Concept explainers
Case summary:
S set his mind to innovate a new model of vegetable peeler design which is more user-friendly than the traditional one and the design was made by the Company S. The product is an overall user for kitchen activities and names as OXO because of its symmetry. Even though the vegetable peeler is a simple product but the function to perform with that is not simple. The Company uses soft material for the handle with a material called Santoprene. The product demand gets very high because of its design. The design introduced by OXO is very comfortable to use for everyone and it works better than the traditional one. The OXO and Company S designed the product on the basis of clear cut insight of product generated by interviewing thousands of consumers and hundreds of homes. Most of the stores are selling OXO it is easily identifiable due to the bold and clear black, white and repackaging for the good grips line is almost as iconic as the products themselves.
Since the product was high compared to other similar products because of more components and materials than the traditional one. However, F was confident that the people would pay more for tools that work better and more efficiently and the Company adopted the value-based pricing strategy and it’s become a successful one. The product mix is developed to 1000 kinds of products from 15. Now it has all kinds of products needed for a kitchen. The brand extension also takes place with OXO steels, OXO strives, OXO On and OXO Tot. the
To discuss: The brand extension period of OXO to make the everyday task easier and whether it considers smartphone, for instance since the smartphone is an important everyday tool, w3hedther expansion into this product category makes sense and justify it.
Explanation of Solution
The smartphones are a highly important and vital tool for the day-to-day activities but it is not suitable or appropriate for the OXO product line because OXO emphasizes on the kitchen tools and smartphone cannot be useful for making kitchen activities more easy and convenient.
The partnership of OXO and Company S is created with an ultimate motive to increase the degree of easiness of kitchen activities by designing innovative and user-friendly kitchen products. OXO’s brand extension was taken place with the following:
- OXO steels
- OXO strives
- OXO On
- OXO TOT
Therefore, the product expansion of OXO cannot able to meet with the production of smartphones because it is entirely distinct from its existing product line and smartphone is a technology-based industry whereas OXO concentrates more innovation user-friendly kitchen tools.
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Chapter 13 Solutions
EBK BUSINESS IN ACTION
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