new product development final presentation ml march 2006
TRANSCRIPT
NEW PRODUCT DEVELOPMENT
FINAL PRESENTATION
MLMarch 2006
LAVIPHARM S.A.
Headquarters: Peania, Attica
9-03112L.ppt
LAVIPHARM SA-ACTIVITIES STRUCTURE
PRODUCTIONPRODUCTION
Lavipharm S.A.Liquids Solids (tablets, capsules) Transdermals Epidermals Creams, Emulsions Shampoos, Lotions
Lavipharm S.A.Liquids Solids (tablets, capsules) Transdermals Epidermals Creams, Emulsions Shampoos, Lotions
MARKETING & SALES
MARKETING & SALES
Lavipharm Hellas •Ethical •OTC Castalia Laboratoires Dermatologiques•Dermocosmetics
Lavipharm Hellas •Ethical •OTC Castalia Laboratoires Dermatologiques•Dermocosmetics
LOGISTICS LOGISTICS
Pharma Logistics• Logistics Service Provider for the
Group Companies and Third Parties
Pharma Logistics• Logistics Service Provider for the
Group Companies and Third Parties
WHOLESALING
WHOLESALING
LAS# 1 Pharmaceutical Wholesaler
LAS# 1 Pharmaceutical Wholesaler
RETAILINGRETAILING
Pharma PLUS • Franchise • Provision of complete services to pharmacy clients
Pharma PLUS • Franchise • Provision of complete services to pharmacy clients
MARKETING & SALES ACTIVITY
• Five separate sales forces intensely visit over 13,000 doctors and 4,000 pharmacies all over Greece.
• Approximately 120 marketing, sales and medical reps from different business units deal with pharmacists on a daily basis offering a full spectrum of services ranging from the promotion and sale of products to the organisation, training and follow up of the pharmacist and his/her business unit.
DERMOCOSMETIC DIVISION
• Promoted to Dermatologists
• Sold Exclusively in Pharmacies
• Not advertised
OUR PHILOSOPHY: “WE RESPECT THE PHYSIOLOGY OF THE EPIDERMIS” We develop products that perform their intended action while maintaining the balance
of the epidermis. OUR VALUES: SAFETY AND EFFICACY We carefully select safe, highly effective, and dermatologically proven ingredients to
develop innovative formulae.
We perform hypoallergenic and non-comedogenic tests
We conduct clinical and laboratory studies
We manufacture our products according to the current European Legislation regarding production, packaging, quality control and quality Assurance (GMP)
OUR PRODUCTS: HEALTH & BEAUTY care Castalia cosmetic products combine efficacy and safety with pleasant use. They are
specifically designed to treat and enhance the healthy appearance of the skin.
SENSIAL: Intense hydration and soothing for the dehydrated, dry or atopic skin
CHRONODERM: Intense anti-wrinkle and repair care with Retinol for the face and the eye area
DERMOPUR: Intense care for oily or acne prone skin
HELIODERM: Effective solar protection
ECLIPSIS: Preventive and repairing action against photoaging
CHANGE IN THE DIRECTION OF EARTH’S AXIS FOLLOWING COMET CRASH
Gate4
Stage 1
PostLaunch Review
Discovery
Stage Gate Process
Stage 5Stage 2 Stage 3 Stage 4 Gate5
Gate2
Gate1
Gate3
Ideation• Create Idea Bank • Assign Coordiinator
Idea Screen• against broad criteria
ScopingPreliminaryAssessment:• Market• Technical• Financial
SecondScreen• Technical• Legal• Sales/Mktg involved • Payback period
Business Case(Detailed Inves)• Product Concept• Competition• Technical Evaluation• Project Plan
Third Screen• Decision to spend• Confirm Case
Development• Quality execution• Product development• Prototype• Testing• Customer feedback
Forth Screen• Reviewexecution• Revisedfinancials• go to test
Testing• Extensivevalidation• In-housetests• Customeracceptance• Revisedfinancials
FifthScreen• Testingproperlyexecuted• Financialreturn• Implementapproval
Launch
Gate1
Stage 1Gate
2 Stage 2
Gate3
R&D Development
Discovery
DISCOVERY
Idea Generation
Create a “bank Idea” over a period of time Consultants / Medical advisory board Sales Force & Distributors Market and product feedbackBrainstorming Build in voice-of-customer through surveys & focus group (derms, pharnacists & consumers Atend trade shows - new trends/opportunities on new ingredients, delivery systems, packaging Research Web/Library/Periodicals/Journals How to improve existing product line Analyse competitors to offer better valueUse Funnel model and try to expand it NPD coordinator
* Future trend: “broad audience input”?
