product management. what is product management? product management is the process of designing,...
TRANSCRIPT
What is Product Management?
• Product Management is the process of designing, building, operating and maintaining a good or service
• Product management ensure that production not just manufacturing product but creating a product that people will want to buy and continue to use
Cont’d
• Production is a heart of product but product management ensures that costumer’s voice not rush
• Product management adds thing like marketing and customer support to create complete product
• Product Management is performed by multi-disciplinary team whose goal is building, operating and maintaining product
• Team members may include product managers, software developers, designer, engineer, financial analyst, marketer etc
Product Manager’s Responsibility
• Defining and planning product lines and product enhancements
• Managing product contract and sales• Setting strategic direction based on
customer needs and business goal• Interpreting strategic goal into
operational tasks• Evaluating risks and trade off
Cont’d
• Proposing contingency plans• Analyzing business process and
creating applications to improve or support those process
• Branding• Working with designer to create look
and feel• YOU can add the rest by yourselves
What is new product?
• New to the world products• New category entries• Additions to product lines• Product improvements• Repositioning
Design must reflect the practical and aesthetic in business but above all... Good design must primarily serve the people (Thomas J. Watson)
3 Steps to Success
• Understand the consumers• Know what they want• Give it to them
What do you think with these products?
Know What They Want
• What is important to them?• What motivates them?• What are their hopes?• What are their fears?• What are their dreams?• What are their aspirations?
Basic Ideas or Concepts
• The complexity of operations and decisions.
• Product innovation must be pushed.• The conflicting masters of new
products management:Value : Quality, Time, Cost
Career tips:
• Be multifunctional, not functionally parochial
• Be risk takers.• Think comprehensive • Be a combination of optimist and realist• Develop your creative skill both for new
product concept and for new ways of doing things
• Be comfortable in chaos and confusion
The Facts…
• 50 – 80 % of new products fail (the greater the rate of new product development, the higher the failure rate )
• Although there are numerous reasons why new products fail, faulty management and planning are at the core of most failures.
• Therefore, managing the new product development process is a key to a healthy organization.
The Process
1. Opportunity Identification and Selection
2. Concept Generation3. Concept/Project Evaluation4. Development5. Launch
Basic New Products Process
Phase 1: Opportunity Identification and Selection.
Identify the opportunity as a part of business operation, see the opportunity of new product, sensitive to the marketplace, research, evaluate, and grading the opportunity.
Phase 2: Concept Making
This phase is started with selecting opportunity which has highest potentiality by involving customer. Collecting the new concept and find opportunity to get the best new product.
Phase 3: Project / Concept Evaluation
Evaluate the concept of new product from technical, marketing, and financial aspect.
Phase 4: DevelopmentA. Technical Support
Making prototype design, test, and validity. Start production & market testing.
B. Marketing Support
Prepare strategies, tactics, and launch marketing plan. Prepare business plan and product augmentation (packaging, brand, etc)
Phase 5: Launch
Commercialize plan and prototype from development phase, start to distribute and sell new product, manage to launch product to get the objectives that have been agreed in final business plan.
Product Life Cycle
• All products has its time • Profit fluctuates based on product life
cycle • Each stage need different strategies
in each functions (marketing, financial, operational and human resources)
To Improve Product Life Cycle
1. Increase product using time by offering many benefits
2. Offering alternatively other function of product
3. Modify existing product in term of product content, packaging, volume, benefit etc
4. Targeting new customer
Fail in new market?
• Research from Deloitte & Touche has shown that 95% of new products have failed in new market.
• For example: Tara Nasiku
• Other example?
Way to new product process
Kategori produk
existing new
B
R existing
A
N new
D
Line extension Brand extension
Multibrand New brand
Strategies
1. Line extension:- Pantene shampoo: sachet- Nescafe: non cafein, espresso- Coke: cherry coke, diet coke
2. Brand extension:- Nuvo soap hand sanitizer- Cadburry chocolate ice cream- Pepsodent toothpaste candy
Strategies
3. Multibrand:
- Toyota corolla: brand Lexus
- Qantas airlines: Jetstar (economy class)
4. New Brand:
- Coca cola: Frestea
- Bintang tujuh: Extra Joss