Technology New Product Development

Development

Mamatha Sen

Mamatha Sen
 Table of Contents
EXECUTIVE SUMMARY ________________________________________________ 1
OBJECTIVES __________________________________________________________ 2
MARKET RESEARCH __________________________________________________ 2
PRODUCT BACKGROUND ______________________________________________ 3
You-Tube Model and its weakness _____________________________________________ 3
Internet TV Distributor ______________________________________________________ 3
REVENUE MODEL_____________________________________________________ 4
Revenue Sharing ____________________________________________________________ 4
SITUATION ANALYSIS _____________________________________________________ 4
Category Definition __________________________________________________________ 4
Category Analysis ___________________________________________________________ 4
COMPETITOR ANALYSIS _______________________________________________ 5
Customer Analysis __________________________________________________________ 5
SWOT ANALYSIS ______________________________________________________ 6
Strengths __________________________________________________________________ 6
Weakness __________________________________________________________________ 6
Opportunities ______________________________________________________________ 6
Threats ____________________________________________________________________ 6
MARKET PLAN ________________________________________________________ 7
CREATIVE PLATFORM ________________________________________________ 7
Target Market (Possible customers): ___________________________________________ 7
Product Positioning: _________________________________________________________ 7
Reason Why ________________________________________________________________ 7
Tone ______________________________________________________________________ 7
Price ______________________________________________________________________ 8
Promise ___________________________________________________________________ 8
Promotion _________________________________________________________________ 8
FINANCIAL ANALYSIS OF OUR PRODUCT _______________________________ 8
PROMOTIONAL STRATEGIES FOR OUR COMPANY _______________________ 9
MARKETING STRATEGIES ____________________________________________ 10
PRODUCT ROAD MAP ________________________________________________ 11

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Technology New Product Development

Technology New Product Development

EXECUTIVE SUMMARY

We would like to introduce a portal based on real-time video sharing and broadcasts.
Unlike You- Tube, which is essentially a video download service (more a YouVCR), and
unlike Joost, which is a Internet TV broadcast station for branded channels, our portal
would be a real-time video distribution service for common producers.
A producer (a citizen-reporter, open university, ethnic program producer, exclusive sports
programs broadcaster etc.) can upload a video stream to our portal, which in turn would
broadcast to the subscribers willing to view it.
Our revenue model would be based on advertisements. Unlike pure-push advertising
model of classical TV stations, our ads would be viewer profile appropriate plus push
advertisements if the advertiser so desires.
Another unique selling proposition would be the revenue sharing scheme for popular
channels that have numerous viewers (above a certain threshold) thus generating huge
advertising revenue; we would share part of the advertising revenue with such producers.

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OBJECTIVES

I am the product manager for a web based company but I have a proposal to bring out a
new product that is more superior than the existing product as a DISTRIBUTOR as I am
taking on this new responsibility.
The differentiating quality in our new product is that we are the service provider and I am
calling it INTERNET HOME TV. I am also the distributor of this product and the
program provider. It is also or can be called the INTERNET TV FOR THE HOME.
Our main marketing objective and goal is to get the most market share. Secondly we are
going to kick in the best slogan with the marketing mix that will give good exposure in
terms of reach, frequency and gross rating points. Thirdly we will also use customer -
oriented objectives in our strategy by using internet. Our message to attract market
through all of the channels will be positive & encourage.

MARKET RESEARCH

Recent market survey as shown above show the percentage of internet users and is a clear
indicator for forecasting the number of users that we will have on the release of our
product and that means a good chunk of existing as well as new. Internet is being
increasingly popular and hence used by people from all walks of life, since it is the best
and the most cost efficient form of communication.
Ø Our strategic focus is on the existing as well as new market. In short I have a business
model that brings profits mainly by advertisers having positioned in the middle- man
category. Our portal will be informative, professional, entertaining, spiritual and
current happenings in the world at the same time. We will allow instant streaming
videos to be up loaded from any body to our portal for the internet users.
Ø The more hits we get the more revenue and hence we are willing to share a chunk of
our earnings to video and news up loaders. This is our fundamental difference that is
in our core strategy. Hence, we will ensure the highest quality in terms of content and
picture. We plan to build this profit sharing aspect in our business model.
Ø We also understand that this market is established and so we look forward to
competitors who are already there in this market.
We at this time predict target market to be a bigger number than 100,000. My main job as
a product manager will be in looking at the marketing activities as well as bringing in the
revenues and hence the profits. I plan to keep the technology team small to lessen the
fixed costs and want to work out of our personal spaces to keep variable costs minimum.
This strategy will help on the longer run to build initial confidence and keep team closer
in all respects including communication and development.
Our marketing research shows that there is a good chunk of internet users and the
numbers are growing around the world and hence we will extend our marketing strategies
first into Europe, then South America and then to Asia. We believe and will strive hard to
make our portal a success here and around the world.

