...New Product Development Why is it importand to launch a new product? * A successful new product does more for an organization than any other thing can do * Today a high percentage of sales and profits come from new products (> 30% avg) * The process is extremely difficult * Companies take big risks * Failure rate is quite high (40% avg) * It is fun and exciting! A product can be tangible = Goods A product can be intangible = Services B2B =Business to Business BSC =Consumer Products * New product process does not usually start with a new product idea: it begins with an amount of Strategy * Marketing does not start when the procut is finished: it often starts before ideation * The process is not over when the product is launched=It ends when the new products is successful * Very few are taken to launch and only a small fraction succeed: high risks! * Most new ideas are epresed as lie extensions of existing brands= Parent Brands awareness+values * Most new ideas....are not that new: what’s new for you may not be new for consumers Opportunity An opportunity is a business or technology gap that a company or individual realizes that exists between the current situation and an envisioned future in ordert o capture competitive advantage, respond to a threat, solve a problem or ameliorate a difficulty A Strategy: It is necessary, because it ist he foundation for a new product management A new product development...
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...Article Overview: The persistent success of technology based companies depends on their proficiency in creating next generation products and their derivatives. They found that most of the companies were unable to complete such projects on schedule. The companies also had difficulty developing the derivative products needed to fill the gaps in the market that their next-generation products would create. The root cause problem was in the product definition phase and not spontaneously; all the successful companies have learned how to handle the technical and marketplace uncertainties in their product definition processes. Paper describes the actions of companies used as best practices which can improve the definition phase of any company's product-development process. They have grouped the techniques into three categories and carefully lay out the steps that companies need to take as they work through each stage. They can help companies capture new markets without major delays and tools used by managers facing the uncertainty that goes with developing products for a global marketplace. The product strategy being first step to create a clear map of company’s product stream for next 2 years. The challenge is to keep no holes for competitors to exploit opportunities. This step defines the product streams to include both products and their derivatives and it may not be final and can be revised at various miles stones in future. The second step to develop project organization which...
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...Strategic Management Seminar Work Topic: “Classification of Strategies” Moritz Irmen 14.11.2012 University of South Bohemia Ceske Budejovice Table of Contents 1. Introduction 2. Strategies in General 1. Market Strategy 2. Product and Service Strategy 3. Organization Strategy 4. People Strategy 5. Finance Strategy 3. Ansoff Matrix – Applied Strategies to four different senarios 1. General Information 2. Product Penetration 3. Product Development 4. Market Development 5. Diversification 4. Conclusion 1. Introduction Strategies are often being used to adapt to different scenarios in the market and push the company in the better situation to handle the new and often inexperienced environment. They are specifying the organization’s mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives. The wide rage of strategies, in every field/part in an organization, allows companies to find the right strategy for implementation in different kinds of scenarios. 2. Strategies in General 1. Market Strategy Market strategy is an essential part of the strategic management, in order for companies to succeed in the comparative market that exists today. This strategy takes in account the company’s relationship to existing and potential customers, its knowledge...
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...Its logo—the red square with the rounded white letters—is immediately identified by most of the developed world and to a bunch of developing nations as well.” It is for this reason I was surprised to find an article written about Lego's comeback. The article states that the company’s problems began in the late 1990s, when Lego stopped focusing on design and started venturing off into new product development like Galidor, in which the company co-produced a kids’ TV show basically to spark interest in the product. The Galidor did not require building skills or much imagination, which is the hallmark of Lego products. The show and the product line sparked little interest. Lego was foundering. It was at this time that Lego gave designers free rein to come up with imaginative creations. And they took it and went overboard. By 2004, the number of components went from 7,000 to 12,400 and supply costs sharply increased. However, just as design pushed Lego to the precipice, it too helped bring the company back—but this time with parameters. Gradually the company started reshaping its product line from futuristic fire trucks to fire trucks that were recognizable to kids and by 2008, the City line reclaimed it spot at the top of Lego’s portfolio and with parameters in place scaled components back down to 7,000. Going back to conventional designs kids could relate to helped bring the brand back with 7% of the global market. Greene, Jay. How LEGO Revived Its Brand. Businessweek...
