PRODUCT DEVELOPMENT


PRODUCT DEVELOPMENT

 

Page:

      PRODUCT DEVELOPMENT FOR THE INDUSTRY

1

~ .. PRODUCT DEVELOPMENT

~ .... PRODUCT EVOLUTION

~ ...... GOMPERTZ ANALYSIS

~ ...... 1. The Introductory Stage

~ ...... 2. The Dynamic Phase

~ ...... 3. The Maturity Stage

2

~ .... PRODUCT LIFE CYCLE

~ ...... Stages in the product life cycle

~ ...... Product Life Cycles

~ ...... Rationale for the product life cycle

3

~ ............ AVERAGE PRODUCT-LINE STAGE IN LIFE CYCLE

~ ~ ...... Introductory

~ ~ ...... Growth

~ ~ ...... Maturity

~ ~ ...... Decline

~ ~ ...... Obsolescence

~ ~ ............ Operations

4

~ ~ ............ Markets + Trade Cell

5

~ ~ ............ Products

6

~ ~ ............ Competitors

7

~ .... PRODUCT INTRODUCTION

~ ...... Marketing strategies in the introduction stage

~ ...... i. A high-profile strategy

~ ...... ii. A selective penetration strategy

~ ...... iii. A preemptive penetration strategy

8

~ .... PRODUCT GROWTH STAGES

~ ...... Marketing strategies in the growth stage

9

~ ............ STRATEGY FOR PRODUCT INTRODUCTIONS

~ ~ ...... High Profile: Product Based

~ ~ ...... High Profile: Market Based

~ ~ ...... Selective: Product Based

~ ~ ...... Selective: Market Based

~ ~ ...... Pre-emptive

~ ~ ............ Operations

10

~ ~ ............ Markets + Trade Cell

11

~ ~ ............ Products

12

~ ~ ............ Competitors

13

~ ............ PRODUCT GROWTH STAGE STRATEGIES

~ ~ ...... Product Quality Improvements

~ ~ ...... New Market Segmentation

~ ~ ...... New Distribution

~ ~ ...... Improved Marketing

~ ~ ...... Price Adjustments

~ ~ ............ Operations

14

~ ~ ............ Markets + Trade Cell

15

~ ~ ............ Products

16

~ ~ ............ Competitors

17

~ .... PRODUCT MATURITY

~ ...... Marketing strategies in the mature stage

~ ...... i. Market modification

~ ...... ii. Product modification

~ ...... a) Strategy of quality improvement

~ ...... b) Strategy of feature improvement

~ ...... c) Strategy of style improvement

~ ...... iii. Marketing-mix modification

18

~ ...... The dominant versus the trailing firm

~ ...... i. Strategy of innovation

~ ...... ii. Strategy of segmentation & fortification

~ ...... iii. Confrontation strategy

~ ...... iv. Persecution strategy

19

~ ............ PRODUCT MATURITY STAGE STRATEGIES

~ ~ ...... Product Modifications: Quality

~ ~ ...... Product Modifications: Features

~ ~ ...... Market Segmentation

~ ~ ...... Marketing-Mix Modifications

~ ~ ...... Market Extension

~ ~ ............ Operations

20

~ ~ ............ Markets + Trade Cell

21

~ ~ ............ Products

22

~ ~ ............ Competitors

23

~ ............ COMPETITIVE STRATEGIES

~ ~ ...... Product Innovation

~ ~ ...... Market Segmentation & Fortification

~ ~ ...... Confrontation

~ ~ ...... Domination

~ ~ ...... Competitive niche position

~ ~ ............ Operations

24

~ ~ ............ Markets + Trade Cell

25

~ ~ ............ Products

26

~ ~ ............ Competitors

27

~ .... PRODUCT DECLINE

28

~ ...... Marketing strategies in the decline stage

~ ...... i. Identifying the weak products

~ ...... ii. Determining marketing strategies

~ ...... iii. Drop decision

29

~ ............ PRODUCT DECLINE STRATEGIES

~ ~ ...... Elimination of Products

~ ~ ...... Harvesting of Products

~ ~ ...... Product Reformulation

~ ~ ...... Market Repositioning

~ ~ ...... Customer Base Change

~ ~ ............ Operations

30

~ ~ ............ Markets + Trade Cell

31

~ ~ ............ Products

32

~ ~ ............ Competitors

33

~ .... NEW PRODUCT CRITERIA

~ .... NEW PRODUCT PERCEPTIONS

~ ...... SHORTAGE OF IMPORTANT NEW-PRODUCT IDEAS

34

~ ...... FRAGMENTED MARKETS

~ ...... GROWING SOCIAL AND GOVERNMENTAL CONSTRAINTS

~ ...... COSTLINESS OF NEW-PRODUCT DEVELOPMENT PROCESS

~ ...... HIGH RATE OF PRODUCT FAILURE

