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1.2 - Handout - New Product Development for SME & Startup.pdf
- 1. NEW PRODUCT DEVELOPMENT For SME & Startup Create a strongly perceived value products that win!
- 2. WHAT’S IN THE WORLD? The world keeps changing, and Business Growth is seriously at the heart of all MNCs now!
- 3. The same for SU & SME Always expect High & Instant Return for every penny spent on media
- 4. YET COMMUNICATION IS A LUXURY! Many SME & SU are not ready for it
- 5. HACK BUSINESS GROWTH Luckily, it’s not only communications that can hack the business growth We can do it by launching new products with excellent concepts!
- 6. PRODUCT CONCEPT • A short description about the product (including product name, benefits, reason-to-believe & ending) that creates certain values for consumers • In MNCs, it’s expressed in Product Concept Board used for consumer test before developing real products
- 7. GREAT EXAMPLES WILL BLOW UP YOUR MIND! • VND 47,000/pack • Concept “Tasty” • Base: Soy bean • VND 49,000/pack • Concept “Good for heart” • Base: Soy bean
- 8. Rich Omega 3,6,9 Rich in Calcium Good for memory Rich in Minerals: Fe, Mg, P, K, Na, S Rich in Protein Rich in Vitamins: A, B1, B2, D, E, F Good for heart Prevent bad cholesterone Enhance tastiness Enhance bone toughness High nutrition Support growth
- 9. • Concept “Korean spring roll” • Base: Traditional spring roll • Concept “Traditional spring roll” • Base: Traditional spring roll
- 10. • Concept “Potato Instant noodle” • Base: Instant noodle
- 11. • Concept: For the early-ejaculation • Base: just normal condom • Concept: For higher sensation • Base: just normal condom
- 12. Tea & Lavender Black Sugar White Egg Coconut
- 13. “Nước muối sinh lý” THE GREATEST CONCEPT EVER
- 14. THE ERA OF PRODUCT CONCEPT ARISES Great opportunities of ALL SU & SME, even those who do not have advantages in production But we never have time writing a PRODUCT CONCEPT BOARD, because we think it adds no value & wastes time LET’S CONCEPTUALIZE THE PRODUCT!
- 15. VERY IMPORTANT THAT WE MUST UNDERSTAND INNOVATION PLATFORMS OF OUR CATEGORY To fully understand where we can compete or brainstorm if we can break the ice in a totally new platform Innovation Platform – Perceived value proposition of the innovation
- 16. Origin credibility Tasty Safety/Healthy Nutrition Ice-breaking or not? “Phú Quốc” “Phan Thiết” “Hương cá hồi” “Mắm nhỉ” “3 trong 1 Cá tươi Muối tinh Thanh trùng kép” “Tự nhiên” FISH SAUCE MARKET
- 17. INSTANT NOODLE MARKET Safety/Healthy Tasty Tasty Foreign style More nutrient “Mì không chiên” “Mì không chiên” “Mì Udon Nhật” “Mì Hàn” “Mì Thái” “Mì Tương Đen Bắc Kinh” “Xúc xích thật” “Thịt bằm thật” “Hải sản thật” “Chua cay” “Dai giòn sật sật” “Mì khoai tây” “Trong dai ngoài giòn” “Có thêm cải chua” Spicy “Gà xé” “Mì cay 7 cấp độ” “Mì xá xíu” “Cay bùng nổ giác quan” “Mì vị tôm yum”
- 18. KNOW YOUR TARGET • Who are they? • Product-related need • Special lifestyle It’s the foundation for concept ideation
- 19. NEW PRODUCT DEVELOPMENT PROCESS To create strong perceived product values • Basic benefit • Enhanced benefit • Reason to believe • Product naming 2. PRODUCT FORMULATION 3. PRODUCT PACKAGING 1. PRODUCT CONCEPT • Product label design • Product pack shape • Product ingredient • Product format • Product sensory cues • Product color • Product shape
- 20. 1. PRODUCT CONCEPT Let’s imagine & conceptualize!
