Question

Following intense competition in the market, it has become necessary for Excellent Herbal products to redesign their popular malaria drug. Management of the company understands that apart from competition, other factors has to be considered during the redesign of the drug.

1) Explain any three reasons apart from competition that can compel Excellent Herbal Products to redesign their drug.

2) Discuss factors that are necessary for Excellent Herbal Products to consider when designing their products.

3) State the two main parts of this product's design and explain how they may influence demand for it.

Answer 1

1. The following three reasons could compel for redesigning the product:

a. Price of the product: Customers are having many similar option from the competition and therefore the price of the product may be higher with respect to competition and the company is hoping that by redesigning the product they will save some cost and will pass on to the market.

b. Product efficacy: Possibly the product efficacy is going down and therefore the product need to be redesigned.

c. Distribution problem: The current product material and packaging are making it difficult to distribute over long duration shipments and therefore in order to improve the product shipment Compatability the product need to be redesigned.

2. While redesigning the product the following two factors need to be considered:

a. Product efficacy: The efficacy of the product must not go down from the previous products and all the good attributes which customers value must be carried forward while redesigning the product.

b. Pricing of the product: while going for redesigning of the product, the production cost must not rise and effort should be made to further lower the production cost and use this redesigning exercise to gain competitive advantage.

3. The two main part of the product design which might affect the demand for the product are as follows:

a. Functional use of the product: The product should be functionally superior to the outgoing version of the product otherwise there are very high chances that the product will fail because there is already a benchmark set by the earlier version of the product.

b. The appearance of the product: The appearance of the product must be in line with the brand identity and should be easily correlated to the earlier version of the product. This will save a lot of spend on branding exercise.