Usually comes up in Q7
Ms. Marshall 6th year Business
Skills &
Hobbies
R&D
Experiences
Community
Needs
Internal sources
of ideas
Intrapreneurship
Brainstorming
Ms. Marshall 6th year Business
Import
Substitution
Customer
Feedback
Market
Research Co.
External
Sources of
Ideas
State
Agencies
Competition
Media
Ms. Marshall 6th year Business
Internal- new
business
Internal- existing
business
External
1. Skills & Hobbies
1. All of column one
1. Customer
Feedback
2. Experiences
2. Research &
Development
2. State Agencies
3. Community Needs
3. Intrapreneurship
3. Media
4. Brainstorming
4. Competition
5. Import
Substitution
6. Market Research
Ms. Marshall 6th year Business
Source
Explanation
Example
1. Skills and Hobbies
The entrepreneur own
strengths and interests
often provide inspiration.
Cully & Sully had a shared
interest in the food
industry.
2. Experiences
Personal frustration with
not being able to find a
product or service or
noticing a way to improve
it.
Richard Branson set up
Virgin Atlantic because he
was not happy with the
service he got with other
airlines.
3. Community Needs
Recognising community
needs & wants that are not
being satisfied.
e.g. a convenience store
beside new apartments.
4. Brainstorming
Everyone calls out as many
ideas as possible, none are
dismissed.
e.g. Cadburys staff would
do this when thinking of
new flavours
Ms. Marshall 6th year Business
Source
Explanation
Example
1. Intrapreneurship The business could have an
employee suggestion scheme
offering rewards. Idea
generation and development
techniques could be used.
e.g. Art Fry, a worker at
3m, invented the Post-it
2. Research &
Development
Pfizer – pharmaceutical
co – spends $7 billion
annually on R&D
Dept. could be staffed with
innovative and technical staff
to come up with new products.
Ms. Marshall 6th year Business
Source
Explanation
Example
1. Family & Friends
Have experiences that can spark an
idea.
Levi Roots Reggae Reggae
Sauce is based on his
grandmothers recipe
This was not accepted as a stand
alone reason in the LC 2013
2. State Agencies
Some agencies provide ideas for new
products and markets.
Enterprise Ireland produces
market research reporting
opportunities around the
world.
3. Media
May get ideas from internet, articles,
trends taking place.
Relaunch Wispa Campaign
from customers led to
Cadburys reintroducing the
bar
4. Competition
Copying their competitors.
Coca Cola brought out Deep
River Rock after seeing the
success of bottled water.
Ms. Marshall 6th year Business
Source
Explanation
Example
5. Import Substitution
Entrepreneurs see products
that are successful in other
countries and start to make
them here.
Tayto crisps were started up
in 1954 after the success of
King Crisps.
Ballygowan was set up in the
1980s when the sales of
imported mineral water was
increasing.
6. Market Research
Use a market research
company to spot gaps in the
market and market trends.
Companies can then exploit
these gaps or niche markets.
http://www.amarach.com/
Amarách consulting conduct
market research.
7. Changes in Society
new legislation can result in
new ideas
Hands free kits for phones in
a car. Patio heaters for pubs –
smoking ban
8. Customer Feedback
Through market research,
complaints or compliments.
Could result in changes in or
further developments of
existing product.
McDonalds Salads Plus
introduced to attract young
females
Ms. Marshall 6th year Business
 Q6
(A) Outline the internal and external
sources of new product ideas for companies
like Google. (20 marks)
 Note:
 1)Because it was outline they were looking
for a heading and a brief description.
 2)You did not have to make reference to
Google, however, this was not clear in the
paper. So in an exam situation you should!
 3)Two internal and two external ideas were
required.
Ms. Marshall 6th year Business
 1.
Idea Generation
 2. Product Screening
 3. Concept Development
 4. Feasibility Study
 5. Prototype Development
 6. Test Marketing
 7. Product Launch
Ms. Marshall 6th year Business
NB: Must be known in
order with examples
applied at each stage
Stage
Explanation
Example
1. Idea Generation
The business can find ideas
from both internal and
external sources.
Brainstorming is a useful
technique here.
Cadburys employees are
encouraged to experiment with
bags of ingredients. They also
travel the world to look for the
latest technology.
2. Product Screening
Go through all the ideas to
see which have potential.
Conduct a SWOT analysis on
each idea.
Cadburys employees reject bars
that don’t have the right balance
of ingredients, e.g. not enough
chocolate
3. Concept
Development
Involves writing an essay on
each idea – what does the
product do? What is the USP?
For every new chocolate bar
Cadburys launch, 50 don’t make
it past the development stage.
4. Feasibility Study
Is it technically and
financially possible to make
the product? Might do up CFF
or B/E chart.
How much could Cadburys sell
the bar for? Is there enough
demand to break even?
Ms. Marshall 6th year Business
Stage
Explanation
Example
5. Prototype
Development
The first working model
of the product. This is
tested and refined to
work out any bugs.
Cadburys have 150
qualified testers to
check their products.
6. Test Marketing
Launching the product
to a small segment of
the market and
evaluating consumers
reactions to it. These
reactions are used to
refine the marketing
mix.
Cadburys have a pilot
plant for small scale
production. They could
test market in a
supermarket or one of
their factory shops.
7. Product Launch
Full-scale production
now begins and a
marketing campaign is
undertaken.
Spots or Stripes?
Cadburys introduce
approx 100-200
products a year, approx
8 will be totally new.
Ms. Marshall 6th year Business
Idea Generation: Kellogg’s conducted market
research to identify a set of new food ideas that
would be suitable for developing a new crunchy
nut product. It asked customers what they would
like in a new product and it looked at trends and
new products in the cereals market. Kellogg’s
used all of this research to generate a list of
possible options for a Crunchy Nut product.
 Product Screening: Kellogg’s put all the ideas
generated up on boards. The had pictures
showing product ideas and a description of what
the new product would be like.

