np project deliverable
TRANSCRIPT
New ProductProject
Deliverable
1
Description of the New Product Idea
A 1-paragraph verbal description of your “finalized” new product idea.
Trends & Unmet Consumer Needs
Trends affecting the industry & unmet consumer needs, with the implications for your new product idea (attach articles you found in your research & any interesting & relevant new product examples). Use these to support why your new product idea makes sense to introduce now.
Industry Analysis
• Product life cycle stage• Mature, growing, nascent• Industry size & growth rate• Competitive strategies &
actions vis-à-vis new products
A Market Structure Chart
Show the key market segments in your category & where your new product will fall in the structure. Indicate which are the highest growth segments.
Perceptual Maps
3 perceptual maps that show on an XY axis, the key attributes consumers of the category value most, & how your product will have a meaningful point of difference vs. its competitors.
Hypothetical Perceptual Map
This Does Not Reflect the Thinking of Apple
Gentleness
Effectiveness
Tylenol
Bufferin
Advil
Nuprin
Excedrin
Bayer
Anacin
Private-Labelaspirin
OptimalPlace to be
Perceptual Map of Pain Relievers
Optimal Place to Be
Concept Board(s)Pre & Post Consumer
Research
The Ideal Concept Board
Pre & Post QualitativeTesting Concept Boards
Submit the concept board you showed consumers & a final board with the changes you made based on their feedback.
Marketing Research Key Findings
Summarize the reaction of consumers to your idea, what you learned from the qualitative research, & how you decided to adapt your product as a result.
Product Line Description
Describe:• The product & it’s key
attributes or features• The items in your line • What % of the total volume each item is expected to contribute.
Brand Positioning & Rationale
• Provide a 1-sentence brand positioning statement with rationale as to why you picked the target audience, competitive frame, point(s) of difference & end benefit.• Will you add more targets over
time: Which & when?
Target AudienceFrame of ReferencePoint of Difference End Benefit
Example
To target audience, brand X is the frame of reference/competitive set that point of difference which is good because end benefit.
(Should include the rationale for each element)
For Each Major Brand, aBrand Positioning
Statement
Samsung’s Jitterbug
To Seniors, (Target)
Samsung’s Jitterbug is the cell phone (FOR)
That has a large display & big buttons (POD)
Which is good because it will be easier to see & you won’t need to put on your glasses. (End Benefit)
The DisneyPhone
To parents of young girls,the Disney phone is the means of communication between you & your daughter, that your child will want to carry, which is good because now you can always reach them.
To little girls, The Disney phone is the cell phone that’s pretty & has one of your favorite characters which is good because now you can call your friends or your parents when ever you want.
Brand Positioning
Target Audience
Frame of Reference
Point of Difference
End Benefit
Greens Enabler of Green-living
Better Place car has zero
emissions
Allows you to live your busy lifestyle
while minimizing your impact on the earth
InnovatorsPioneer in hi-
tech transportation
Uses the mostfuturistic
technology
Allows you to depict yourself as trendy
and informed
Cost-conscious
Less expensive transport
Better value than purchasing
a car
Frees up income to use on the
better things in life
B2BCheap, flexible,
green, transport
Good value and less polluting
Decreases cost-baseIncreases CSR credentials - better reputation with
your customers
Provide a volume forecast for years 1-5, using the BASES model or a “bottom up” approach. Use your best guess & include the key assumptions of your forecast.
Volume Forecast
# of Households in Target Population
# of Households in Target Population Trial RateTrial Rate
Average Trial Units Per Purchase
Average Trial Units Per Purchase
X X
Trial Volume
+Repeat Volume
# of Trying Households# of Trying
Households XX XRepeat
RateRepeat
Rate
Repeat Purchases
Per Repeater
Repeat Purchases
Per Repeater
Average Repeat Units Per Purchase
Average Repeat Units Per Purchase
New Product Total Volume Forecast
BASES Type Test Results
Project quantitative research results that will serve as the basis for your volume forecast & sources of volume. • What trial rate will you have?• What repeat purchase rate?• Average number of repeats/yr• Average amount per purchase occasion• What will consumers be switching from to purchase your product or service?
Packaging, Branding, Name
• If using a package or brochure, describe the package &
ideally show an example with the key visual & communication elements.• Provide your branding/naming
recommendation, any name subheads, branding/name
rationale & relation to other items under same trademark.
Pricing Recommendation
• Provide a pricing recommendation relative to competition, other items in the trademark & the brand’s overall positioning & strategy: • Is it a premium or value brand? • Is it price skimming or going for maximum penetration & share as fast as possible?
Geography, Test Market & Roll-Out
• Do you plan to test market the brand? If so, what type of test market & for how long?• What will be the phasing of the roll-out/sequence/timing?• What will be your high opportunity markets, where
you will market the product most aggressively & why?
Marketing for the Polish bank will be done in markets with the highest concentrations of Polish immigrants such as:
- Birmingham- Liverpool- Edinburgh- Manchester
Seasonality
• Create a monthly seasonality index based on when you
think the product would sell most & least.• When will the product be introduced, in light of category
seasonality & company’s fiscal year?
% of brand’s business in month8.5%
J F M A M J J A S O N D 85 70 80 110 160 135 110 85 50 45 90 61
Seasonality Index
• In which channels will the product be sold?
• Provide the % of volume from each channel & whether you will add new channels over the 5-year timeframe.
Distribution
Develop a memorable, overarching, integrated marketing message or tagline that describes the brand’s key point of difference & will be communicated in all marketing elements.
Overarching Creative Tagline
When it absolutely has to get there overnight
Because there’s so much resting on your tires
Because you’re worth it!
You deserve a break today
OverarchingCreative
Idea
• Provide Year 1 & “ongoing” marketing budgets for the P&L.• Provide launch marketing ideas
to create awareness & repeat purchase for the new product.• Create an integrated marketing
flowchart to show the key marketing activities.
Launch Marketing Ideas & Integrated Marketing
Flowchart
Iced Tea Brand
Optional
Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5Sales Revenue 0 $11,889 $15,318 $19,654 $28,253 $32,491
Cost of GoodsGross MarginDevelopment costsMarketing costsAllocated overheadNet operating incomeImpact of cannibalizationNet contribution Discounted contribution -3,500 -1,113 1,691 1,877 2,343 2,346
Cumulative discounted cash flow -3,500 -4,613 -2,922 -1,045 1,298 3,644
Breakeven XPayback X
Make some assumptions but don’t agonize over it!
Projected 5-YearCash Flow Statement
• What could go right to make your new product even more successful• What could go wrong that would cause the product to perform worse than projected?
Sensitivity Analysis/Risks & Hedges