product design
TRANSCRIPT
Product Design
RAHUL BABAR
What is product design ?Product design is the process of creating anew product to be sold by a business to its
customers.
It is essentially the efficient and effective generation
And development of ideas through a process that leads
to new products.
Why is product design concept used ?
Profit Maximization in Long run
Upgrade desired product quality
Reduce development time and cost to minimum
Ensure producibility or manufacturability
Steps in Product Designing
Idea Generation
Customer & competitor
research
Brainstorming sessions
Surveys
Customer input
Research & Development team
Concept screening
Is there a real, clearly defined customer need or want for this product or service ?
Can we fully develop this product or service ?
Is the profit potential for this product large enough to justify it’s development ?
Competitive analysis“ Best of ” ideas are
incorporated to mitigate any competitor advantage.
Verify buyer market size for similar offerings to validate development investment.
Concept TestingPrinciple target is to
quantify actual customer enthusiasm for the product or service.
Get solid feel that the market of buyers is genuinely interested in the concept before we develop it into a tangible offering
In-depth analysisFormal list of features &
benefits, key USP (unique selling proposition), etc.
Summary of all resources needed for development.
Marketing plan with ROI projections.
Summary of competitive products, pricing, packaging etc.
Prototype Development
Product name, specific marketing messaging, etc, are solidified.
Prospective buyers review the prototype and asked if they like it, would they buy it, what would make it better, etc.
CommercializationThe product is finalized and launched full scale
iPhoneApple
ResistiveTechnology
CapacitiveTechnology
Manufacturing Cost Estimates
Flash Memory & RAM $20.85
Display & Touchscreen $44.00
Processor $17.50
Sensors $6.50
Cameras $18.00
Cellular Radio $34.00
Wireless Radio $5.00
Battery $4.50
Power Management $8.50
Mechanical Parts $33.00
Packaging $7.00
Production $8.00
Licensing Fees $20.00
Total Cost $226.85
Operating Cost Estimates
Research & Development
$18.85
Software & Administrative
$42.33
Total Cost $61.18
The Total Estimated Cost
Manufacturing $226.85
Operating Expenses
$61.18
Wholesale to Retail Markup
$68.90
Total Cost $356.93
R&D cost of US$ 150 million
Total Cost per piece $356.93
Price per piece $599
Profit per piece $242.07
Sold 6.1 million first generation iPhone units over five quarters
By the end of 2010, a total of 73.5 million iPhones were sold.
