search business ideas and how to build marketing strategies
DESCRIPTION
Cách nghĩ ra ý tưởng kinh doanh mới và chiến lược marketing lâu dài cho ý tưởng đó.TRANSCRIPT
Master Mind Training Session
- How to search and evaluate business ideas.
- Analysis of the strengths, weaknesses of the ideas.- How to build marketing strategies.
By: MA. Nguyen Thi Huong Giang
What is New Product/Business Idea & what leads to Success?
New product
1. New-to-the-world
6. Cost reductio
n
5. Re-positionin
gs
2. New-to-the-
firm
4. Improvements & revision
to existing products
3. Addition
to existing product
lines
New product concept sorting (1):
New-to-the-World product, or “Really-new product”: products are inventions that create a whole new market and was never seen/marketed before. (10% of new product)
New-to-the-firm products: products that take a firm into a category new to it. (20%)
Additions to existing product lines: or line extensions to the firm’s current products. (26%)
New product concept sorting (2):
Improvements and revisions to existing products: current products are made better. (26%)
Re-positionings: products that are retargeted for a new use or application. (7%)
http://www.youtube.com/watch?v=JUNuznXtyaM Cost reductions: new products simply replace
existing products in the line, providing customer similar performance at a lower cost. (11%)
The Basic New Product Development Process
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Opportunity identification and selection
Concept generation
Concept/project
evaluation
Development
Launch
Phase 1: Opportunity Identification & Selection
3 main streams of activity feeding strategic planning for new product: Ongoing marketing planning Ongoing corporate planning Special opportunity analysis
Sorting of opportunities An underutilized resource A new resource An external mandate (stagnant market/
competition) An internal mandate (management/employees
desire to change)Opportunity identification: the process of
creatively recognizing opportunities. Why?No firm wants to exploit all opportunitiesProduct Innovation Charter
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Phase 2: Concept Generation
Creating new product ideas Identifying problems that people or
business have and suggesting solutions to them
Unsolicited ideas pouring from customers, potential ones, employees, etc.
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Problems/new
opportunity
motivatesConcept generati
on
Phase 3: Concept/ Project Evaluation
Screening or pre-technical evaluation Concept test all views come Full screen Project evaluation Quality Function Deployment, or: Product description/ product definition/
Product Protocol--- List of customer needs. Product protocol: agreement between
various groups before technical work get started. The protocol should be in term of benefits, not the features only.
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Phase 4: Development Resource Preparation The Major Body of Effort: 3 in 1: the
item/service itself + the marketing plan + a business (financial) plan
Prototype Comprehensive Business Analysis ---
Important “Go/No Go” decision Concept evaluation continues along the way.
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Phase 5: Launch/ Commercialization
Final “Go/No Go” decision
Critical and timely step
Market test Activity of planning for
Launch Management
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The Product Innovation Charter
The Product Innovation Charter
Corporate mission, platform planning, strategic fit, non-corporate strategic come together in NPD process Product Innovation Charter
A PIC provide guidance to the business units on the roles of innovation. It is a mission statement, at a more micro level and adapted to new product activities.
PIC allows delegation, financing and assignments.
Background section of the PIC
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?
Focus section of the PICCore competenciesFocus is achieved by 4 strengths:
Core Technology (Kimberley-Clark)Product experience ( Tan Hiep Phat
for soft-drink, Vissan for processed and canned foods)
Customer franchise (Honda scooter/ Kleenex tissues)
End-use experience (Saigon beer in HCM market, Halida beer in Hanoi market)
Relying solely on technology/customer’s stated want is risky dual-drive strategy
Technology DriversMarket Drivers
Focus of the PICTechnology drivers:
Firm with superior technical skills turning technical specifications into product features that satisfy market needs
Market drivers:Customer group & end-useDistributors & retailers
Questions addressed at this stage of a PIC may include:What are your company’s core competencies? What is your company’s competitive advantage and the
value that your company can bring to the target market? What are your advantages in relation to your target
market’s needs, wants, and consumption trends? What are your company’s marketing capabilities?
Goals & Objectives of the PIC
Any complete PIC need both goals and objectives.
Goals & Objectives can be in 3 types:› Profit› Growth› Market status
Special guidelines of the PIC
Degree of Innovativeness: First to market: pioneering Adaptive product: taking one’s own or a competitive product
and improving it. Imitation or emulation
Timing: First Quick second Slower Late
Miscellaneous guidelines: special guidelines of product’s cost, quality, brand and so forth.
Example of MacBook Pro stated concept
MacBook Pros is Apple product which comes with high performance and high speed when you use for work. This Apple product is really suitable for you who need the best ingredient and have hardware that supports their performance. This Apple Thunderbolt MacBook Pros come with Core i5 and i7 CPU that adding in this notebook. This Macbook will give graphic result that suitable with you want.