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Technology New Product Development

Ø Our core strategy also has the core value of social cause in terms of investing in green
technology and we will include, motivate and encourage up loaders and advertisers to
keep this in mind for a green and healthy future and this includes any projects
concerning water conservation and pollution free earth plus this would be done
through additional incentives!
Ø Key to success: Our key to success is in the freedom that we are giving to up loaders
by creating a platform for information and more. We hope to bring out the best from
our platform to those who seek information other than through television and
instantly. We plan to increase the productivity of our portal based on our unique
business model.
Our marketing strategy of bringing news about green technology to our site is a plus and
we are willing to include this in our core strategy.

PRODUCT BACKGROUND

You-Tube Model and its weakness

The You-Tube is a wildly successful service and any user can upload a video clip. It then
takes as much as 8hrs for the clip to be available for download. This model, however
successful, suffers from the following weakness:
Ø No real time features: In the days of citizen reporting and fast moving events, we
need a stream of display as available in real time. Under the You-tube framework, a
citizen-journalist is unable to make a report such events in real time.
Ø Lack of interactive features: In case of rising online educations we need interactive
TV.

Internet TV Distributor

The solution we propose is an Internet TV Distribution Site. Like You-Tube we have

Providers (those who upload videos) and Subscribers (those who download videos).
However, here the Providers sign up for duration for a real-time upload of a video
stream. They can even have open channels where they broadcast when they need to.
The Internet TV Distributor would provide the following services:
Ø Real Time Relay: Like You-tube, this is the relay hub for all video streams. Providers
would broadcast to this distributor and the Service would relay it. Subscribers would
connect to the service and would watch the video stream. This would be a major
technological breakthrough to handle many concurrent users providing them with
real-time service. Like You-Tube, there would be a number of server instances for
failsafe operations.
Ø Directory Services: All the streams would be listed according to genre. Logged in
users would have services like favorite channels, reminder service etc.

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Ø Privacy: Some of the uploaded service could be for private distribution. Only those
logged in with user-ids tagged in with the distribution can watch those streams.
Ø Interactive Features: In case of programs (like Internet Classroom) we can have
interactive service where a Subscriber can ask questions using controls on the
browser. This could be text based to start with and later we can have video.
Ø Profit Sharing for distributors: If a stream generates high revenue either via viewer-
ship or via clicks, we would share part of the revenue with the Provider. This would
give an incentive for providers to come to us.

REVENUE MODEL

We expect this site to be very successful and we expect the revenue to come in via
advertisements. We propose two models and the Provider can choose amongst them:
Ø Screen Based advertisement: Part of the screen would be used as a banner which
would be replaced every N seconds. There would not be a break in transmission but
about 25% of the display would be used for banners.
Ø Commercial break model: This is like a TV commercial break. Every 15 minutes of
transmission there would be three minutes of commercial break. It does not have to
be clocked exactly at 15mins but the Provider would be given the controls to switch
on the commercial break.

Revenue Sharing

If a program generates high advertising revenue, we would pass a portion of that revenue
to the Provider. This would provide an interesting advertisement model where there
would be incentive for good programs to come on our service.

SITUATION ANALYSIS

Category Definition

Internet TV distribution: I will be the service provider and distributor for Internet TV. A
prototype model will be developed before the launch.

Category Analysis

Our product is attractive to the consumer in that our company has a unique selling
proposition.
Strategy that I am using to gain the competitive advantage over my immediate rival Joost
is that my product will offer any channel to a consumer any time.

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Ø The condition being that I am the up loader and I am the provider.

Ø My product is a platform for amateurs & independent producers to host their TV
stations
Ø Enables independent producers an opportunity for real time streaming of video.
Ø Provides interactive TV sessions for Internet distant learning.
Ø We plan to keep up with the future technological innovations.
Ø Most importantly we will encourage green or environmentally friendly causes in all
of our messages.

