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By: MA. Nguyen Thi
Huong Giang
New
product
1. New-
to-the-
world
6. Cost
reductio
n
5. Re-
positionin
gs
2. New-
to-the-
firm
4.
Improvem
ents &
revision to
existing
products
3.
Addition
to
existing
product
lines
 New-to-the-World product, or “Really-new
product”: products are inventions that
create a whole new market and was
never seen/marketed before. (10% of new
product)
 New-to-the-firm products: products that
take a firm into a category new to it.
(20%)
 Additions to existing product lines: or line
extensions to the firm’s current products.
(26%)
 Improvements and revisions to existing products:
current products are made better. (26%)
 Re-positionings: products that are retargeted for a
new use or application. (7%)
http://www.youtube.com/watch?v=JUNuznXtyaM
 Cost reductions: new products simply replace
existing products in the line, providing customer
similar performance at a lower cost. (11%)
5
Opportunity
identification
and selection
Concept
generation
Concept/proj
ect
evaluation
Development
Launch
 3 main streams of activity feeding strategic
planning for new product:
 Ongoing marketing planning
 Ongoing corporate planning
 Special opportunity analysis
 Sorting of opportunities
 An underutilized resource
 A new resource
 An external mandate (stagnant market/
competition)
 An internal mandate (management/employees
desire to change)
 Opportunity identification: the process of
creatively recognizing opportunities. Why?
 No firm wants to exploit all opportunities
 Product Innovation Charter
6
 Creating new product ideas
 Identifying problems that people or business
have and suggesting solutions to them
 Unsolicited ideas pouring from customers,
potential ones, employees, etc.
7
Problems/n
ew
opportunity
motivates
Concept
generati
on
 Screening or pre-technical evaluation
 Concept test all views come  Full screen
 Project evaluation
 Quality Function Deployment, or:
 Product description/ product definition/
Product Protocol--- List of customer needs.
 Product protocol: agreement between
various groups before technical work get
started. The protocol should be in term of
benefits, not the features only.
8
 Resource Preparation
 The Major Body of Effort: 3 in 1: the item/service
itself + the marketing plan + a business
(financial) plan
 Prototype
 Comprehensive Business Analysis --- Important
“Go/No Go” decision
 Concept evaluation continues along the way.
9
 Final “Go/No Go”
decision
 Critical and timely
step
 Market test
 Activity of planning
for Launch
Management
10
 Corporate mission, platform planning, strategic
fit, non-corporate strategic come together in
NPD process Product Innovation Charter
 A PIC provide guidance to the business units on
the roles of innovation. It is a mission statement,
at a more micro level and adapted to new
product activities.
 PIC allows delegation, financing and
assignments.
 The background of a PIC includes key points
from a PEST analysis (Political, Economic, Social,
Technology) or situation analysis.
 Questions addressed in this section of a PIC may
include:
› What is the business about?
› Why has this strategy been developed?
 Core competencies
 Focus is achieved by 4 strengths:
 Core Technology (Kimberley-Clark)
 Product experience ( Tan Hiep Phat
for soft-drink, Vissan for processed
and canned foods)
 Customer franchise (Honda scooter/
Kleenex tissues)
 End-use experience (Saigon beer in
HCM market, Halida beer in Hanoi
market)
 Relying solely on
technology/customer’s stated
want is risky dual-drive strategy
 Technology Drivers
 Market Drivers
 Technology drivers:
 Firm with superior technical skills  turning technical
specifications into product features that satisfy market
needs
 Market drivers:
 Customer group & end-use
 Distributors & retailers
 Questions addressed at this stage of a PIC may
include:
 What are your company’s core competencies?
 What is your company’s competitive advantage and
the value that your company can bring to the target
market?
 What are your advantages in relation to your target
market’s needs, wants, and consumption trends?
 What are your company’s marketing capabilities?
 Any complete PIC need both goals and
objectives.
 Goals & Objectives can be in 3 types:
› Profit
› Growth
› Market status
 Degree of Innovativeness:
 First to market: pioneering
 Adaptive product: taking one’s own or a competitive product
and improving it.
