6. KEY PRODUCT
MANAGEMENT DECISIONS
1. WHICH PRODUCT TO INTRODUCE
2. WHICH PRODUCTS TO KEEP
3. WHICH PRODUCTS TO PROMOTE
4. WHAT LEVEL OF PROMOTION TO PROVIDE
(LOW TO HIGH)
5. WHAT PRODUCTS TO CONTINUE OR
DELETE
7. PRODUCT LIFE CYCLE DECISION POINTS
Sales
Development
Introduction
Growth
Maturity
Decline
Time
8. Key PLC issues
1.
2.
3.
4.
5.
6.
7.
8.
High/ Low learning
Leap frogging
Category/Primary
Diff/ Secondary demand
Four P’s during the PLC
Stealth positioning
Break-away position
Demand and Technology life cycle
8-8
9. PRODUCT LIFE-CYCLE: A NEW LOOK
Product
Development
R&D
Test
Marketing
Kill the
product
Introduction
Growth Maturity Decline
Find New Repeat Life
Uses
Cycle
Find New
Markets
10. PRODUCT DEVELOPMENT PROCESS:
A NEW LOOK
FSC
DFM/DFA?DFL/DFD/LAUNCH-Rolling launch
Prototype development and testing ALPHA/ BETA TESTING
Preliminary Business Analysis
Concept Testing
SCREENING AND PRELIMINARY
INVESTIGATION- IR/OR
IDEA GENERATION
11. What is a New Product?
1.
Booze Allen and Hamilton frame-work
12. MAKING A PRODUCT SUCCESSFUL
1. Have close ties with a well defined market to
anticipate customer needs.
2. Company is highly integrated and market-oriented
3. Company has a competitive advantage in
technology and production capability
4. Company has a strong marketing proficiency
5. New product launch adequately financed
8-12
13. New Product Development
•
•
•
•
•
•
•
•
•
•
•
Reason for failure of products
Team o champions versus champion team
Orphan
Champion the cause
Less failures in japan
Speed to market
Beta test
Lack of top management support
Organize for new product development
Manager/ committee/division
role of product deletion- demarketing
8-13
14. WINNING THE NEW PRODUCT CONTEST
• FOCUS ON CORE COMPETENCY
(WHAT YOU DO BEST FOR A COMPETITIVE ADVANTAGE)
PLUS
• PROVIDE GREATEST VALUE TO CUSTOMER
EQUALS
• SUCCESSFUL PRODUCT
