Describe the new offering AND post a photo for the class to see an

Describe the new offering AND post a photo for the class to see
and understand the offering
If your offering is a feature or service, try to find an example of
the offering in action. As long as we can understand the
offering then this is good enough
Analysis of New Offering
Type of new offering
Is the new offering a brand, line or category extension, product
iteration, new business / acquisition or something else
altogether?
·
Rogers' Five Factors in the Diffusion of Innovation
Relative advantage - What was this offering an improvement
upon and how did it actually succeed in being an improvement?
Compatibility - How was this offering compatible with offerings
that consumers are familiar with?
(If it's a product improvement or line extension and stays in the
same category, etc then simply describe whether it affects
customer habits (i.e. Colgate Tartar Control may involve more
deep cleaning and brushing to reduce tartar vs, regular Colgate)
(If it's a brand extension like Tide Fabric Spray they are
compatible with cleaning rituals but closer in action to Febreze.
Remember to reach out if you need help).
Complexity - How much more complex is this new offering for
consumers to understand?
Trialability
What level of experience do consumers need to truly understand
the offering? (i.e. food requires tasting, clothes require trying
them on and a 30-60 day return period)
How has the company allowed trial?

Observability
Where the product was successful how was the public able to
understand it's success? (i.e. reviews, word of mouth, seeing it
in public use, social media)
Pricing
· What was the pricing at introduction and how do you believe
(based on your research) that this pricing was determined?
· Were there any special offers of "sweeteners" to entice
adoption?
· Describe how the pricing has changed since launch and
whether this pricing change has accelerated adoption
Your assessment of the new offering's success
Did this offering succeed and why? (Was it particularly due to a
factor mentioned above or something else altogether?)
Just fill in answers in the blanks below:
Describe the new offering AND post a photo for the class to see
and understand the offering
Analysis of New Offering
Type of new offering
Rogers' Five Factors in the Diffusion of Innovation
Relative advantage -
Compatibility -
Complexity -
Trialability -
Observability -

Pricing
·
·
·
Your assessment of the new offering's success
BBA 4851, Production Management 1
Course Learning Outcomes for Unit I
Upon completion of this unit, students should be able to:
1. Explain how operations management relates to a firm’s
success.
1.1 Define operations management and productivity.
1.2 Discuss how operations management relates to productivity.
1.3 Discuss the role of ethical conduct.
Course/Unit
Learning Outcomes
Learning Activity
1.1
Lessons 1 and 2
Unpacking Operations Management video

“Liberty is Exploitation: The Force of Tradition in Early
Manufacturing” article
“Manufacturing Services and Servicing Manufacturing:
Knowledge-Based
Cities and Changing Forms of Production” article
Case Study
1.2
Lessons 3 and 4
“The Internet of Manufacturing Things” article
“The Design of a Responsive Sustainable Supply Chain Network
Under
Uncertainty” article
“New Method to Calculate Carbon Footprint of Logistics Supply
Chains” article
Case Study
1.3
Lesson 5
Ethics and Management video
“Lean Manufacturing Promotes Ethical Business Practices”
article
“A Framework for Ethical Decision Making” article
Case Study
Reading Assignment
All of the required reading assignments can be found within the
interactive lessons. Be sure to open the
required reading and video links in the lessons as you may be
tested on your knowledge and understanding
of that material as well as the information in the unit lessons.

Unit Lesson
Please be sure to maximize your Internet browser so that you
can view each individual lesson on a full
screen, ensuring that all content is made visible.
Click here to access Unit I - Lesson 1.
Click here to access the presentation transcript.
Click here to access the Unpacking Operations Management
video transcript.
UNIT I STUDY GUIDE
Introduction to Production and
Operations Management
https://online.columbiasouthern.edu/bbcswebdav/xid-
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BBA 4851, Production Management 2
UNIT x STUDY GUIDE
Title

Click here to access the Ethics and Management video
transcript.
Learning Activities (Nongraded)
Nongraded Learning Activities are provided to aid students in
their course of study. You do not have to submit
them. If you have questions, contact your instructor for further
guidance and information.
Check For Understanding activities can be found within Lessons
1, 2, and 5.
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PPT 1-1
Marketing Management
Week 5: Go-to-Market Strategy
CONFIDENTIAL
Fundamentals & Planning
Source: Prof. Puneet Manchanda
Kitchen Prep
● Setting the stage
○ Strong management