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...1. What is product management? - The organizational structure within a business that manages the development, marketing and sale of a product or set of products throughout the product life cycle. It encompasses the broad set of activities required to get the product to market and to support it thereafter. 2. Why is it product management is important in the field of marketing? -Product management is important in the field of marketing so that you can define, develop, deploy and maintain products and services. 3. Give at least 10 breakthrough innovations that change our lives. a. Air conditioner – Cooler than electric fan great for hot climates. b. Electronic Mail – you can get your mail instantly c. Electronic Load – more convenient than prepaid cards because of its cheaper denominations and it is readily available everywhere. d. Mobile Phones – easy to carry than telephone and communicate. e. Digital Camera – easier way to view your picture right after you took it. f. Foldable Umbrella – you can carry it anywhere without any hassles. Fits easily in your bag. g. Automobiles – more easy to use for starters because of its automatic transmission/ h. Play Station Portable – you can carry it anywhere and you can get games just by downloading it. No need for Cd’s i. Washing Machine – easy way to wash clothes. No need to use your hands. j. MRT/LRT – easiest way to roam around Manila without getting caught...
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...HIMALAYA - Case Questions 1. In view of increasing interest among local consumers with regards to herbal products, what immediate steps should Embun Elit Take. Embun is well establishing in the current market with 200 ranges of products, they should go for market penetration strategy. This strategy involves attempts to increase the present buyers’ usage or consumption rates of the offering. The mix of marketing activities will enable them to capture bigger market or the volume of sales. The strategy inclusive of reduction in the product pricing by bigger promotion and by product in introducing new product or less favoured products. Heavier promotion in emphasizing the importance of herbal product in daily usage will enable them to capture wider markets especially the younger markets between 18 – 24 years old. These demographic are big and always on trend / or to be called the trend followers, with bigger promotional activities these market segment can be concurred and will be a long term customers due to the product knowledge that they had. In term of product Himalaya have about 200 product range that been offered and in Malaysia about 100 only due to the strict requirement of local authorities in safe guarding the local players and pharmaceutical restriction. Here Himalaya can work with local players to be part of Himalaya and produce the product with Malaysia resources. R&D plays a major role in getting a scientific write out for the certification and approval...
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...Base on the situation when there is little knowledge on what the new trend of toy is, it is wise to rely on the new product concept in the beginning. According to the case, the toy developer has formed some basic ideas of what she is looking for in a new toy: genuinely fun and secretly educational. However, she does not know how to make it come true and what will become attracted to kids. The new product concept will help solve partly of the issue. There are three inputs required in the process: Form, Needs/Benefits and Technology. For the benefit, the new toy should bring fun to the kids, and has some educational attributes in the parents ‘eyes as well. The Needs/Benefits should start first; otherwise, there will be a great risk of wasting money and time in producing an item that turns out unattractive to the target customer. Although she cannot survey kids and ask what problem they have, there are many other methods to collect information. She can examine customer’s needs by doing survey on the lead customers, staying close to the sale forces, suppliers, etc. After having a solid foundation on what the customer need, then the toy developer can move to the Technology and Form process. With the needs’ attributions in hand, she is now able to identify what physical characteristics the new toy will require, and what technology will be needed to make it happen. Relying on the new product concept process helps one see a bigger picture and provides a tool to make ideas come...
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...1. How was Samsung able to go from copycat brand to product leader? Samsung was able to go from copycat brand to product leader by using a “new product development” strategy (Kotler and Armstrong, p.261). According to Kotler/Armstrong new product development is defined as the development of original products, product improvements, product modification, and new brand through the firm’s own product development. In 1993, the CEO and chairperson, Lee Kung Hee decided to revamp the company’s management because he was not content to remain the best of the knock-off brands. Rather, he set high goals (to become the biggest consumer electronics company and to surpass Sony) and established a strategic plan to accomplish those goals. Samsung accomplished its goals in less than two decades. The first step that he took was idea generation. He hired a “fresh new crop” of young designers to produce new ideas that could get the company in the direction that he wanted it. Sleek, bold and beautiful products were the aim so that they could target high-end users to the company. Next idea screen was also implemented in the development stage. Each product had to pass the “Wow” test otherwise; it would have to go back to the drawing board for further improvement Samsung then went a step further by testing new product concepts. From Blu-Ray players that changed colors, Eco-fit monitors with transparent stands that gave the appearance of a floating monitor, to a small Pebble MP3 player that...