- 21. Think Product Benefit first! Good handwriting Long lasting ink Enjoyable smell Durable pen tip Safe ink Basic Benefit Enhanced Benefit (Basic ideas – basic need) (Differentiating from competitor, creating Want) Good handwriting better than normal x2 than normal From sunflower/Jasmine Better than normal 1 month longer use
- 22. Think Reason-to-believe later! Good handwriting Long lasting ink Enjoyable smell Durable pen tip Safe ink Good handwriting better than normal x2 than normal From sunflower Better than normal 1 month longer use Reason-to-believe (RTB) (Make it credible!) Patented “Hand-Write” Technology Ink-Block Technology Real nature extract Clinically tested by Pasteur Basic Benefit Enhanced Benefit Quyền Linh believes & uses! (Basic ideas – basic need) (Differentiating from competitor, creating Want)
- 23. Not all products can generate Enhanced Benefit due to constraint of legal supporting documents. Instead, add RTB & twist Basic Benefit wording to be more appealing • Basic Benefit: “3 Tốt” • RTB: “Óc Chó” • Basic Benefit: “Tăng cường sức đề kháng” • RTB: “Công nghệ lên men Châu Âu” • Basic Benefit: “Bảo vệ sức khỏe vượt trội” • RTB: “Activ Natural Shield
- 24. Some products choose only RTB as key point for the Product Concept RTB: from Fresh Cow Milk RTB: from U Minh RTB: from Avocado
- 25. You work in the market, so you know it! Quick check with Distributor/Retailer/ Sales Team Quick check with Consumer Where to get BENEFIT? (Address consumer’s issues/concern) Spend 30’ talking with them
- 26. How to make ENHANCED BENEFIT? COMPARISON Attack – Giặt sạch như sức mạnh của 10 bàn tay VIM – Diệt khuẩn 100X Upsa C – Cung cấp Vitamin C tương đương 1000 trái cam SUPERIORITY Pond’s – Làn da trắng hồng chỉ sau 7 ngày Basic Benefit + […] Dove – Cảm nhận Làn da mềm mại tức thì Omo Matic – Xoáy bay vết bẩn chỉ trong 1 lần giặt (Don’t forget legal supporting claims) ULTIMATE Lifebouy – Diệt khuẩn đến 99.9% Axe – Nhãn hiệu mùi hương nam tính bán chạy nhất thế giới H&S – Dầu gội trị gàu bán chạy số 1 thế giới
- 27. How to make REASON-TO-BELIEVE? 1. BRAND HISTORY • Beer Kronenbourg – since 1664 • LeVi’s – since 1879 • Givral – since 1950 • Skinfood – since 1957 2. ENDORSEMENT • Elida Paris Hair Research Institute • Dentist Associates • Clinically tested & proven by National Derma Insitute • Used by Ronaldo 3. COUNTRY OF ORIGIN • Made in Japan • Designed in California, US • Ingredients from New Zealand • Engine imported from Korea 4. SPECIAL FORMULA/TECHNOLOGY • Nan 3 – Fidious BL • Castrol – Power Release Formula • Clear – Nutrium 10
- 28. Create PRODUCT NAMING 1. NAME AFTER KEY PRODUCT INGREDIENT Rượu chuối hột Dầu Olive Trà Ô Long DG Dược Liệu To quickly transfer expected product value
- 29. DG chống gàu ST dưỡng ẩm Cháo tươi Nước tăng lực 2. NAME AFTER PRODUCT BENEFIT
- 30. Tã giấy người lớn KĐR trẻ em Dầu ăn cho trẻ em Sữa cho bà bầu 3. NAME AFTER TARGET CONSUMER
- 31. BVS ban đêm Kem dưỡng ban ngày Bột ăn dặm Bánh trung thu 4. NAME AFTER USAGE OCCASION
- 32. Mật ong rừng U Minh Nước mắm Phú Quốc Gạo Tám Điện Biên Kẹo dừa Bến Tre 5. NAME AFTER A WELL-KNOWN PLACE
- 33. Gạo Nếp Đặc Sản Trà Lài Đặc Biệt Dầu Mè Nguyên Chất 6. NAME TO REFLECT SPECIALTY/RARITY Thảo Dược Gia Truyền
- 34. Nước măm Nam Ngư Đệ Nhị Nước tương Tam Thái Tử Nhất Ca vs Nhị Ca Xúc xích Happy 7. NAME TO CREATE METAPHOR OR TRIGGER POSITIVE EMOTION Thánh SIM