Ms. Marshall 6th year Business
 Concept
Development: Following surveys,
research revealed the Bites idea was the
most popular. Kellogg’s developed the
following concept: they would be an
extension of the Crunchy Nut family but
would provide a new flavour and texture for
consumers.
 Feasibility Study: Market research helped
calculate a sales forecast for the new
product. All the figures revealed that
Crunchy Nut Bites would be highly profitable
and so Kellogg’s proceeded with the idea.
Ms. Marshall 6th year Business



Prototype Development: Kellogg’s made a number of
prototypes including a nutty triangle. The Crunchy
Nut Bites recipe was refined using the feedback from
customer surveys.
Test Marketing: At Kellogg’s, every product has to
undergo the ‘In Home Usage Test’. Consumers are
given the product to try for several days and this
enables Kellogg’s to see how consumers interact with
the product. At the end of the trial, consumers
complete a questionnaire. This measures how
appealing the product is.
Product Launch: Kellogg’s launched Crunchy Nut
Bites in September 2008. Sales data show it was one
of the best performing brands to launch in the
breakfast cereal category with a sales value of almost
€10 million in its first full year of sales.
Ms. Marshall 6th year Business

Galaxy Games Ltd is a small indigenous company, operating in the new
gaming technology sector. It was founded by two college graduates, David
Whelan and Jane Ward. David is a software engineer and a web architect
while Jane is a marketing graduate. Their design team recently identified
some ideas for new games in action-adventure, music, and e-learning.

After reviewing the various ideas put forward, ‘Knights' Domain’, a new
action-adventure game that involved building a fantasy kingdom, was
chosen. The design team decided to use Irish music and cutting-edge
graphics to set the game apart. Jane completed a business report,
including a detailed break-even analysis, to determine the potential of
‘Knights' Domain’. Following on from this report, the design team
introduced more challenging levels to the game and added more 3D
graphics. The game was introduced to a group of transition year students
from a local secondary school, who commented positively on the
different levels and on its distinctive graphics. The product ‘Knights'
Domain’ was launched in various games stores with an advertising
campaign accompanying the launch.
Ms. Marshall 6th year Business
 ABQ
2013
 (A) Outline the stages involved in the product
development process of ‘Knights Domain’ for
Galaxy Games Ltd. (30 marks)
 Note: 5 stages @ 6 marks each. Name,
explain, link. Had to be in the correct
order.
Ms. Marshall 6th year Business






2012
Idea Generation and Feasibility Study are important stages
before a new product or service is launched onto the
market. Discuss the stages underlined above, referring to a
product or service of your choice. (20 marks)
2011
Outline internal and external sources of product innovation
for Kilronan Ltd. (20 marks) (No need to refer to
company)
2010
Distinguish between ‘Prototype Development’ and ‘Test
Marketing’ as stages in the development process of a new
product. (10 marks)
Ms. Marshall 6th year Business









2009
Olympian Ltd is a company that produces a range of high quality
branded sportswear. Following a lengthy market research process,
the firm is now expanding its business to include a new range of
Hoodie Tracksuits, aimed at the teenage market.
(A) Outline the stages involved in the development process of the
new range of Hoodie Tracksuits. (20 marks)
2008
Evaluate the importance of ‘Feasibility Study ‘and ‘Prototype
Development’ in the development process of a new product of your
choice. (15 marks)
2006
Deirdre Moloney hopes to start up her own cosmetics and personal
beauty products business aimed at the consumer market. She has
approached you as a marketing consultant for some marketing
advice.
In one single report, explain to her: (see page 115)
The stages in the development of a new product/service.
Ms. Marshall 6th year Business
 2005
 (A)
Discuss four external sources of new
product or service ideas. (25 marks)
 2004
 A ‘Feasibility Study’ is used to: (10 marks)
 2003
 Illustrate two internal and two external
sources of new product or service ideas. (25
marks)
 2001
 Prototype development involves…(10 marks)
Ms. Marshall 6th year Business