○ Products
○ Channels
○ Capitalization
○ Persistence
○ Innovation
● Aligned to Strategy
● STP & 4P locked
Rogers Five Factors in the Diffusion of Innovation
CONFIDENTIAL
Get ready for takeoff
Takeoff
Takeoff

Getting in flight (Golder & Tellis 1997)
● New durables have a rapid takeoff in
early sales (aka “takeoff”)
● Price & Market Penetration are the
determinant factors
○ Other factors such as category specific and
● Common factors
○ At takeoff Price is 63% of introduction
○ Time to takeoff is 6 years (down from 18
years pre-WWII)
○ Market penetration at takeoff is 1.7%
● Implications
○ Heavy impact of price reduction
○ 7 years in, if takeoff isn’t happening - pause
and refactor
Video Game Console Pricing

DVD Player Pricing
More Golder & Tellis
● Looked at additional categories
○ (CD Player, Color TV, Computer, Dishwasher, Dryer,
Freezers,
● Microwave, Refrigerator, VCR, Washing Machine)
● Mean time to takeoff varies across product categories
○ Eight years for white goods (kitchen and laundry appliances)
○ Two years for brown goods (entertainment and information
products)
● Mean time to takeoff varies across countries
○ Four years for Scandinavian countries
○ Seven years for Mediterranean countries
○ Differences more due to cultural rather than economic factors
● The probability of takeoff of a new product in a target
country increases with prior takeoffs in other countries
CONFIDENTIAL
Having standards

The importance of having standards
● Standards typically emerge towards the
end of the Growth stage (Tornado)
● How does a standard emerge?
○ Formal Standard
○ De Facto Standard
○ Role of network effects
■ Direct network effects
■ Indirect network effects
● Economic Impact of standards
○ Technologies with network effects
○ Consumer adoption
○ Competition and Co-opetition
● Pros/Cons of standards
○ Value to consumers
○ Value to complementors
○ Value to incumbents
○ Value to innovators
○ Opens lines to competitors,
○ Loss of control
It’s as simple as Greek Yogurt

Wireless standards
Wireless charging
Clothing standards
The importance of having standards
● First introduced as “Palm Touchstone” in 2009
in the Palm Pre
● Wireless Power Consortium (WPC) [250+
members in 2017]
○ Formed in 2008, specs developed in 2009
○ Standard: Qi
○ Technology: Induction Charging
○ Players: Apple, LG Electronics, Energizer, Nokia,
Motorola, HTC, Sony
● Power Matters Alliance (PMA) [68 members by
April 2015]
○ Announced in 2012
○ Standard: PMA
○ Technology: Induction charging
○ Players: Duracell Powermat, Google, AT&T, Starbucks,

McDonald’s
● Alliance for Wireless Power (A4WP) [122
members by April 2015]
○ Announced in 2012
○ Standard: Rezence
○ Technology: Magnetic Resonance
○ Players: Samsung, Qualcomm, Intel, Broadcomm
● PMA and A4MP announce merger wef June 1,
2015
Effects to consider with standards
● Objective is to manage value of standard
○ Value of standard to owner
○ Total value added to industry
○ Share of industry
○ Value is impacted by breadth of standard
○ Open
○ Closed
● Open standard
○ Discontinuity
○ Open migration
● Control (closed) standard
○ Controlled Migration
○ Performance Play

Open standards
● Creating an open standard
○ Formal standard setting (formal standard)
○ Building an alliance (de-facto standard)
● Formal standard
○ Set by committee
○ Challenges
● De-facto standard
○ Via alliances
○ Challenges
● Other issues with open standards
○ Who protects standard and manages evolution going
forward?
○ Potential for defection and/or hi-jacking of standard
Closed Standards
● Types of standards wars
○ Rival evolutions
○ Evolution versus Revolution
○ Rival Revolutions
● Outcomes of these standards wars
○ Truce

