5. 1. Concept Definition & Key Challenges NPL is the 2 nd step of Product Lifecycle Management and it determines the business success of the new product New Product Development New Product Launch Product Management Scope: New Product Launch in the Product Lifecycle Value Sales 0 Profit/ loss Profit/ loss
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7. 2. Our Focus & Value Proposition Frost & Sullivan gives equal importance to building the fact foundation, marketing planning and implementation New Product Development New Product Launch Product Management Product Lifecycle & New Product Launch scope Capability Assessment Market Assessment Marketing Strategy Plan Marketing Operations Plan Launch Monitoring & Adjustments Value Sales 0 Profit/ loss Profit/ loss
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10. Step 1: Create a strong fact foundation Capability Assessment Conclusions & Recommendations Marketing Strategy Output: Opportunity validation Output: Value proposition + business case Base case scenario GO/NO GO decision Implementation plan . . Step 2: Confirm new product launch strategy Step 3: Implement the strategy Launch Monitoring & Adjustments Output: Implementation roll out & impact measurement . Market Assessment Output: Opportunity validation . 3. Our Approach The New Product Launch best practice programme is organised in 3 complementary and successive steps Marketing Operations Output: Marketing (launch) plan Using the components of this framework, careful diagnosis of client challenges and opportunities allows a tailor-made approach to be recommended
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12. Benefits of the proposed changes will come from six areas and initial forecasts suggest they are significant: 1. Increased stand alone Solution XYZ sales 2. Increased XYZ sales to current customers 3. Increased XYZ and technology sales to high-end customers 4. Increased XYZ and technology sales to following market by developing a targeted proposition 5. Improved margin 6. Protection from business erosion Incremental revenue p.a. by year 5 $800k-$1m $480k-$600k $5m-$7.5m (IT $1m-$1.5m) $5-$6m (IT $500k-$600k) Currently unquantified $1.24m in lost IT share An estimate of implementation costs suggests payback could begin after 24 months Key Assumptions -Transitional costs tail off after 24 months -Ongoing costs after change remain the same as now. Any cost savings taken as benefit, any new staff taken on through restructuring -Average total cost to employ project team is $1,200 per day during implementation 3. Our Approach Capability Assessment (2) - Budget Analysis, illustrative Question: What levels of ROI can be expected and when? Return on Investment Year 1 Year 2 Year 3 Year 4 Year 5 -$5m 0 $5m $10m $15m $20m $25m $30m $35m Highest negative in investment cycle $2.6m Cumulative Revenue Quarterly Revenue
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14. 3. Our Approach Market Assessment (2) - Competitive Analysis, Illustrative Question: How does breadth of portfolio translate into revenues and revenue growth? Revenue from segment (000's) Revenue growth Company G Company C Company F Company H Company E Company D Company B Company A (US only) Size of the bubble: relative breadth of portfolio
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16. 3. Our Approach Marketing Strategy (2) - Value Proposition, Illustrative Top long term complications Top short term side effects Top target values Middle long term complications Middle short term side effects Top cost of disposables Standard size Top learning time Top staffing time Middle learning time Middle machine purchase cost Small size Top integration Q C E E E C C Question: what set of features and benefits are most likely to lead to purchase? Conjoint Analysis of Customer Priorities, Medical Technologies Q Quality Top machine purchase cost Middle cost of disposables Quality of Treatment Total Cost Ease of Use/Ergonomics Category Utility/Score ! Q 15 27 100 Category Utility/Score C Cost E Ease of Use Customers overwhelmingly traded Cost and Ease of Use for Quality of Treatment . The ranking of sub-levels showed meaningful variations per country. Conjoint analysis tests the criteria buyers use to make purchase decisions by forcing them to make trade-offs between different features/benefits. E
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