Generation, Screening & Development of New Product Ideas
Module- IV
By Srikanth Venkatswamy

Generation, Screening and
Development of New Product Ideas
• Innovation and the new product development process
• Generation of new product ideas
• Sources of new product ideas
• Methods of generating new product ideas
• Screening of new product ideas
• Criteria for screening new product ideas
• Development of new product ideas
Product & Brand Management\
By Srikanth venkataswamy

• Innovation is a change in the thought process for doing something, or the useful application of new inventions or discoveries
• Innovation is not just creation Of new ideas/thoughts, but it is also about translating them into products/ services.
• Innovation is an important topic in the study of Economics, Business, Entrepreneurship,
Design, Technology, Socially, and
Engineering.
Product & Brand Management\
By Srikanth venkataswamy

Product & Brand Management\
By Srikanth venkataswamy

Can a soccer shoe be innovative?
Absolutely
(
F50 Adizero
)
• Shoe manufacturer Adidas has developed an innovative soccer shoe that weighs only 5.8 ounces. The manufacturer says these are the lightest soccer shoes on the market – the average soccer shoe weighs about 10 ounces.
• Adidas applied several innovations in developing this new shoe – including a new approach to manufacturing the sole of the shoe as well as a new material used in the upper portion of the shoe.
Product : the upper of the shoe, which just seems like plastic-y sheath, hides an intense process of materials engineering. It's made of microfiber--that is, synthetic fibers that have be intertwined, which allowed the materials engineers to dial in a precise combination of flex and rigidity. That way, you don't have to add more material to create interior supports, and you can even print additional support structures directly onto the shoe, which isn't possible with standard leather :
Product & Brand Management\
By Srikanth venkataswamy

• And the upper of the shoe, which just seems like plastic-y sheath, hides an intense process of materials engineering. It's made of microfiber--that is, synthetic fibers that have be intertwined, which allowed the materials engineers to dial in a precise combination of flex and rigidity. That way, you don't have to add more material to create interior supports, and you can even print additional support structures directly onto the shoe, which isn't possible with your standard leather
• product\for-world-cup-adidas-unveils-a-bafflingly-light-soccershoe.mp4
Product & Brand Management\
By Srikanth venkataswamy

• Innovation helps a business company to survive when the winds of change hit the market: In fact innovation fuels the winds of change.
• To stay ahead or to sustain in the market or to have a USP ( Unique selling proposition ) business should constantly innovate.
Amity Global Business school, Bangalore
Product & Brand Management\
By Srikanth venkataswamy
7

• Innovation can be defined as the successful exploitation of new ideas- incorporating new technology, design and the best practices Is the key business process that enables the businesses to compete effectively .
• Innovation is more than idea Generation
• It is because idea has a little Significance till it is converted into some useful Product/ services
Amity Global Business school, Bangalore
Product & Brand Management\
By Srikanth venkataswamy
8

• Innovation is the process of transforming an idea into product / services.
• Usually , innovations are being made with a desire to over come a need or a problem.
• Innovations can come through at the spark of light or can take a generation of experiments.
• Innovation can be both revolutionary as well as an extension the existing products / services.
• Innovation provides competitive advantage and a USP to a business.
Amity Global Business school, Bangalore
Product & Brand Management\
By Srikanth venkataswamy
9

•
I was recently shopping for new lunch boxes for my kids to carry their lunch to school. If you have not shopped for lunch boxes/bags lately, you may be surprised at the number of options. Hard-sided lunch boxes made of metal or hard plastic. Soft-sided bags of varying shapes and sizes. And, of course, a huge variety of colors, designs and cartoon characters.
•
With previous lunch boxes, we have included a re-usable ice pack to keep the contents of the lunch box cold. This approach works pretty well, but sometimes the ice pack “crushes” the food or the ice pack begins to leak blue liquid all over the contents of the lunch box.
•
As I reviewed the vast selection of lunch boxes at a local store, I noticed a new type of softsided lunch bag that had “built-in” ice. The advertising materials for the lunch bag said “No Ice Needed! It’s Built-In!”. This innovative design includes a freezable gel in the sides of the lunch bag. So, instead of putting an ice pack into the lunch bag to keep the contents cool, you put the entire lunch bag in the freezer overnight to chill the gel in the sides of the bag. In the morning, you take the lunch bag out of the freezer and put the lunch inside. The frozen gel keeps the contents of the lunch bag cool until lunch time.
•
The idea is great. The lunch bag does a wonderful job of keeping the contents cool until lunch time. I believe it does a better job than the old ice packs we used in the past.
Now I don’t have to worry about leaking ice packs or a shifting ice pack that slides to one end of the lunch bag and only keeps part of the lunch cool.
This creative product is an innovation example that combines two existing products to generate a new product providing new benefits to the customer. This innovation adds a new feature that simplifies use of the product, rather than making it more complicated.
Product & Brand Management\
By Srikanth venkataswamy

