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New Product Development
- 1. New Product Development MARS (HONG KONG) GROUP CORPORATION LTD
- 2. • Client Context • Executive Summary • Innovation Intent • Opportunity Insights • Fields-of-Play • Business Concepts • Action Plan AGENDA
- 3. Mars(Hong Kong)Co.Ltd. was established in 2005 by Sun yu Engaged in the manufacturing, distribution and retail sales of footwear products Currently has stores in 7 major cities in China Offers a number of brand names in its footwear business I Do, I.T.CoCo, T.T. CLIENT CONTEXT
- 4. EXECUTIVE SUMMARY • Changing environment, demanding customers, and competition • Growth Gap: 118.60 Million in the next 2 years Innovation Intent • Business Opportunity Map (BOM) • “Aha” Moment Opportunity Insights • Try and Buy • Smart Shop • Virtual Sizing Fields of Play (FOP) • Select and try 5 products at home and purchase the one or multiple shoes that best fits. • Use app before, during and after purchase • Payment upon delivery Business Concepts around “Try and Buy” • Risks and uncertainties • Key competences • Next steps Action Plan
- 5. Reasons to Innovate: Lack of online presence Leadership driven (internal business environment) People relyping on mobile phones Need to differentiate to keep up with competition INNOVATION INTENT •Growth Gap •Innovation Portfolio -Websites -Mobile applications
- 6. • Customers: Women ages 20-40 trendy & Fashionable, interest in gothic style. • Behaviors: Digital age, technology savvy, will not rationalize , likely to want another pair of shoes after purchase, more inclined to spend. • Needs: High quality products, One stop shopping experience. • Experiences: Easy contact and quick, Feed back online, satisfaction, In-store experience at home, Unique technological experience Market • Locations: Mainland China, Hong Kong, Singapore. • Channels: Physical Store , Website, APP . • Logistics: Alliance with shipping company, 3rd party companies: ShunFeng, YuanTong, ShunFeng, Shentong, YuanTong, Hutong, EMS, cost performance. • Occasions: Always accessible and available. Delivery • Products: Shoes, Clothes, Jewelry. • Services: Free repair, Payment on delivery, Warranty, Convenience of touch and feel shopping experience online, Compare Sizes, an app that helps the customer scan their foot to order the exact size. • Brands: I.T., MIN'CO, TT, VIVI, I DO, varieties of brands Offering • Technologies: Mobile application, Website. • Processes: Research, Design, Manufacture, Packaging. • Materials: Leather, Rubber, Metal accessories, Metal, Real Estate. • Assets: Machinery, facility , Shelf space, Own stores. Productio n • Network & Partners: Shipping company, Designers, Application developers. • Pricing Strategy: Medium- high prices. Business Model Business Opportunity Map
- 7. Our innovation lies in providing the customer with the convenience of touch and feel shopping at home while still shopping online. “AHA” MOMENT
- 8. Try and Buy • Helps us differentiate • Creates unique customer experience • Shop at home on your phone Smart Shop • Allows flexibility for the customer to customize their own shoe designs Virtual Sizing • Future of fashion • Customer can scan their feet and we deliver accurate shoe size
- 9. PRIORITIZATION OF FOP CRITERIA TRY AND BUY SMART SHOP VIRTUAL SIZING EFFECTIVENESS 5 4 4 EASE OF IMPLEMENTATION 4 5 4 TIME TO IMPLEMENT 4 4 2 AVAILABILITY OF RESOURCES 5 4 3 TOTAL SCORE 18 17 13
- 10. TRY AND BUY Select and try 5 products at home and purchase one or multiple shoes that best fits. Use app before, during and after purchase. During: “Match me” Use app to help user pair up shoes with own clothes. Payment upon delivery Business Concepts
- 11. HOW CONCEPTS ARE PRIORITIZED 1= Try and Buy 2= Match Me 3= Payment Upon Delivery
- 12. Try at home Pay for shoe selected Transportation Prioritized Concept: Select and try 5 products at home and purchase one or multiple shoes that best fits User Story
- 13. Key Uncertainties and Risks -Users not getting the customer experience we are expecting for them -Users feel pressured -Delivery route -Investment cost is too high -Logistic costs -Confusion of orders -User is not free anymore at the time they signed up for delivery ACTION PLAN
- 14. HOW TO MITIGATE RISKS Customer Experience: -Simplify app make it user friendly -Have comments from other users -Continuous testing of app -Observing user’s navigation within app Confusion of orders: -Build and maintain data-base of existing and loyal customers User is not free anymore at the time they signed up for delivery: -App will give the option to change/edit times signed up for delivery up to 24hrs prior to delivery Logistics costs: -Partner up with Shenfeng Shentong etc. to get fixed costs (controlling this with contracted prices).
