Chapter 5: The Right Product for the Right Market

NEW PRODUCT DEVELOPMENT

- Successful new products spring from the convergence of:

 The creative mind;
 The technical mind; and
 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

- The creative mind

 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.
 It also produces a product that creates emotional attachment and eventually becomes a
significant personal expression of the consumer.
- The technical mind
 Is the technology originator.
 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.
 The technical mind is also a technology adaptor.
 He or she uses old knowledge for new applications in various fields of human
endeavor.
 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.
- The business mind
 Harnesses the potentials of new products by creating the market space for them.
 It also organizes sufficient forces and resources to develop, launch, and commercialize
the new product in order to maximize its market value.
 The business mind also manages the external and internal business environment of the
new product, which goes beyond the product development process itself.
- For a better appreciation, let us give an example of how the creative mind, the technical mind,
and the business mind are used in developing a new product.

Case Example 5: The Lampturn

Two MBA students embarked in their venture thesis. They were Ronaldo Pingol and Cristina
Pastrana. They developed a new product called Lampturn.

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.

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.

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.

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?

Product Conceptualization and the Creative Mind

Using the lampturn example, let us examine how the entrepreneurs employed the creative
mind, technical mind, and business mind in order to come up with a viable new product. First, let us take
a look at how they achieved the creative mind’s three product levels of appeal.

The purpose of the lamp was to create mood and ambience, to delight and fascinate viewers
and to ‘serve as a centerpiece for rooms with its theatrical display of images.” It could be used as a night
lamp, a child pacifier, or a decorative and conversational piece.

The sensorial-emotional appeal of Lampturn was heighted by the use of light amidst darkness,
the highly colorful and moving shapes, and the images and the mood-evoking scenery. Lampturn is
supposed to make people feel good.

The aesthetic appeal of Lampturn is obvious. How the lamp could be elevated to self-
actualization would largely depend on the meaning of the lamp images. It would also depend on the
desired state of the self, which the lamp should produce.

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.

In the case of Lampturn, the product simply required the application of existing technology (or
technology rendering). What the entrepreneurs needed to do was to fit that existing technology
according to their product concept. This is the point where the entrepreneurs encountered several
challenges while they were searching for the appropriate technology for their product concept. First, the
product must resemble the lantern in the movies. Second, the lantern must be easily transportable and
displayable. Fourth, the lantern must be relatively easy to make for replication and mass production
purposes. Fifth, the lamp must be made of materials that do not cost much.

The above technical considerations proved to be very challenging for the entrepreneurs to deal
with by themselves, that is why they had to seek the guidance of experts. For a better grasp of these
technical specifications, the following is the list that the entrepreneurs came up with as they consult
these experts.

- First:
 Use of 25-watt bulbs.
 Use of fan-bladed domes.
 Use of BIC ball pens to support and allow the dome to rotate smoothly.
 Use of natural sanded wood.
 Use of fish and butterfly designs.
- Second:
 Use of high-impact plastic paper.
 Use of strong wooden frames.
- Third:
 Use of size that is not more than 16 inches in height and 10 inches wide.
 Use of quality electrical supplies.

In order to deal with the above 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.

Product Launch and the Business Mind

The business mind brings the product from the prototype stage to the production phase and,
finally, to its ultimate destination, the marketplace. The product must be made shop-ready for
commercial purposes.

The 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. The fourth and fifth technical
specifications were addressed as follows:

- Fourth: Use of subcontractors, namely, Tahanang Walang Hagdan.

- Fifth: Entrepreneurs supplies the materials to the subcontractors including pre-assembled
electrical contraption.

The entrepreneurs received invaluable comments from the subcontractors and the production
experts they consulted.

The above technical considerations proved to be very challenging for the entrepreneurs to deal
with by themselves, that is why they had to seek the guidance of experts. For a better grasp of these
technical specifications, the following is the list that the entrepreneurs came up with as they consult
these experts.

- First:
 Use of 25-watt bulbs.
 Use of fan-bladed domes.
 Use of BIC ball pens to support and allow the dome to rotate smoothly.
 Use of natural sanded wood.
  Use of fish and butterfly designs.
- Second:
 Use of high-impact plastic paper.
 Use of strong wooden frames.
- Third:
 Use of size that is not more than 16 inches in height and 10 inches wide.
 Use of quality electrical supplies.

In order to deal with the above technical specifications, the entrepreneurs had to tap the
technical minds of electricians, engineers, artisans, and artists to develop the Lampturn. Prototypes
were fashioned, critiques, and discarded until the entrepreneurs became satisfied with a final prototype.