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Article
Publication date: 28 May 2019

Jake David Hoskins and Abbie Griffin

This paper aims to investigate how the current size and structure of a branded product portfolio impacts new product performance for fast-moving consumer goods (FMCG), testing the…

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Abstract

Purpose

This paper aims to investigate how the current size and structure of a branded product portfolio impacts new product performance for fast-moving consumer goods (FMCG), testing the long-standing proposition that extending a firm’s brand and product portfolio too far is a dangerous proposition that may damage the market performance of the firm’s new product launches.

Design/methodology/approach

Aspects associated with brand size and structure that may impact new product performance are operationalized along two key dimensions: within-category (scale) and cross-category (scope). The impact of the brand’s scale and scope on the sales performance of newly commercialized products by the brand is empirically investigated in the context of FMCG. Over 2,000 new products launched in 2009 and 2010 across 31 food and non-food FMCG product categories in the USA are included in the regression-based analysis.

Findings

The authors find strong evidence that brands with broader within-category scale and cross-category scope overall are associated with more successful new product introductions, and that these influences generally are driven more by increased product trial than by repeat or persistence. The authors argue that the higher new product performance observed for more established and proliferated brands may be attributed to advantages of firm product development abilities and product acceptance by the marketplace.

Originality/value

The current results serve to temper the strong cautions set forth in much of the marketing literature about the dangers of overextending the firm’s brand and product portfolio. These results also suggest that future research should be conducted to further understand more nuanced implications of how best to grow the scale and scope of the firm’s brand and product portfolio.

Article
Publication date: 6 December 2022

Jake David Hoskins and Abbie Griffin

This research paper aims to investigate detailed relationships between market selection and product positioning decisions and their associated short- and long-term product…

Abstract

Purpose

This research paper aims to investigate detailed relationships between market selection and product positioning decisions and their associated short- and long-term product performance outcomes in the context of the music category: a cultural goods industry with high amounts of product introductions. Market selection decisions are defined by the size, competitiveness and age of market subcategories within an overall product category. Positioning decisions include where a product’s attributes are located spatially in the category (periphery versus the market center), whether a product resides within a single subcategory or spans multiple ones and what brand strategy (single versus co-branding) is used.

Design/methodology/approach

Data are from multiple sources for the US music industry (aka product category) from 1958 to 2019 to empirically test the hypotheses: genres (rock, blues, etc.) correspond to subcategories; artists to brands; and songs to products. Regression analyses are used.

Findings

A complex set of nuanced results are generated and reported, finding that key marketing decisions drive short-term new product success differently and frequently in opposing ways than long-term success. Launching into very new, well-established or very competitive markets leads to the strongest long-term success, despite less attractive short-run prospects. Positioning a product away from the market center and spanning subcategories similarly poses short-run challenges, but long-run returns. Brand collaborations have reverse effects. Short-run product success is found, overall, to be difficult to predict even with strong data inputs, which has substantial implications for how firms should manage portfolios of products in cultural goods industries. Long-run product success is considerably more predictable after short-run success is observed and accounted for.

Originality/value

While managers and firms in cultural goods industries have long relied on intuition to manage market selection and product positioning decisions, this research tests the hypothesis that objective data inputs and empirical modeling can better predict short- and long-run success of launched products. Specific insights on which song characteristics may be associated with success are found – as are more generalizable, industry-level results. In addition, by distinguishing between short- and long-run success, a more complete picture on how key decisions holistically affect product performance emerges. Many market selection and product positioning decisions have differential impacts across these two frames of reference.

Details

Journal of Product & Brand Management, vol. 32 no. 4
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 18 September 2020

Jake Hoskins, J. Cameron Verhaal and Abbie Griffin

This paper aims to move beyond previous investigations juxtaposing the performance of global versus domestic brands, where domestic is referred to as “localness” in the…

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Abstract

Purpose

This paper aims to move beyond previous investigations juxtaposing the performance of global versus domestic brands, where domestic is referred to as “localness” in the literature, conceptualizing and developing two measures of “within-country brand or product localness.” In doing so, it uses objective localness measures, rather than consumer perceptions of brand localness, as have been primarily used previously. Then, by leveraging established theory on brand authenticity and corollary literatures on brand identity and country-of-origin effects, this research develops and empirically tests key hypotheses about how these within-country, more geographically local products or brands (referred to as simply “localness” hereafter, for brevity), influence sales outcomes through increasing perceptions of brand and product authenticity.

Design/methodology/approach

Two empirical studies using different archival data sets are conducted to test the hypotheses. Study 1 focuses on new product sales from 2002 to 2011 for 31 categories of consumer packaged goods US product launches initiated in 2002–2005, whereas Study 2 investigates online consumer review and retail sales data in the US craft beer industry from 2001 to 2011. Localness is operationalized as two different objective measures: in Study 1, local distribution is measured, and in Study 2, firm headquarters denotes the geographic bounds of localness. These two measures are motivated by prior consumer perceptual studies of Locavores (consumers who strongly prefer local products), which identify that local systems of production and/or distribution are the key signals of localness. Using two measures allows the localness construct to be tested for the potential firm-side boundaries of its scope and provides two empirical measures that future researchers can leverage.

