th stop the company's market share slide, and stimulate market share growth.
The problem with the company's development of Slamix, however, is that Slamix has not been developed as a product which will attack the competitor's products; it will draw many of its customers from DFI's Slasaus consumers. Thus, there is a real chance that the introduction of Slamix will not have any significant positive effect on DFI's market share. Slamix may simply replace Slasaus in the purchases of some members of DFI's target market.
A second problem with DFI's approach to its market share problem is that is has not bothered to find out why Slasaus is slipping. DFI tried a new product introduction with Delfine, which was not well received by consumers. While the market testing causes the prospects for Slamix to appear brighter than those for Delfine, it is quite possible that DFI is simply not taking the correct approach.
Before a new product is developed and introduced, it would be well to know if (1) Slasaus is simply retaining its existing followers, without gaining wider acceptance in a growing market, or (2) Slasaus is also losing some its long-time buyers. In either instance, some improvement in the either the Slasaus product characteristics, or in the marketing of Slasaus might prove to be a more effective strategy for DFI in countering it market share problems than would a strategy of new product introductions. As it stands, however, DFI does not have the required information to know.
The principal issue in this case for the product manager involves the development of an effective marketing strategy for the introduction of a new productùSlamix, an enhanced salad dressing product. Crucial elements to be determined for the marketing strategy for this new product are positioning, pricing, and promotionùall elements of the marketing mix for the product. Market segmentation issues and other aspects of a product strategyùsuch as...