Knowing that the smart phone market is likely to remain highly competitive, Jane Melody wants you to look ahead at how Sonic can develop new products outside the smart phone market. Review the competitive situation and the market situation before you continue working on the Sonic marketing plan.
• List three new-product ideas that build on Sonic’s strengths and the needs of its various target segments.What criteria should Sonic use to screen these ideas?
• Develop the most promising idea into a product concept and explain how Sonic can test this concept.What particular dimensions must be tested?
• Assume that the most promising idea tests well. Now develop a marketing strategy for introducing it, including a description of the target market; the product positioning; the estimated sales, profit, and market share goals for the first year; your channel strategy; and the marketing budget you will recommend for this new product introduction. If possible, estimate Sonic’s costs and conduct a break-even analysis.
Document all the details of your new-product development ideas in the written marketing plan or use Marketing Plan Pro software.