Findings

Brand (or product) localness gives performance advantages over national brands in the form of increased sales across both studies. The second study, focused on craft beer, dives more deeply into the theoretical mechanism (localness operates through increased perceptions of brand authenticity) and shows that while brand authenticity directly translates into higher sales, as anticipated, localness fully mediates this relationship. When coupled with supporting marketing tactics (high price and/or product variety), the link between localness and brand authenticity grows stronger. Local brands with low prices and/or limited product variety are deemed inauthentic by consumers, so it is important for brand managers to use marketing tactics that reinforce brand authenticity to support localness as a strategy.

Research limitations/implications

Future research could extend this inquiry in a number of ways. These include combining both empirical measures of localness into a single empirical inquiry, investigating additional product categories and further integrating aspects of strategy such as market positioning and innovation strategy. Newer data could also reveal how these phenomena are continuing to evolve.

Practical implications

Based on this study, managers can benefit by leveraging localness as a key brand or product attribute to achieve a sales advantage, but they must do so by using marketing tactics consistent with an authentic brand positioning. Efforts to expand a brand’s geographic reach over time should likely be conducted very locally at first, before extending to regional markets and then to a global footprint. It is also posited that retail store managers can benefit from allocating some shelf space to local brand and product offerings.

Originality/value

This paper conceptualizes and measures localness in new ways compared to the previous literatures. It develops objective measures of within-country localness instead of using consumer perceptions of localness and/or considering domestic brands as being “local” compared to global brands; builds key linkages between concepts of localness, authenticity and sales performance; and uncovers when and how within-country localness is a key brand or product attribute associated with increased sales success.

Article
Publication date: 1 July 2020

Jake David Hoskins and Abbie Griffin

This study aims to focus on the role of niche brands in online retailer assortments and the general market positions of niche brands, no prior study has explicitly focused on if…

Abstract

Purpose

This study aims to focus on the role of niche brands in online retailer assortments and the general market positions of niche brands, no prior study has explicitly focused on if and when brick-and-mortar retailers should include niche brands in their category assortments.

Design/methodology/approach

The authors empirically analyze the category performance implications of focusing assortments on niche brands, at the expense of mainstream brands, in two product categories that have significant niche brand presence, namely, coffee and beer. The empirical data include sales, distribution and marketing tactical information for 50 US geographic markets from 2001–2011.

Findings

This research finds that a mainstream brand focus has a generally positive impact on category performance. However, a store’s strategic shift toward niche brands is beneficial in certain cases such as when a store has higher average prices or product form variety or when they are part of a powerful chain. The authors also find that a niche brand focus strategy is becoming increasingly viable over time for brick-and-mortar retailers.

Originality/value

Little is known about the parameters that might make a brick-and-mortar retailer more or less likely to pursue a niche brand focus strategy and when doing so might improve category performance. This analysis helps clarify the conditions under which a brick-and-mortar retailer may experience category level sales increases from focusing assortments on niche brands.

Article
Publication date: 2 February 2010

Debra Zahay and Abbie Griffin

This research aims to investigate the relationship between customer‐based performance measures (marketing measures of firm success) and business growth performance (strategy…

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Abstract

Purpose

This research aims to investigate the relationship between customer‐based performance measures (marketing measures of firm success) and business growth performance (strategy measures of firm success), in the context of strategic marketing positioning decisions and suggests customer‐based metrics may play a key role in measuring overall business achievements.

Design/methodology/approach

This is an empirical survey of 209 business‐to‐business services firms.

Findings

Customer‐based performance (marketing measures) is associated with the choice of generic positioning and segmentation strategies, while strategic positioning choice (i.e. low‐cost vs differentiation) is indirectly, rather than directly, associated with business growth performance. The “both” strategy, where firms simultaneously pursue both low‐cost and differentiated strategies, leads to improved performance in these B2B services firms.

Research limitations/implications

The study potentially has industry‐ and/or service‐specific limitations.

Practical implications

This research suggests that firms that cannot measure performance at the customer level may be failing to understand the outcomes of successful marketing programs and decisions. In addition, this research suggests that both operational efficiency and differentiation are keys to growth in B2B services.

Originality/value

This study reinforces the continued applicability of Porter's generic positioning and segmentation strategies for B2B services but suggests that performance differences between strategies in this context are best captured using a customer‐based measure (share of wallet, lifetime value, retention rate and return on marketing investment) rather than a more general business growth measure.