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...Introduction: A product is sold to meet a customer satisfaction. Deeply research is been rigged through the higher performance of service and product in a market in order to understand the need and deeds of the customer (Harris, 1996). Moreover, (Lewis, 2000) low input should build a vital output in a firm, operation that is not productive or active in a place to be eliminated or removed. This illustration goes not only to operation although to be considered in a highest priority for a product/ service (Morgan & Strong, 1998). It is well known that marketing and sales division are focusing on how to touch sensibility of the market by promoting product or service through brand, commercial advertisement and providing inside division with requirement of the market and meet satisfaction of customer needs. Key successful to explore the connection of the market requirement with division of the firms towards innovative business is through the concept illustration of order winners and order qualifier. Basically, understanding order winners, order qualifiers characteristics will help an enterprise to prompt, develop product in the marketplace. To understand more the concept of order winners and order qualifiers, the performance objective has come to further study distinguishing characteristics and features and its model impact through the process of an operation of each element. Order Winners: The best an enterprise that can exhibits competitive feature to a customers competing other...
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...Journal of Business Research 55 (2002) 389 – 400 Benefits associated with supplier integration into new product development under conditions of technology uncertainty Gary L. Ragatza,*, Robert B. Handfieldb, Kenneth J. Petersenc a Department of Marketing and Supply Chain Management, Eli Broad Graduate School of Management, Michigan State University, East Lansing, MI 48824-1122, USA b North Carolina State University, Raleigh, NC, USA c University of Oregon, Eugene, OR, USA Abstract In many industries, firms are striving to integrate material suppliers earlier into the new product/process development process. This involvement may range from simple consultation with suppliers on design ideas to making suppliers fully responsible for the design of components or systems they will supply. In this paper, we develop and test a conceptual model of the effect of elements of the supplier integration process on cost, quality, and new product development time, under conditions of technology uncertainty. Technology uncertainty is operationalized here, as the degree to which the product or process technologies employed in the project are new, complex, and/or rapidly changing. The results suggest that technology uncertainty have a negative impact on cost results, but no direct effect on quality or cycle time. The results also show that certain elements of the supplier integration process are more likely to be employed under conditions of technology uncertainty, leading to significant...
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...Strategicoptions | Internalconsistency | Externalconsistency | Feasibility | Competitiveadvantage | Option 1:Marketpenetration | * Consistent * Given the current strategic, operational and functional capabilities of ABL, it is evident that market penetration is highly consistent strategy. * Consistent with ABL’s key stakeholder requirements and strategic goals. * strong distribution channels and a highly automated warehousing and distribution systems, these systems will give the company an even greater advantage over its * competitors and provide solid base for continuing expansion. * its VMI system could respond quickly to change of customers’ demand * its bottling capacity could be used for its own manufacturing operations. * major manufacturing plant can process over one billion drinks per year * Using market data could enable responsiveness and flexibility | Consistent1, it is the second largestcompetitor in the broader nonalcoholicbeverage industry inAustralia, not far behind theleader.2, it has about 40% of thepackaged soft drink market inAustralia.3, there are still significantopportunities for growth in allnon-alcoholic beverages,Comparing with US.4, require achievement ofeconomies of scale - Theincreasing number ofacquisition will increasecompetition, as more and moreentities aim at reducing costand merging productionvolume. It should be furthernote that the biggestcompetitor will also be lookingsuch opportunities, andindustry rivalry will increase...