○ Duopoly
○ Fight-to-the-death
● Sources of competitive advantage
○ Installed base
○ Intellectual property rights protection
○ Innovation ability
○ Brand strength
○ Strong complementors
As growth phases come to an end
● New product categories reach growth stage
a considerable time after launch
○ Growth stage focus is mass adoption, hence managing
infrastructure is critical
○ Typically standard emerges at end of stage
● Qualitative factors that can help identify
products that will move to growth stage
○ Relative Advantage, Compatibility, Complexity,
Trialability, Observability
○ Strategy for growth stage can be developed using
learning from takeoff analysis
● Time to takeoff
○ Time to takeoff variation across categories and markets
○ Role of marketing in inducing takeoff

● Tradeoffs in standard development and
setting
○ Open versus closed
○ Market size versus market share
○ Go it alone or collaborate
Wars over standards
CONFIDENTIAL
Dipping your toes into the market
First to Market
● Data from 500 brands in 50 consumer product categories
○ Mean market share of pioneers is 10%, much lower than the
30%
previously reported
● Half this difference comes from sampling both survivors and
non-survivors
○ The rest is due to identification of pioneers using hi storical
data

○ 47% of market pioneers fail
○ 11% of pioneers are current market share leaders
○ Results not sensitive to the age of the categories.
● Pioneers tend to be share leaders for about 10-15 years.
○ Rewards to pioneering are greater in nondurable goods
● Early market leaders (usually enter market after pioneer)
○ Have a higher share (3x of pioneer)
○ Enjoy a higher success rate than pioneers
○ End up as market leaders more frequently than pioneers
● In tech Results are consistent
○ 13% of pioneers are current market leaders
■ Mean market share of pioneers is 9%
The real advantage
● Being a pioneer is neither a necessary
nor a sufficient condition for long term
success and leadership
● Entering after the pioneer seems to
carry bigger rewards
● Early leaders (as opposed to pioneers)
seem to succeed because they have
○ A vision of the mass market
○ Managerial persistence
○ Financial commitment

○ Continuous and relentless innovation
○ Asset leverage (for category extensions)
Roadmap
Framework Mapping the Customer Journey
Source: UX Collective
Sample maps
Source: Wondershare Edraw
https://www.youtube.com/watch?v=xNH7hKn0V8M
Tornado your customer’s expectations
● Meet Points of Parity
● Understand segments
● Position for segments
● Be ready to deliver
○ MVP
○ Pass the chasm
○ Mass market product ready for takeoff
○ Ride the tornado

CONFIDENTIAL
Pricing
Pricing is a art & science… certainly not lazy
● Comparison is an option
○ Category norms
● Think deeper
● Understand price signals
● Value
○ Points of Parity
○ Increase WTP through brand
● Segment expectations
CONFIDENTIAL
Price elasticity
Deriving the numbers

Testing: Price surveys
Split tests (aka A/B tests)
Conjoint analysis
Price discrimination: Let’s talk degrees
Degrees of price discrimination
First degree
First-degree price discrimination, alternatively known as perfect
price discrimination, occurs
when a firm charges a different price for every unit consumed.
The firm is able to charge the maximum possible price for each
unit which enables the firm to
capture all available consumer surplus for itself. In practice,
first-degree discrimination is rare.
Second degree
Second-degree price discrimination means charging a different
price for different quantities,
such as quantity discounts for bulk purchases.
Third degree
Third-degree price discrimination means charging a different
price to different consumer

groups. For example, rail and tube travellers can be subdivided
into commuter and casual
travellers, and cinema goers can be subdivide into adults and
children. Splitting the market into
peak and off peak use is very common and occurs with gas,
electricity, and telephone supply, as
well as gym membership and parking charges. Third-degree
discrimination is the commonest
type.
Source: EconHub
CONFIDENTIAL
Forecasting
Revisit Product Lifecycle
Estimate time to market
Build a model
● Generate Awareness
● Estimate distribution
● Calculate trial appeal
● Calculate repeat purchase potential
● Estimate pricing & transaction size
● Estimate impact of promotions & discounts (aka sweetners)

Measure audience
Benchmark future sales
BASES Computation Example
● Nielsen system (developed by Booz Allen)
Option: Consultancy Pros & Cons

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