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 ³Esteemed Brain Tonic and Intellectual Beverage´

Gillette     King Camp Gillette 1902 first patented blade Was American Safety Razor Company Gillette sounded French .

1897 Trademark 1904 .Shell      Marcus Samuels. first half 19th century Kids used shells on lunch boxes Shell Shop Kerosene added.

New Product Development     When? Where? Why? How? .

000 units! Honda Insight..70 mpg IDEO Labs and Health Hero Network¶s ³Health Buddy´«patient-monitoring that plugs into phone jack.Once!     Chrysler PT Cruiser. asks patient questions..Hot New Products. patient clicks buttons to answer Sony PlayStation2 .backorder list was up to 300..

Think of the Possibilities«  Refrigerators that track food inventory ³Intelligent´ wall coverings that will transform your wall into a tv screen. etc. a pc monitor. Possibilities for NEW PRODUCTS are often limited only by imagination«   .

But ³New´ 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 .

´ New flavors.Look at Pepsico«a Winner  200+ new variations globally annually ³Innovation is what consumers are looking for. particularly in the small. healthier ingredients = NEW products!   . routine things.

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?   .

10. 5. Informal customer/employee sessions Give people time off ³to scout´ Customer brain-storming Customer surveys Be a ³fly on the wall´ with customers Synergize sessions with customers/engineers Keyword search trade publications Use trade shows more fully See what your vendors can offer ³idea vault´«for employee searches. 7.Ten Ways to Success« 1. 3. 6. 4. ideas CREATIVITY TECHNIQUES: . 8. 2. 9.

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 .CREATIVITY«       ATTRIBUTE LISTING.

etc. Gas stations + food = gas station stores Cereals + snacking = cereal bars Sound + portability = ????? . Link it to ³car´. a car« Then write it down.MIND-MAPPING?     Start with a thought. Then next thought that arises.

IDEATION 2. EVALUATION . EVALUATION/SCREENS 4. CONCEPT GENERATION 3. DEVELOPMENT 5.The Process We Can Explore« 1. LAUNCH 6.

Everyone offers an idea or builds from one .IDEATION    We are a beverage manufacturer We will use Synectics«.

CONCEPT GENERATION    Which ones win? Why some and not others? ³Champions´ .

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 .

. etc.EVALUATION     Against plan Competitive responses Market responses Futures.

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 ³new product´ you bought How might it¶s success be affected by: a. complexity? d. communicability? . relative advantage? b. compatibility? c. divisability? e.

Vision Browse articles.pdma. find one of interest.Last Points««    Go to www. write a 1page summary relevant to marketing success or failure«extra credit .org Go to on-line newsletter.

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?   .If That Doesn¶t Interest You«  Go to www.

«in Today¶s World:      AWARENESS less important than RELEVANCE! BRAND IDENTITY of itself is KEY EXPANSION. PRINCIPLES mean more than PROFITS . per se is FOOLISH CRM based on EMOTIONS matters most PEOPLE.

Go Home! OR AT LEAST WORK ON STRATSIM MARKETING! .

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