3. NAPLCO (North American Phillips Lighting Corporation) wanted to put Norelco bulbs on supermarket shelves as a

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3. NAPLCO (North American Phillips Lighting Corporation) wanted to put Norelco bulbs on supermarket shelves as a third national brand (GE had 60 percent of the market and Westinghouse had 20 percent of the market). Lightbulb purchases had been slowly declining over the last five years. Lightbulbs were the grocer’s most profitable store item per linear foot of goods stocked. NAPLCO concluded that the strong Norelco name, proven capability at making quality lightbulbs, and profits for supermarkets would make this project very successful. After conducting consumer research, it created a new and clever gravity-fed display and novel transparent and protective package for the bulbs themselves. The display held 12 of the most popular lightbulb types. (Most supermarkets carried 50 types of lightbulbs, and double that number constituted a full line.) Norelco decided not to do any consumer advertising, but to rely more heavily on push money. It also decided to use a broker rather than hire its own sales force. After two and a half years, gross sales of Norelco’s bulbs were $1.1 million against a projected $7.5 million. Why do you think the project failed from an implementation standpoint?

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