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1SP_MP09_UF3_NF1_PRODUCT_DEVELOPMENT

Created by

GEMMA CLAVEROL FREIXA
GEMMA CLAVEROL FREIXA
Spain

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1SP_MP09_UF3_NF1_PRODUCTOnline version

1SP_MP09_UF3_NF1_PRODUCT_DEVELOPMENT

by GEMMA CLAVEROL FREIXA
1

targeted share develop maintain outcomes profits investment outcome position competitors'actions strengthen competitive brands return loyalty research

In a rapidly changing and business environment , it is not easy to predict :
? future trends in consumer tastes and preferences
?
? market conditions .
Creating new products or making changes to existing can be expensive . It involves making investment decisions now , in the hope of making a return later . Weighing up future returns against an is a crucial part of a manager's job .
It always involves an element of risk , because the future is never certain . Managers' previous experience , together with market information helps them to predict future events and . However , all business activities involve some element of risk . There is often said to be a link between risk and . The more you risk , the higher the likely returns ( or ) . However , a balance must be struck .
It follows from this that decisions about a brand , ( e . g . whether to develop it , it , allow it to decline , or even kill it off ) involve much discussion . In deciding to a brand , managers have to decide how much investment to make and to forecast the likelihood of a successful .
Brand managers aim to develop a long - term strategy to meet a range of objectives such as :
? growing market
? developing a unique market
? creating consumer or brand
? generating a level of profit .
This case study describes a major investment in Kellogg's Special K . It illustrates how the company's investment in new product development served to a global brand .

 
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