Delta Plastics Of The South: Product Innovation In A Resistant Market Case Study Help Analysis With Solution Online

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Delta Plastics of the South developed a new software product, Pipe Planner, which was complementary to its core product, Polytube, used by farmers to irrigate crops in the delta region of Missouri, Arkansas, Mississippi and Louisiana. Pipe Planner helped farmers by calculating, for any particular field, the size of pipe needed, how to punch holes in the pipe and how long to irrigate. Using the software could lower the farmer’s cost of irrigating by up to 25 percent particularly through savings of fuel and time. It also conserved water, an important issue for delta farmers. The software was a significant improvement to PHAUCET, a similar but free government program already in limited use in the delta. Company leadership was sure that the product would have a strong market, but sales were discouraging with fewer than 200,000 acres (less than three percent of the market) under Pipe Planner management after three years of development efforts. Company leaders must decide if Delta Plastics should continue to invest money and resources in Pipe Planner, and if so, how to market and encourage use of the Pipe Planner program software by farmers. In this case the students can study the initial failure of diffusion of a market innovation and analyze the factors that led to that failure in a particular social context-farmers in the delta region. The case is suitable for use in a class on communication, or product innovation and marketing, for upper level undergraduates or graduate students. Students use the diffusion of innovation analysis to propose and evaluate options for Delta Plastics regarding next steps in the marketing and promotion of Pipe Planner within its core market.

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