Two approaches of generating new product concepts
Gathering Ready-made source Using Managed process by the
NPD team
Best Sources of Ready-Made New Product Concepts
New Products Employees› Technical: R&D, engineering, design› Marketing and manufacturing
End Users Resellers, Suppliers, Vendors Competitors The Invention Industry (investors, etc.
http://www.abc.net.au/tv/newinventors/ )
Idea exploration firms and consulting engineers
Miscellaneous (continued)
Best Sources of Ready-Made New Product Concepts (continued)
Miscellaneous Categories› Consultants› Advertising agencies› Marketing research firms› Retired product specialists› Industrial designers› Other manufacturers› Universities› Research laboratories› Governments› Printed sources› International› Internet
Sources of Ready-Made New Product Ideas
Lead users: customers associated with a significant current trend, have the best understanding of the problems and expect to gain significantly from solutions. How to identify lead users? http://www.youtube.com/watch?v=FnU0phMaVm0
› Is it good to ask customers what they want?› Being a customer, of your competitor’s
products and your own!› Some companies provide toolkits for user
innovation, such as mobile phone games, Lego toys, sport equipment. (Reading on the Website)
Sources of Ready-Made New Product Ideas
Open innovation: a new method to find out creative ideas and concept, by outsourcing or seeking partners, externally.› Select the best partner(s), in terms of
technological, strategic and relational features.
› High level of trust› P&G is one of the successful users of open
innovation, by adopting new technology from outside. Unilever, HP, Toyota, LG, MyStarbucksIdea, etc.
› http://www.innovationexcellence.com/blog/2012/08/13/40-examples-of-open-innovation-crowdsourcing/
› http://www.customerthink.com/blog/10_examples_of_open_innovation_in_high_tech_and_b2b_companies
› http://mystarbucksidea.force.com/
EVA
LUATIO
N O
F IDEA
S HOW TO EVALUATE DIFFERENT BUSINESS OR PRODUCT IDEAS???
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Reasons new product/service fail:
There is no basic need for the new product
The new product did not meet customer needs
The new product idea is not properly communicated
http://www.dailyfinance.com/photos/top-25-biggest-product-flops-of-all-time/#photo-3
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Concept testing and development
› What is a new product concept? A statement about anticipated product features (form or technology) that will yield selected benefits.
› The purposes of Concept Testing: Concept Testing is part of the prescreening process First purpose of a concept test is to identify the
very poor concept so it can be eliminated If the concept passes the first reaction, a second
purpose is to estimate the sales or trial rate that the product would enjoy – a sense of market share or general range of revenue dollars.
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Concept testing and development
› The purposes of Concept Testing: The buying intention question appears in almost every
concept test. The most common format for purchase intention is the classic five-point question: “How likely would you buy a product like this, if we made it?”
1. Definitely would not buy2. Probably would not buy3. Might or might not buy4. Probably would buy5. Definitely would buy The number of people who definitely buy or probably
would buy are usually combined and used as an indicator of group reaction, this is called top-two-boxes score.
The third purpose is to help develop the idea, not just test it!
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Considerations in Concept Testing Research
Prepare the Concept Statement: a concept statement states a difference and how that difference benefits the customer or end-users. For example “This new refrigerator is built with modular parts; consequently, the consumer can arrange the parts to best fit a given kitchen location and then rearrange them to fit another location”.
Format Commercialized Concept Statement Define the Respondent Group Select the Response Situation Prepare the Interviewing Sequence
“Trà Xanh Không Độ cho người tiểu đường có nguồn gốc thiên nhiên, với tác dụng giải nhiệt cao, độ ngọt vừa phải và sử dụng loại đường dành riêng cho người tiểu đường. Trà xanh không độ cho người tiểu đường sẽ là thức uống thích hợp với khách hàng ăn kiêng và quan tâm đến lượng đường trong cơ thể”
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The Scoring model Take an example of a simple situation: You are
deciding what to do on this coming break holiday
Values
Factors 4 points
3 points 2 points
1 points
Degree of fun Much Some Little None
Number of people Over 5 4 to 5 2 to 3 Under 2
Affordability Easily Probably Maybe No
Student’s capability Very good
Good Some Little
Student’s scorings Skiing Boating Hiking Fishing
Fun 4 3 4 4
People 4 4 2 3
Affordability 2 3 4 4
Capability 1 4 3 4
Total 11 14 13 15
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Sales Forecasting for New Products
The first (and most common) method of forecasting new product depletions is historical review. › If a company has introduced similar new
products into similar markets in the past, these histories can often be good predictors of future outcomes.
› If a company has no such history, then histories of similar new products introduced by competitors or other companies can serve as historical guidelines.
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Sales Forecasting for New Products
A second method of forecasting new product success is the test market. › The new product is developed and introduced
into one or more test markets. Actual store sales and market shares are tracked via Nielsen or IRI, or data from retailers in some instances.
› Often this sales tracking is supplemented by survey-based tracking of consumer awareness, trial, usage, and repeat purchase patterns.
› In some instances, consumer diary panels or purchase panels are used to track consumer trial, repeat purchases, and share.
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Sales Forecasting for New Products
A third method of forecasting is before-after retail simulation. A sample of target audience consumers is presented with simulations showing the in-store retail environment and a realistic display of all the major brands in the category. The consumer is asked to choose or “purchase” brands as they normally would, or as they might on their next 10 purchases. › The new product is missing from the simulation during
this “before” measurement. › Then the consumer is exposed to the new product
concept and/or advertising that conveys the new product concept.
› Later, the consumer sees the exact same simulated display (except now it contains the new product) and is asked to make the same choices or purchase decisions as before. So, we have market shares for all brands in the category before the new product is introduced, and the same data after the new brand is introduced.
Marketing Strategy
Market Segmentation Market Targeting Differentiation and Positioning Strategy Marketing Mix (4Ps)