184 CHAPTER 7 INTRODUCINGANDMANAGINGTHEPRODUCT
AccordingtoHersheysalesfigures,Hersheychocolatemilkisthenumber-onechocolatemilk
inthecountry.TheseresultsareindeedadmirableconsideringthegambleHersheytookwiththeir
chocolatemilk.ItwasthefirsttimeHersheyhadattemptedtosella premixedbeverageorpromote
a productnotunderitsdirectcontrol.Hersheyislicensingtheuseofitsnameonthechocolatemilk-
anotherbigfirstforthecompany.Hersheysellspowderedchocolatetolargedairies,whichmixthe
productwiththeirmilk,package it,andhandledistribution.Followingstrictstandards, Hersheyhas
selectedonlycertaindairiestobelicensedtousetheHersheychocolatepowderandlabeLEachdairy
mustfollowdetailedspecificationonmixing.Tomakesuretherearenoslip-ups,Hersheyhasprinted
a toll-freetelephonenumberforconsumersto calliftheyhavecomplaintsaboutthechocolatemilk.
ForHershey.thetasteofsuccessissweet.
Questions:
1.WhattypeofinnovationisHersheychocolatemilk?
2.HowwouldyoudescribetheproductdevelopmentprocessHersheyfollowed?
3.Describeanypotentialproblems.
References
- L.P.Bucklin,"RetailStrategyandtheClassificationofConsumer
Goods,"JounwlofMarketing,January 1963 , pp.53-54.
- RobertG. Cooper, 1992. "NewProductSuccessinIndustrialFirms,"
IndustrialMarketing Management,pp.2.15-223.
- LeonardL.Berry,"ServicesMarkctingIsDifferent,"BusinessMag-
azine,May-June1980,pp.19-28.
- BrianO'Reilly,1997."NewIdeas,NewProducts,"Fortune,March
3,1999,pp.61-64.
- JoelDean,ManagerialEconomics,EnglewoodCliffs,]"J:Prentice-
Hall,Inc., 1951,pp.411-412.
- RobertJ.Kelsey."TheProcessofInnovationandDiffusionofInno-
vation,"Journalo/Marketing,January1978,pp.14-19.
- PatrickOster,"TheErosionofBrandLoyalty,"BusinessWeek,July
19,1993,p.22.StephanieThompson, "BrandBuddies,"Brandweek,
February23,1998.pp.22-30.
8. DavidA.AakerandJ.GaryShansby,"PositioningYourProduct,"
BusinessHorizons,.Vlay-June1982,pp. 56 - 62.
9. RobertG.CooperandElkoJ.Kleinschmidt,NewProduct:TheKey
FactorstoSuccess,Cllicago:AmericanMarketingAssociation, 1990.
10.ThomasRobertson,"TheProcessofInnovationandDiffusionof
Innovation,"JournalofMarketing,January 1967 ,pp.14-19.
II.EberhardScheming,NewProductManagement,Hinsdale,IL:The
DrydenPress,1974.
12.PamWeise,"GettingHotNewideasfromCustomers,"Fortune,May
19,1992,pp. 86 - 87.
13. AbbieGriffin," PDMAResearchonNewProductDevelopmentPrac-
tices:UpdatingTrendsandBenchmarkingBest Practices,"Journal
ofProductInnovationManagement,Vol. ]4, November1997,
pp.429-458.