~ ...... SHORTER LIFE SPANS OF SUCCESSFUL PRODUCTS

35

~ ............ NEW PRODUCT RATING

~ ~ ...... Market Fragmentation

~ ~ ...... New Product Stagnation

~ ~ ...... New Product Life Cycle Limits

~ ~ ...... New Product Failures

~ ~ ...... New Product Costs

~ ~ ............ Operations

36

~ ~ ............ Markets + Trade Cell

37

~ ~ ............ Products

38

~ ~ ............ Competitors

39

~ .... NEW PRODUCT ORGANIZATION

~ ...... Product managers

~ ...... New Product managers

~ ...... New Product committees

~ ...... New Product departments

~ ...... New Product venture teams

40

~ .... IDEAS GENERATION

~ ...... SOURCES OF NEW PRODUCT IDEAS

~ ...... i. Customers

~ ...... ii. Technocrats & Specialists

~ ...... iii. Competitors

~ ...... iv. Company salesmen and distributors

~ ...... v. Top Management

41

~ ............ NEW PRODUCT ORGANIZATION

~ ~ ...... Board Responsibility

~ ~ ...... Senior Management Responsibility

~ ~ ...... Middle Management Responsibility

~ ~ ...... Junior Management Responsibility

~ ~ ...... Ad Hoc Responsibility

~ ~ ............ Operations

42

~ ~ ............ Markets + Trade Cell

43

~ ~ ............ Products

44

~ ~ ............ Competitors

45

~ ............ NEW PRODUCT GENERATION

~ ~ ...... Executive Responsibility

~ ~ ...... Senior Management Responsibility

~ ~ ...... Middle Management Responsibility

~ ~ ...... Junior Management Responsibility

~ ~ ...... Ad Hoc Responsibility

~ ~ ............ Operations

46

~ ~ ............ Markets + Trade Cell

47

~ ~ ............ Products

48

~ ~ ............ Competitors

49

~ ...... IDEAS DEVICES

~ ...... i. Attribute listing

~ ...... ii. Forced relationships

~ ...... iii. Morphological analysis

~ ...... iv. Brainstorming

50

~ ...... v. Operational creativity

~ .... PRODUCT SCREENING

51

~ ...... Product idea rating devices

~ ...... PRODUCT SCREENING CHECKLIST

52

~ .... CONCEPT DECISIONS

~ ...... Concept development

~ ...... Product and brand positioning

~ ...... Concept testing

53

~ .... BUSINESS ANALYSIS

~ ...... Estimating future sales

~ ...... i. ESTIMATING FIRST TIME SALES

55

~ ............ NEW PRODUCT PROFITABILITY

~ ~ ...... High Immediate Profit

~ ~ ...... Sustained Profits

~ ~ ...... Average Long-Term Profits

~ ~ ...... Marginal Profitability

~ ~ ...... High Risk Profit Scenario

~ ~ ............ Operations

56

~ ~ ............ Markets + Trade Cell

57

~ ~ ............ Products

58

~ ~ ............ Competitors

59

~ ...... ii. ESTIMATING REPLACEMENT OR REPEAT SALES

~ ...... Estimating future costs and profits

61

~ .... PRODUCT DEVELOPMENT FACTORS

~ ...... Prototype development and consumer testing

~ ...... Brand Naming

62

~ ...... Packaging

~ ...... i. Performance

~ ...... ii. Consumer affluence

~ ...... iii. Integrated marketing concept

~ ...... iv. Innovational opportunity

63

~ ............ PRODUCT DEVELOPMENT RATING

~ ~ ...... Prototype Efficiency

~ ~ ...... Process Development

~ ~ ...... Packaging & Distribution

~ ~ ...... Marketing-Mix

~ ~ ...... Customer Service

~ ~ ............ Operations

64

~ ~ ............ Markets + Trade Cell

65

~ ~ ............ Products

66

~ ~ ............ Competitors

67

~ .... NEW PRODUCT TESTING

~ ...... Reasons for test marketing

~ ...... Procedures for test marketing

68

~ ...... i. TEST CITIES

~ ...... ii. WHICH CITIES

~ ...... iii. HOW LONG SHOULD THE TEST RUN

~ ...... iv. INFORMATION COLLECTED DURING THE TEST

~ ...... ~ Product shipments data

~ ...... ~ Store audits

~ ...... ~ Consumer panels

69

~ ...... ~ Buyer surveys

~ ...... v. ACTION AFTER THE TEST

70

~ .... PRODUCT COMMERCIALIZATION

71

~ ............ PRODUCT COMMERCIALIZATION

~ ~ ...... New Plant & Equipment Costs

~ ~ ...... Process Costs

~ ~ ...... Distribution Costs

~ ~ ...... Sales Costs

~ ~ ...... Marketing Costs

