Product Design in Operation

Management
MELODY C. SALCEDO
MPA STUDENT
 Topic Outline
1. Product Idea Screening
2. New Product Analysis
3. Product Lifecycle
4. Market Analysis
5. Development Plans
6. Branding and Repositioning
7. Cost Analysis
8. Product Feasibility Review
New Product Introduction
Explain the product idea in brief. E.g. to lock and unlock the door from your smartphone.

Product Details:
Explain the product idea in detail like the requirements of the product.
Technology used.
Benefits.
New Product Detailed Overview
Strategic Synergies
Degree to which project aligns with business strategy  Market synergies
Strategic importance  Technological synergies
Product Advantage  Manufacturing/processing synergies
Unique benefits Technical Feasibility
Meets customer needs better  Technical gap
 Complexity
Value for money
 Technical uncertainty
Market Attractiveness
Profitability Analysis
Market size
 Expected profitability
Market growth
 Return
Competitive situation
 Payback period
 Low cost and fast to do
Understanding Customer Needs
1. Understand your customer
2. What they do?
3. When they buy?
4. How they buy?
5. What they expect of you?
External Source of New Product Ideas
1. Market Research 4. Long Range Studies
Locating areas of consumer dissatisfaction with current Fallout from predictions of changing economic and social
products conditions
2. Competitors 5. Market Gap Analysis
Learning from competition Analysis of existing product perceptions
3. Learning From 6. Consumer Activity Analysis
Overseas experience transferring foreign products Studying activities to identify unsatisfied needs
 Internal Source of New Product Ideas
1. Management 6. Research and Engineering
Strategic Planning Product Testing
Marketing Manager Product Enhancement
2. Innovation Group Meetings Brainstorming
3. Sales Force Accident
4. Stockholders
5. Employee Suggestions
 Product Roadmap
1. Product Launch
2. Tech Support Portal
3. Bootstrap Upgrade
4. Data Logging Module
5. Chrome Support
6. Public API
 New Product Analysis
1. Detailed Analysis 3. Porter’s Five Forces Model
 Strengths
 Weaknesses
Barriers to Entry
 Features Substitutes
 Benefits
Bargaining Power of Buyer
2. Category Analysis
Bargaining Power of Suppliers
 Consumption Drivers
 Price
 Packing Formats Types & Materials
 Positioning Claims/Trends
 Promotion
 Product Life Cycle
Introduction
Researching, developing and then launching the product.
Growth
Sales are increasing at their fastest rate.
Maturity
Sales are near their highest, however the rate of growth is slowing down.
Decline
The final stage of the cycle, sales begin to fall.
Market Analysis
Market Segmentation
Geographic
Asia, Europe, Australia

Demographic
Age, gender, nationality, income

Psychographic
Lifestyle, personality, values, interest

Behavioral
Brand loyalty, benefits sought, user status, usage rates, occasion, readiness to buy
 Development Plans
1. Manufacturing Plan
2. Operations Plan
3. Marketing launch Plan
4. Marketing Communication Plan
5. Digital Marketing Plan
6. Budgeting Plan
 Branding and Repositioning
1. Repositioning a Product
1. To new customers
2. Among existing customers

2. Repositioning Strategy
3. Growth Stage
4. Maturity Stage
5. Decline Stage