 Imitation or emulation
 Timing:
 First
 Quick second
 Slower
 Late
 Miscellaneous guidelines: special guidelines of product’s
cost, quality, brand and so forth.
 MacBook Pros is Apple product which comes
with high performance and high speed when
you use for work. This Apple product is really
suitable for you who need the best ingredient
and have hardware that supports their
performance. This Apple Thunderbolt MacBook
Pros come with Core i5 and i7 CPU that adding
in this notebook. This Macbook will give graphic
result that suitable with you want.
 Gathering Ready-made source
 Using Managed process by the
NPD team
 New Products Employees
› Technical: R&D, engineering, design
› Marketing and manufacturing
 End Users
 Resellers, Suppliers, Vendors
 Competitors
 The Invention Industry (investors, etc.
http://www.abc.net.au/tv/newinventors
/ )
 Idea exploration firms and consulting
engineers
 Miscellaneous (continued)
 Miscellaneous Categories
› Consultants
› Advertising agencies
› Marketing research firms
› Retired product specialists
› Industrial designers
› Other manufacturers
› Universities
› Research laboratories
› Governments
› Printed sources
› International
› Internet
 Lead users: customers associated with a
significant current trend, have the best
understanding of the problems and
expect to gain significantly from solutions.
 How to identify lead users?
http://www.youtube.com/watch?v=FnU0phMaVm0
› Is it good to ask customers what they
want?
› Being a customer, of your competitor’s
products and your own!
› Some companies provide toolkits for user
innovation, such as mobile phone games,
Lego toys, sport equipment. (Reading on
the Website)
 Open innovation: a new method to find
out creative ideas and concept, by
outsourcing or seeking partners, externally.
› Select the best partner(s), in terms of
technological, strategic and relational
features.
› High level of trust
› P&G is one of the successful users of open
innovation, by adopting new technology
from outside. Unilever, HP, Toyota, LG,
MyStarbucksIdea, etc.
› http://www.innovationexcellence.com/blog/2012/08/13/40-
examples-of-open-innovation-crowdsourcing/
› http://www.customerthink.com/blog/10_examples_of_open_in
novation_in_high_tech_and_b2b_companies
› http://mystarbucksidea.force.com/
HOW TO EVALUATE DIFFERENT BUSINESS OR PRODUCT IDEAS???
 There is no basic need for
the new product
 The new product did not
meet customer needs
 The new product idea is
not properly
communicated
http://www.dailyfinance.co
m/photos/top-25-
biggest-product-flops-of-
all-time/#photo-3
25
26
27
28
› What is a new product concept? A statement
about anticipated product features (form or
technology) that will yield selected benefits.
› The purposes of Concept Testing:
 Concept Testing is part of the prescreening process
 First purpose of a concept test is to identify the very
poor concept so it can be eliminated
 If the concept passes the first reaction, a second
purpose is to estimate the sales or trial rate that the
product would enjoy – a sense of market share or
general range of revenue dollars.
29
› The purposes of Concept Testing:
 The buying intention question appears in almost every
concept test. The most common format for purchase
intention is the classic five-point question: “How likely
would you buy a product like this, if we made it?”
1. Definitely would not buy
2. Probably would not buy
3. Might or might not buy
4. Probably would buy
5. Definitely would buy
 The number of people who definitely buy or probably
would buy are usually combined and used as an indicator
of group reaction, this is called top-two-boxes score.
 The third purpose is to help develop the idea, not just test
it!
30
 Prepare the Concept Statement: a concept statement states
a difference and how that difference benefits the customer
or end-users. For example “This new refrigerator is built with
modular parts; consequently, the consumer can arrange the
parts to best fit a given kitchen location and then rearrange
them to fit another location”.