- 35. MAKE A SIMPLE CONCEPT BOARD TO ASK AROUND Chả Cá Nha Trang Tươi ngon đúng 2 tuần vì không chứa chất bảo quản Bánh Đậu Xanh Matcha Trà Xanh Lịm ngọt ngây ngất ngay trên đầu lưỡi từ Bột Trà Xanh Nhật Bản
- 36. EXERCISE Bánh Xốp Xúc Xích Tôm Chua Dịch Vụ Nha Khoa
- 37. 2. PRODUCT FORMULATION In-line with Product Concept to enhance perceived product values
- 38. Play a role as RTB. Formulate it wisely! 1. PRODUCT INGREDIENTS • Vitamin D: Calcium & height • DHA: Intelligence • Collagen: Skin beauty • Salmon: Premium • Omega 3,6,9: Good for heart or memory • Organic: food safety • Paraben: Cause cancer • Robusta vs Arabica • Tea: anti-oxidant & anti-odor • Non-GMO? 2. PRODUCT FORMATS • Highly dense dishwashing liquid: high cleaning power • Detergent liquid: suitable for machine wash • Toothpaste gel: more premium than paste • Soap bar: outdated • Tea bag: for old people
- 39. 3. PRODUCT SENSORY CUES • “Skin peel-off” shower gels have tiny beads • “Whirling power beads” detergent powders have tiny beads • Aloe vera Yoghurt contains aloe vera pieces • Orange drink contains orange bead • “Temperature detergent” makes water hot • “Milk” cleanser have milk smell 4. PRODUCT COLOR • Potato noodle: brighter yellow • Baby fabric a: light color • Dark ale: more premium • Dark chocolate: bitter but healthier • Coal facial cleanser: black 5. PRODUCT SHAPE • Fish ice-cream: create excitement • Chocolate nugget vs bar • Cartoon jelly candies
- 40. Chả Cá Nha Trang Tươi ngon đúng 2 tuần vì không chứa chất bảo quản PRODUCT CONCEPT PRODUCT FORMULATION Có vị & mùi cá Có màu vàng ở lớp vỏ đẹp mắt, bên trong màu trắng của thịt nạc cá ngon mắt Có thêm gợn nạc cá trong chả cá Sau 2 tuần, phải trở nên ôi thiu!
- 41. Bánh Đậu Xanh Matcha Trà Xanh Lịm ngọt ngây ngất ngay trên đầu lưỡi từ Bột Trà Xanh Nhật Bản PRODUCT CONCEPT PRODUCT FORMULATION Có vị & mùi trà xanh Có màu xanh sáng của lá trà tươi Có thêm gợn trà bên trong nhưng có thể ăn được
- 42. 3. PRODUCT PACKAGING In-line with Benefit Claim, RTB, Formulation to enhance perceived product values
- 43. Create PRODUCT LABEL DESIGN Discuss with the design team over direction for Design Concept Design concept: Expert/Science Design concept: Cool/Fresh
- 44. Design concept: Safe Design concept: Tasty Design concept: Hot/Spicy
- 45. Create PRODUCT LABEL DESIGN Design concept must reflect perceived product value, can be drawn from Benefit or RTB • Basic benefit: “An toàn cho sức khỏe” • RTB: “Thành phần từ thiên nhiên” • Concept design: “Thiên nhiên” “Thiên nhiên tươi mát” “Thiên nhiên tươi sáng” “Thiên nhiên tinh khiết” 1 2 3
- 46. Some design concepts reflect lifestyles or emotional values Naughty in seductive way Mighty sporty Delightful bathing Subtle/Smart Naive
- 47. Create PRODUCT PACK SHAPE Normally, we use the same product pack shape across product variants for cost efficiency CURRENT NEW
- 48. Yet some product variants need special PRODUCT PACK SHAPES because they offers more different product perceived values The best case is PRODUCT PACK SHAPE is in-line with DESIGN CONCEPT, but think further about product line-up in the future
- 49. Differentiation by PRODUCT PACK SHAPE to add values is very important (of course, cost must be considered)
- 50. SUMMARY • The meaning of Product Concept is to create perceived product value, because people buy Concept (not product). • SU & SME can win by products with GREAT CONCEPT, think through 3 steps: CONCEPT, FORMULATION & PACKAGING.