~ ~ ............ Operations

72

~ ~ ............ Markets + Trade Cell

73

~ ~ ............ Products

74

~ ~ ............ Competitors

75

~ .... PRODUCT ADOPTION

76

~ ...... Concepts in innovation diffusion

~ ...... Propositions about the consumer adoption process

~ ...... i. Stages in the adoption process

77

~ ...... ii. Individual differences in innovativeness

78

~ ...... iii. Role of personal influence

78

~ ...... iv. Influence of product characteristics on the rate of adoption

79

~ ............ NEW PRODUCT DIFFUSION

~ ~ ...... Early Adopters

~ ~ ...... Heavy Users

~ ~ ...... Substantial Target Markets

~ ~ ...... Deep Customer Bases

~ ~ ...... Market or Geographic Extensions

~ ~ ............ Operations

80

~ ~ ............ Markets + Trade Cell

81

~ ~ ............ Products

82

~ ~ ............ Competitors

83

~ .... HISTORIC FINANCIAL DATA

84

~ .... Historic Balance Sheet

85

~ ~ ...... Historic Costs & Margins

86

~ ~ ........ Historic Financial Ratios & Margins

87

~ ~ .......... Historic Operational Ratios & Margins

88

~ .... Financial forecast notes

89

~ .... PRODUCT DEVELOPMENT FINANCIAL FORECASTS : Current to 2028

90

~ .... Base Forecast : Median Market Scenario Balance Sheet Forecast

91

~ ...... Base Forecast : Median Market Scenario Operational Costs Forecast

92

~ ........ Base Forecast : Median Market Scenario Financial Ratios

93

~ .......... Base Forecast : Median Market Scenario Operational Margins

94

~ .... New Product Development Balance Sheet Forecast

95

~ ...... New Product Development Operational Costs Forecast

96

~ ........ New Product Development Financial Ratios

97

~ .......... New Product Development Operational Margins

98

~ .... Market Segmentation Balance Sheet Forecast

99

~ ...... Market Segmentation Operational Costs Forecast

100

~ ........ Market Segmentation Financial Ratios

101

~ .......... Market Segmentation Operational Margins

102

~ .... Quality Improvement Balance Sheet Forecast

103

~ ...... Quality Improvement Operational Costs Forecast

104

~ ........ Quality Improvement Financial Ratios

105

~ .......... Quality Improvement Operational Margins

106

~ .... Product Positioning Balance Sheet Forecast

107

~ ...... Product Positioning Operational Costs Forecast

108

~ ........ Product Positioning Financial Ratios

109

~ .......... Product Positioning Operational Margins

110

~ .... Product Branding + Multi-branding Investment Balance Sheet Forecast

111

~ ...... Product Branding + Multi-branding Investment Operational Costs Forecast

112

~ ........ Product Branding + Multi-branding Investment Financial Ratios

113

~ .......... Product Branding + Multi-branding Investment Operational Margins

114

~ .... New Product & New Technology Cost Scenarios Balance Sheet Forecast

115

~ ...... New Product & New Technology Cost Scenarios Operational Costs Forecast

116

~ ........ New Product & New Technology Cost Scenarios Financial Ratios

117

~ .......... New Product & New Technology Cost Scenarios Operational Margins

119

~ .... Financial data definitions

 


INDEX

ACTION AFTER THE TEST, 69
Ad Hoc Responsibility, 41, 45
Adapted quickly, 17
Adapt?, 49
Adoption, 76
Advertising and sales-force attention, 27
Attribute listing, 49
Autonomy, 50
Average Long-Term Profits, 55
AVERAGE PRODUCT-LINE STAGE IN LIFE CYCLE, 3
Awareness, 76

Balance Sheet Base Forecast : Median Market Scenario, 90
Balance Sheet Historic, 84
Balance Sheet Market Segmentation, 98
Balance Sheet New Product Development, 94
Balance Sheet New Product & New Technology Cost, 114
Balance Sheet Product Branding + Multi-branding, 110
Balance Sheet Product Positioning, 106
Balance Sheet Quality Improvement, 102
Board Responsibility, 41
Brainstorming, 49
Brand Naming, 61
Business analysis, 40, 53
Buyer surveys, 69
Buyers are highly responsive, 17

