Chapter 8: Concept Test of a New Product The responsibility of developing new products at Famoso Inc. lies at the corporate level. However, since Famoso's philosophy is to integrate franchisees and make them feel like partners, the company motivates stores to bring new ideas to the company. As part of the innovation strategy, every franchise owner and management team goes to Naples for a 10-day trip (to visit a winery, taste Italian mozzarella, and experience Italian culture). Franchisees learn to be passionate about food, which is critical for the success of Famoso. In terms of product development, Famoso has hired a new chef who is experimenting with flavours and dishes. Two new menus are launched in a given year. The first is launched in April/May and focuses on spring/summer flavours, with special attention on the freshness of the dish. The second is launched in September/October, and emphasizes fall/winter flavours, richer items, and soups. A key aspect of developing a new product is the accessibility, and the use of great ingredients. In order to engage consumers in this innovation process and co-create new products, Famoso launched the "Famoso Next Top Chef." Famoso asked customers to submit recipes they would like to see on Famoso's menu. Every month Famoso looked through the recipes and saw trends and creations that inspired the company in its new menu choices. The company has discontinued this program. They believe that this was a neat way to get ideas from guests early on, but now they have a more complex food development program and promotional calendar.

Questions

1. The degree of newness of a new product can be on a continuum ranging from "slightly repositioned" to "new-to-the-world". Where would you put Famoso's innovations on this continuum? Why?

2. If you were Famoso's marketing manager, how would you generate ideas for a new pizza? In your answer, please refer to the idea sources mentioned in the textbook.

3. Now you have decided to turn one product idea into a new product. How would you go about market testing the new product?

4. Generate three ideas for a new pizza at Famoso.