New ProductProject

Deliverable

1

Description of the New Product Idea

A 1-paragraph verbal description of your “finalized” new product idea.

Trends & Unmet Consumer Needs

Trends affecting the industry & unmet consumer needs, with the implications for your new product idea (attach articles you found in your research & any interesting & relevant new product examples). Use these to support why your new product idea makes sense to introduce now.

Industry Analysis

• Product life cycle stage• Mature, growing, nascent• Industry size & growth rate• Competitive strategies &

actions vis-à-vis new products

A Market Structure Chart

Show the key market segments in your category & where your new product will fall in the structure. Indicate which are the highest growth segments.

Perceptual Maps

3 perceptual maps that show on an XY axis, the key attributes consumers of the category value most, & how your product will have a meaningful point of difference vs. its competitors.

Hypothetical Perceptual Map

This Does Not Reflect the Thinking of Apple

Gentleness

Effectiveness

Tylenol

Bufferin

Advil

Nuprin

Excedrin

Bayer

Anacin

Private-Labelaspirin

OptimalPlace to be

Perceptual Map of Pain Relievers

Optimal Place to Be

Concept Board(s)Pre & Post Consumer

Research

The Ideal Concept Board

Pre & Post QualitativeTesting Concept Boards

Submit the concept board you showed consumers & a final board with the changes you made based on their feedback.

Marketing Research Key Findings

Summarize the reaction of consumers to your idea, what you learned from the qualitative research, & how you decided to adapt your product as a result.

Product Line Description

Describe:• The product & it’s key

attributes or features• The items in your line • What % of the total volume each item is expected to contribute.

Brand Positioning & Rationale

• Provide a 1-sentence brand positioning statement with rationale as to why you picked the target audience, competitive frame, point(s) of difference & end benefit.• Will you add more targets over

time: Which & when?

Target AudienceFrame of ReferencePoint of Difference End Benefit

Example

To target audience, brand X is the frame of reference/competitive set that point of difference which is good because end benefit.

(Should include the rationale for each element)

For Each Major Brand, aBrand Positioning

Statement

Samsung’s Jitterbug

To Seniors, (Target)

Samsung’s Jitterbug is the cell phone (FOR)

That has a large display & big buttons (POD)

Which is good because it will be easier to see & you won’t need to put on your glasses. (End Benefit)

The DisneyPhone

To parents of young girls,the Disney phone is the means of communication between you & your daughter, that your child will want to carry, which is good because now you can always reach them.

To little girls, The Disney phone is the cell phone that’s pretty & has one of your favorite characters which is good because now you can call your friends or your parents when ever you want.

Brand Positioning

Target Audience

Frame of Reference

Point of Difference

End Benefit

Greens Enabler of Green-living

Better Place car has zero

emissions

Allows you to live your busy lifestyle

while minimizing your impact on the earth

InnovatorsPioneer in hi-

tech transportation

Uses the mostfuturistic

technology

Allows you to depict yourself as trendy

and informed

Cost-conscious

Less expensive transport

Better value than purchasing

a car

Frees up income to use on the

better things in life

B2BCheap, flexible,

green, transport

Good value and less polluting

Decreases cost-baseIncreases CSR credentials - better reputation with

your customers

Provide a volume forecast for years 1-5, using the BASES model or a “bottom up” approach. Use your best guess & include the key assumptions of your forecast.

Volume Forecast

# of Households in Target Population

# of Households in Target Population Trial RateTrial Rate

Average Trial Units Per Purchase

Average Trial Units Per Purchase

X X

Trial Volume

+Repeat Volume

# of Trying Households# of Trying

Households XX XRepeat

RateRepeat

Rate

Repeat Purchases

Per Repeater

Repeat Purchases

Per Repeater

Average Repeat Units Per Purchase

Average Repeat Units Per Purchase

New Product Total Volume Forecast

BASES Type Test Results

Project quantitative research results that will serve as the basis for your volume forecast & sources of volume. • What trial rate will you have?• What repeat purchase rate?• Average number of repeats/yr• Average amount per purchase occasion• What will consumers be switching from to purchase your product or service?

Packaging, Branding, Name

• If using a package or brochure, describe the package &

ideally show an example with the key visual & communication elements.• Provide your branding/naming

recommendation, any name subheads, branding/name

rationale & relation to other items under same trademark.

Pricing Recommendation

• Provide a pricing recommendation relative to competition, other items in the trademark & the brand’s overall positioning & strategy: • Is it a premium or value brand? • Is it price skimming or going for maximum penetration & share as fast as possible?

Geography, Test Market & Roll-Out

• Do you plan to test market the brand? If so, what type of test market & for how long?• What will be the phasing of the roll-out/sequence/timing?• What will be your high opportunity markets, where

you will market the product most aggressively & why?

Marketing for the Polish bank will be done in markets with the highest concentrations of Polish immigrants such as:

- Birmingham- Liverpool- Edinburgh- Manchester

Seasonality

• Create a monthly seasonality index based on when you

think the product would sell most & least.• When will the product be introduced, in light of category

seasonality & company’s fiscal year?

% of brand’s business in month8.5%

J F M A M J J A S O N D 85 70 80 110 160 135 110 85 50 45 90 61

Seasonality Index

• In which channels will the product be sold?

• Provide the % of volume from each channel & whether you will add new channels over the 5-year timeframe.

Distribution

Develop a memorable, overarching, integrated marketing message or tagline that describes the brand’s key point of difference & will be communicated in all marketing elements.

Overarching Creative Tagline

When it absolutely has to get there overnight

Because there’s so much resting on your tires

Because you’re worth it!

You deserve a break today

OverarchingCreative

Idea

• Provide Year 1 & “ongoing” marketing budgets for the P&L.• Provide launch marketing ideas

to create awareness & repeat purchase for the new product.• Create an integrated marketing

flowchart to show the key marketing activities.

Launch Marketing Ideas & Integrated Marketing

Flowchart

Iced Tea Brand

Optional

Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5Sales Revenue 0 $11,889 $15,318 $19,654 $28,253 $32,491

Cost of GoodsGross MarginDevelopment costsMarketing costsAllocated overheadNet operating incomeImpact of cannibalizationNet contribution Discounted contribution -3,500 -1,113 1,691 1,877 2,343 2,346

Cumulative discounted cash flow -3,500 -4,613 -2,922 -1,045 1,298 3,644

Breakeven XPayback X

Make some assumptions but don’t agonize over it!

Projected 5-YearCash Flow Statement

• What could go right to make your new product even more successful• What could go wrong that would cause the product to perform worse than projected?

Sensitivity Analysis/Risks & Hedges