Combination, 49
Combine?, 49
Commercialization, 40
Commonplace, 50
Company Competence Level, 51
Company Image, 51
Company salesmen and distributors, 40
Competitive niche position, 23
COMPETITIVE STRATEGIES, 23
Competitors, 40
CONCEPT DECISIONS, 52
Concept development, 52
Concept development and testing, 40
Concept testing, 52
Concepts in innovation diffusion, 76
Confrontation, 23
Confrontation strategy, 18
Consumer affluence, 62
Consumer panels, 68
COSTLINESS OF NEW-PRODUCT DEVELOPMENT PROCESS, 34
Costs, 7
Costs & Margins Historic, 85
Criticism, 49
Customer Base Change, 29
Customer misgivings, 27
Customer Service, 63
Customer surveys, 40
Customers, 40

Decaying maturity, 17
Decline, 3
Deep Customer Bases, 79
Deferment, 50
Delays, 7
Deliberateness, 77
Determining marketing strategies, 28
Development, 51
Distribution Costs, 71
Dominant versus the trailing firm, 18
Domination, 23
Drop decision, 28
DROP error, 50
Dynamic Phase, 1

Early Adopters, 77, 79
Early Majority, 77
Elimination of Products, 29
Established behavior patterns, 7
ESTIMATING FIRST TIME SALES, 53
Estimating future costs and profits, 59
Estimating future sales, 53
ESTIMATING REPLACEMENT OR REPEAT SALES, 59
Evaluation, 76
Executive Responsibility, 45
Expansion of supply capacity, 7

Finance, 51
Financial data definitions, 119
Financial forecast notes, 88
Financial Ratios Base Forecast : Median Market, 92
Financial Ratios Market Segmentation, 100
Financial Ratios New Product Development, 96
Financial Ratios New Product & New Technology Cost, 116
Financial Ratios Product Branding + Multi-branding, 112
Financial Ratios Product Positioning, 108
Financial Ratios Quality Improvement, 104
Financial Ratios & Margins Historic, 86
Focus group discussions, 40
Forced relationships, 49
FRAGMENTED MARKETS, 34
Free publicity, 17
Free wheeling, 49
Functional features, 17

GO error, 50
GOMPERTZ ANALYSIS, 1
GROWING SOCIAL AND GOVERNMENTAL CONSTRAINTS, 34
Growth, 3
Growth maturity, 17

Harvesting of Products, 29
Heavy advertising, 67
Heavy Users, 79
High Immediate Profit, 55
High margins, 7
High Profile: Market Based, 9
High Profile: Product Based, 9
HIGH RATE OF PRODUCT FAILURE, 34
High Risk Profit Scenario, 55
High-profile strategy, 7
HISTORIC FINANCIAL DATA, 83
HOW LONG SHOULD THE TEST RUN, 68

Idea generation, 40
IDEAS DEVICES, 49
IDEAS GENERATION, 40
Identifying the weak products, 28
Improved Marketing, 13
Incentive offer, 67
Increased usage, 17
Individual differences in innovativeness, 77
Induce trial, 7
Influence of product characteristics, 78
Inform potential consumers, 7
INFORMATION COLLECTED DURING THE TEST, 68
Innovational opportunity, 62
Innovators, 77
Integrated marketing concept, 62
Interest, 76
Introductory, 3
Introductory offer, 67
Introductory Stage, 1
Involvement / detachment, 50

Junior Management Responsibility, 41, 45

Laggards, 77
Late Majority, 77
Locations & Facilities, 51

Magnify?, 49
Marginal Profitability, 55
Market Extension, 19
Market Fragmentation, 35
Market modification, 17
Market or Geographic Extensions, 79
Market potential, 53
Market Repositioning, 29
Market Segmentation, 19
Market Segmentation & Fortification, 23
Marketing, 51
Marketing Costs, 71
Marketing strategies in the decline stage, 28
Marketing strategies in the growth stage, 8
Marketing strategies in the introduction stage, 7
Marketing strategies in the mature stage, 17
Marketing-Mix, 63
Marketing-mix modification, 17
Marketing-Mix Modifications, 19
Maturity, 3
Maturity Stage, 1
Metaphor, 50
Middle Management Responsibility, 41, 45
Minimize?, 49
Modify?, 49
Morphological analysis, 49