COMPETITOR ANALYSIS

Our main competitor is JOOST and YOU- TUBE. The unique product differentiation
between our product and JOOST is in the fact that anyone can use our platform to host
their program. The program can be conference, a class, movie or a citizen news service.
Joost does not give this freedom to the public but has a set of channels that they can
broadcast or they would want to switch to our model because then they have to surrender
their business plan.

Customer Analysis

Ø Our main objective is customer satisfaction and give what the customer needs of
many varieties.
Ø Our platform offers a variety of amateurs to host their channels and hence we can
make it be available for the consumers.
Ø Our customers are going to be people who are familiar with the internet TV as well as
customers who are already familiar with this type of entertainment.
Ø Our customers also will be the customers of Joost and customers who are familiar
with U Tube that has inferior quality in more ways than one.
Ø Our customers will prefer our new and improved product for the fact that it has great
features as explained and we have good relationship with our providers.
Ø In terms of segmentations our product is for:
v Citizen News Broadcasters
v Ethnic Cultural Program Producers
v Open Universities & Distant Learning Centers
v Spiritual Centers
v Sports Fans and broadcasters of exclusive sports events
v Professionals who depend on Video Conferencing.

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Technology New Product Development

SWOT ANALYSIS

Strengths

Ø Technologically superior and very good marketing strategies show that our company
is far ahead compared to our competitor in terms of our business and revenue model.
Ø There is high awareness for Internet TV. Our market survey shows that people are
openly welcoming our new company for the fact that we have a new and enhanced
portal.
Ø Market survey also shows that professionals like to engage in meetings, lectures, like
to watch citizen news, movies and the like of the choice they want anytime and
anywhere they want. Our platform is also unique in the fact that the choices of topics
we are offering are far more than our nearest competitor.
Weakness

Mainly ours is still an emerging business in an established market and not many people
are aware of this kind of product. Our weaknesses could be in the fact that enormous
initial advertising may take much of our budget to bring awareness in the market. Our
product mainly operates on the basis of advertising as a means of revenue, which may
and will need a good amount of promise from our company for investors.
Opportunities

Our company has a good growth opportunity for the differentiating quality that it is set up
on. Our company has the opportunity for lap top users, TV watchers as well as all the
internet fans out there that like advancement and ease in using this technology.
Threats

Ø We have a little window of time to establish market before the Big Guns wake up!
(E.g. Amazon before Barns & Nobles)
Ø Highly competitive market unless our company does the launching on a good creative
platform and through good amount of advertising.
Ø Ours is a new product in an existing market and so needs a good creative platform
for launching.
Ø Unless our company builds a good website there can be threats for customer
retention.

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MARKET PLAN

PRODUCT: The market plan is to increase the sales growth in the Internet TV
Business/companies
STRATEGY: New product in a existing market and first version release in
REPORT CARD: Profit making and profit sharing
PRICE: Free
PROMOTION: Positive theme and use of green technology.

CREATIVE PLATFORM

We are going to launch a creative platform that will attract consumers to our site for the
product we are offering and by our advertising. We will also ensure that our site is well
funded for developing, advertising and for sales purposes.

Target Market (Possible customers):

v Citizen reporters
v Open Universities
v Video conferencing
v Spiritual organizations
v Club activities
v Exclusive sports events (e.g. Bermuda Bowl)

Product Positioning:

Our positioning in the market is going to be for officers and professionals to whom we
are providing “quality Internet product” of many categories to be available and they
should be able to access the same anytime
We have what you (consumers) want when they want it and where ever they want to get
connected.
Reason Why

We dare to be different from the existing product to offer the best to the consumers.
Tone

Internet service enhanced, improved and magnified! A picture of many people saying, “
We are connected” holding hands.

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Technology New Product Development

Price

To the users it is free. It works on the advertising model. As a matter of fact, high
revenue programs would receive money for the advertisements generated! This would be
a win-win system that will attract more broadcasters.
Promise

Advertising on the Internet mainly plus demonstrations at community centers and

conferences. Demonstrations shall be given at Schools and colleges for students and the
faculty. We would sell a server to them to incorporate this product in their Intranet.
Promotion

Our company will put in place all the promotional strategies and tool to keep our product
differentiated from the other companies. We will also see to it that our product will have
a steady stream of advertisers.
v We like to attract at least 10% of new customers to use our product every month.
v We like to target 15% sales growth at a steady rate.
v Advertisements will be placed in business magazines and on line web sites.
Place
Our product will be marketed on line and this will be done quite aggressively and in a
persuasive way to reach the target market. Portfolio tests before the launch of our
platform will be done and inputs or response from the focus group will be collected to
ensure quality and quantity in terms of content.