 Format
 Commercialized Concept Statement
 Define the Respondent Group
 Select the Response Situation
 Prepare the Interviewing Sequence
31
“Trà Xanh Không Độ cho người tiểu đường có nguồn gốc thiên nhiên,
với tác dụng giải nhiệt cao, độ ngọt vừa phải và sử dụng loại đường dành riêng cho
người tiểu đường. Trà xanh không độ cho người tiểu đường sẽ là thức uống thích
hợp với khách hàng ăn kiêng và quan tâm đến lượng đường trong cơ thể”
 Take an example of a simple situation: You are
deciding what to do on this coming break holiday
Values
Factors 4 points 3 points 2 points 1 points
Degree of fun Much Some Little None
Number of people Over 5 4 to 5 2 to 3 Under 2
Affordability Easily Probably Maybe No
Student’s capability Very
good
Good Some Little
Student’s scorings Skiing Boating Hiking Fishing
Fun 4 3 4 4
People 4 4 2 3
Affordability 2 3 4 4
Capability 1 4 3 4
Total 11 14 13 15
32
 The first (and most common) method
of forecasting new product depletions
is historical review.
› If a company has introduced similar new
products into similar markets in the past,
these histories can often be good
predictors of future outcomes.
› If a company has no such history, then
histories of similar new products
introduced by competitors or other
companies can serve as historical
guidelines.
33
 A second method of forecasting new
product success is the test market.
› The new product is developed and
introduced into one or more test markets.
Actual store sales and market shares are
tracked via Nielsen or IRI, or data from
retailers in some instances.
› Often this sales tracking is supplemented by
survey-based tracking of consumer
awareness, trial, usage, and repeat purchase
patterns.
› In some instances, consumer diary panels or
purchase panels are used to track consumer
trial, repeat purchases, and share.
34
 A third method of forecasting is before-after retail
simulation. A sample of target audience consumers is
presented with simulations showing the in-store retail
environment and a realistic display of all the major
brands in the category. The consumer is asked to
choose or “purchase” brands as they normally would,
or as they might on their next 10 purchases.
› The new product is missing from the simulation during this
“before” measurement.
› Then the consumer is exposed to the new product concept
and/or advertising that conveys the new product concept.
› Later, the consumer sees the exact same simulated display
(except now it contains the new product) and is asked to
make the same choices or purchase decisions as before. So,
we have market shares for all brands in the category before
the new product is introduced, and the same data after the
new brand is introduced.
35
 Market Segmentation
 Market Targeting
 Differentiation and Positioning Strategy
 Marketing Mix (4Ps)

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Search business ideas and How to build marketing strategies

  • 1. By: MA. Nguyen Thi Huong Giang
  • 2. New product 1. New- to-the- world 6. Cost reductio n 5. Re- positionin gs 2. New- to-the- firm 4. Improvem ents & revision to existing products 3. Addition to existing product lines
  • 3.  New-to-the-World product, or “Really-new product”: products are inventions that create a whole new market and was never seen/marketed before. (10% of new product)  New-to-the-firm products: products that take a firm into a category new to it. (20%)  Additions to existing product lines: or line extensions to the firm’s current products. (26%)
  • 4.  Improvements and revisions to existing products: current products are made better. (26%)  Re-positionings: products that are retargeted for a new use or application. (7%) http://www.youtube.com/watch?v=JUNuznXtyaM  Cost reductions: new products simply replace existing products in the line, providing customer similar performance at a lower cost. (11%)
  • 6.  3 main streams of activity feeding strategic planning for new product:  Ongoing marketing planning  Ongoing corporate planning  Special opportunity analysis  Sorting of opportunities  An underutilized resource  A new resource  An external mandate (stagnant market/ competition)  An internal mandate (management/employees desire to change)  Opportunity identification: the process of creatively recognizing opportunities. Why?  No firm wants to exploit all opportunities  Product Innovation Charter 6
  • 7.  Creating new product ideas  Identifying problems that people or business have and suggesting solutions to them  Unsolicited ideas pouring from customers, potential ones, employees, etc. 7 Problems/n ew opportunity motivates Concept generati on
  • 8.  Screening or pre-technical evaluation  Concept test all views come  Full screen  Project evaluation  Quality Function Deployment, or:  Product description/ product definition/ Product Protocol--- List of customer needs.  Product protocol: agreement between various groups before technical work get started. The protocol should be in term of benefits, not the features only. 8
  • 9.  Resource Preparation  The Major Body of Effort: 3 in 1: the item/service itself + the marketing plan + a business (financial) plan  Prototype  Comprehensive Business Analysis --- Important “Go/No Go” decision  Concept evaluation continues along the way. 9
  • 10.  Final “Go/No Go” decision  Critical and timely step  Market test  Activity of planning for Launch Management 10
  • 11.
