Super Widget: Where Are We?

1. Super Widget: Where Are We? • Technological Assessment • Widget: product well regarded, albeit still using Gen. I technology • Dingus: cordless dingus was a hit at Widget Expo 2007; quality issues • Thingy: recent entrant lacks technical sophistication & distribution • Goober: introduced Super Global Goober in 2006; $50MM in 1st year sales 25% Summary: The widget category is large and mature; Widget Corp., #3 in the market with a 25 share, has traditionally sold through inde- pendent distribution. The market, however, is shifting toward broad distribution esp. big box stores. Although the Global Widget, introduced in 2004, has been a success, Goober Corporation’s Super Global Goober possesses several technical Advantages and has a strong foothold in Europe. Widget Corp. must respond to the shifts in distribution and technology, as well as gaps in its product line.

2. Customer Input • VOC summary • Test market data • etc. • Volume Estimate • 5 year volume estimate • by channel • Cannibalization • Other issues & factors • Financial Return • Key Assumptions • NPV • Payback • ROI • Detailed analysis in Appen- • dix or otherwise available • Basic Issues • Can the company launch its Gen II product within the next 18 months? • The firm needs to expand its online and big box distribution – with differentiated product • The company needs to address the significant gaps in its product line • We must cost reduce our global product line • Strategy Statement • Launch our Gen II product with versions for both traditional distribution as well as online and big box retailer sales • Position the product against Dingus and Goober, focusing on their products’ limitations • Support the product launch with a focused advertising and PR campaign • Gen II Product Development Summary • Highly innovative design • Sturdy metal construction • Cost est. $ .0000002 • @ xxxK annual volumes • etc. • Product Cost & Investment • sdhlkhflhfljdhlkjdhfereirirepofdnkj • ewueiuoefeniejpoen • jkdsekjvcnealdeoenee[ • dnvefyekdojdjdidjfrnyewkdo Super Widget: Where Are We Going? Summary: Widget Corp. must act decisively in the short to mid term to address significant issues with regard to it product line and distribution. R&D has identified a new product concept which has tested well in six markets and which will provide a very attractive return on investment. Shortcomings in the Dingus and Goober product lines afford Widget and excellent opportunity to reposition those firms’ aging product lines while establishing a differentiated position for the “Super Widget.” Moreover, the product will fill two critical gaps in the company’s line up.

3. Objectives • Launch the Super Widget online and through mass retailers simultaneously, utilizing differentiated versions • Price our product 5% lower than similar products from Goober and Dingus; payback is projected at 14 months • Target a 20 share of the online widget market by year 5 • Utilize heavy television and online advertising in support of the launch • Launch Plan • Target Market: • Positioning: • Product Line Summary: • SKUs • Pricing • Distribution: • Advertising Plan: • Promotion: • Sales Incentives: Anticipated Competitive Response Goober: Thingy: Dingus: Our counter-response: Timeline • Next Steps • kfdf;eieefefeijipeifp • hddfdjfdjhdfhdfjd Super Widget: How Are We Going To Get There? Summary: Widget Corp. will launch its next generation product, code named “Super Widget,” in Q2 of 2009. The product of 24 months’ research and development and an extensive field test, Super Widget will be positioned against the Dingus Predator and Goober Maximizer lines. Our launch plan is three pronged – online advertising, traditional trade advertising, and in-store demos at select retailers. We’ll monitor our launch carefully, with monthly senior management updates. We are well prepared for compeitive price adjustments or marketing initiatives.