Developing and Managing New Products

Developing and Managing New Products

This essay is about Gaga's Sherbetter brand of Sherbet ice cream.

The GaGa brand of sherbet is not really a sherbet at all, as the recipe formula does not fit into the same formulas as traditional sherbets. With this different formula, the GaGa brand has been marketed with the name of the product, Sherbetter, as an attempt to create originally from traditional sherbets. The name, Sherbetter relays to the consumer that the GaGa brand of sherbet is a different, more satisfying sherbet as compared to other brands of sherbet.

            However, even though the name of the product implies the diversity of the product, the GaGa brand name has been seen by consumers as more catchy than the Sherbetter name (GaGa Inc., N.D.). Currently, there is a pop icon by the name of Lady Gaga, which unintentionally provides a sense of familiarity when the consumer sees the GaGa name on a product even though Jim King patented the GaGa name in 2003 (GaGa Inc.,N.D.). Although Sherbetter does provide the consumer with a preconceived vision of the product, it falls short in providing a distinct spark in the consumer’s memory. The King’s revamped their marketing strategy to focus more on the GaGa branding than the name of the product as a result of a market branding test where the packaging was recreated in response to the market test (GaGa Inc., N.D.). Consumers were not understanding what the product was with the name Sherbetter, as they were more focused on the brand GaGa, hence the need to reposition the product with the GaGa brand as the focus. 

Jim King and his wife chose the GaGa’s brand over the use of the Sherbetter name based on the distinction that the product really did not fall into the sherbet category of recipe formulas. When the Kings tried launching the name of Sherbetter, but were still placing the product in the same grocer area as traditional sherbets, consumers were confused about the product profile. The GaGa brand was what consumers were remembering based on a market test (GaGa Inc., N.D.), hence the King’s decided to adjust their marketing profile to focus on the brand GaGa instead of having the primary focus be on the Sherbetter name.

            Even though Jim King patented the GaGa brand, consumers are currently familiar with the GaGa name as the name increased in popular vision with the rise of the pop start Lady Gaga (GaGa Inc., N.D.).  This unintentional coincidence has created a sense of familiarity in the consumer, which helps lessen the risk of trying a new product when a consumer can associate it with another familiar product, even if the familiarity comes from a pop icon.   

GaGa’s rainbow Sherbetter features a blend of orange, raspberry, and lemon ice flavors to create a Sherbetter variety all in one packaging. The consumer does not need to buy individual pints of each of these flavors as they are conveniently packaged in one pint to meet the needs of consumers who desire all of these flavors. The packaging on the rainbow Sherbetter is brightly colored, but is tactfully uncluttered, keeping the appeal simple, clean, and eye catching. White space on the pint as a background to the colorful fruits on the pint packaging help the consumer focus on the main attraction of the product which is the combination of specific fruit flavors. It also adds cleanliness to the packaging. Additionally, the labeling on the package also draws the consumer in as it is bold against the white background.

            Contrast is created with the lid colors, which is where a majority of the bold colors are located. This is a distinct form of packaging for the brand itself as it is used strategically on all Sherbetter pint packaging with colors unique to the flavor of the Sherbetter.  The GaGa trademark is made obvious to the consumer from the packaging as this is one of the first attractions on the packaging in bold scroll-like font. However, the packaging does not completely separate the Sherbetter product recipe from its competitors as this is not specifically identifiable from the face value of the packaging.

 

1. What type of consumer product is the Sherbetter bar?

a. Shopping Product

b. Convenience Product

c. Specialty Product

d. Unsought Product

ANSWER:

            The Sherbetter bar is categorized as a shopping product based on the product being sold in limited locations. A shopping product is defined as “a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores” (Lamb, 2013). Sherbetter bars are located in the same grocer area as other frozen treats, and are therefore compared to these products in the eyes of the consumer. With this comparison, consumers could potentially substitute the Sherbetter bars in lieu of other brand names as they compare price, packaging, and quality of the products.

