Two chapters as group discussion. The first is about new product development for Teeth Whitening product. The second is about launching new product of Juice called Innocent. Group members : Tumenast Erdenbold,Edwin Opare and Riri Kusumarani.

1. ITP 800 : Technology
Commercialization
Course offered: Prof. Choi Munkee, TA: Bitrus
Group: Erdenebold, Edwin, Riri
Case Study Chapter 11
Developing a new Product for the teeth whitening
market
Case Study Questions
1. Should munich gases invest 10 million Euro in this new product project
I believe that the decision should be taken by considering company’s strategic plan in the
near future. Investment decision of 10millions Euro also means analyzing the ROI in which
this case study does not provide enough information.
2. What other factors may yet decide the fate of this project
Safety related issue may determine the fate of this project, if it is chemically unsafe to use.
Also for real consumer testing may influence .Another important factor that is not described
in case study is the competitor action towards the new technology. If competitor speed­up
their R&D and outranked Munich Gases in it, then the project might be postponed or even
canceled.
3. Which market should munich gases select? The consumer product or
professional/business market?
Both market are feasible. So the decision will be whether Munich Gases wants to diversify
its product range or not. Choosing the consumer products means Munich Gases wants to
leverage its value chain. Professional market on the other hands means it wants to
strengthen its core business as chemical company. Both market will offer high profits
according to the case study.
4. Sketch out five different possible business models. Of these, determine which
is the most profitable and which is most likely to succeed.
To propose business model, we are using guidelines in p.412
Business Model 1
{Consumer Market} ​Co­branding with top­tier market leader in teeth whitening company.

2. Target Customer : Teeth Whitening customers,
Business Model 2
{Consumer Market}​ Co­operation with retailers across the continents to help selling the
products.
Business Model 3
{Professional Market} Focus on Entering professional market such as Dentist, Health care
etc.
Business Model 4
Licensing Fee of technology
Licensing fee of plasma technology means that no more extra budget need to be allocated
and Munich gases can obtain royalty from this licensing fee.
Business Model 5
{Consumer Market} ​Manufacturing the technology
This BM will be the most risky among all options. The decision to manufacture the
technology and sell the whitening products need deep consideration. Extending the range of
products can be beneficial if Munich gases can assure the public about the safety of the
products.
5. How will the powerful toothpaste brand owners react
The new innovation in plasma for teeth whitening can be considered as disruptive
innovation as in there are few known products that can offer easiness of use. I predict Most
brand owners will react by :
­ Increasing their R&D to develop plasma for their products enhancement
­ Offering co­branding with Munich Gases
­ Attacking the safety issue of using plasma as whitening agent.
6. Should munich gases secure an entry into the market with one of europe’s
leading multiples?
Yes. Having business agreement with europe’s leading retailers will assure access to
customer and also will lower the uneasiness of new customers with the help of retailers
brand name.
7. Should munich gases secure the endorsement of one of europe’s leading
toothpaste brands before entering the market
Yes Munich Gases should secure endorsement of one Europe’s leading toothpaste brand
before going to market. Securing endorsement will bring positive impact to Munich Gases​.​ It
would be easy for Munich Gases to sell their products through already established channels

3. such as leading toothpaste brands.This will lead to a win­win situation for all parties
involved.
8. How can the firm reassure uneasy consumers about the safety of plasma in
their mouth?
Munich Gases should invest a significant amount of its budget on public education and
awareness creation on the benefits of using plasma for its tooth whitening product. They
should adequately highlight and address misconceptions the public may have about having
plasma in their mouth through thoroughly thought through adverts that can resonate with
the public in order to reassure them that there are no dangers involved in having plasma in
their mouths.

