CHAPTER 1 :
New Products You can make lots of money, generate more profits
Why companies introduce new products ?
To make big profits
To reinvigorate : car industry would need it
Or to diversify cause for some companies, a big % of sales are due to one product (ex apple , ipod)
The failure in a big loss of money , 40% of the new products will fail , 60% in food. You can fail very quickly (movie) ; New coke in 80’s, Ford Edsel….
How to eliminate bad ideas :
Good ideas : Iphone, Ipod, Whole Foods, Wii ….
“Serendipity” : by chance or accident : Microwave, 3M post it …. Dupont & Teflon
Creates a new market
New to the world
New to the firm : New product line ex: Canon Laser Printer …
Product Line extension : ex:Budweiser Light
Improvement: Laundry Detergent (new formulation)
Repositioning : Change the use of an existing product
Ex : Baking Soda was absorbing the fridge odor , Vaseline for hair -> now for lips
/!\ 3 products that changes our lives : PC , Internet, Mobile Phone, Cars ,Microwave, ATM…
Cost Value Time
Quality product need time to make it and obviously cost more
CHAPTER 2 : The New product Process
1- Oportunity Identification
- Suggestion (consumers, store owners (distribution chains)), government
- Trends (security related products/green products.swimsuits…) Habitude d’acheter..
- Under utilized resources
- Unfulfilled need of the market place
2- Concept Generation
Wafels and diges sold in a truck
Starbury shoes 9.95$ -> Cool , NBA Player Stephon Marbury
3- Concept Evaluation
Technical : can we make it
Financial : are we going to make any money
Marketing : will people buy our products
If Yes : You proceed , you start to do the business
4- Development (phase)
A: Prototype (Model) , technological
B: Marketing ; how you gona sell
C: Launch : red carpet events
Companies come up with team of people who drive the product developpement...