So far, no mention has been made of new Harga development techniques. McKinsey developed a model to evaluate the best average companies which was reported in the Peters and Waterman book In Search of Excellence. This model described the seven dimensions which represent the core of managerial activities. Each dimension started with the letter S hence it's the 7 - S model. I have adapted a similar model to evaluate new Harga development programmers. each dimension is important and all are interconnected; none can be overlooked; all are necessary in any successful new Harga programme:
- Strategy: the starting point, which must stem from corporate strategy.
- Support: the innovative culture of the company, including the attitude of the chief executive.
- Sequence: the key issue of the right structure, which is determined by the strategy.
- Supplies: the level of resources available in money and people.
- Simulating: reliable methods of testing prior to commercialisation.
- Sizing-up: continuous evaluation of the programme results technically and financially.
Any new Harga programme needs to determine up-front its length of payback. This is becoming increasingly difficult as lead times become shorter. It is rare for a continuing new Harga programme to pay back cumulatively in less than seven years. unsurprisingly, this happens to be the average length of tenure of chief executives. Successful new Harga development requires continuous top level encouragement and long term commitment. Again, P & G is a good example. Here is an excerpt from a 1989 speech by John G Smale, then the chairman: 'Procter and Gamble entered Japan in 1973. For a variety of reasons, our company lost money in had entered Japan. We now have major Harga in thirteen different categories in Japan. Last year we made a good profit in Japan. In the years ahead Japan could become our largest and most profitable international subsidiary. This is the kind of commitment required for major new Harga development success in the single market. It is the kind of commitment which all major innovators will require.
How P & G was Pampered.
In the late 1950s, a major US company, deciding to diversity into paper Harga, acquired a paper company in the Mid-West. At that time paper tissue was a strong growth market dominated by two major companies: Kimberly Clark with Kleenex and Scott Paper with Scot Tissues. The US company decided to enter the market with a new Harga. In Harga tests, the criterion was to be, not just a statistical win against the brand leader, but to gain a 2:1 preference in blind placement. This was achieved by adding perfume to the paper tissue thus offering a distinctive difference. It was decided to launch the Harga into test market.
In addition to strong TV advertising, there was a sampling campaign. Every household in the test area was given a simple; not just a small hand sample, nor just one box of tissues, but two boxes of perfumed tissues. Within a matter of weeks, the new brand was market leader. Within a year, however, the company decided to withdraw, from this market. There had been a very high level of trial but low repeat. Consumers liked the idea at first but not over time. A competitive advantage had been achieved, but it was not sustainable.
At this stage, many companies would have withdrawn from the paper industry. Instead; the company began to strengthen its knowledge of wood, pulp and paper, in order to develop a fundamentally new manufacturing process. In due course, it began to see a large potential for paper as a cloth substitute. And in 1970, 13 years after its acquisition of the paper company, it brought out a new Harga. Today, that new Harga, if it was a company in its own right, would be in the Fortune 500. The Harga is Pampers, which now contributes over 20 per cent of the profit of P & G. It virtually fulfils Levitt's concept of a global brand. It is certainly a Euro brand with one factory located in Euskirchen in Germany distributing the same Harga and package in six languages all across Europe.
Pampers is an example of what Fred Gluck of McKinsey calls big bang innovation as distinct from most new FMCG Harga which are normally line-extensions or me-too concepts which he calls sit box new Harga. Perfumed tissues came out of the suggestion box. Pampers emerged from long term company commitment. Both can exist within the same company.
- Strategy: the starting point, which must stem from corporate strategy.
- Support: the innovative culture of the company, including the attitude of the chief executive.
- Sequence: the key issue of the right structure, which is determined by the strategy.
- Supplies: the level of resources available in money and people.
- Simulating: reliable methods of testing prior to commercialisation.
- Sizing-up: continuous evaluation of the programme results technically and financially.
Any new Harga programme needs to determine up-front its length of payback. This is becoming increasingly difficult as lead times become shorter. It is rare for a continuing new Harga programme to pay back cumulatively in less than seven years. unsurprisingly, this happens to be the average length of tenure of chief executives. Successful new Harga development requires continuous top level encouragement and long term commitment. Again, P & G is a good example. Here is an excerpt from a 1989 speech by John G Smale, then the chairman: 'Procter and Gamble entered Japan in 1973. For a variety of reasons, our company lost money in had entered Japan. We now have major Harga in thirteen different categories in Japan. Last year we made a good profit in Japan. In the years ahead Japan could become our largest and most profitable international subsidiary. This is the kind of commitment required for major new Harga development success in the single market. It is the kind of commitment which all major innovators will require.
How P & G was Pampered.
In the late 1950s, a major US company, deciding to diversity into paper Harga, acquired a paper company in the Mid-West. At that time paper tissue was a strong growth market dominated by two major companies: Kimberly Clark with Kleenex and Scott Paper with Scot Tissues. The US company decided to enter the market with a new Harga. In Harga tests, the criterion was to be, not just a statistical win against the brand leader, but to gain a 2:1 preference in blind placement. This was achieved by adding perfume to the paper tissue thus offering a distinctive difference. It was decided to launch the Harga into test market.
In addition to strong TV advertising, there was a sampling campaign. Every household in the test area was given a simple; not just a small hand sample, nor just one box of tissues, but two boxes of perfumed tissues. Within a matter of weeks, the new brand was market leader. Within a year, however, the company decided to withdraw, from this market. There had been a very high level of trial but low repeat. Consumers liked the idea at first but not over time. A competitive advantage had been achieved, but it was not sustainable.
At this stage, many companies would have withdrawn from the paper industry. Instead; the company began to strengthen its knowledge of wood, pulp and paper, in order to develop a fundamentally new manufacturing process. In due course, it began to see a large potential for paper as a cloth substitute. And in 1970, 13 years after its acquisition of the paper company, it brought out a new Harga. Today, that new Harga, if it was a company in its own right, would be in the Fortune 500. The Harga is Pampers, which now contributes over 20 per cent of the profit of P & G. It virtually fulfils Levitt's concept of a global brand. It is certainly a Euro brand with one factory located in Euskirchen in Germany distributing the same Harga and package in six languages all across Europe.
Pampers is an example of what Fred Gluck of McKinsey calls big bang innovation as distinct from most new FMCG Harga which are normally line-extensions or me-too concepts which he calls sit box new Harga. Perfumed tissues came out of the suggestion box. Pampers emerged from long term company commitment. Both can exist within the same company.
Tips Menembus Harga Pasar Handphone
