Day 2 Session 4
Participative product
development
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Workshop content
 To whom is your offer addressed?
 The structure of offer
 Product Lifecycle
 For which job is the product engaged
 Platform
 Product positioning, positioning strategy
 Unique Selling Proposition
 Exercises
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Integrated Innovation
Support Programme (IISP)
2
To whom is your offer
addressed?
 Offers can not exist without consumers / clients /
customers
 It must be directly focused on their needs / wants /
solutions to their problems
 Do you know who are the buyers of your products, what
their wants, needs and problems and how they will change
in the near and distant future?
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3
Structure of current offer
high
Choose
several
Other deinvest
Invest if it is necessary
To make cash caw
low
Market growth rate
Boston Matrix
Liquidate
High
Low
Market share (relative position)
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Integrated Innovation
Support Programme (IISP)
4
Positions during the product life cycle
Revenue/Profit
Product life cycle
Question
mark
Stars
Introduction
Growth
Cash
caws
Maturity
Dogs
Decline
TIME
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5
Product life cycle
Maturity
Recovery Innovation
(b)
Growth
Sales
Decline
(a)
Introduction
Time
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6
Exercise 3/1
 For a given graph of product life cycle draw where your
products are actually located.
 How do you feel your current portfolio does look?
 In what sense is necessary to improve your portfolio?
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7
Product innovations
 Are based on:
 Modulation (juice with more or less sugar, without additive, with a
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vitamin, instant)
Dimensioning (soft drinks 1l, 2l, 0.33 l)
Package change (smaller, family-exclusive, limited)
Design
Developing supplements
 Varying without changing the essence - innovation is realized within the
category
 Innovation out category
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Product innovations (examples)
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Energy drink
Ketchup with the inverted lid
Frozen pizza
Erasable marker
“Stickers" (Post- it)
Lacoste dresses
Mercedes Benz Smart
Ethnographic research
Cordless Phone
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Disposable lenses
Feature-length cartoons
Lollipop
Bicycle with electric battery
solar panel
RTD Beverages (Bacardy Breezer, Go
Cedevita)
Tetra fish food
Audio cassettes for language learning
Nestea consumption outside the home
Advertisement in paper + CD gift
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Platform
Platform is a set of common components,
methods or technologies that serve as the
building blocks of a portfolio of products and
services that the company offers to the market.
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10
Platform advantages
1. Better control of costs
 Saving on development costs
 or a common base for the parts of various products
 savings in production costs
2. Faster development of new products
 the use of common elements (not a real product "from
scratch")
 development of the product range on the same basis
3. The unique "stamp" (style, layout, functionality) - the
basis for building brand awareness and customer bonding
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Support Programme (IISP)
11
Exercise 4/2
Offer innovation
 For which job is the product engaged?
 How can we innovate the offer to enable customer to finish that job faster /
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easier / more enjoyable/ cheaper?
What types of product innovation we can use to make your desired innovations
materialized:
- Modulation
- Dimensioning
- Package change
- Design
- Development of extras
- Other
What service innovations (pre-sales, during the delivery / installation / usage
period, after a period of use) you can introduced?
How you can take advantages of the platform to make savings, faster and
easier to develop new products, develop or reinforce brand?
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12
Difference between product and brand
 The product represents anything that can satisfy the needs of consumers.
 Branding is the process by which companies differentiate
 its product over the competition.
"A product is something made ​in a factory,
a brand is what the consumer is buying! "
Stiven King
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Difference between product and brand
 The product is the subject of classical and impersonal market
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transactions; Brand is the seal and guarantee of partnership in the
market.
The product offers, a brand is sought.
The product is impersonal and brand is personalized.
Product affirm similarity and brand promotes diversity.
The product is unrecognizable, a brand is unique, differentiated and
distinctive.
The product is uniform, brand is differentiated, distinctive and unique.
The brand is the most valuable assets of the company.
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Product positioning by using perceptual
map
Correspondent analysis of alcoholic
Perceptual maps are used to
determine to which extent
companies offer is attractive to
consumers in comparison to
competing brands.
Maps indicate the perception of
attributes of the product / service
perceived by customers as
significant and which
combination of them consumers
prefer.
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beverages
PRINTERS
For people who are
intensely living
For men
Available to al
Share with friends
For calmer moments
BALANTINES
JACK DANIELS
JOHNIE WLAKER BLACK
Prestigious
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Exercise 4/3
MARKET POSITIONING
 What consumers want to recognize?
 How consumers instantly recognize you?
 What are the differences between current and desired state?
Whether these differences are qualitative or quantitative?
 How consumers identify your main competitors? What is the
first association with them?
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Value positioning
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Brend, price and perception of quality
€10
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€40
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€60
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Exercise 4/4
Value positioning
At which price category you are positioned:
Level/category
Low
Middle
High
Higher level
Lower level
Explain the main reasons why you chose that particular price
category.
Would you like to move into another category in future and
why?
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Unique Selling Proposition
 For) ... (target market, target
group
For people who work hard and love
to have fun
Red Bull is a drink
 Who ... (reason to buy)
 Do you ... (the main benefits that
affect the consumer to buy that
particular product / brand)
 Because ... (the main point of
difference or distinction in
relation to the target group)
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That allows you to live life to the
fullest
Because it is full of Red Bull energy
ingredients and choice for those who
live up to
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Unique Selling Proposition
 For (target market, target group):
 Who (reasone for buying):
 Which allow (main benefits which influence customers to
buy that product/brand):
 Because (main differences or points of distinction regarding
to target group):
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Bibliography for Day 2
1.
2.
3.
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Adapted from projects sources: Tanja Mamula, Inovacije u poslovanju i komunikaciji XXI
vek (Innovation u business and communication in 21st century) PPP, Project Building
Capacities and Promoting Innovativeness among Women Entrepreneurs, Association of
Business Women in Serbia, March 2011-March 2012, project is funded by GIZ Tanja
Mamula at all, Razvoj postojećih i uvođenje novih procesa u preduzeću, unutar firme i u
njenom lancu vrednosti (Development of existing and introduction of new processes in
firm, within firm and their value chain) PPP, Program integrisane podrške inovacijama
(Integrated Innovation Support Programme), 2012-2013, project funded by EU
Internet sources: Product Life Cycles and the Boston Matrix,
www.bized.co.uk/sites/bized/files/docs/portfolio.ppt
Analysis of a business product portfolio and the product life cycle
http://www.ibbusinessandmanagement.com/uploads/1/1/7/5/11758934/ib_business_a
nd_management_-_product_portfolio_analysis.pdf
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Bibliography for Day 2
Other resources to consider:
 How to Create UVP http://conversionxl.com/value-proposition-examples-how-to-create/
 http://www.dummies.com/how-to/content/define-a-unique-value-proposition-uvp.html
 http://quickmvp.com/
 http://www.singlesourcing.com/products/arbortext/value/mbt0807_PTCWP_ID_v7_ACM.pdf on
Collaborative Product Development
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