4. Discussion Questions
1. If there was a strategic alliance between competitors for the development of a
new technology, then what are the strategic issues for the firms once that technology
becomes available?
Each firm will have to:
● Establish a go to market strategy
● Decide which time to go to the market
● Have revenue sharing agreements among the firms
● Conduct continuous R&D for product improvement at the firm level
● Agree on inter­firm support mechanisms for the technology
2. Apply the notion of product platform to service industries. How relevant is it to
financial services or to hotels? What are the issues that would need to be
investigated if an idea emerged in a firm in those industries for a novel platform that
had no connection with what was done before in that industry?
A product platform is a set of platform elements and architectural rules that enable a group
of planned product offerings. Key characteristics of a product platform include: (1)
Architectural rules/standards governing how technologies and subsystems ("platform
elements") can be integrated; (2) Defines the basic value proposition, competitive
differentiation, capabilities, cost structure, and life cycle of a set of product offerings; and (3)
Supports multiple product offerings from a single platform, permitting increased leverage
and reuse across the product line.
Within the financial services industry, a bank can standardize the architecture rules and/or
underlying technology that supports how accounts are opened, how loans are issued or
contracted, how interest rates are applied to loans, how accounts are audited and so on. By
standardizing the underlying technology, the bank is able to support multiple product
offerings (such as easily rolling out and selling new insurance policies) all from the single
platform i.e. the underlying technology, thereby allowing the bank to leverage and reuse the
technology across multiple product lines and increasing its bottom line as a result.
In the case of a hotel, a single technology platform can be implemented to handle
accommodation bookings or reservations, conference room booking and reservations,
payment processing for both accommodation and conference bookings and so on.
Issues that would need to be investigated if an idea emerged in a firm in those industries for
a novel platform that had no connection with what was done before in that industry includes:
● How will this new idea differentiate us from the competition
● What new capabilities will accrue to us as an organization if we implemented this
idea
● What cost structure should we use to stay ahead of future competition,
● What is the life cycle of the products offerings to be developed from this new idea

5. 3. Would you agree that product portfolio analysis is too simplistic to be much of
value?
No, we don’t agree that product portfolio analysis is too simplistic to be of much value.
A product portfolio is the collection of different items or products currently being sold by a
company, or a collection of products/items being evaluated by a company to determine
which among them the firm should invest in. Within the product portfolio, each product is
expected to make different contributions to the firm’s net income or bottom line. The
evaluation process for a portfolio of products on which investments are to be made typically
involves a complex mix of analysis of consumer behavior to determine how the firm can
expand its market size with the new products and how to improve overall organizational
profitability with each new product in the portfolio which is being evaluated. Through this
process which involves the use of both numeric models (such as NPV, IRR) and
non­numeric models (such as Product Line Extension, Comparative Benefit, Sacred Cow,
Operating Necessity, Competitive Necessity) a firm is able remove underperforming or
money­losing products from its portfolio. Undertaking this endeavor is not as simple as it
may seem, therefore we do not agree that product portfolio analysis is too simplistic to be of
much value.
4. Trace the connections between differentiation strategy, core capabilities and
positioning strategy. How are they relevant to new product planning?
New product planning requires input from both R&D and also market . this activity is done
before the substantial resources are applied to a project. Product strategy expresses how to
organization seeks to differentiate itself. There are at least 2 strategies that are being
discussed in chapter 11 : differentiation and positioning.
Differentiation will be effective if the strategy is rooted in organization capabilities, while
positioning strategy needs to built upon and consistent with differentiation strategy
it can also be inferred that :
­ Differentiation strategy must be created at the same time of planning activity.
­ Core capabilities must be assessed to know organization strength and weakness.
­ Positioning strategy will help in putting the product on the market as in deciding
business model.
5. Are brand extensions as relevant in industrial markets as in consumer
markets? Do they have a strategic role or are they short­term tactical exercise?
A brand extension can be defined as the usage of an existing brand name on a new product
in the same field. This strategy aims to take advantage of potential carry­over effects from
original name.

6. In consumer markets, brand extensions can bring benefits the producer and can be
considered as relevant . Consumer products are easily distinguished from one another. For
example when P&G use brand extension to market their new product such as perfume line.
It will not dilute their existing product line.
However,in industrial markets, this strategy might create possibilities of cannibalization on
existing products. Industrial market is also known as a B2B market in which an industry
products sold to another industry. Using brand extensions might jeopardize a company’s
image of a certain product.
6. It seems toyota has been successful at recalling some of its cars for
modifications, without damaging the toyota brand. How has it achieved this?
Toyota has succeed in building its brand. When they are forced to recall its product, Toyota
quickly engaged in managing the crisis because it understand that the crisis can threaten
its reputation. This shows that strong branding has somehow bring benefit in the long rung.

7. 7. Apply CIM to the case study
For the Cyclic Innovation Model (CIM) apply to the case
● Entrepreneurship: Munich Gases R&D department entrepreneurships are
planned to developing a new product for the teeth whitening
● Technological Research: Munich Gases R&D department, chemical
technologically use of plasma a cleaning agent. Plasma is fourth matter which can
be either solid, liquid, a gas or a fourth type.
● Product Creation: For the past year a research team at Munich Gases has
been exploring the viability of incorporating plasma for cleaning and whitening teeth.
Artificial plasma has can be created when energy is added to a gas, perhaps using
an electrical field or a laser.
● Market Transitions: When Munich Gases established uncovered patent and
its possibilities that they quickly established a team of researchers to explore
whether the idea could be a viable business opportunity and further could be transit
to market. Market study around 90% completed.
● Scientific exploration: ​Munich Gases quickly established uncovering of a
patent submitted by the University of Southern California (USC) in 2009, which
claimed scientists used plasma to sterilise teeth and one of the side­effects was a
whitening of the teeth.
8. Examine whether it is only the launch of technology intensive products that
can benefit from the use of blog buzz or whether all product launches could benefit?
It is better to launch of technology intensive products like Apple iPod HiF. In all the
products launching case, if there is any issue occurs with one product may affect to other
products market share like Toyota all three models failure.

