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"Will It Ever Fly? Modeling the Takeoff of Really New Consumer Goods at Whirlpool"by Joseph A. Foster, Peter N. Golder, Gerard J. Tellis Whirlpool Corporation, a major U.S. manufacturer of consumer durables, test marketed the Personal Valet Clothes Vitalizing System in 2001, and launched it in 2002. The Personal Valet is the first in a new category of appliances: a substitute for dry-cleaning services, providing an in-home service to customers, replacing a service currently performed outside the home. Hence, it generates significant cost savings and added convenience for consumers. Management needed a sound model for the timing of sales takeoff. The project manager applied the authors' “time-to-takeoff model” (which correctly identifies takeoff over 90% of the time). Instead of projecting a linear pattern of sales in the first few years, the project manager used the model to project 10-year sales with takeoff in the 6th year. He also simulated various pricing and product modifications schemes to predict time and probability of takeoff. In the absence of the model, the accounting department, using linear growth, would have forecasted much higher sales than is typical for such a new consumer durable as shown by the model. Such forecasts would have led to actual sales disappointment with actual sales (which were low) and to premature termination of the project.
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Video Length: 2358
Date Found: July 10, 2010
Date Produced: July 09, 2010
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MIT TechTV |
July 13, 2011
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MIT TechTV |
July 07, 2011
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MIT TechTV |
June 27, 2011
The emerging cleantech venture`s pilot has been supported by government grants now it is time to scale. Cleantech requires significant funding, often larger than traditional vc`s are structured to support. How does a cleantech venture scale to grow? Hear from national project developer ...
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MIT TechTV |
June 27, 2011
Three leading New York venture capital firms will provide their strategies for 2011. Understanding venture capital firms’ strategies is critical in order to obtain venture capital. Prior to the panel discussion, PwC will present a summary of the 3rd quarter 2010 MoneyTree Report. The MoneyTree ...
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MIT TechTV |
June 27, 2011
With the recent passage of healthcare reform legislation, corporate consolidations, and a `get tough` policy at the FDA, it is difficult to tell what the commercial healthcare landscape will look like during the next five years. A distinguished panel of experts representing biopharmaceuticals, ...
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