Chapter 5: The Right Product for the Right Market

New Product Development

- Successful new products spring from the convergence of:
o The creative mind;
o The technical mind; and
o The business mind
- All three minds come together in the entrepreneurial mind.
- In reality, however, the three minds are seldom found in one entrepreneur. However,
the entrepreneur is certainly the orchestrator of the three minds.
The Entrepreneurial Mind
- Refers to a specific state of mind which orientates human conduct towards
entrepreneurial activities and outcomes.
- Individuals with entrepreneurial mindsets are often drawn to opportunities, innovation
and new value creation.
- The creative mind
o An entrepreneur's creative mind is characterized by its capacity to see, take in,
evaluate, and act on big ideas in a unique and original way.
o This creativity is essential to recognize market gaps and coming up with
creative ways for addressing them, whether through new products or
procedures.
o It conceptualizes and designs a product that consumers find some use for, it
likewise produces a product that is pleasing to see, touch, smell, hear, and
taste.
o It also produces a product that creates emotional attachment and eventually
becomes a significant personal expression of the consumer.
o Example: 3D printing has been used in healthcare for humans and can also be
used in veterinary medicine. It can be used to create new devices and surgical
approaches that can be tested and added to the growing portfolio of modern
veterinary procedures.
- The technical mind
o Is the technology originator.
o The entrepreneur may not necessarily possess the technical mind but this is
what drives him or her to convert new knowledge into something highly
functional and operational.
o The technical mind is also a technology adaptor.
 He or she uses old knowledge for new applications in various fields of
human endeavor.
o Finally, the technical mind is a technology renderer.
 He or she resolves to make a new product work for the product creator
by configuring and reconfiguring the technical design of the new
product.
o Example: Boehringer Ingelheim offers a range of animal health products,
including vaccines, parasiticides, and pharmaceuticals. These products could
be useful for veterinarians who are interested in using pharmaceuticals in their
practice.
- The business mind
 o Harnesses the potentials of new products by creating the market space for
them.
o It also organizes sufficient forces and resources to develop, launch, and
commercialize the new product in order to maximize its market value.
o The business mind also manages the external and internal business
environment of the new product, which goes beyond the product development
process itself.
o Example: Covetrus North America offers over 3,500 products in categories
such as pharmaceuticals, wound closure, wound care, white goods, facility
supplies, and much more. This could be useful for veterinarians who are
interested in purchasing supplies and equipment for their practice.
Case Example:
- The Lampturn
o Two MBA students embarked in their venture thesis. They were Ronaldo
Pingol and Cristina Pastrana. They developed a new product called Lampturn.
o Essentially, this new product was a desk lantern that reflected colorful and
moving images onto the lantern screen. The product was positioned as a
novelty night lamp for children’s bedrooms or a mood lamp for living rooms.
The images were illuminated on the lampscreen by an electric bulb of small-
wattage. As the lamp was lit, the heat of the lamp caused the lamp to turn.
While the screen revolved around the four sides of the rectangular lamp, an
illusion of changing shapes and sizes was created while the images moved
from one end of the screen to another.
o The creative minds of Pingol and Pastrana were activated as they searched for
a novelty product for their venture thesis. They were intrigued by the
reflector/projector lanterns in three movies: The Little Mermaid, Up Close and
Personal, and Eye for an Eye.
o Their technical minds were challenged. They had no technological
backgrounds. They did not possess the skills to fashion such lamps. They had
to figure out how to make the lamps turn, how to make their screens and how
to make the images mesmerizing for children and adults alike.
o Their business minds were also put to the test. Who would be their best target
market? How would they market the lamp? Who could make the lamp for
them once they developed the prototype? How could they raise the funds for
the project? Could they produce the lamp at a cost that would generate profits
for them?
o Product Conceptualization and the Creative Mind
 Creative Mind’s three product levels of appeal
 Purpose
o Create mood and ambience
o Delight and fascinate viewers
o “Serve as a centerpiece for rooms with its theatrical
display of images”
o Night lamp
o Child pacifier
o Decorative and conversational piece
 Sensorial-emotional appeal
o Use of light amidst darkness
 o Highly colorful and moving shapes and images
o Mood-evoking scenery
o Supposed to make people feel good
 Aesthetic appeal
o How the lamp could be elevated to self-actualization
would largely depend on the meaning of the lamp
images
o Depend on the desired state of the self, which the actual
lamp should produce
o Product Development and the Technical Mind
 In order to convert the product concept into viable product, the
technical mind must intervene to provide the quality and performance
specifications through technology.
 Product simply required the application of existing technology (or
technology rendering)
 Entrepreneur need to fit the existing technology according to their
product concept
 Entrepreneurs encountered several challenges while searching
appropriate technology for the product concept:
 First: product must resemble the lantern in the movies
 Second: lantern must be sturdy and safe for placing a child’s
bedroom
 Third: lamp must be easily transportable and displayable
 Fourth: lantern must be relatively easy to make for replication
and mass production purposes
 Fifth: lamp must be made of materials that do not cost much
 In order to deal with technical specifications, the entrepreneurs had to
tap the technical minds of electricians, engineers, artisans, and artists
to develop the Lampturn.
 Prototypes were fashioned, critiqued, and discarded until the
entrepreneurs became satisfied with a final prototype.
o Product Launch and the Business Mind
 Business mind brings the product from the prototype stage to the
production phase and, finally, to its ultimate marketplace.
 Product must be shop-ready for commercial purposes.
 Business mind must determine the best way to maximize product sales
to its target market.
 The right distribution and salespeople should be tapped and deployed.
 As soon as the entrepreneurs approved the final prototype, the next
step was to test market the product prototype.
 Test was conducted in two phases:
 First phase: two focus group discussion (FGD) and selling
activities at Christmas bazaars.
 Second Phase: placement and selling of the lantern at
alternative outlets to determine their price threshold and
potential sales volume.
The New Improved Product
- Existing products are improved by having new varieties.
 - Example: Dog food

References:
Levine, S. (2023). 5 Essential Characteristics Of The Entrepreneurial Mind. Business
Class: Trends and Insights | American Express.
https://www.americanexpress.com/en-us/business/trends-and-insights/articles/5-essential-
characteristics-of-the-entrepreneurial-mind/
Boehringer Ingelheim. (2023). Animal Health Products. https://www.boehringer-
ingelheim.com/animal-health/products
Chen, J., MD. (2022). 3D Printing Veterinary Medicine – A Guide. 3DHeals.
https://3dheals.com/3d-printing-veterinary-medicine-a-guide/
Veterinary Medical Supplies & Equipment | Covetrus North America. (n.d.).
https://northamerica.covetrus.com/about-us
Entrepreneurship @WFU. (2018, February 5). Understanding the Entrepreneurial
Mindset - Center for Entrepreneurship at Wake Forest University. Center for
Entrepreneurship at Wake Forest University.
https://entrepreneurship.wfu.edu/blog/understanding-the-entrepreneurial-mindset/