New Product Development

Question 1

List Six Failure Scenarios with NPD

Answer 1

The Unwanted Better Mousetrap (28%)
The Me-Too Product (24%)
Technical Dog (15%)
Competitor Reactions (13%)
Price (13%)
Other (7%)

Question 2

Commoditization : Two Ways to Prevent

Answer 2

1. Product Differentiation (Innovation)

2. Dark Side ( Tricking Consumer Knowledge)

Question 3

Process Efficiency (13 Topics)

Answer 3

1. Initial Screening
2. Preliminary Market Assessment
3. Preliminary Technical Assistance
4. Detailed Market Study
5. Pre-development Business Analysis
6. Product Development
7. In-House Product Tests
8. Customer-Product Tests
9. Trial Sell
10. Trial Production
11. Pre-commercialization Business Analysis
12. Production Start-Up
13. Market Launch

Question 4

Product Failure from a Strategic Perspective

Answer 4

1. Macro View of product failure

2. Order of Entry and success

Question 5

Macro View of New Product Failure

Answer 5

New products may fail for a variety of reasons, Could be a lack of uniqueness, may not be space for your product. When this point is reached new innovations must replace old incumbents.

Question 6

Order of Entry Success
Pioneers Sometimes Experience Success
because of these reasons: (5 of them)

Answer 6

Pioneers enjoy some qualities and sometimes succeed because of a few reasons:

1. Brand Loyalty
2. Distribution Barriers
3. Economies of Scale/ Experience Effects
4. Premier Positioning
5. Standard Setting

Question 7

Evidence of Pioneer Advantage

Answer 7

Advantage far smaller than previously thought. Three reasons why first movers are not always successful.

Question 8

Three Reasons why Pioneers or Early Movers not always the leaders in the end

Answer 8

1. Technology Vintage Effects: Later movers develop superior products. Consumers may prefer variety, but late movers prefer quality.
2. Protracted Development and Adoption: Technologies sometimes take to long before they can present themselves. Once introduced it may take a long time before there is widespread adoption, see charts. The “long Nose” of innovation. The supply side (technical) and the demand side (consumer readiness).
3. Idiosyncratic Factors: Five of them (see next slide)

Question 9

Idiosyncratic Factors for Early Mover Failure or Success (5)

IMITATION IS BETTER THAN INNOVATION

Answer 9

1. Envisioning the mass market
2. Managerial Persistence
3. Financial Commitment
4. Relentless Innovation
5. Asset Leverage

Question 10

Marketing Role in New Product Development

Answer 10

ALL STAGES:
Idea Generation 
Strategic Marketing
Concept Testing
Business Analysis
Product Development
Market (Pre)Testing
Commercialization

Question 11

IDEA GENERATION ( A to H)

Answer 11

We begin with an informal approach and then move to a more formal approach. The more formal tool kit is called “Concept Engineering”

Question 12

A. Voice of Customer Table (VoCT)

Answer 12

Basic Approach is to interview customer for an exhaustive list of their desires.

1. Think in terms of benefits rather than solutions that are specific. (House of Quality). If you don’t guess at a solution creativity may be allowed to work.
2. The needs should be elicited in a way that fleshes out the usage context.

Question 13

B. Problem Detection Analysis

Answer 13

Ask Consumers about two things:

BIGGEST PROBLEMS / DESIRED BENEFITS

Question 14

C. Consumer Idealized Designs (CID)

Answer 14

Strive to understand consumers, but they have a bias:
++ Consumer perception is limited to the familiar
++ Consumer ability to generate creative ideas is constrained by a lack of technological expertise.
(Putting customers in the Wish Mode Article)

Question 15

D. Lead-User Analysis

Answer 15

A lead user is someone who faces a product need ahead of others and is positioned to benefit significantly from a solution to the need. 3M uses this a lot.
Article “The Age of the Consumer-Innovator”

Question 16

E. Empathetic Design

Answer 16

Does not rely on direct consumer input. Tries to understand “UNARTICULATED NEEDS” ..these ideas are generated by observing the consumers. LL Bean.
Reading “Spark Innovation..Empathetic Design”

Question 17

F. Contextual Inquiry

Answer 17

Combines Observation and Inquiry

Question 18

G. Affinity Diagrams

Answer 18

Sticky Notes Method: This is from all of the adeas generated from the previous methods all put together with sticky notes. The hierarchy is built from the bottom up. Forces designers to abandon pre-concieved ideas and come up with fresh ones.

Affinity Methods-> Rationale-> To be as data driven as possible

Question 19

H. Concept Engineering (LL Bean used)

Answer 19

Marketing oriented engineers.