Description of the New Product Idea A 1-paragraph verbal description of your “finalized” new product idea.
Trends & Unmet Consumer Needs Trends affecting the industry & unmet consumer needs, with the implications for your new product idea (attach articles you found in your research & any interesting & relevant new product examples). Use these to support why your new product idea makes sense to introduce now.
Product life cycle stage
Mature, growing, nascent
Industry size & growth rate
Competitive strategies & actions vis-à-vis new products
A Market Structure Chart Show the key market segments in your category & where your new product will fall in the structure. Indicate which are the highest growth segments.
Perceptual Maps 3 perceptual maps that show on an XY axis, the key attributes consumers of the category value most, & how your product will have a meaningful point of difference vs. its competitors.
Hypothetical Perceptual Map This Does Not Reflect the Thinking of Apple
Gentleness Optimal Place to be Tylenol Bufferin Advil Nuprin Excedrin Bayer Private- Label aspirin Effectiveness Anacin Optimal Place to Be Perceptual Map of Pain Relievers
Concept Board(s) Pre & Post Consumer Research
The Ideal Concept Board
Pre & Post Qualitative Testing Concept Boards Submit the concept board you showed consumers & a final board with the changes you made based on their feedback.
Marketing Research Key Findings Summarize the reaction of consumers to your idea, what you learned from the qualitative research, & how you decided to adapt your product as a result.
Product Line Description Describe:
The product & it’s key attributes or features
The items in your line
What % of the total volume each item is expected to contribute.
Brand Positioning & Rationale
Provide a 1-sentence brand positioning statement with rationale as to why you picked the target audience, competitive frame, point(s) of difference & end benefit.
Will you add more targets over time: Which & when?
For Each Major Brand, a Brand Positioning Statement Target Audience Frame of Reference Point of Difference End Benefit Example To target audience, brand X is the frame of reference/competitive set that point of difference which is good because end benefit. (Should include the rationale for each element)
Samsung’s Jitterbug To Seniors, (Target) Samsung’s Jitterbug is the cell phone (FOR) That has a large display & big buttons (POD) Which is good because it will be easier to see & you won’t need to put on your glasses. (End Benefit)
The DisneyPhone To parents of young girls, the Disney phone is the means of communication between you & your daughter, that your child will want to carry, which is good because now you can always reach them. To little girls, The Disney phone is the cell phone that’s pretty & has one of your favorite characters which is good because now you can call your friends or your parents when ever you want.
Volume Forecast Provide a volume forecast for years 1-5, using the BASES model or a “bottom up” approach. Use your best guess & include the key assumptions of your forecast.
New Product Total Volume Forecast Trial Volume # of Households in Target Population Trial Rate Average Trial Units Per Purchase X X + Repeat Volume # of Trying Households Repeat Rate Repeat Purchases Per Repeater Average Repeat Units Per Purchase X X X
BASES Type Test Results Project quantitative research results that will serve as the basis for your volume forecast & sources of volume.
What trial rate will you have?
What repeat purchase rate?
Average number of repeats/yr
Average amount per purchase occasion
Whatwill consumers be switching from to purchase your product or service?
Packaging, Branding, Name
If using a package or brochure, describe the package & ideally show an example with the key visual & communication elements.
Provide your branding/naming recommendation, any name subheads, branding/name rationale & relation to other items under same trademark.
Provide a pricing recommendation relative to competition, other items in the trademark & the brand’s overall positioning & strategy:
Is it a premium or value brand?
Is it price skimming or going for maximum penetration & share as fast as possible?
Geography, Test Market & Roll-Out
Do you plan to test market the brand? If so, what type of test market & for how long?
What will be the phasing of the roll-out/sequence/timing?
What will be your high opportunity markets, where you will market the product most aggressively & why?
Marketing for the Polish bank will be done in markets with the highest concentrations of Polish immigrants such as: - Birmingham - Liverpool - Edinburgh - Manchester
Create a monthly seasonality index based on when you think the product would sell most & least.
When will the product be introduced, in light of category seasonality & company’s fiscal year?
Seasonality Index % of brand’s business in month 8.5% JFMAMJJASOND 85 70 80 110 160 135 110 85 50 45 90 61
In which channels will the product be sold?
Provide the % of volume from each channel & whether you will add new channels over the 5-year timeframe.
Overarching Creative Tagline Develop a memorable, overarching, integrated marketing message or tagline that describes the brand’s key point of difference & will be communicated in all marketing elements.
OverarchingCreative Idea Because there’s so much resting on your tires When it absolutely has to get there overnight You deserve a break today Because you’re worth it!
Launch Marketing Ideas & Integrated Marketing Flowchart Provide Year 1 & “ongoing” marketing budgets for the P&L. Provide launch marketing ideas to create awareness & repeat purchase for the new product. Create an integrated marketing flowchart to show the key marketing activities.
Optional Iced Tea Brand
Projected 5-YearCash Flow Statement Yr 0Yr 1Yr 2Yr 3Yr 4Yr 5 Sales Revenue 0 $11,889 $15,318 $19,654 $28,253 $32,491 Cost of Goods Gross Margin Development costs Marketing costs Allocated overhead Net operating income Impact of cannibalization Net contribution Discounted contribution -3,500 -1,113 1,6911,8772,343 2,346 Cumulative discounted cash flow -3,500 -4,613 -2,922 -1,045 1,298 3,644 Breakeven X Payback X Make some assumptions but don’t agonize over it!
Sensitivity Analysis/Risks & Hedges What could go right to make your new product even more successful What could go wrong that would cause the product to perform worse than projected?