product design and development · terms of demand. people’s fashion habits are influenced by what...
TRANSCRIPT
Product Design and
Nanang Ali Sutisna, M.Eng
Senior Manager, Product Development
PT Multistrada Arah Sarana, Tbk
Product Design and
Development
A product is the end result that comes from ideas and processes of design
evolution.
Product development may come through :
inventions – products developed from original thoughts and ideas or
through innovations
improvement to an existing product.
New-Product Overview
New products New products
drive sales and drive sales and
profit growth.profit growth.
New Product
New products New products
may gain market share may gain market share
from competitors.from competitors.
New Product
Failure Rate
May Be 80%
Outline
1. Product Design & Development Factors
2. New-Product Development Strategy
3. New-Product Development Process3. New-Product Development Process
4. Managing New-Product Development
5. Product Life-Cycle Strategies
9-3
Outline
1. Product Design & Development Factors
2. New-Product Development Strategy
3. New-Product Development Process3. New-Product Development Process
4. Managing New-Product Development
5. Product Life-Cycle Strategies
9-3
• Need/Function – the desire to satisfy a specific need/purpose. For example, what is the product going to be used for?
• Fashion – design style influences how consumers react to a product in terms of demand. People’s fashion habits are influenced by what is current and trendy in style. Product designs tend to follow fashion trends
• Aesthetics – the essence of beauty/style of a product is the way shape/form and colours are combined. Aesthetics plays a major role how a
Product design & development are
influenced by many factors including:
shape/form and colours are combined. Aesthetics plays a major role how a product is made and looks
• Materials – the availability and development of new materials have influence on design products. Some materials are amenable to specific purpose. Material research should be an important consideration in product design and development
Visual Information Example: Book Bag Design
• Ergonomics –products designed for humans must fit proportions and sizes that would make them comfortable to use. Therefore, sizes and comfort of the end users must be considered when developing products
• Customer requirements –consider customer preferences – taste, likes and dislikes when developing a product. Market survey may be conducted to gage consumer preferences
• Cost – the cost of materials and labourmay influence product
….. Product development factors
• Cost – the cost of materials and labourmay influence product development. Is the product affordable? If the cost is too expensive, that may influence its market viability
• Culture – culture influences how a product is viewed – whether it is acceptable or not acceptable. The use of pattern, colours, production method etc may play a critical role as to how a product is viewed by people from different cultures
Customer Needs Example:
Cordless Screwdrivers
Five Guidelines for Writing Needs Statements
Guideline Customer Statement Need Statement-Wrong Need Statement-Right
What Not How
Specificity
Positive Not
Negative
“Why don’t you put
protective shields around
the battery contacts?”
“I drop my screwdriver all
the time.”
“It doesn’t matter if it’s
raining, I still need to work
The screwdriver battery
contacts are covered by a
plastic sliding door.
The screwdriver battery is
protected from accidental
shorting.
The screwdriver is rugged. The screwdriver operates
normally after repeated
dropping.
The screwdriver is not
disabled by the rain.
The screwdriver operates
normally in the rain.
Attribute of the
Product
Avoid “Must”
and “Should
raining, I still need to work
outside on Saturdays.”
“I’d like to charge my
battery from my cigarette
lighter.”
“I hate it when I don’t know
how much juice is left in
the batteries of my cordless
tools.”
disabled by the rain. normally in the rain.
An automobile cigarette
lighter adapter can charge
the screwdriver battery.
The screwdriver battery
can be charged from an
automobile cigarette
lighter.
The screwdriver should
provide an indication of
the energy level of the
battery.
The screwdriver provides
an indication of the
energy level of the
battery.
• Production method –production technique may influence how the final product looks. There are many ways to produce a product -from hand-made method to machine etc
• Company identity –companies that produce products always like to keep their unique identity which may be in form of logo, slogan etc. They may prefer specific colours or design pattern to identify their products
….. Product development factors
prefer specific colours or design pattern to identify their products
• Environment – more and more, environmental concerns influence how people think about the product they consume. People now think of product environmental impact – whether they are renewable or none renewable resources as well as production methods. Using products that are environmental friendly is in trend. This promotes the use of recycled materials
• Human capital –knowledge and skills derived from human development. The use of scientific and technological knowledge to improve material quality and production processes.
