Winning the new product game
- 1. Wining the new product game
- 2. How to make a product: To win Launching a new product can be exciting time for any company. Whether it is the first product the company has offered, or an addition to already existing line, there is lot of enthusiasm and buzz around, which is dreamt as success. There are few things that every company has to prepare for the big reveal. Here, we are going to discuss about few those.
- 3. INNOVATION OR DIE • product innovation is now the No. 1 plan in many companies. For example, in the United States, new products now account for about 50 percent of companies' revenues from sales and 40 percent of their profits. • Most Admired Companies contains the most innovative firms in America: Intel, General Electric, Johnson & Johnson and others. • The problem is that winning with new products is not so easy. • Only 25% development projects succeeds and 75% of all new products launch fails.
- 4. • In recent years, much research has been directed to uncovering the secrets to new-product success: What do the winners do differently? • Our research has led to many prescriptions – including Stage-Gate methods and others.
- 5. Questions to be answered: @product. Does your product have unique features? You cant roll out the “same-old, same-old”. Your product has got to have a cool new look that’ll make the consumer sit up and notice. Does it have mass appeal? In other words, is it something that will sell to the stay at home mother of four and as well as the laymen?
- 6. Does it solve a problem? Think of something around the house that’s troublesome and invent a solution. If your product doesn’t solve a problem, you’ve got a potential problem- consumers aren’t likely to buy it. Can you easily explain how it works? There has to be an easy-to-understand explanation of how and why your product works. If it takes a college degree to understand its too complicated. You only grab people for a couple of seconds- so you have to tease, please and seize the customer.
- 7. Is it multifunctional? Think like your competitor. If you come out with a product that has just one function, your competitor can steal your thunder – and your sales – with a similar product that offers more functions. Are there proven results? Be prepared to back up your claims with unshakeable success stories or scientific studies, including third-party clinical studies or reviews from product-testing labs that support your claims.
- 8. Can you answer the questions the viewer is thinking? You must be prepared for any and all questions that could arise over your product. Put yourself in the shoes of consumers, and think of all the questions they could ask. Is there a magical transformation or demo? Before-and-after spots – showing easily noticeable differences are powerful marketing tools.
- 9. CRITICAL SUCCESS FACTORS 1. Seek differentiated, superior products. The top success factor is delivering a differentiated product with unique customer benefits and superior value. Such superior products have five times the success rate. 2. Up-front homework pays off. Too many new-product projects move from the idea stage right into development with little or no up-front homework. The results of this approach are usually disastrous.
- 10. 3. Build in the voice of the customer Successful businesses and teams that drive winning new-product projects have a slave like dedication to the voice of the customer. strong market orientation and customer focus is noticeably absent from many businesses’ new product projects. 4. Demand sharp, stable and early product definition A failure to define the product before development begins is a major cause of both new product failure and serious delays in time-to market.
- 11. 5. Build tough Go/Kill decision points into your process Too many projects move too far into development without serious scrutiny. The result is that many marginal projects are approved and scarce resources are allocated improperly. 6. Plan and resource the market launch early in the game A strong market launch underlies the success of any product. For example, new-product winners devote more than twice as many person-days and dollars to the launch as do those that fail.
- 12. 7. Organize around true cross functional project teams Studies says that good organizational design is strongly linked to success. Good organizational design means projects which are organized led by a strong project leader accountable for the entire project from beginning to end, dedicated and focused. 8. Attack from a position of strength Its seems to be an old adage, but this factor is key for any new product to win the competencies they need to be strong between resources, strengths and experience of the company in terms of marketing, distribution & technology.
- 13. 9. Build an international orientation into your new-product process New products aimed at international markets and designing products to meet those inter national needs in the market. The strategy of ‘design for local needs and adjust for export later” also does not work well. 10. The role of top management is central to success. Top-management support is a necessary ingredient for product innovation, though it must provide the right kind of support. Top management’s main role is to set the stage for product innovation as an actor, front and Centre.
- 14. ADOPT A STAGE-GATE® NEW PRODUCT PROCESS WHAT IS A STAGE-GATE® PROCESS? • A Stage-Gate process is a conceptual and operational road map for moving a new-product project from idea to launch — a blueprint for managing the new-product process to improve effectiveness and efficiency. Stage-Gate approaches break the innovation process into a predetermined set of stages, At the entrance to each stage is a gate, which serves as the quality control and Go/Kill check point in the process.
- 15. Simple Map of a Stage-Gate Process
- 16. Stage 1: Scoping: a quick investigation and sculpting of the project. Stage 2: Build the business case: the detailed homework and up-front investigation work leading to a business case; a defined product, a business justification and a detailed plan of action for the next stages. Stage 3: Development: the actual design and development of the new product. Additionally, the manufacturing (or operations) process is mapped out, the marketing launch and operating plans are developed, and the test plans for the next stage are defined.
- 17. • Stage 4: Testing & validation: the verification and validation of the proposed new product, its marketing and production. • Stage 5: Launch: full commercialization of the product— the beginning of full production and commercial launch and selling.
- 19. •Thank you Presented by team, Mohammad Shabbir. Manisha B Manthan Roy Manjunath S M Manjnath V