sourcing techniques and Intrapreneurial efforts to generate new product/service ideas
Besides company R&D new product ideas come from
Customer, Company Heads, employees, sales force. #2: Idea screening (R,W,W)
Real: is there a real need and desire for the product
Win: Does it offer a sustainable competitive advantage Worth doing: Does it fit the company’s overall growth strategy #3: Concept development & Testing
• Product idea: a possible product that a
company feels it can offer • Product concept: detailed, meaningful statement of the idea • Product Image: way customers perceive an actual or potential product Product Idea: Healthy Food Place Product Concept: Organic, Vegan snacks served in a Self-service format, mornings and evenings. Concept testing Presenting the concept symbolically or physically – words, image/picture, physical and virtual models, etc. to the customer and getting feedback #4: Marketing strategy development
1: TG, value proposition, sales market share and profit goals
for the initial few years 2: Planned price, distribution and marketing budget for the 1st year 3: Planned long run sales, profit goals, and marketing mix strategy #5: Business analysis
Review the projected sales, profit, costs etc. to see if it
satisfies company objectives. #6: Product development • Product concept gets translated into a physical real product or offering. • It shows whether a product idea can be converted into a real offering. • Product is developed and tested rigorously to be sure it can perform safely and effectively. If customers will find value in the offering.
• Alpha testing: done inhouse, Gillette
• Beta testing: done with users, Google #7: Test marketing The product and the marketing program are introduced in a realistic market setting. Standard, controlled and simulated test markets • Cost of R&D • Company’s confidence in the new product • Competitor’s ability to copy and launch #8: Commercialization
Introduce the new product into the market.
High-cost activity.
Important questions to be answered – Where i.e., Place &