consumer products, branding, marketing, and distribution company.The focus is on value to the consumer. Company philosophy shows that providing high value to customers is the best way to earn repeat business. Notably, it also embraces the lifetime customer value model that became important in business thinking around the year 2000.
I can give their success examples in the market.The company analyze carefully their sales results and define their target customer. Beyond the demographic statistics, VBI has built a clear picture of its customers’ preferences.
VBI considered an outdoor device that kills mosquitoes. Immediately it became apparent that consumers in California, one of the key demographic concentrations, would have no need for the product.California’s dry climate is unsuitable for mosquito reproduction, so mosquitoes are not a problem. Instead of dismissing the item out of hand, VBI’s selection team calculated the size of the remaining market. The company uses a benchmark: 50-75 percent of its target demographic must want the product. That translates into 50 million US consumers whose preferences match the product benefits.
The company advertises using effective infomercials starring the product demonstration star, Billy Mays. Mays promotes a variety of household and consumer products on television in direct response advertisements on behalf of several companies. One of his recent promotions features an absorbent synthetic chamois that absorbs water more effectively than other products. The product, called ZorbEEZ attracted ourThe product, called ZorbEEZ,turned out to be one of VBI’s successful new introductions.
VBI applies several important rewarding.The company strategy is to maximize the effect of every action. For example, its emphasis on selecting the best of a set of new products or new product concepts acts like a force multiplier. It would require megacompany size to generate internally what multiple companies across the globe produce. In addition, VBI does not incur the costs of discarding internally generated product concepts. Perhaps more important, it does not bear the higher costs of failed product introductions.VBI focuses on its intellectual property approach. Licensing another firm’s technology offers a layer of insurance against patent challenges.Third, the practice of transactional branding also multiplies the impact of the company’s marketing budget. Direct response promotion generates early cash flow to cover costs. It also establishes a record of successful sales to aid in securing retailers. With each commercial and each sale, consumer awareness grows. The last important thing is that analytics can spell the difference between break even and profitability. Specific company metrics are proprietary. However, once again,they focus on refining decision making to maximize return.

Individual Study: Midterm Summarize
Gözde Gölbaşı 107672015

http://www.emeraldinsight.com/1061-0421.htm Journal of Product & Brand Management