Gate1
Idea Screen
Is the idea aligned with the company’s mission, goals and philosophy? Is the market attractive (size, growth, and opportunities)? Does the idea offer competitive advantage over competitors? Does the company have expertise to manufacture the product? Are there any killer variables (patents, registration, legal issues)?
SCOPING
Concept: Preliminary Market Assessment (size, potential, acceptance, competitors)- Internet/library search- Focus group- Concept test - User test
Feasibility: Preliminary Technical Assessment - Define product requirements/specifications - Assess technical feasibility and determine whether the product can be produce internally - Determine time/cost to execute - Analyse technical, regulatory risks
Gate2
Second Screen
Using the information of Stage 1 we will respond to the same questions we asked in Gate 1:
• Is the idea aligned with the company’s mission, goals and philosophy?• Is the market attractive (size, growth, and opportunities)?• Does the idea offer competitive advantage over competitors?• Does the company have expertise to manufacture the product?• Are there any killer variables (patents, registration, legal issues)?• Evaluate R&D’s final “stage gate proposal”
We will also perform a quick and simple financial calculation (e.g. break even)
Stage 1 Scoping
BUSINESS CASE
Define Target Market - Product Concept/ Positioning Strategy - Benefits to be delivered / value proposition - Desired features, attributes, requirements and specifications
Competitive Analysis - SWOT Concept Testing - Present to customes proposed new product, gauge reactions and determine acceptance
Technical Appraisal (quick and dirty) - Manufacturability / cost to manufacture - Detailed legal, patent, and regulatory assessment. - Investment review
Determine Project leader and cross functional groups
Create a business Plan - marketing and financial analysis-Agree on Product Definition and develop -Project justification and detailed plan
Gate3
Go to Development / “to a real spending”
Were all activities in Stage 2 undertaken?Go over stage 2 criteriaFinancial analysisApproval of development, marketing and preliminary operations plans by managmentProject leader and functional groups assigned / duties designated
Stage 2 Building Business Case- Critical Homework
DEVELOPMENT
Implementation of Development plan
Undertake lab tests, in-house tests and alpha tests
Revise financial analysis with update information
Parallel Marketing operations activities (market analysis, customer feedback
Project leader effectively coordinatescross functional groups
Gate4
Go to Testing
Is product development progressing as set in G3?
Is the product still attractive to the market?
Revision of financial analysis using updated data
Selection and approval of the test / validation plans to be used in Stage 4
Review marketing and operations plan
Stage 3 Development
TESTING & VALIDATION
Carry out an extensive validation of the entire project
Implement in-house product tests (stability) Run clinical studies (University, Laboratories) for product efficacy and safety Pilot production
Customer acceptance - Realize field trials of the product - pretest market, test market, or trial sell
Revised business and financial analysis to check on the continued business and economic viability of the project
Meet with Ad and PR agency
Gate5
Go to Launch / Last chance to kill the project
Was the testing & validation activities reliable and credible?
Expected financial return?
Operations and marketing plans review
Stage 4 Testing & Validation
LAUNCH & POST LAUNCH
Implement marketing launch plan
- Distribution - Promotion / PR / Communications approx 6 months prior to launch - Appropriate resources
Review project and product performance Gauge performance by comparing actual with expected revenues, costs, expenditures, profits and timing % of demographics reached?Post-audit: Project’s strengths and weaknesses, things learnt for future projects
Stage 5 Launch Post-Launch Review
Timeto learn