• Workplace safety –applying safety guidelines in material acquisition and production processes. This is often supported by legislation – laws.
• Time – Lead time between design and production should not be too long.
….. Product development factors
• Time – Lead time between design and production should not be too long. Time is of essence not only to bring product to market but to capture market opportunities.
Outline
1. Product Design & Development Factors
2. New-Product Development Strategy
3. New-Product Development Process3. New-Product Development Process
4. Managing New-Product Development
5. Product Life-Cycle Strategies
9-3
New-Product Development Strategy
A firm can obtain new products through:
• Acquisition
• New-product development• New-product development
9-4
New-Product Development Strategy
Acquisition refers to the buying of a whole company, a patent, or
a license to produce someone else’s product
New product development refers to original products, product New product development refers to original products, product
improvements, product modifications, and new brands
developed from the firm’s own research and development
9-5
New-Product Development Strategy
Reasons for new product failure
• Overestimation of market size
• Poor design
• Incorrect positioning• Incorrect positioning
• Wrong timing
• Priced too high
• Ineffective promotion
• Management influence
• High development costs
• Competition
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Types of New Products
New to the World Products
New Category Entries
Additions to Product Lines
Product Improvements
Repositionings
Sources of New Products
External
Sourcing
Internal
DevelopmentSourcing
Collaborative
Venture
Development
Outline
1. Product Design & Development Factors
2. New-Product Development Strategy
3. New-Product Development Process3. New-Product Development Process
4. Managing New-Product Development
5. Product Life-Cycle Strategies
9-3
PRODUCT DEVELOPMENT PROCESS PRODUCT DEVELOPMENT PROCESS
Defining the goals
Initial context of use
Initial requirement
Initial technical specification
Concept and
Visualisation
Evaluation
Design requirements
Tire simulation design
Prototype tire
for test drive
Revised Design
Order New mold and
useful productsNew and Revised
requirements and
context of use
New-Product Development Process
Idea Generation
Idea Screening
Prototype
Development
Idea Screening
Concept
Development
& Testing
Business
Analysis
Test Marketing
Commercialization
New-Product Development Approaches
Idea Generation
� Idea Generation:� The initial stage for the new-product
development process.
Idea Screening
• Idea Screening:– Evaluate the idea pool and reduce it to a
smaller and more attractive set of potential new products.
Concept Development and Testing
� Concept Development:� The process of shaping and refining the idea into a
more complete product concept.
Business Analysis
� Business Analysis:� Stage of the new-development process that
calls for preparing initial marketing plans for the product.
Prototype Development
� Prototype Development:� Converting the concept into an actual product.
Test Marketing
� Test Marketing:Testing the product prototype and marketing strategy in simulated or actual market situations.
Test marketing provides the marketer with experience in testing the product and entire marketing program before full introduction
When to test market
• New product with large investment
• Uncertainty about product or marketing program
When may not test market
Test Marketing
When may not test market
• Simple line extension
• Copy of competitor product
• Low costs
• Management confidence
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Approaches to test marketing
• Standard test markets
• Controlled test markets
Test Marketing
• Controlled test markets
• Simulated test markets
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Test Marketing
Standard Test Marketing:� Testing a new product and its marketing strategy
in actual market situations.
Standard test markets are small Standard test markets are small representative markets where the firm conducts a full marketing campaign and uses store audits, consumer and distributor surveys, and other measures to gauge product performance. Results are used to forecast national sales and profits, discover product problems, and fine-tune the marketing program.
Challenges of standard test markets
• Cost
• Time
• Competitors can monitor the test
• Competitor interference
Test Marketing
• Competitor interference
• Competitors gain access to the new product before
introduction
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Controlled test markets
panels of stores that have agreed to carry new
products for a fee
• Less expensive than standard test markets
Test Marketing
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• Less expensive than standard test markets
• Faster than standard test markets
• Competitors gain access to the new
Simulated test marketing
events where the firm will create a shopping
environment and note how many consumers
buy the new product and competing products.