New Distribution, 13
New Market Segmentation, 13
New markets and market segments, 17
New Plant & Equipment Costs, 71
New Product committees, 39
New Product Costs, 35
NEW PRODUCT CRITERIA, 33
New Product departments, 39
NEW PRODUCT DIFFUSION, 79
New product diffusion process, 54
New Product Failures, 35
NEW PRODUCT GENERATION, 45
New Product Life Cycle Limits, 35
New Product managers, 39
NEW PRODUCT ORGANIZATION, 39, 41
NEW PRODUCT PERCEPTIONS, 33
NEW PRODUCT PROFITABILITY, 55
NEW PRODUCT RATING, 35
New Product Stagnation, 35
NEW PRODUCT TESTING, 67
New Product venture teams, 39

Obsolescence, 3
Operational Costs Base Forecast : Median Market, 91
Operational Costs Market Segmentation, 99
Operational Costs New Product Development, 95
Operational Costs New Product & New Technology Cost, 115
Operational Costs Product Branding + Multi-branding, 111
Operational Costs Product Positioning, 107
Operational Costs Quality Improvement, 103
Operational creativity, 50
Operational Margins Base Forecast : Median Market, 93
Operational Margins Market Segmentation, 101
Operational Margins New Product Development, 97
Operational Margins New Product & New Technology Cost, 117
Operational Margins Product Branding + Multi-branding, 113
Operational Margins Product Positioning, 109
Operational Margins Quality Improvement, 105
Operational Ratios & Margins Historic, 87

Packaging, 62
Packaging & Distribution, 63
Performance, 62
Persecution strategy, 18
Personnel, 51
Pre-emptive, 9
Pre-emptive penetration strategy, 7
Preference mapping, 40
Pre-selected market segments, 17
Price Adjustments, 13
Price and inventory adjustments, 27
Procedures for test marketing, 67
Process, 51
Process Costs, 71
Process Development, 63
PRODUCT ADOPTION, 75
Product and brand positioning, 52
PRODUCT COMMERCIALIZATION, 70, 71
PRODUCT DECLINE, 27
PRODUCT DECLINE STRATEGIES, 29
PRODUCT DEVELOPMENT, 1, 40
PRODUCT DEVELOPMENT FACTORS, 61
PRODUCT DEVELOPMENT FINANCIAL SCENARIOS FORECASTS, 89
PRODUCT DEVELOPMENT RATING, 63
PRODUCT EVOLUTION, 1
PRODUCT GROWTH STAGE STRATEGIES, 13
PRODUCT GROWTH STAGES, 8
Product idea rating devices, 51
Product Innovation, 23
PRODUCT INTRODUCTION, 7
PRODUCT LIFE CYCLE, 2
Product Life Cycles, 2
Product managers, 39
PRODUCT MATURITY, 17
PRODUCT MATURITY STAGE STRATEGIES, 19
Product modification, 17
Product Modifications: Features, 19
Product Modifications: Quality, 19
Product Quality Improvements, 13
Product Reformulation, 29
PRODUCT SCREENING, 50
PRODUCT SCREENING CHECKLIST, 51
Product shipments data, 68
Product Success, 51
Projective tests, 40
Propositions about the consumer adoption process, 76
Prototype development and consumer testing, 61
Prototype Efficiency, 63
Purchasing, 51

Quality improvement, 17
Quantity, 49

Rate of market penetration, 53
Rationale for the product life cycle, 2
Rearrange?, 49
Reasons for test marketing, 67
Reduced price, 67
Re-launch, 17
Repositioning, 17
Respect, 77
Reverse?, 49
Role of personal influence, 78

Sales Costs, 71
Sales-force and distributors' enthusiasm, 17
Screening, 40
Secure distribution, 7
Selective penetration strategy, 7
Selective: Market Based, 9
Selective: Product Based, 9
Senior Management Responsibility, 41, 45
Short production runs, 27
SHORTAGE OF IMPORTANT NEW-PRODUCT IDEAS, 33
SHORTER LIFE SPANS OF SUCCESSFUL PRODUCTS, 34
Skepticism, 77
SOURCES OF NEW PRODUCT IDEAS, 40
Stable maturity, 17
Stages in the adoption process, 76
Stages in the product life cycle, 2
Store audits, 68
STRATEGY FOR PRODUCT INTRODUCTIONS, 9
Strategy of feature improvement, 17
Strategy of innovation, 18
Strategy of quality improvement, 17
Strategy of segmentation & fortification, 18
Strategy of style improvement, 17
Substantial Target Markets, 79
Substitute?, 49
Suggestion systems, 40
Sustained Profits, 55
Synergic, 50

Technical problems, 7
Technocrats & Specialists, 40
Technological problems, 7
TEST CITIES, 68
Test marketing, 40
Top Management, 40
Tradition, 77
Trial, 76

Venturesomeness, 77

Weak product, 27