FINANCIAL ANALYSIS OF OUR PRODUCT

As a product manager I am interested in the financial statement mainly in the revenue and
profits. Our company is also interested in the marketing of our product in a positive way
highlighting all the extra features that our company will be providing to the consumers.
Our business model also helps in the process of attracting the existing customers by
offering more choices.
Our advertising strategy will be aggressive but importance will be given on the
information about the extra benefits for the consumers to choose. Hence a persuasive
advertising strategy will be used in marketing our product.
Our target market will be focused upon by a good percentage of exposure-oriented
objectives. Since we are taking the position of middleman, we will be responsible for the
incoming businesses that will use our platform as well as the end users who will use these
features through our platform. We are quite satisfied with the unique product
differentiating features that our company will be offering. We are extremely happy with
the freedom that the end users will get to enjoy through our platform.
Later in the marketing plan I have a product road map or rather the time horizon on
which we forecast the product inception to developmental stages to product release. I

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hope to invest and allocate most on the resources in the introduction and growth stage of
the market in an efficient way. The initial budget that we have allocated is one million
dollars. We anticipate good viewer-ship, popularity and positive cash flow!!!!
Our financial analysis is based on the business model that we propose. And that also
includes “viewer profile appropriate” advertising for sales and profit.

Assuming per person-hour-rate for ad stream price as X dollars

In every hour if we have a ad stream every 15 minutes
Then in a month we have 24x30days = 720 hours
Let’s assume that the average number of viewers/month = 100
Then 100 x 720= 72000
Ad Revenue = 72000 x X amount/4 = 18K* X per month
This can be assumed for the first three months of viewer ship and so on. Though this is
kind of rough estimate, the unique features I have for the product will attract the market!

PROMOTIONAL STRATEGIES FOR OUR COMPANY

Ø Always underscore this: “Not only are we free, but also you can make money if your
program has many viewers. We return a part of the advertising revenue to you.”
Ø Internet Advertising: Banner advertisements e.g. using choose double click digital
marketing
Ø Online Journal Reviews: We would get our Service reviewed at sites like C-NET,
PC Magazine, Tech web, wired etc.
Ø Traditional Media: Radio, TV & Newspaper ads.
Ø Television is going to THE MEDIUM our company will use to reach the target
market primarily in addition to the Internet. TV ad will be like the “ do you want to
broadcast your own TV station?? Go to this web page.
Ø Other internet marketing strategies
v Search engine optimization
v Submit the site to key directories and other industry sites
v Reciprocal links
v Blog services where people can give feedbacks and ideas and also get involved in
debates.

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MARKETING STRATEGIES

v The marketing strategies that we will undertake are in our core strategy that will
set us apart in terms of the value that our target market will receive in quality and
choice by logging on to our web site for either entertainment or be it citizen news.
v Unlike other services that make money from advertisements, we will return part
of our advertising revenue to the program distributors. We expect this unique win-
win strategy to attract producers to come to our portal as they can partake the
profits.
v HOME TV STATION is going to be the most sought after medium for news,
entertainment, discussions and streaming videos.
v Our core strategy is also going to be one that will reach target market of varied
segment that will add and bring value to our company. We will assemble a good
team of professionals who will strive hard to bring quality, variety, success and
revenue to our portal.
v We will have a competitive advantage over our rival in the way we do business in
addition to the value we have added in terms of the “product differentiation”
along with efficiency and speed that we will operate upon.
v We launch the first phase of our service portal within 12-18 months from the start
of development.
v We are aimed at putting together a good technical team for building this portal
and for marketing as well. As a product manager this is the most important item
that I shall oversee besides sales, revenue, promotion and profits of our company.

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PRODUCT ROAD MAP

6mo 12mo 18mo 24mo 30mo 36mo

Development – Phase 1

Beta

Feedback of Phase – I &

Release

Production

Development
Phase 2

Version 2
Release
Cash flow
positive

Positive

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