8. Case Study Chapter 12
Launching innocent into the growing fruit smoothie
market
Case study Questions
1. Innocent are very clear about the image it wishes to project to the public. This
is one based on being different, fun­loving and having a carefree approach to life this
hippie­style image has helped the brand become acceptable to the young urban
professionals at which it is aimed. But beneath the surface of this image, there is
evidence of a business that could be characterised as a single­minded,profit driven
and very business oriented. Where is the evidence of the latter?.
The fun­loving, hippie­style carefree approach portrayed by Innocent clearly
resonates well with its target market, young urban professionals leading to the
company being successful with respect to the intended audience. Beneath the
surface, however, Innocent’s image could be characterized as a single­minded profit
driven and business oriented company because all the co­founders are of privileged
backgrounds. Their backgrounds therefore does not reflect the rags to riches story
the company seeks to tell.
Secondly, the single­mindedness approach of Innocent is portrayed in its NPD
process, right from their business idea creation to screening all the way through
evaluation and product development.
2. The success of the business is partly based on extremely good
communications with retailers. How is this achieved?
The three founders managed to have their first product launched within local sandwich
group and believing that smoothie runs well with sandwich and local delicatessens.
Furthermore, Innocent created unique communication by using newspaper to its retailers
which included product information and fun stories. The design of the copy was also
considered very well with intention to break down the barriers between manufacturers and
customers.
3. What type of financing did innocent secure?
Equity financing through venture capitalists was type of finance methods that Innocent
chose. This decision resulted in having the fourth shareholder with 20% of innocent equity
worth $250,000. However, this case study provide no information on what kind of support
Maurice Pinto give besides hard cash.

9. 4. Would you sell the company to coca cola for $400million? As one of the
shareholders you could pocket tens of millions of pounds. If not, why not?
We choose yes because of the following :
­ Innocent product is lack of differentiation strategy.
­ Product is easily to copy by competitor
­ Harsh competition in Food & Beverage industry
5. Innocent benefited from a key advantage. What is it?
Constant innovation and refusal to compromise. This key advantage is crucial to keep
innocent products sell on the shelf. Innovation is needed when a product is in red­ocean
market, in which failure to develop new concept will lead to a decrease in market share.
6. How is innocent ‘virtual’ and how is this different from traditional food and
drink manufacturers? What advantages and disadvantages does this provide?
Weakness of the product is that Innocent doesn’t have its own, manufacturing and supply
chain. So they use the other companies products such as bottle, packaging for the smoothie
based on the contracts comparing with other manufacturers.
Other aspects: Quality, reliability, leakage of intellectual property from contractors to other
manufacturers, control of the brand and its value is less secure if there is too much reliance
on others.
7. Use cim to illustrate the innovation process
CIM is made up of the following cycles
Natural sciences cycle
This involves the development of a fruit smoothie product based on purity.
Integrated engineering cycle
Coming up with an appropriate brand for ‘innocent’ and a winning product was critical for its
success in the heat of competition. New manufacturing techniques were required due to
emphasis on an organic healthy drink and ensuring that the drink remained fresh for some
time without preservatives.
Differentiated Services Cycle
‘innocent’ focused on the creation of a brand image that would sell and enable them to
compete with existing competitors in the market. ‘Innocent’ wanted to come up with a

10. product that is unique such that consumers would be willing to change to their product. The
founders emphasised on developing an organic smoothie that did not have preservatives.
The packaging through the bottle design was also eye catching to the consumer it that it
portrayed a hippie fun, car free and hippie lifestyle that the target market could easily relate
to. Innocent also ensured that their smoothie had an excellent taste to ensure consumers
are loyal to the brand and willing to buy again.
Social sciences cycle
Throughout the development of the product ‘innocent’ relied on customer feedback to
continuously improve the product. The founders would make smoothies from soft fruits at
home and enjoy them together. In addition to that as the three founders planned their
business, they tried different recipes on their friends and at one point they tested their drinks
on visitors to the Jazz festival. Based on this one can see that, innocent applied the social
science cycle and based on customer insights to continuously improve their fruit smoothie
product. Communication with retailers was through regular newsletters, and fun stories was
also a critical application of social sciences.
Entrepreneur
‘Innocent’ was established by three business minded and committed entrepreneurs
(Richard Reed, Adam Balon, and Jon Wright) with excellent academic background and
requisite skills for business such as advertising and management consulting. The three
founders actively participated in all the different phases of product development from
research, product development, enhancement using market transitions and customer
insights until product launch.

