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learning experience through these dis- cussions. Focus groups are excellent forums to establish exactly what favor- able and poor vendor performance look like to customers. If customer response is negative, consider scrapping the idea.

More companies have failed by intro- ducing a host of products that customers do not want than by the launching of a single program that the customer really requires. If customer response is posi- tive, then proceed to phase two of the group focus process.

Phase two is to find an acceptable ven- dor to partner with in this new direction.

If possible, start discussing cooperative efforts with companies that may have been mentioned in the focus groups.

This phase of the process will take con- siderable effort, however the final result will certainly be worth the effort. This step will also take time to educate this new partner vendor to the ways of the customers, as well as the ways of the industry. Once all contractual and oper- ational details have been completed, launch the program with as much fan- fare and enthusiasm as possible.

Analyzation is the focus of SAGA's fourth step.

Once the new vendor program has been launched and has been operating for a few weeks, one must analyze and review feedback about the program.

Gather feedback from the industry as well as from customers receiving the new product or service. This process is very important and many organizations have a tendency to skip this process.

Typically, if a program becomes a finan- cial success - the company does not fol- low up. If it is unsuccessful, the follow up consists of an inquisition-type search from someone to blame within the orga- nization.

These types of behavior are to be avoided and real analysis of what suc- ceeded and what failed is necessary for the success of the next project. Compa- nies must learn from their successes and failures alike. More importantly, just because a new project achieves its sales targets does not mean that it does not have a hidden potential of one hundred times its current success. Companies have a tendency to forget that sales tar- gets established for any new program are only a guess; the actual potential of the program can only be determined after reviewing the reaction of the mar- ket.

Although the goal is to always create successful new programs, much can be learned by examining failure. Unsuc- cessful programs should be examined quickly, as failure can be a result of many different factors. A common mis- take of companies is to slowly reduce a program over time. It is best to totally end a program and give ample notice to users prior to the ending of the offering.

This allows for an orderly transition and avoids a long drama of both companies watching sales and service slip, and while it may not be popular with cus- tomers, it certainly will not turn them away from a new company offering.

Companies that consistently apply the

SAGA process will find themselves with a strong portfolio of aggressive Robert Lee Gordon is the director of programs that offer customers superior purchasing for Ocean Development quality and service. Unitor is one such Company. Gordon is responsible for all company that clearly follows the SAGA project related purchasing of hotel, nau- process. The Unitor Cruise Service pro- tical, and engineering products for Pro- gram is a clear sign of the new wave of ject America, M/S Patriot, Columbia programs that will be designed for and Queen, and the Coastal Vessels. by customers.

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