Details

Journal of Business & Industrial Marketing, vol. 25 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 21 June 2018

Nelson A. Andrade-Valbuena and Jose M. Merigo

New product development (NPD) is a noteworthy field that has attracted the attention of scholars for its relevance for firm success. Based on bibliometric indicators and spatial…

Abstract

Purpose

New product development (NPD) is a noteworthy field that has attracted the attention of scholars for its relevance for firm success. Based on bibliometric indicators and spatial distance network analysis, the authors outline the general structure overview of NPD research through the last 40 years of scientific production; identify and categorize key articles, authors, journals, institutions, and countries related to NPD research; identify and map the research subareas that have mostly contributed to the construction of NPD intellectual structure. The paper aims to discuss these issues.

Design/methodology/approach

The work uses the Web of Science Core Collection and the visualization of similarities viewer software. The analysis searches for all the documents connected to NPD available in the database. The graphical visualization maps the bibliographic data in terms of bibliographic coupling and co-citation.

Findings

The general NPD citation pattern evidences a construction of knowledge and learning, as evidenced in different subjects, such as biology or physics. Relevant contributions and contributors are highlighted as journals, articles, researchers, countries and institutions in overall NPD research and in its constituent subfields. Five subareas related to the NPD field based on journals and authors network are identified: marketing; operations and production; strategy; industrial engineering and operations; and management.

Originality/value

This paper contributes to the NPD literature by offering a global perspective on the field by using bibliometric data graphical networks, providing insights about the influence of individual actors and its contributions to build bridges between the different subfields of research in NPD.

Details

Journal of Strategy and Management, vol. 11 no. 3
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 1 March 2001

Shwu‐Ing Wu

States that the level of consumer involvement in a product category is a major variable relevant to advertising strategy. Suggests product category is often segmented by the level…

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Abstract

States that the level of consumer involvement in a product category is a major variable relevant to advertising strategy. Suggests product category is often segmented by the level of consumer involvement; however, consumers are rarely segmented. Points out that different involvement clusters have different responses to advertising effectiveness for the same product. Presents a case study segmenting a market using the consumer involvement degree, exploring the characteristics in order to determine the relationship between advertising effectiveness and the level of consumer involvement. Shows results suggesting that a high degree of consumer involvement directed a high advertising effect and is therefore an important indication for advertising strategy.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 13 no. 1
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 1 December 2001

Shwu‐Ing Wu

Uses benefit needs to segment the online marketing market. Employs focus groups and a random sampling survey to search for consumer benefit needs and then segments the market by…

3722

Abstract

Uses benefit needs to segment the online marketing market. Employs focus groups and a random sampling survey to search for consumer benefit needs and then segments the market by these benefits sought by customers. Shows that the various segments display significant differences in the benefits sought, lifestyles and demographics etc. Suggests that this work can assist marketing managers to focus on one or more segments that show salient consumer preferences for the benefits provided by their products or services.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 13 no. 4
Type: Research Article
ISSN: 1355-5855

Keywords

Content available
Article
Publication date: 5 October 2015

Minna Rollins and Brian Rutherford

231

Abstract

Details

Journal of Business & Industrial Marketing, vol. 30 no. 8
Type: Research Article
ISSN: 0885-8624

Article
Publication date: 18 December 2007

Shiaw‐Wen Tien, Yi‐Chan Chung, Chih‐Hung Tsai and Chung‐Yun Dong

In the competitive global market, firms have to keep profit from innovation activities. A firm makes profits by offering products or services at a lower cost than its competitors…

Abstract

In the competitive global market, firms have to keep profit from innovation activities. A firm makes profits by offering products or services at a lower cost than its competitors or by offering differentiated products at premium prices that more than compensate for the extra cost of differentiation. The IC Package and Testing technology industries were the first high technological industry to build in Taiwan. The Package and Testing industries in Taiwan adopted competitive innovation activities to become stronger. In our study, we want to know how innovation activities influence a firm operating in the IC Package and Testing industries. Our study used a questionnaire and Likert five‐point scale to survey the innovation activities, customer and feedback in innovation performance in the IC Package and Testing industry. The wafer level chip size packing technology in our study indicates the innovation activities. Because we need to compare the difference between the wafer level chip size packing technology and wire bonding technology to recognize innovation and how the innovator and customer were influenced. Our conclusions are described below: (1) When the innovator adopts innovation activities that can be maintained using experiments and knowledge, using machine and decision variables more quickly will produce success; (2) Innovators should adopt innovation activities that focus on customers that use knowledge and experimentation, training time and cost. If an innovation forces customers to spend much time and cost to learn new technology or applications, the innovation will not be adopted; (3) Innovators that create innovation performance higher than his customers must also consider the impact upon their customers. We have to remind innovator to focus on why their customers have a different level of evolution in the same innovation activities.

Details

Asian Journal on Quality, vol. 8 no. 3
Type: Research Article
ISSN: 1598-2688

Keywords

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