Standard 9: Product Development

9.7 Identify New Product Opportunities

New Product Opportunities

Changes in life cycle

Changes in technology

Changes in market

Changes in society

Changes in economy

Finding the GAPS!

Find the opportunities when you find the gaps!

Gap=the difference between what is currently available and what is needed/desired

Changes in Life Cycle

Product planning does not end when a product is new!

Must decide what to do with existing products as they change through the life cycle

Product Life Cycle

Maturity

Introduction

Growth

Decline

Delete or Reinvent

• What do we do when a product declines?

• Have to decide to modify or delete

• THIS IS AN OPPORTUNITY!

Modifications

Adjustments to items, lines and mixes are done for various reasonsRepositioning

Change imageExtensions

Adding more items to mix or line Contractions

Deleting products

Product Modifications

Some times, it is necessary to modify only one individual productQuality modificationsFunctional ModificationsStyle Modifications

Changes in Technology

SmartphonesVoice recognition technology

Siri

GPS Garmin, Tom Tom Google Maps

Social Media

Changes in Market/Society

Health Conscience McDonalds Happy Meal

Apple Slices, Milk Salads, wraps Bottled water

Convenience

Entertainment Games, music, movies, culture

Changes in Economy

Economic downturnCreated opportunity for new

product and product expansionGeneric brands, discount

stores, low cost alternatives and substitutes

Ways To Find the Gaps

Listen to the customer!

Ways To Find the Gaps

Market research Surveys

Asking customers what they would like, what's lacking

Focus Groups Sales records

Where are sales decreasing/not improving?

Competitors What are our competitors offering that

we aren’t? What are they doing better than us?

A Real-World Example

https://www.youtube.com/watch?v=q4wRyU-OyE0