New

Products
Building What You Have…
Adding What You Need…
NEW PRODUCT
DEVELOPMENT
Some Wild Examples…

Lots of new things here!

Coca-Cola
 May, 1886 created
 January, 1893 registered
 Extracts from coca leaves and cola nuts
 Advertised as “Esteemed Brain Tonic and
Intellectual Beverage”
Gillette
 King Camp Gillette
 1902 first patented blade
 Was American Safety Razor Company
 Gillette sounded French
Shell
 Marcus Samuels, first half 19th century
 Kids used shells on lunch boxes
 Shell Shop
 Kerosene added, 1897
 Trademark 1904
New Product Development

 When?
 Where?
 Why?
 How?
Hot New Products..Once!
 Chrysler PT Cruiser..backorder list was up to
300,000 units!
 Honda Insight..70 mpg
 IDEO Labs and Health Hero Network’s
“Health Buddy”…patient-monitoring that
plugs into phone jack; asks patient questions,
patient clicks buttons to answer
 Sony PlayStation2
Think of the Possibilities…
 Refrigerators that track food inventory

 “Intelligent” wall coverings that will transform

your wall into a tv screen, a pc monitor, etc.

 Possibilities for NEW PRODUCTS are often

limited only by imagination…
But “New”
Covers Lots of Things…
 New-to-the-world…
 New product lines
 Additions to existing lines
 Improvements/revisions of existing products
 Repositionings
 New cost/price appeals
Why Do Some Fail?

Gerber food for adults

Ben-Gay aspirin
Miller Clear Beer
Ford Edsel
New Coke
Look at Pepsico…a Winner
 200+ new variations globally annually

 “Innovation is what consumers are looking

for, particularly in the small, routine things.”

 New flavors, healthier ingredients = NEW

products!
New Product Sources..
Inputs from marketing planning
Special opportunity audits
Inputs from special corporate planning
FILTERED…
…To exploit underutilized resources
…To exploit new resources
…To respond to mandates
Innovations that Changed
Our Lives…
 Personal computers
 VCRs
 CAT scans
 Microwave ovens
 ATMs
 Photocopiers
 Bar codes
 MS-DOS Others?
Everyone Wants to Add a
New Product!
 Need a boost in sales
 Want diverse lines for sales reps
 Want more profits
 Retailers asking for it

 DOES THE MARKET WANT IT?

 IS YOUR FIRM STROING ENOUGH?
Ten Ways to Success…
1. Informal customer/employee sessions
2. Give people time off “to scout”
3. Customer brain-storming
4. Customer surveys
5. Be a “fly on the wall” with customers
6. Synergize sessions with customers/engineers
7. Keyword search trade publications
8. Use trade shows more fully
9. See what your vendors can offer
10. “idea vault”…for employee searches, ideas

CREATIVITY TECHNIQUES:
CREATIVITY…
 ATTRIBUTE LISTING, then modify
 FORCED RELATIONSHIPS w/items
 MORPHOLOGICAL ANALYSIS…a problem
and varied solutions
 REVERSE ASSUMPTION ANALYSIS to
change paradigms
 NEW CONTEXTS for old ideas
 MIND-MAPPING extensions
MIND-MAPPING?
 Start with a thought, a car…
 Then write it down,
 Then next thought that arises,
 Link it to “car”, etc.

Gas stations + food = gas station stores

Cereals + snacking = cereal bars
Sound + portability = ?????
The Process We Can Explore…
1. IDEATION

2. CONCEPT GENERATION

3. EVALUATION/SCREENS

4. DEVELOPMENT

5. LAUNCH

6. EVALUATION
IDEATION

 We are a beverage manufacturer

 We will use Synectics….
 Everyone offers an idea or builds from one
CONCEPT GENERATION

 Which ones win?

 Why some and not others?
 “Champions”
EVALUATION/SCREENS
 Does it work?
 Attribute analysis?
 Perceptual considerations?
 Does it fit?
 Technically feasible?
 Financially feasible?
 Marketable by us?
DEVELOPMENT
 TECHNICAL
prototypes
design/production processes
 MARKETING
testing
strategy/tactics/launch
all other
LAUNCH

 Commercialization
 Channel options
 Distribution intensity/sales
 Utilize goals/objectives as benchmarks
EVALUATION

 Against plan
 Competitive responses
 Market responses
 Futures, etc.
All…and Adoption Process:
 Readiness to try…DIFFUSION OF
INNOVATION…

 Innovators early adopters early majority late majority laggards

Who They Are..remember?

 INNOVATORS…venturesome, enthusiasts
 EARLY ADOPTERS…opinion leaders
 EARLY MAJORITY…deliberate pragmatists
 LATE MAJORITY…skeptical conservatives
 LAGGARDS…tradition bound

CAVEAT: not always the same!

Some Discussion…
 Think about the last “new product” you
bought
How might it’s success be affected by:
a. relative advantage?
b. compatibility?
c. complexity?
d. divisability?
e. communicability?
Last Points……

 Go to www.pdma.org
 Go to on-line newsletter, Vision
 Browse articles, find one of interest, write a 1-
page summary relevant to marketing success
or failure…extra credit
If That Doesn’t Interest You…
 Go to www.ideo.com

 Prepare an outline to discuss how IDEO

constantly generates innovative new
ideas/concepts…extra credit!
 What seems to keep a firm like IDEO
creative?
…in Today’s World:

 AWARENESS less important than RELEVANCE!

 BRAND IDENTITY of itself is KEY
 EXPANSION, per se is FOOLISH
 CRM based on EMOTIONS matters most
 PEOPLE, PRINCIPLES mean more than PROFITS
Go Home!

OR AT LEAST WORK ON STRATSIM MARKETING!