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...Every business owner wants to grow their business but it is often difficult to determine the best way forward. Here is a straightforward description of four different growth strategies and an explanation of how to determine which is best for your business. Igor Ansoff suggested that business owners’ ability to grow their businesses comes down to how they market new or existing products in new or existing markets. He outlines four distinct strategies: - Market Penetration – selling more of the same things to more of the same customers - Market Development – selling more of the same things to different customers - Product Development – selling new products or services to the same customers - Diversification – selling new products or services to different customers Using Ansoff’s matrix, business owners can evaluate each of the growth strategies in turn to assess which is likely to result in the best possible return. Market Penetration Market penetration is the easiest way to grow in an expanding market. However, it becomes more difficult as the market matures and competition increases. The obvious step is to increase advertising or add more sales people to increase sales. Alternatively, business owners can win business from competitors through competitive pricing, discounting, vouchers or other offers. Business owners can also boost sales by providing additional incentives to sales staff through commissions, bonuses or other reward schemes or by introducing customer loyalty...
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...Case Study Early Supplier Integration in the Design of the Skid-Steer Loader 1. Suppose there are 100 potential suppliers. How many suppliers do you think should ideally be integrated in the early skid-steer development process? Why that many or that few? The case for early integration of suppliers in the new product development process is compelling, but it is important to recognize that supplier integration is a process that must be managed properly in order to achieve maximum impact. Primary candidates for supplier integration should be based in terms of their impact on product performance, their technical complexity, their impact on product development time, and their impact on product cost. It not necessary that if 100 suppliers are required to be integrated, all the suppliers will be ready to become the part of the early development process. If company is thinking for long term integration then the supplier's future capabilities may be as important as their current capabilities. Supplier involvement in a product development effort can sometimes be uncomfortable and therefore without commitment in both organizations, the communication and sharing of information and resources necessary to make the relationship work will probably not occur. The number of potential supplier’s involvement in this situation will depend on all these factors and hence cannot be assigned a number. It can be 100 or it can be 0 2. Are there tradeoffs in terms of the number of suppliers to integrate...
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...MIT Leaders for Manufacturing Program Meditech Surgical1 Three years after Meditech was spun off from its parent company, Meditech captured a majority of the endoscopic surgical instrument market. Its primary competitor, National Medical Corporation, had practically invented the $800 million market just over a decade ago. But Meditech competed aggressively, developing new, innovative instruments and selling them through a first-class sales force. The combination paid off, and Meditech had become a phenomenal success in a short period of time. Despite the success, Dan Franklin, Manager of Customer Service and Distribution, was concerned about growing customer dissatisfaction. Meditech had recently introduced several new products that were central to the entire Meditech product line. New product introductions, which were critical to Meditech’s strategy of rapid product development, needed to be introduced flawlessly to protect Meditech’s reputation and sales of other products. But Meditech consistently failed to keep up with demand during the flood of initial orders. Production capacity became strained as customers waited over six weeks to have their orders delivered. Poor delivery service, which is fatal in the health care industry, was jeopardizing Meditech’s reputation. Company Background Endoscopic surgical techniques fall under a class of surgical procedures described as minimally invasive. Minimally invasive surgery, as opposed to traditional open surgery, requires only...
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...TO OUR SHAREHOLDERS: One of the traits that characterizes our company’s performance in 2004 is “continuous improvement.” We’ve enhanced our processes, introduced new and innovative products throughout the year and improved our financial performance. Our success results from the continued execution of our long-term growth strategy and our employees’ dedication to incremental improvements each and every day. Bard’s core values of quality, integrity, service and innovation were clearly demonstrated by our employees this year, and we appreciate their passion, loyalty and dedication. The ultimate criterion upon which we judge our success, however, is the ability of our products to improve the lives of patients through the extension or enhancement of their quality of life and clinical outcomes. The Bard products featured on the following pages of this report were chosen as examples of attaining this important standard we’ve set for ourselves. The stories illustrate the collaborative and innovative spirit that permeates our daily work on behalf of patients all over the globe. 2004 Financial Highlights • Net sales growth: 16% as reported; ongoing net sales growth: 14% (in constant currency) • Gross profit margin: 60.1% versus 57.5% in 2003 • R&D expenditures: $111.6 million, up 28% over 2003 • Net income: $302.8 million (up 80%) as reported • Net income: $262.7 million (up 29%) excluding items identified in the financial highlights on page 1 • EPS: $2.82 (up 76%) as reported ...
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