8/13/2019 Lecture 2.pptx npdd

1/22

8/13/2019 Lecture 2.pptx npdd

2/22

INDUSTRY BREAK POINT

Change concept for marketing as discussed by

Strebel as Industry Breakpoints

An industry breakpoint is a new offering to the

market that is so superior in terms of customervalue & delivered cost that it disrupts the rules ofthe competitive game

E.g. Use of CDs in place of VHS tapes

8/13/2019 Lecture 2.pptx npdd

3/22

INDUSTRY BREAK POINT

According to StrebelIndustry breakpoint is a result of convergence & divergence.

8/13/2019 Lecture 2.pptx npdd

4/22

8/13/2019 Lecture 2.pptx npdd

5/22

8/13/2019 Lecture 2.pptx npdd

6/22

For Product Development ,it the NewProduct Strategy that you need beforeexecuting the New ProductDevelopment.

8/13/2019 Lecture 2.pptx npdd

7/22

WHY DOES A FIRM NEED A NEW PRODUCTS

STRATEGY?

To chart the groups/teams direction

What technologies?/what markets?

To set the groups goals and objectives

Why does it exist?

To tell the group how it will play the game

What are the rules?/constraints?

Any other key information to consider?

8/13/2019 Lecture 2.pptx npdd

8/22

CORPORATE STRENGTHS

New products in this firm will:

Use our fine furniture designers (Herman Miller) Gain value by being bottled in our bottling system (Coca-

Cola)

Utilize innovative design (Braun)

Be for babies and only babies (Gerber)

Be for all sports, not just shoes (Nike) Be for all people in computers (IBM)

Proliferate our product lines (Rubbermaid)

Be almost impossible to create (Polaroid)

Use only internal R&D (Bausch & Lomb)

Not threaten P&G (Colgate)

8/13/2019 Lecture 2.pptx npdd

9/22

NEW PRODUCT STRATEGY

A common direction set by different stakeholders of the

company to assist in any future development.

The objective is to focus and integrate team efforts.

Strategic planning is the foundation for new ProductDevelopment and Product Management

8/13/2019 Lecture 2.pptx npdd

10/22

THE PURPOSE OF NEW PRODUCT STRATEGY

Set new product objectives (sale, profit, contribution, market

share.) Understand the contribution of new product development

within the companys wider goals

Define the technologies, markets and product scope

8/13/2019 Lecture 2.pptx npdd

11/22

INTEGERATED EFFORTS

8/13/2019 Lecture 2.pptx npdd

12/22

DESIRED PRODUCT

8/13/2019 Lecture 2.pptx npdd

13/22

FINAL PRODUCT!!!

8/13/2019 Lecture 2.pptx npdd

14/22

8/13/2019 Lecture 2.pptx npdd

15/22

NEW PRODUCT STRATEGY INPUT

New Product

Strategy

Corporate LeadersProduct Platform

Planning

Head of FunctionsMisc. Source within

the Company

8/13/2019 Lecture 2.pptx npdd

16/22

PRODUCT PLATFORM PLANNING

Many firms find that it is not efficient to develop a single

product.

Platform: product families that share similarities in design,development, or production process.

Car industry: $3 billion price tag on a new car platform is spread

out over several models. Sony: four platforms for Walkman launched 160 product

variations.

Boeing: passenger, cargo, short- and long-haul planes madefrom same platform.

Black & Decker: uses a single electric motor for dozens ofconsumer power tools.

8/13/2019 Lecture 2.pptx npdd

17/22

PRODUCT INNOVATION CHARTER (PIC)

A document prepared by senior management

designed to provide guidance to the businessunits on the role of innovation.

It is the new product teams strategy.

It is for Products (not processes).

It is for Innovation.

It is a Charter (a document specifying theconditions under which a firm will operate).

8/13/2019 Lecture 2.pptx npdd

18/22

A TYPICAL PIC MAY CONTAIN

1- Background

The background of a PIC includes key points from a PEST analysis (Political,Economic, Social, Technology) or situation analysis.

Questions addressed in this section of a PIC may include:

What is the business about?

Why has this strategy been developed?

8/13/2019 Lecture 2.pptx npdd

19/22

2- FocusThe focus of company is defined by the Technology Drivers or/and Market

Drivers of the firm.

Questions addressed at this stage of a PIC may include:

What are your companys core competencies?

What is your companys competitive advantage and the value that your

company can bring to the target market?

8/13/2019 Lecture 2.pptx npdd

20/22

8/13/2019 Lecture 2.pptx npdd

21/22

3- Goals and ObjectivesThe goals and objectives section describes the companys short term and

long term objectives of the new product. The goals and objectives should be

measurable.

8/13/2019 Lecture 2.pptx npdd

22/22

4- GuidelinesThe guidelines component of the PIC is essentially a road map written by the

Product Manager for the entire organization. It includes the time and entry to

market, costs, product quality and so forth.