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TCP Issue ArchivePrevious IssueNext IssueAbout TCP

Volume 3, Issue 3
March 15, 2001

Contents

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ONE Genie In A Bottle?
TWO On the Web: ABB to XML - Acronym Soup
THREE Top Ten Shop Floor Tools or Professional Wrestling Holds
FOUR MRT News: Spring Event Updates
FIVE Calendar of Events
Please send any feedback about this newsletter and its content to gregg@roundtable.com

article-one:
Genie in a Bottle?

America is one stressed out country. We are, as a community, even more concerned with stress than our physical health. How do I know this? I have read the tea leaves, or rather, the bottles. What does this have to do with product development? Let me explain.

A few years ago, I began to notice a new product type emerging in the highly competitive bottled ice tea market. US residents consume over 500 million gallons of what is known as "ready to drink tea" in the beverage industry. Ever since the Snapple brand sumo’d its way in between the cola makers, the copycats popped up, such as Arizona Ice Teas and Nantucket Nectars, just as you knew they would. The ferocity between competitors has always seemed to focus on product variety, each player finding seemingly exhaustive uses for mango juice. The point is, these companies push out lots of "me too" product.

Back to about 3 years ago, in the beverage section at my local supermarket I saw a few shelves of new drinks, mostly teas, some juices, that featured healthful infusions of natural herbs such as ginseng or echinacea and even St. John’s Wort. This seemed a wise strategy for them to capitalize on the American consumer’s growing demand for alternative and "organic" health aids and miracle cures from Mother Nature.

I’m not sure which brand was first to market with these new health tonic-oriented beverages, I believe it was Snapple, but as seen with things like the PalmPilot and the IBM Thinkpad, it was a latecomer who figured out the market and really stole the show. I’m talking about Arizona Ice Tea’s RX brand, introduced within the last year, and a triumph in using package design to communicate their understanding of what customer’s wanted.

Here’s the interesting part:

AZRX’s line of teas set themselves apart in two ways – 1) outstanding package design and b) crystal clear product benefits. If you look at AZRX’s bottle designs, the health benefit of each tea formula was printed in large, standout type, whereas competitor’s bottles appear mysterious and therefore their benefits are confusing. Competitor’s bottles are labeled "lightning," "moon," and "passion," while AZ’s bottles are labeled "Health," "Energy," "Memory," and "Stress" while featuring the RX logo that clearly hints at healthcare.

Which bottle would you take off the shelf?

prod_zenblend.jpg (7001 bytes)
Sobe "Zen Blend"
rxstress.jpg (6648 bytes)
AZRX "Stress"
snapple-elements_moon.jpg (7558 bytes)
Snapple "Moon"
 

AZRX earned the prestigious grand prize award for package design at the 2000 London International Advertising Awards for the above bottle design

Intrigued by the packaging, I picked up one of each RX drink to try. They all tasted quite normal and as expected, except the Memory formula, which had a weird coconut milk texture. My favorites are "Stress" (a light tea) and "Energy" (an orange drink). Do they work? Well, a half bottle of Stress at night consistently makes me feel noticeably more drowsy, an effect most likely from the Kava Kava root ingredient, but I had a harder time noticing anything from the other beverages.

A few weeks after I began to see this product in the supermarket, a funny thing happened. I no longer saw the Stress formula. Not because it was pulled from shelves, but because they were sold out...every week…for two months. There were plenty of every other variety of the drink, Health, Energy, Memory, but no Stress. It was conspicuously absent.

In retail shopping, shelf space is equivalent to stature. The brands that bring in the most profit (or have the most influence) get their products placed at eye level. Therefore, the popularity of the Stress drink is even more impressive given its shelf location, all the way down at the bottom, typically the position of the loser or the cheap-o generic knockoff. Yet every week, there it is, row after row of full shelves and the same three-bottle-wide gap on the bottom shelf. The wall looks like a smile with a missing tooth. I’ve since witnessed the same phenomena in 2 other stores. It shows that people seek this product out.

