Nabisco Snack Well Case Essay

881 words - 4 pages

Nabisco Snack Well Case

As of 1993 Nabisco put intense emphasis on new products and had 30 percent of sales from them. In the previous five years they had had five $100 million products. They stressed that the following story of SnackWell’s (first year sales of almost $200 million) was typical of their firm, but the process might not be for other firms because all innovators are not alike. Nabisco’s way was the result of an overhaul made when they realised that they were suffering the ‘silo’ problem and others. People were not talking to each other. In their new process, they sought new segments, not confined to foods, and not confined to traditional food channels.. For example, one ...view middle of the document...

They encouraged blue sky ideation, they provided a ‘skunkworks’ environment by allowing time off to further personal concepts, staffers could present their ideas to management at annual May Fairs, and they ran brainstorming sessions where development people were joined by marketing, finance, operations, and R&D.

New product concepts that looked good (as SnackWell’s did) were given a feasibility check (could they retool for it, did it interfere with production, etc.). Then it went into quantitative testing – first screened against the firm’s market research database to see if the numbers generally looked OK (that trend issue), and then into simulated test marketing (STM) with volumetric financial scenarios. The STMs sought consumers’ reactions to the concept and used sales waves of actual product so that they could get consumers’ reactions to the taste-and measure-reuse. At this point, if consumers liked it, they were ready to reconfirm the company’s ability to produce and market such a product.

Next came the marketing phase and technical development phase. Marketing tastes included branding. They wanted a direct, memorable name that communicated something positive about the product. In this case, the apostrophe in SnackWell’s communicated a home-made sound – like Grandma’s. Television commercials were developed for social settings where the key points were stressed – here were cookies that had no fat (or very low fat) but yet tasted great and were ‘better for you’. The settings were also full of fun. Later a different campaign was built around the shortage of product (with factory people running to hide from customers) showing how what happens after launch can change plans. In this...

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