- 15. NEXT STEPS: PIPELINE OF INNOVATION Try and Buy. Accumulate customer base and trust. Smart Shop- User can customize their own designs Virtual Sizing: Scan foot and get exact measurements. Introduce brand line "Earth" 0-1 year 1-2 years 2-3 years 3-4 years
- 16. This business case report provides an analysis and evaluation of the prospective innovation breakthrough for the company of Mars in China of introducing a mobile application. Methods of analysis include identification of innovation intent, opportunity insights, fields of play, and business concepts. Results of our investigation show that due to the pressure of the changing environment, demanding customers, and competition, we need to innovate. Trends in China indicate that 52.5 percent of Chinese Internet users now shop online (332 million in total) and there are 500 million Internet users. We are facing a growth gap of 118.60 Million in the next 2 years and, furthermore, are looking to the fast following changing environment to introduce innovation for the company of Mars. Some of the Fields Of Play (FOP) that we recognized include: Try and Buy, Smart Shop, Virtual Sizing, Design Connect, and Brand Line “Earth”. In addition, we identified several Business Concepts around the FOP of Try and Buy that we found attractive including: convenience of touch and feel shopping experience but online being our more prioritized concept, logistics with our partners (delivery and actual shoe production), accessibility if always being available through mobile app and at home delivery, offering of being able to use app for all stages of purchase (“Match me” feature during the purchase), and offering payment upon delivery. Moreover, our action plan includes risks having to do with logistic costs, users not getting the customer experience we expect as a company, confusion of product orders, and delivery complications arising from user not being free anymore to pick up their product order at the time signed up for. We plan to mitigate these risks with options such as offering new features in our mobile app, partnering up with other companies, build and maintaining a data-base of existing loyal customers, and others. In regards to the next steps we would take for our client, it would be to be conscious of our innovative product pipeline and always staying two steps ahead of our competitors. EXECUTIVE SUMMARY
Editor's Notes
- Business Concepts revolving the FOP of Try and Buy
- single's day, Chinese new year, middle autumn, national day, labour day, holiday, festivals , Date, Holidays, and Festivities Offering: Products: Shoes, Clothes, Jewelry. Services: Free repair (customer pays the shipping), Payment on delivery, Warranty, Convenience of touch and feel shopping experience online, Compare Sizes, an app that helps the customer to scan themselves to order the exact size. Brands: I.T., MIN'CO, TT, VIVI, I DO, varieties of brands
- From the BOM, we have identified that we could provide the customers with a chance to try on the product before they can purchase it.
- Criteria and scoring: Attractiveness and Fit 1= Try and Buy 2= Match Me 3= Payment Upon Delivery
- More detail User opens up app, has the opportunity to view a variety of shoes and chooses up to 5 designs, chooses size, and when delivered, user will have the chance to try the shoes on and purchase what they like. Can create an opportunity that the customer will buy more than one pair.
- Key Uncertainties and Risks **-Users may not get the customer experience we are expecting for them which is mostly to simplify their life and give them an online shopping experience **-Users feel pressured or do not have enough time to pick the shoes they want **-Delivery route may complicate times of delivery may not always be accurate or on time -Investment cost is too high -Logistic costs **-Confusion of orders: Consumer may not receive what they ordered or too impatient if they want another pair of shoes the whole process would have to start again -User is not free anyone at the time they signed up for delivery
- 1. Users may not get the customer experience we are expecting for them which is mostly to simplify their life and give them an online shopping experience -Simplify app make it user friendly -Have available comments from other users **-Continuous testing of app based on user response and seeing what they are clicking on -Observing user’s navigation within app 2. Confusion of orders, consumer may not receive what they ordered or too impatient if they want another pair of shoes the whole process would have to start again -Build and maintain data-base of existing and loyal customers 3. User is not free anymore at the time they signed up for delivery -App will give the option to change/edit times signed up for delivery up to 24hrs prior to delivery 4. Logistic costs -Partner up with Shenfeng Shentong etc. to get fixed costs (controlling this with contracted prices).