Gillette has always believed that continuous new product development resulting from extensive R&D is necessary to differentiate itself from competitors. True to its corporate mantra of 'innovation is Gillette', the company has introduced so of the most successful and widely acclaimed innovative products in the consum products industry. Its product range, protected by trademarks, is legendary with such brands as Sensor, Sensor Excel, Mach 3 and Gillette for Women Venus. The company's policy is to generate 40% of its sales from products launched within the last five years. One reason for Gillette's strong focus on new product development is that the competition has successfully learned to copy its produc very quickly. For example, Schick (part of Warner-Lambert, later taken over by Pfizer but known as Wilkinson Sword in many parts of the world) had imitated Gillette's Trac II twin-blade razor within five months of the product's launch. Further product launches have added to the brand value of Gillette. It has succeeded, in some markets, in making razors less of a commodity product - which consumers just buy on price and convenience considerations – but a branded consumer product that customers will pay a premium price for. Answer the following questions: (1) Define the following terms: innovative products; trademarks. (2) Explain how the use of innovative products and trademarks can add to the value of a company such as Gillette. (3) Analyse the importance of companies such as Gillette continuing to spend large sums on R&D even in a global downturn. (4) Evaluate the factors that determine the level of innovation in an industry.

Honest Tea, the Coca-Cola brand that produced $130 million in global revenues last year, got its start because cofounder Seth Goldman didn’t like the options in the beverage coolers at convenience stores. So with the help of a former professor, he launched Honest Tea—the nation’s first fully organic bottled tea. But the company’s drive for success was not based not as much on profits as on a desire to change the world. With social responsibility steeped deep into its business model, Honest Tea set out to help develop the economic structure of impoverished nations. Honest Tea purchased raw ingredients from Native American and South African farmers and invested in its supplier-farmers to help them become self-reliant. Although Honest Tea has been a wholly owned subsidiary of the Coca-Cola Company since 2011, it continues to operate on the principles of social responsibility established by its founders. List as many examples as you can showing how Honest Tea defies the common social…

“People often buy products not for what they do but for what they mean.” From consumers’ standpoint, what do you understand from this statement? Please explain it in detail

..     What is the relationship between product differentiation and customer loyalty?

Create your own brand. State what product/ service you want to sell in the market and why you think this product would be purchased by the consumers. Who are your rivals and What different do you have to offer to the consumers? Now, choose 2-3 elements from the brand elements mix and state the reason why you choose them and how those elements would work for your company. (For eg: if you are choosing a brand logo, create a logo for your brand, if choosing a brand name, create a name for your brand, etc.?

In new product development, this step is testing the product among potential users. It allows management to evaluate various strategies and to see how well the parts of the marketing mix fit together. Few new-product concepts reach this stage. For those that pass this stage, the firm must decide whether to introduce the product on a regional or national basis.