CHP_2

PHASES OF NEW PRODUCTS PROCESS

• PHASE 05: Launch

  • Commercialize plans and prototypes from the development phase.

  • Begin distribution and sale of the new product, possibly on a limited basis.

  • Manage the launch program to achieve established goals and objectives.

• PHASE 04: Development

  • Technical Tasks:

    • Specify the full development process and its deliverables.

    • Design and validate prototypes against protocol.

    • Scale production for product and market testing.

  • Marketing Tasks:

    • Prepare strategy, tactics, and marketing plan details.

    • Stipulate product augmentation (services, packaging, etc.).

• PHASE 03: Concept / Project Evaluation

  • Evaluate new product concepts based on technical, marketing, and financial criteria.

  • Rank them and select the best two or three, requesting project proposal authorization when necessary.

• PHASE 02: Concept Generation

  • Select a high potential opportunity and begin customer involvement.

  • Collect and generate new product concepts that align with the opportunity.

• PHASE 01: Opportunity Identification/Selection

  • Active and passive generation of new product opportunities from ongoing business operations.

  • Suggest major new product ideas, evaluate and rank potential opportunities, and establish a preliminary strategic statement.

OPPORTUNITY IDENTIFICATION SOURCES

• Ongoing Activities:

  • Marketing planning to address aggressive competitors.

  • Corporate planning shifts resources from basic research to applied product development.

• Identified Opportunities:

  • Underutilized resources (e.g., manufacturing processes, operations).

  • New resources (e.g., discoveries of new materials with potential uses).

  • Internal and external mandates (e.g., addressing stagnant markets, management desires).

EXAMPLES OF CONCEPT GENERATION

• Band-Aid®:

  • Invented by Earle Dickson in 1920, featuring ready-made bandages for quick use.

  • Variations developed over time, including waterproof and child-friendly designs.

• Post-it® Notes:

  • Invented by Arthur Fry and Spencer Silver in 1974, linking a weak adhesive to create self-sticking notepapers.

  • First distributed by 3M in 1980, revolutionizing note-taking.

• Microwave Oven:

  • Discovered by Percy LeBaron Spencer in 1945 via radar waves melting candy.

  • Continual advancements in size and features, such as convection and auto-set capabilities.

EVALUATION AND SCREENING

Evaluation Tasks in New Products Process

1. Direction: Define areas for opportunity exploration.

2. Concept Generation: Produce ideas that fit direction.

3. Initial Review: Assess if ideas warrant further screening.

4. Project Evaluation: Rank concepts based on their feasibility.

5. Market Testing: Determine readiness for launch.

Mistakes to Avoid in Evaluation

• Misassessing the marketing climate.

• Targeting the wrong demographic.

• Weak positioning strategies.

• Selection of suboptimal product attribute configurations.

• Ineffective pricing strategies.

• Insufficient market awareness due to marketing campaigns.

LAUNCH PHASE

• Launch involves commercialization and distribution of new products while managing necessary evaluations to achieve overall success.

TECHNIQUES FOR SPEEDING PRODUCT DEVELOPMENT

• Projectization: Use project matrix and venture teams.

• Small Group Dynamics: Encourage innovation by minimizing bureaucracy.

• Integration: Collaborate with channel members and customers for feedback.

SHORT CYCLE TIME FIRMS

• Engage users early in the product process.

• Utilize cross-functional teams dedicated to product development.

• Adoption of effective design philosophies and practices is crucial.