11. Discussion Questions
1. Explain why the process of new product development is frequently
represented as a linear process and why this does not reflect reality.
The activities involved in the process of new product development (NPD) platforms focuses
on simultaneous and overlapping activities, and their ensuing external and network
interactions. NPD process is also viewed from the financial perspective in most
organizations whereby cash outflows precede inflows. In reality, each industry has its own
process. Figure 12.10 explains how the cash flow is actually more to cumulative instead of
linear . In early stage, there are barely cash inflows, while at the very end of stage NPD
process, the cash inflows is stacking as a cumulative result from previous stages.
2. Explain why screening should be viewed as continual rather than a one­off
activity.
Screening in NPD process is one of the way to maintain quality of the products. In each
step of NPD, screening is needed to rule­out ideas that don’t fit with the overall concept of
new product.
3. Discuss how the various groups of NPD models have contributed to our
understanding of the subject of NPD
NPD Model Explanation
Departemental­stage ­ Early stage of NPD models.
­ Each department is responsible for
certain tasks
­ Each department will carry out their
task before giving it to the next department
­ Weakness :
­ Hinders the development of new
product
­ Need of re­working and consultation
between functions
­ Possibilities of misunderstanding of
product concepts.
­ Does not provide feedback loop
Activity­stage models and
concurrent engineering
­ Similiar with previous model
­ Provides iteration of activities with
feedback loops.

12. ­ Not suitable for technology­intensive
business where teamwork is crucial
Team ­ Having dedicated team that represents
each department functions
­ Emphasizes on project management
and interdisciplinary teams
­ Requires fundamental modification in
an organization
Decision­stage ­ Represents NPD as a series of
decision that need to be taken in order to
progress the project
Stage­gate ­ Divides the effort of NPD process into
time­sequenced process by management
decision gates
Conversion­process ­ Views NPD process as a numerous
inputs into a black box where they are
converted into outputs
Response ­ Focus on individual or organization’s
response to a new project proposal.
Network ­ Emphasizes the external linkages
coupled with the internal activities that
contributes to successfull product
development.
4. To what extent has BMW repositioned the Mini?
BMW has acquired the Rover group with Mini in 1994. And 1999 Mini was kept original
design, but BMW designed and manufactured since 2000 a new Mini and Mini cooper as its
brand name. And successfully implemented and 25,000 units in 2001 to 200,000 units in
2006. Extent was the brand name of car combination with re­design configuration.
5. Examine the concept of a multi­dimensional product; how is it possible to
create a new product by modifying the price dimension?
Based on the concept, a product is multidimensional including level of service, technology,
brand name, quality specifications, features, packaging and price. If we accept these

13. dimensions, then it must follow that it is theoretically possible to label a product ‘new’ by
merely altering one of these dimensions, for example price.
Based on the concept picture above, if modify the price dimension, it can be possible to
modify level of service or features.
6. The software industry seems to have a very flexible NPD process enabling
changes to be made to the product at any time. Consider whether this approach
could be applicable for a car production line or mobile phone handset products.
The software (SW) industry to show that having an agile NPD process enables the firm to
adapt to changing markets, and SW projects applies agile methodologies, such as Scrum,
eXtreme Programing (XP) and Feature Driven Development (FDD). This approach could be
applicable for mobile phone handset production, because of these days smartphones
market is skyrocketing and many new brand, version are R&D and releasing to the market
that comparing with car production. Car production line is consists of Ford firstly introduced
assembly line with standard parts, so it is actually process is standardized and fixed for
each parts for the assembly, so it cannot be applicable flexibel NPD to car production line.
7. Explain why time to market may be less important than a flexible NPD
process.
The process of NPD commences with idea generation, idea screening, concept
testing through to monitoring and evaluation. In a linear NPD model, these activities
are more important than time to market of the new product.
8. Discuss the strengths of network models of NPD

14. Using network models, NPD is often viewed as a knowledge­accumulation process
requiring inputs from a variety of multiple sources. The strength of these models lies
in their ability to combine internal activities with external linkages that ultimately
leads to successful product development. Existing literature suggests that through
external linkages, an organization is able to tap into additional knowledge flows
which can significantly enhance the product development process. This is a key
strength or advantage of using network models.