Seminar: New Product Development Process

Topic Number:3

Principles of Business: Stage 2 Marketing

Overview

You have been brought in as a consultant to help an organisation of your choosing develop a brand new product. Your task today is to use the new product development framework to come up with a new product that you will present to the board of directors. The product needs to meet customer needs, be commercially viable and be differentiated from competitors.

Your task is to utilise the new product development framework and come up with an original idea. This involves a number of steps including:

• Idea generation• Idea screening• Business analysis• Prototyping • Test marketing • Commercialisation

3

• Be able to develop and articulate a range of ideas that could be taken to market

• Put together a robust testing framework to assess a potential set of new ideas to be taken forward

• Understand and conduct business analysis to determine the most commercially sound propositions to take to market

• Come up with a variety of ways to prototype a short listed set of ideas

Learning outcomes of this seminar

Agenda for this seminar

Articulate a number of ideas that were generated in the idea generation session

Conduct a business analysis on the short-listed set of ideas

Explain how you would go about developing a prototype and commercialise your idea

Put together a scorecard to assess the ideas that were put together

Structure for the session

You will have 15 minutes to

discuss each question

We will have a de-brief at the end of each 15 minutes to hear your thoughts on each area

Feel free to ask questions but please do not have separate conversations ‘we are all in

this together’!

The Product Development Process

Articulate a number of ideas that were

generated in the idea generation session

Gathering Insights and Knowledge

Understanding your customers

needs and wants

Getting an idea for opportunities

and gaps that exist in the

market

Internal sources of ideas can be very powerful

given prior experience of the

customers and market

Customers Market Internal

How do you come up with an insight?

• Know what you know first

• Put yourself in your customers shoes

• Give yourself time to think

• Keep digging

• Test the insight in action

The Ideation Process

Identify high level concepts

Bringing together ideas with

similarities and commonalities to

form bigger concepts/initiative

s

Selecting the best and most

interesting ideas for development into opportunities

3 main techniques

Workshopping

Enables, rapid collaborative

ideationDesk-based

Research

Using validation sources to support

your ideasStretch and Build

Ensures ideas are more fully formed

Put together a scorecard to assess the ideas that were

put together

Key Criteria for a Scorecard

Would customers want to buy it?

Is it commercially viable?

What is the regulatory position?

Does it fit with our brand, ethos and

values?

The Risk/Reward Equation

Balance between risk and reward

Rew

ard

Risk

Quick Wins

Incremental Improvement

Speculate

Reconsider

Conduct a business analysis on the short-

listed set of ideas

A proposition contains the following

Is it commercially attractive?

Market Structure

Describe the key players in the market

How profitable is the market

Market Size

What's the size of the market?

Consider both the current and future growth

potential

Trends

Describe the key trends that are driving the market?

Conduct a PESTEL analysis to determine the key trends

What are the future developments that are likely to

take place in the market?

Does it fit in with the organisation vision and goals?

Strategic rationale

Does it fit with the vision and strategy of the

business?

Organisation

Can the organisation

scale the product?

Does it fit the culture?

Brand Fit

Is in line with the brand?

Financially sound?

Total Market

Addressable Market

Target Market

Expected Market Share

What Will Customers Pay?

Explain how you would go about

developing a prototype and

commercialise your idea

Consider the customer journey

Chronological walk

through

Customer actions

Thoughts and Feelings

Business Delivery

Guiding Principles

Detailing Exact Requirements

Cross functional

stakeholders

End to end walkthrough

Gap analysis

Getting a prototype ready to test using

Focus groupsCo-creation workshops

Depth interviews

Online discussion

groups

Quantitative survey

Omnibus questions

Finally, concept stress testing

Identify risksCommercial

impact

Likelihood of risks

Mitigating risks

End of Seminar

Note: This recording is for your personal use only and not for further distribution or wider review.

© Pearson College 2013