Market Research Design addresses itself to the need. - Charles Eames Market Research How to Conduct a Market Analysis 1. Problem Definition a) What are the major objectives (review objective tree) of the customer need? b) Are you developing a new product or solving a problem in an existing product? c) In one sentence and in your own words, define the problem at-hand. d) Who is your customer, and why would they want/need to buy the product (e.g., time saver, utility, unique value)? e) How are you going to go about getting your product to customers? (e.g., development cost, time, manufacturing, production investment, etc.)? How to Conduct a Market Analysis 2. Develop a strategy • important to set plan for search process • looking through every library reference book is inefficient waste of time • searching accomplished by: a) identifying keywords b) writing a plan c) information checklist Information Checklist c. Industry a. Products i. Trends i. Product names ii. Labor costs ii. Patents iii. Market size iii. Pricing iv. Industry facts iv. Parts breakdown d. Market information v. Product features i. Market reports vi. Development time ii. Market share of major b. Companies companies in industry iii. Target markets of major i. Major players competitors ii. Company financials for iv. Demographics: major players -Age -Annual reports -Geographic location -10K reports -Gender -Political/social/cultural factors e. Consumer trends Typical Market Research Tools • Customer Surveys - least sophisticated • “Mall” Intercepts - more sophisticated • Focus Groups - most sophisticated User Surveys • Can be used as an element of market research to help determine market size, price sensitivity, etc. • Also extremely useful to determine customer wants and needs > Voice of the Customer (QFD – more on this later) Developing a User Survey • Who are your “users”? • Determine what information you need (ICE project example) • Develop a list of UNBIASED questions • Order the questions to avoid leading the user • If you must ask a leading question, leave it until late in the survey • Consider who will be your audience • Consider how you will run your survey - mail or other passive methods < 2% response - you need to active/direct surveys to get the information you need Project Management Delay always breeds danger and to protract [draw out or lengthen in time] a great design is often to ruin it. - Miguel de Cervantes Saavedra Project Management Project Success Factors Importance of Project Management Project Management Considerations • • • • • • • Scoping Resourcing (human and financial) Scheduling Tracking Documenting Implementing Closing Organizational Chart Gantt Chart • “Timeline” for complex projects or if various project parts are interdependent • 2D plot – horizontal axis is time—measured in blocks of days, weeks, or months – vertical axis contains tasks to be completed or individuals responsible for those tasks • When a task is completed it is shaded in on the Gantt chart so that current progress can be determined at any time Gantt Chart Steps to Creating a Gantt Chart • • • • • • Identify the tasks needed to complete the design Estimate the time required to complete each task Determine the sequence in which the tasks must be scheduled Identify deadlines What is the “critical path”? Resources, subprojects, etc. can be added if necessary Laws of Time Estimation – From Design Concepts for Engineers (Horenstein, 2002), p. 86 • Everything takes longer than expected. • If you’ve worked on something similar before, estimate the amount of time required to finish the task. The actual amount of time required will be about four times as long. • If you’ve never worked on something similar before, estimate the amount of time required to finish the task. The actual amount of time required will be equal to the next highest time unit: Something estimated to take an hour will really take a day; something estimated to take a day will take a week, etc. Breakout to discuss and begin your… • Project problem statement • Gantt Chart • User Survey/Market Research Develop 3 Gantt charts with at least 10 tasks per chart for the following: Getting ready for school in the morning (remember to eat breakfast) AND choose one of: – hosting a Thanksgiving dinner for 8 guests—don’t forget to cook the turkey or pumpkin pie! – hosting an evening party for 30 friends, complete with snacks and beverages, events, and clean-up – a canoeing expedition in Northern Ontario with several friends AND choose one of: – – – – – – – completion of a prototype of an automobile powered from fuel cells development of the course material for APSC 381 creation of a computer simulation for a new brewery designing and building a statue of Principal Leggett scouting out a new region for profitable ore deposits networking all of the computers in the ILC design of an electric hairdryer Exercise (45 min) • Do a market analysis on how to improve traffic flow on campus – Remember pedestrians, buses, cars, and safety • You may leave the building to complete this assignment.