Is this a leading indicator of the current psychological condition of this country? Can we draw connections from this consumer quirk to our struggling economy? Are the laid off dot-commers this thirsty? Or is the AZRX packaging just really, really good (it did win a prestigious grand prize for package design at the London International Advertising Awards – a sort of Oscar for that industry).

Whatever conclusions you draw for yourself from this example, the primary lessons are:

  1. You can overcome being late to market if you have the "right" product
  2. Man is a visual species, point of purchase packaging should communicate value
  3. Americans perceive themselves as stressed out
  4. Most markets restock inventory on Wednesday night, so Thursday is the best day to shop

Additional links:

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article-two:
From ABB to XML - Acronym Soup

Link: http://www.manufacturingnews.com/acronyms.html

Remember the comic movie Airplane? My favorite scene is when the woman who played Beaver Cleaver's mom interrupts a stewardess who is having trouble understanding two other passengers' slang. She steps in and says, "Excuse me, miss, but I speak 'jive.'" and then goes on to interpret.

When I'm at a conference or meeting, I often wish Mrs. Cleaver was there to help me out with the business "jive." I've gotten used to lots of industry-specific, technically-specific, system-specific terminology, lexicons, lingo, nomenclature, dialects, jargon, colloquialisms, vernacular, lingua franca and what have you, but nobody knows it all. While the meaning of most language can be deduced contextually, it's the cryptic acronyms and other abbreviations that can breed frustration.

Thankfully, the good folks at manufacturingnews.com have compiled a nifty acronym list for manufacturing terminology. Non-CMfgE certified professionals now have a resource where they can look up the meaning of over 600 different manufacturing-related acronyms. Many sites with lists like these do a relatively half-hearted effort, and typically lack the one term you were actually looking for. While I'm sure it's not perfect, this list is much more comprehensive than most you will find for free. As an example of both its thoroughness and incompleteness, I did find the TOC term FRT (future reality tree), but was disappointed it did not have the perhaps more mainstream DBR (drum buffer rope). However, they do accept suggestions via their ‘comments’ page.

The link above explains acronyms specific to manufacturing. For another good acronym resource, try the search-engine styled "Acronym Finder" at http://www.acronymfinder.com for any kind of TLA under the sun. But if you go there looking for DBR or FRT, you will still be SOL.

Know a website we should review? Send the url to gregg@roundtable.com

MRT Advocate Program

article-three:
Top Ten Shop Floor Tools or Professional Wrestling Holds
...from the MRT satellite office in Minneapolis, MN

10. Pile Driver

9.

5-Ton Punch Press

8.

Figure-4 Leg Lock
7. Standing Double Armbar
6. CNC Surface Grinder
5. Overhand Armlock
4. The Oriental Spike
3. Screw Driven Air Compressor
2. Step Over Toe Hold

...and the No. 1 shop floor tool or professional wrestling hold:

1. (Tie) 3-jaw Chuck Handscrew / Chicken Wing Hammerlock

Send me your Top Ten List suggestions - gregg@roundtable.com

TCP Top Ten List Archive


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article-four:
MRT News - Spring Event Updates

  • New Workshop: Best Practices for Market Segmentation
    We're pleased to announce a new public workshop on market segmentation. This one-day session is focused on new best practices for defining your most profitable market segments and aligning resources to create a pipeline of market leading products that match these opportunities. Led by Tony Ulwick of Strategyn, this workshop has three separate sessions scheduled through the spring.
    Download Brochure Download Brochure (BPMS.pdf - 128kb)

— * —

Upcoming MRT Events

  Product and Process Leadership Conference  Improving Cross-Functional Performance in Pharmaceutical Development  DAMA2

Best Practices for Market Segmentation

— * —

A D M I N I S T R I V I A

The Critical Path is a free monthly e-mail newsletter written by:

Gregg Tong
Management Roundtable, Inc.
92 Crescent Street, Waltham, MA 02453 USA
Tel: (781) 891-8080 Fax: (781) 398-1889
Gregg@roundtable.com

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