Developing ‘Savory Rosti-crips’ at Dreddo Dan’s

Case Study: Developing ‘Savory Rosti-crips’ at Dreddo Dan’s

Naveen Kumar Gade

University of the Cumberlands

Abstract

The case describes a ‘go-to-market’ strategy for a product that has to be launched in a very unpredictable as well as an uncertain market. There is also a huge potential for competitors to innovate such a product once it is out in the market. Therefore, the team has to invest in development so that they can have an edge over its competitors in regard to the extrusion method and packaging material.

Dealing with this product is new for the company and hence it has to be careful with the quality.

Case Study

How would you rank the innovation objectives for the project?

I would rank the innovation objectives for the project in the following order:

Development: The new extrusion method and packaging material is said to be difficult to beat by the competitors. It will increase the shelf life and also improve the product reliability.

This must have the maximum investment for a product with huge competitive risk.

Quality: The project team must make sure crisps are 200% safe. Hence, quality is of utmost importance which team will rely heavily on other divisions of PJT.

Launch: To get the maximum of the first entry advantage, the team must take least amount of time to launch the product once go-live date is decided. If there is any information leak in this process, it will be a huge loss to the company.

Flexibility: If any competitor launches a similar product after PJT’s product release, the project team must make sure they have sufficient flexibility to and a long-term strategy to retain the advantage gained by entering the market first.

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What are the key issues in resourcing this innovation process?

Manpower is the key issue the team currently has. They need more resources to support the innovation for a timely release. Another issue is lack of experience in microbiological testing and relying on other divisions for this is the only go. Existing baking line is inefficient for this innovation which can be a major issue. Finally, the team has no prior experience in outsourcing which can be a huge threat to the company as it poses high information leak possibility.

What are the main factors influencing the resourcing decisions?

Due to shortage of $5 million spread over next 20-month, budget is a main factor influencing resourcing decisions. Next, inexperience in outsourcing and making the company vulnerable to information leaks. With a quicker launch date, also comes the demand for extra manpower. These are all the factors influencing the resourcing decisions.

What advice would you give Monica?

Present to the management why an extra budget of $5m would solve all the existing issues. Keep in mind, for a product being launched in such an industry there is immediate ROI and the profit is realized within a year. Taking the extra budget of $5m is the most viable option. Also, outsourcing only research will save the company from great amount of risks and is also reduces cost.

Conclusion

This case study sheds light on various operational strategies for a successful product launch. Some key decisions the team has to take are mentioned as follows. How many people to employ in the development team for man powering the innovation. To outsource with other company’s technology risking information leak or to invest in a pilot plant with some extra cost. Most efficient way to organize the resources to develop the new project.