Provides measure of trial and the effectiveness
Test Marketing
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Provides measure of trial and the effectiveness
of promotion. Researchers can interview
consumers.
Advantages of simulated test marketsAdvantages of simulated test markets• Less expensive than other test
methods• Faster• Restricts access by competitors
Disadvantages• Not considered as reliable and
accurate due to the controlled setting
Commercialization
Commercialization is the introduction of the new
product
• When to launch
• Where to launch
• Planned market rollout
Commercialization
� Commercialization:�The firm introduces the product on a full-scale basis,
involving:
�Understanding Consumer Adoption�Understanding Consumer Adoption
�Timing
�Coordination
The Consumer Adoption Process
Consumer Marketing Strategy
Adoption Stage Objective
Awareness Communicate AvailabilityAwareness Communicate Availability
Interest Communicate Product Benefits
Evaluation Emphasize Advantages
Trial Motivate Customers to Try
Adoption Ensure Customer Satisfaction
Outline
1. Product Design & Development Factors
2. New-Product Development Strategy
3. New-Product Development Process3. New-Product Development Process
4. Managing New-Product Development
5. Product Life-Cycle Strategies
9-3
Managing New-Product Development
Successful new product development should be:
• Customer-centered• Customer-centered
• Team-centered
• Systematic
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Managing New-Product Development
Customer-centered new-product development
focuses on finding new ways to solve customer
problems and create more customer-satisfying problems and create more customer-satisfying
experiences
• Begins and ends with solving customer problems
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Managing New-Product Development
Team-based new-product development is a
development approach where company
departments work closely together in cross-
functional teams, overlapping in the product-
development process to save time and development process to save time and
increase effectiveness
9-29
Managing New-Product Development
Systematic new-product development is an
innovative development approach that
collects, reviews, evaluates, and manages collects, reviews, evaluates, and manages
new-product ideas
• Creates an innovation-oriented culture
• Yields a large number of new-product ideas
9-31
Organizational Approaches to New Product DevelopmentOrganizational Approaches to New Product Development
Balanced MatrixBalanced Matrix
OrganizationOrganizationOrganizationOrganization
Project MatrixProject Matrix
OrganizationOrganization
Project TeamProject Team
OrganizationOrganization
Outline
1. Product Design & Development Factors
2. New-Product Development Strategy
3. New-Product Development Process3. New-Product Development Process
4. Managing New-Product Development
5. Product Life-Cycle Strategies
9-3
Product Life-Cycle Strategies
Product life cycle (PLC) is the course that a product’s sales and profits take over its lifetime
• Product development • Product development
• Introduction
• Growth
• Maturity
• Decline
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Product Life-Cycle Strategies
Introduction stage is when the new product is first
launched
• Takes time• Takes time
• Slow sales growth
• Little or no profit
• High distribution and promotion expense
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Product Life-Cycle Strategies
Growth stage is when the new product satisfies the market• Sales increase
• New competitors enter the market
• Price stability or decline to increase volume• Price stability or decline to increase volume
• Consumer education
• Profits increase
• Promotion and manufacturing costs gain economies of scale
• Product quality increases
• New features
• New market segments and distribution channels are entered
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Product Life-Cycle Strategies
Maturity stage is a long-lasting stage of a product that has gained consumer acceptance
• Slowdown in sales• Slowdown in sales
• Many suppliers
• Substitute products
• Overcapacity leads to competition
• Increased promotion and R&D to support sales and profits
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Keys to New-Product Success
Marketing-Research Support
• Focus Groups
• Market Definition Studies
• Target Segment
• Name & Package Evaluation
• Product Tests
• Copy Tests
Prelaunch
• Target Segment
Identification
• Concept Tests
• Copy Tests
• Simulated Test Markets
• Test Markets
• Awareness & Attitude Studies
• Usage Studies
Rollout
Marketing-Research Support
• Usage Studies
• Tracking Studies
• Product Refinement Tests
• New Advertising Strategy Tests