2. When GaGa’s developed Sherbetter Bars, what type of new product was that?

a. Repositioned product

b. Improvement on an existing product

c. Addition to an existing product line

d. New product line

ANSWER:

            The GaGa Sherbetter bars are an extension of the GaGa brand. The development of this product extended the GaGa brand to compete in a wider range of products, and potentially reach new customers. Product lines are added to an existing product line in order for a brand to compete more broadly in an industry (Lamb, 2013). By adding this product line, the Kings have created additional consumer and retail opportunities, which will help market their brand to more people. Instead of just having one line of GaGa branding, they now have two, and the bars are also located in s different section than the Sherbetter “sherbet”. More opportunity for consumers to see and locate the brand have been created with this new product line. 

 

 

3. Performing which of the following steps in the new-product development process would have helped Jim King realize that the novelty bars and the pints of Sherbetter would not be shelved together?

a. Business Analysis

b. Development

c. Test Marketing

d. Commercialization

           

ANSWER:

            During the development process, the proto-type of the product is developed along with a potential marketing strategy (Lamb, 2013). During the creation of the marketing strategy, Jim King could have researched where novelty ice bars and pints are placed in the grocery store. This would have enabled him to adjust the packaging and identification of the product to avoid the challenge of having the two products placed in two different places. However, having the products placed in more places of the freezer section could also lead to a broader range of consumer interest. The product is attracting additional interest by displaying it in more than one place.

 

 

 

4.  At which stage of the new product development process should GaGa’s have conducted its extensive focus groups and any research it needed before putting GaGa’s Sherbetter on the shelves?

a. Idea Generation

b. Development

c. Idea Screening

d. Business Analysis

ANSWER:

            Idea screening enables producers to gauge and eliminate concepts that do not fit the strategy of the product (Lamb, 2013). GaGa’s Sherbetter is not a sherbet as it does not fit the recipe formula for a traditional sherbet. Therefore, the Kings could have introduced the product’s originality first to the focus group before marketing it on the shelves, eliminating the need to readjust midstream of the product’s introduction. When the product is placed on the shelves in comparison to other sherbets, the consumer thinks it is the same item. The separation of product does not exist in the mind of the consumer. The focus group could have helped prevent this challenge, and the Kings could have potentially had a more effective product introduction.

5. In what stage of the new product development process should GaGa's have introduced Sherbetter and the companies marketing program into the market to gauge consumer reactions?

a. Test Marketing

b. Target Marketing

c. Business Analysis

d. Commercialization

ANSWER:

            During the test marketing stage, product lines are introduced to the consumer in the market place for a limited amount of time (Lamb, 2013), allowing the developer or producer to adjust the product to meet the needs of the consumer. Additionally, the test marketing stage enables the producer to react to any potential risks identified for the product during this stage. The producer can then be proactive to future marketing strategies. The Kings could have tested the market first with their product to gauge some of the risks without having to pull back all of their product as a result of these risks. However, the Kings had limited marketing funds avaible to them, as this was their first business venture, and test marketing is an expensive opportunity.

 

6. In what stage of the product life cycle is Sherbetter?

a.   Introduction

b.   Growth

c.   Maturity

d.   Decline

ANSWER:

            Sherbetter is on the brink of the growth stage as it is beginning to stretch its branding to reach more consumers. However, the word of the brand is still not reaching the mainstream market, and is only avaible at limited locations. Therefore, Sherbetter is still in the introduction stage. With limited funding resources, the introduction stage has been drawn out farther than the Kings’ had hoped, as they are only using sampling and word of mouth through social media sites to market the product (GaGa Inc., N.D.). As word of mouth grows, the product will soon enter the growth stage of the product life cycle.

 

References

GaGa Inc. (N.D.). GaGa Inc. Marketing Video. Retrieved from: http://www.cengage.com/marketing/book_content/lamb_9781285091860/videos/ch11.html

Lamb, Eric. (02/2013). ACP MKTG, 7th Edition. [VitalSource Bookshelf Online]. Retrieved from https://kaplan.vitalsource.com/#/books/9781305370128/