  • 12.  Corporate mission, platform planning, strategic fit, non-corporate strategic come together in NPD process Product Innovation Charter  A PIC provide guidance to the business units on the roles of innovation. It is a mission statement, at a more micro level and adapted to new product activities.  PIC allows delegation, financing and assignments.
  • 13.  The background of a PIC includes key points from a PEST analysis (Political, Economic, Social, Technology) or situation analysis.  Questions addressed in this section of a PIC may include: › What is the business about? › Why has this strategy been developed?
  • 14.  Core competencies  Focus is achieved by 4 strengths:  Core Technology (Kimberley-Clark)  Product experience ( Tan Hiep Phat for soft-drink, Vissan for processed and canned foods)  Customer franchise (Honda scooter/ Kleenex tissues)  End-use experience (Saigon beer in HCM market, Halida beer in Hanoi market)  Relying solely on technology/customer’s stated want is risky dual-drive strategy  Technology Drivers  Market Drivers
  • 15.  Technology drivers:  Firm with superior technical skills  turning technical specifications into product features that satisfy market needs  Market drivers:  Customer group & end-use  Distributors & retailers  Questions addressed at this stage of a PIC may include:  What are your company’s core competencies?  What is your company’s competitive advantage and the value that your company can bring to the target market?  What are your advantages in relation to your target market’s needs, wants, and consumption trends?  What are your company’s marketing capabilities?
  • 16.  Any complete PIC need both goals and objectives.  Goals & Objectives can be in 3 types: › Profit › Growth › Market status
  • 17.  Degree of Innovativeness:  First to market: pioneering  Adaptive product: taking one’s own or a competitive product and improving it.  Imitation or emulation  Timing:  First  Quick second  Slower  Late  Miscellaneous guidelines: special guidelines of product’s cost, quality, brand and so forth.
  • 18.  MacBook Pros is Apple product which comes with high performance and high speed when you use for work. This Apple product is really suitable for you who need the best ingredient and have hardware that supports their performance. This Apple Thunderbolt MacBook Pros come with Core i5 and i7 CPU that adding in this notebook. This Macbook will give graphic result that suitable with you want.
  • 19.  Gathering Ready-made source  Using Managed process by the NPD team
  • 20.  New Products Employees › Technical: R&D, engineering, design › Marketing and manufacturing  End Users  Resellers, Suppliers, Vendors  Competitors  The Invention Industry (investors, etc. http://www.abc.net.au/tv/newinventors / )  Idea exploration firms and consulting engineers  Miscellaneous (continued)
  • 21.  Miscellaneous Categories › Consultants › Advertising agencies › Marketing research firms › Retired product specialists › Industrial designers › Other manufacturers › Universities › Research laboratories › Governments › Printed sources › International › Internet
  • 22.  Lead users: customers associated with a significant current trend, have the best understanding of the problems and expect to gain significantly from solutions.  How to identify lead users? http://www.youtube.com/watch?v=FnU0phMaVm0 › Is it good to ask customers what they want? › Being a customer, of your competitor’s products and your own! › Some companies provide toolkits for user innovation, such as mobile phone games, Lego toys, sport equipment. (Reading on the Website)
  • 23.  Open innovation: a new method to find out creative ideas and concept, by outsourcing or seeking partners, externally. › Select the best partner(s), in terms of technological, strategic and relational features. › High level of trust › P&G is one of the successful users of open innovation, by adopting new technology from outside. Unilever, HP, Toyota, LG, MyStarbucksIdea, etc. › http://www.innovationexcellence.com/blog/2012/08/13/40- examples-of-open-innovation-crowdsourcing/ › http://www.customerthink.com/blog/10_examples_of_open_in novation_in_high_tech_and_b2b_companies › http://mystarbucksidea.force.com/
  • 24. HOW TO EVALUATE DIFFERENT BUSINESS OR PRODUCT IDEAS???
