Lect7presenttion NPD.ppt

MarketingManagement,ReviewofLastSession/HousekeepingNewDevelopmentsBrandManagementPillarsPositioningviathepillarsNPD8stageprocessvLandroverpracticeCaseExerciseQuestions/Readingfornextweek,QuestionWhoisthisman?,IshemorevaluablethanDavidBeckham?,OREO,thelargestinternationalbiscuitinmorethan100countries,wasintroducedin1912,andtodaythiscream-filledchocolatecookieisahouseholdnameworldwide.MajorMarkets:Argentina,China,Indonesia,Taiwan,Thailand,Venezuela,ChipsAhoy!,asweetsnackwithrealmilkchocolatechipsbakedintoeverycrispybite.ChipsAhoy!isintroducingthechocolatechipcookietotheworld.MajorMarkets:Brazil(Chocooky),CentralAmerica,China,Ecuador,Indonesia,Philippines,Taiwan,Venezuela,RITZ,thesebuttery,flakycrackersareaglobalfavorite,perfectwithspreads,insoupsorbythemselves.MajorMarkets:CentralAmerica,China,Ecuador,HongKong,Indonesia,Peru,Taiwan,Thailand,Venezuela,Trakinas,acookiegearedtowardschildrenandfeaturingplayfulfacesontopthataddfuntoeachbite.MajorMarkets:Brazil,CentralAmerica,China,Indonesia,Thailand,WhatisaBrand?,Abrandisaname,term,sign,symbol,ordesignoracombinationofthemintendedtoidentifythegoodsandservicesofonesellerandtodifferentiatethemfromthoseofthecompetition-(Bennett,P.D.,1998,AMA),BrandingBasicsContd.,Brandsare:-Whatthecustomerbuystherecepticaloftheemotionalvaluesoverandabovethefunctionalvaluesoftheproduct/servicemuchmoredifficulttocopyandthuscompetewithamajorpotentialsourceofdifferentiationlonger-lived-brandscantranscendtheoriginalproduct/service.ItistheproductsDNA.,BrandArchitectureandEquity,BrandKnowledge,BrandHeritage,CoreValues,BrandTerritory,BrandPersonality,BrandProperties,BrandLoyalty,BrandEquity,BrandArchitecture,1.BrandHeritage-Thebrandbrings2.CoreBrandValues-Thebrandmeans3.BrandTerritory-Thebrandcompetesin4.BrandPersonality-Thebrandislike5.BrandProperties-Thebrandowns.,LandroverExample,AccordingtoNestl,thestrengthofthebrandspositioningisbuiltonfive“pillars”:,BrandArchitecture,1.BrandHeritage-Thebrandbrings2.CoreBrandValues-Thebrandmeans3.BrandTerritory-Thebrandcompetesin4.BrandPersonality-Thebrandislike5.BrandProperties-Thebrandowns.,LandroverExample,AccordingtoNestl,thestrengthofthebrandspositioningisbuiltonfive“pillars”:,50yearsofTradition.Britishness.Royalty?,4X4Market.Outdoors.AdventureMarketetc.,Male,Extrovert,QuietlyAssured,Informalconservative.,Logo,BrandOval,BRGandGold,Shape,Guts,Authenticity,Originality,Ruggedness,Capability,BrandArchitecture-TryItYourself!,1.BrandBackground-Thebrandbrings2.BrandCoreValues-Thebrandmeans3.BrandTerritory-Thebrandcompetesin4.BrandPersonality-Thebrandis5.BrandProperties-Thebrandowns.,YourBrandExample,AccordingtoNestl,thestrengthofthebrandspositioningisbuiltonfive“pillars”:,Innovation,LifeCycle/BCGImplicationsBeingtheLeaderprovidesadvantagesBetterMousetrap?,Revenue,Time,0,Introductionstage,Growthstage,Maturitystage,Declinestage,TheProductLifeCycle,LeaderAdvantages*,10%,20%,30%,PIONEER,FASTFOLLOWER,LATEENTRANT,AVERAGEMARKETSHARE,MARKETENTRYSTRATEGY,*W.T.Robinson,(1984),”MarketPioneeringandSustainableMarketShareAdvantages”,PIMS*andPioneerAdvantage,TheProfitImpactofMarketingStrategyresearchisbasedon3000SBUsin450companiesintheUS.70%ofSBUswiththeleadingmarketsharewereoneofthepioneersOnly40%oftheSBUswithlessthanaleadingmarketsharewerepioneers*Buzzell,R.andGale,B.(1987),ThePIMSPrinciples:LinkingStrategytoPerformance,FreePress,EmersonWasWrong,Ifamancanwriteabetterbook,preachabettersermon,ormakeabettermousetrapthanhisneighbor,thoughhebuildshishouseinthewoodstheworldwillmakeabeatenpathtohisdoor.RalphWaldoEmerson(1803-82),U.S.essayist,philosopherandpoetIfyouonlybuildabettermousetrap,theworldwillnotbeatapathtoyourdoor.Howwilltheworldknowyouhavethemousetrap?Whocares?Onlythosewhohavemice-AndwishtheydidntAnddontlikecatsAndthen,theyhavetoUnderstandhowtooperateitHavesomethingtoofferyouinexchangeAndbeforelong,abettermousewillcomealong!,NewProductstrategy,IdeaGeneration,Screening,Concepttesting,BusinessAnalysis,ProductDevelopment,MarketTesting,Commercialisation,Source:CooperandKleinschmidt,1986,JournalofProductInnovationManagement,TheNewProductDevelopment(NPD)Process,TheNPDProcess,“Weshouldnotethatnewproductspassthrougheachstageatvaryingspeeds;somemaydwellatastageforalongperiodwhileothersmaypassthroughveryquickly”Jobber,PrinciplesandPracticeofMarketing,p.298Whatwilldeterminethisprogress?,TypesofNewProducts,20%,10%,26%,26%,11%,7%,NewproductLines,NewtotheCompany,High,Low,Newtothemarket,Low,High,Newtotheworldproducts,Improvementstoexistingproducts,Costreductions,Additionstoexitingproductline,Repositioning,Source:-Booz,AllenandHamilton,1982,LandroverVideoCase,DiscussthesortofNPDprocessthattheDiscoverywentthroughHowmighttheDiffusionofInnovationprocesshavebeenusedtoguidetheDiscoveryscommercialisation?,MllerCaseQuestion,VolunteerGroupAnswerQs2Inowntime,identifytheNPDprocessforMulleryoghurtintheUKAppreciatethelikelyNPDdifferencesforexten