Developing a new product

Question 1

What to think about with a new product? (4)

Answer 1

1. The product itself
2. Market strategy
3. Customer
4. Funding

Question 2

The product (5)

Answer 2

1. What is special about it? Is it patented?
2. Are there similar products out there? Are there substitutions?
3. What are the advantages and disadvantages of this new product?
4. How does this new product fit in with the rest of our product line?
5. Can our sales force sell it?

Question 3

Market strategy (7)

Answer 3

1. How does this strategy affect our existing product line?
2. Are we cannibalising our own sales from an existing product?
3. Are we replacing an existing product?
4. How will this strategy expand our customer base and increase our sales?
5. What will the competitive response be?
6. If we are entering a new market, what are the barriers to entry?
7. Who are the major players, and what are their respective market shares?

Question 4

Customers (5)

Answer 4

1. Who are our customers, and what is important to them?
2. How are they segmented?
3. How can we best reach them?
4. How can we ensure that we retain them?
5. What is the cost per customer?

Question 5

Funding (3)

Answer 5

1. How is this product being funded?
2. Can we support the debt under various economic conditions?
3. What is the best allocation for funds?