  • 25.  There is no basic need for the new product  The new product did not meet customer needs  The new product idea is not properly communicated http://www.dailyfinance.co m/photos/top-25- biggest-product-flops-of- all-time/#photo-3 25
  • 26. 26
  • 27. 27
  • 28. 28
  • 29. › What is a new product concept? A statement about anticipated product features (form or technology) that will yield selected benefits. › The purposes of Concept Testing:  Concept Testing is part of the prescreening process  First purpose of a concept test is to identify the very poor concept so it can be eliminated  If the concept passes the first reaction, a second purpose is to estimate the sales or trial rate that the product would enjoy – a sense of market share or general range of revenue dollars. 29
  • 30. › The purposes of Concept Testing:  The buying intention question appears in almost every concept test. The most common format for purchase intention is the classic five-point question: “How likely would you buy a product like this, if we made it?” 1. Definitely would not buy 2. Probably would not buy 3. Might or might not buy 4. Probably would buy 5. Definitely would buy  The number of people who definitely buy or probably would buy are usually combined and used as an indicator of group reaction, this is called top-two-boxes score.  The third purpose is to help develop the idea, not just test it! 30
  • 31.  Prepare the Concept Statement: a concept statement states a difference and how that difference benefits the customer or end-users. For example “This new refrigerator is built with modular parts; consequently, the consumer can arrange the parts to best fit a given kitchen location and then rearrange them to fit another location”.  Format  Commercialized Concept Statement  Define the Respondent Group  Select the Response Situation  Prepare the Interviewing Sequence 31 “Trà Xanh Không Độ cho người tiểu đường có nguồn gốc thiên nhiên, với tác dụng giải nhiệt cao, độ ngọt vừa phải và sử dụng loại đường dành riêng cho người tiểu đường. Trà xanh không độ cho người tiểu đường sẽ là thức uống thích hợp với khách hàng ăn kiêng và quan tâm đến lượng đường trong cơ thể”
  • 32.  Take an example of a simple situation: You are deciding what to do on this coming break holiday Values Factors 4 points 3 points 2 points 1 points Degree of fun Much Some Little None Number of people Over 5 4 to 5 2 to 3 Under 2 Affordability Easily Probably Maybe No Student’s capability Very good Good Some Little Student’s scorings Skiing Boating Hiking Fishing Fun 4 3 4 4 People 4 4 2 3 Affordability 2 3 4 4 Capability 1 4 3 4 Total 11 14 13 15 32
  • 33.  The first (and most common) method of forecasting new product depletions is historical review. › If a company has introduced similar new products into similar markets in the past, these histories can often be good predictors of future outcomes. › If a company has no such history, then histories of similar new products introduced by competitors or other companies can serve as historical guidelines. 33
  • 34.  A second method of forecasting new product success is the test market. › The new product is developed and introduced into one or more test markets. Actual store sales and market shares are tracked via Nielsen or IRI, or data from retailers in some instances. › Often this sales tracking is supplemented by survey-based tracking of consumer awareness, trial, usage, and repeat purchase patterns. › In some instances, consumer diary panels or purchase panels are used to track consumer trial, repeat purchases, and share. 34
  • 35.  A third method of forecasting is before-after retail simulation. A sample of target audience consumers is presented with simulations showing the in-store retail environment and a realistic display of all the major brands in the category. The consumer is asked to choose or “purchase” brands as they normally would, or as they might on their next 10 purchases. › The new product is missing from the simulation during this “before” measurement. › Then the consumer is exposed to the new product concept and/or advertising that conveys the new product concept. › Later, the consumer sees the exact same simulated display (except now it contains the new product) and is asked to make the same choices or purchase decisions as before. So, we have market shares for all brands in the category before the new product is introduced, and the same data after the new brand is introduced. 35
  • 36.  Market Segmentation  Market Targeting  Differentiation and Positioning Strategy  Marketing Mix (4Ps)

Editor's Notes

  1. http://www.youtube.com/watch?v=WNcJKpe85Ichttp://www.youtube.com/watch?v=-XYCxB67vKk&feature=relatedhttp://www.youtube.com/watch?v=gXyBXHSbjqA