Product optimization.ppt
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The document discusses product optimization, which involves making minor adjustments to existing products to make them more desirable and increase marketing metrics. It describes how companies conduct product testing and use evolutionary algorithms to optimize attributes. The goal of optimization is to develop products that meet customer needs and solve their problems, thereby increasing success rates. The document provides tips for companies on defining experiments, embracing data, and separating new from returning visitors when optimizing products.
Product optimization.ppt
- 2. It is the practice of making changes or adjustments to a product to make it more desirable. It is possible to optimize a product by making minor adjustments. Typically, the goal is to make the product more desirable and to increase marketing metrics such as Purchase Intent, Believability, Frequency of Purchase, etc.
- 3. Product Optimization is beneficial for companies in various ways:1. Cost of manufacturing will drop. 2. More desirable. 3. More Profitable. 4. Make more no. of products. 5. Compete with competitors.
- 4. Impact of Product Advantage on Product success 120% 98% 100% 80% Success Rate The ability to develop and launch new product successfully and quickly is key to Business Success. The no. one success factor is Product Superiority. A superior product is comprised of six items:1. Offering unique features not available in competitive products. 58% 60% 40% 20% 18% 0% Minimal Moderate Advantage High
- 5. 2. Meeting Customer needs better than competitive products. 3. Having higher relative product quality. 4. Solving a problem the customer has with a competitive product. 5. Reducing the customer's total costs — high value in use. 6. Being Innovative- the first of their kind in market. If a new product scores low on the above criteria, then the success is low.
- 6. The most common method of Product optimization Multiple product attributes are specified and then tested with consumers. Due to complex interaction effects between different attributes, it is problematic to use mathematical methods, such as Conjoint Analysis, typically used in industrial process optimization. companies started to adopt Evolutionary Optimization techniques for Product optimization. Algorithm are used to optimize products.
- 7. Developing a product with real advantages and benefits to customers entails: Identifying the target market — exactly who the intended user is. Conducting extensive market research to identify customer/user needs, wants and preferences, and to define what the customer sees as a better product. Translating customer needs or problems into a technically viable solution — product features, attributes, requirements and specifications.
- 8. Defining the product concept- what the product will be and do, and the benefits to be delivered. Testing and verifying-to ensure that the final product scores high with the customer. The customer should be exposed to the product as it takes shape, not solely as an after-the-fact check.
- 9. Product Discovery is the First and initial step of Product Optimization. A Company put the idea then search the market for the Product. Then Discover the new Product for that market. The Product optimizes after this.
- 10. Go to Companies who provide optimization services with your existing Product . Provide them with possible information. Companies use their experience and link to provide you the information and rigid production plan. Make own choice how to use and implement the recommendations.
- 11. Define the Experiment- Do the test to know the new idea is better, worse or has no result. One Change at a Time- Test one change at one time. Get Statically Significantly Results as fast as possible- Get experiment done and get meaningful data . Keep your eye on the Prize.
- 12. Embrace the Data- Collect the data and deeply understand it. Beware common Pitfalls- Some common Pitfalls that can mess your whole result and experiment if not paid attention. Separate New vs. Returning Visitors- Separate the old results from the new. One Source of truth- All the stakeholders should know about the data
- 13. If in doubt, Take it out- If have a doubt about test will help or not, don’t make it Watch for diminishing returns- Just wait for some time and will see the returns coming.
- 14. Some companies provide solutions to others in seven critical stages:1. First understand your Consumer and market trends. 2. Smart Idea Development. 3. Product Design. 4. Product/Service positioning and optimization
- 16. The process of optimization is best done under Product Optimization. 5 ways to optimize product manufacturing1. Component Optimization- More time is needed to find the correct choice of material in less price. 2. Material Optimization- Remove the extra material not required and put the best material for success. 3. Design Optimization- If there is multifunctional circuits in a single device then it will carry extra production cost.
- 17. 4. Manufacturing Process Optimization- To low the cost of manufacturing and to run the system smooth. 5. Contract Manufacturer Selection- If not satisfied with the quality and cost of the product, can change the Contractor.
- 18. Communication Begins with Product Optimization Request Form (PORF). Information collected with PORF is kept strictly confidential. After reviewing the initial data, the company will contact you for further discuss. Getting the maximum information, start the process of Optimization.
- 19. Product Optimization is the process of making changes and adjustments in an existing product for making it more desirable, cost effective, profitability. It begins with the idea how to make it innovative for the market, then watching the customers. Make some changes and then see the place where we can launch the product.