• Innovations are action Oriented I;e- active and searching ideas.
• Innovation are to make life more comfortable for a common Man but Back operations in transforming ideas into products even take lifetime of many.
• Innovation is all about trying , testing and revising.
• Innovation are made with the desire to over come a need or a problem.
Amity Global Business school, Bangalore
Product & Brand Management\
By Srikanth venkataswamy
11

• Innovations can expand a company’s existing product line or add new services related to those existing products. For example, a company may find a new use for their products that lets them expand into a new market, which attracts a new group of customers. Selling products in multiple markets increases overall sales and reduces the impact on the bottom line if there’s a slowdown in one market.
• Other business innovations may add new features to existing products. One way to identify new features that may boost sales is to review customer feedback, market research and problems identified by market commentators. If your existing customers are requesting a particular feature, there are likely other customers
(and potential customers) that want the same feature. If a new product feature becomes a “must have” feature in your market, you have created a competitive edge for your company.
Product & Brand Management\
By Srikanth venkataswamy

• Addressing problems in the market by providing a customer-friendly solution is a great way to distinguish your company from its competitors and position the company as an “innovator”. Companies that are innovators in their marketplace often enjoy the advantage of customers that are raving fans of the company and its products. These happy customers provide valuable word-of-mouth advertising that further strengthens your leadership position in the market.
• Developing a business innovation strategy that seeks to address unmet needs in the market and provide innovative products strengthens the company’s position in the market and creates a valuable competitive advantage.
Product & Brand Management\
By Srikanth venkataswamy

Emgard® FE—making trucks more sustainable
The product: Emgard® FE—a next-generation axle lubricant for heavy-duty trucks
The idea: To develop a commercially sustainable axle fluid that matches or exceeds the performance of existing products
The benefits: Lower costs for truck owners and a reduced environmental footprint, thanks to lower CO2 emissions and less waste oil
The success: The product is bought and used by all major truck manufacturers in the across region, as well as many major truck fleets and other companies
Product & Brand Management\
By Srikanth venkataswamy

Dehypon®—sparkling results in multifunctional automatic dishwashing detergents
The product: Dehypon® rinse aid additives for multifunctional automatic dishwashing detergents
The idea: To develop innovative rinse aids in granule form that do not dissolve, and so do not disappear during the cleaning stage —meaning they can deliver their full effect in the final rinse stage of the cycle
The benefits: Easy incorporation for detergent manufacturers into their products, shine and sparkle for dishes, ready biodegradability and very low aquatic toxicity
The success: The benefits of Dehypon® are greatly appreciated by consumers, and several major manufacturers use the product in their automatic dishwashing detergents
Product & Brand Management\
By Srikanth venkataswamy

The product: the latest version of the Mac
Book Air, a super thin computer (just .68 inch at its thickest point)
The idea: The new Mac Book Air line has transitioned entirely to solid state storage, all flash memory--it has no hard drive or optical drive. The computer now boasts instant-on, silent processing, and is super light-weight--just 2.3 to 2.9 pounds.
The benefits: The larger Mac Book Air has a
7-hour battery life and 30-day standby time, while the smaller one has a 5-hour battery life along with 30-day standby features a glass multi-touch trackpad, a full-size keyboard, and a Core 2 Duo processor.
The success: tiny, affordable, and Slimmer and has got wide spread
Usages , applications in industry &domestic front
Product & Brand Management\
By Srikanth venkataswamy

A) Bata was once a very admired shoe company in India. However, it has been facing competition from new players and un organized in the market.
Explain how it can use product innovation to steal a march over its competitors.
B) Make analysis about the product, the idea, the benefits, and the success of any two interesting products.
Final date Submission : 02 / 11 / 2010
Product & Brand Management\
By Srikanth venkataswamy

Product & Brand Management\
By Srikanth venkataswamy

Idea
Screening
Lay future
Plans
Concept development
& testing
Marketing
Strategy
Business
Analysis
Product
Development
Test
Marketing
Commerali
-zation
Should we send the idea back for product development ?
Would it help to modify the product or marketing program?
20
DROP
The New-Product development Decision Process
Product & Brand Management\
By Srikanth venkataswamy

A systematic search for a new idea:
1. Internal Idea Source : New Ideas May Come from its R & D or from its People
2. External idea Sources – Good New Product idea may come by watching, listening or new needs and wants o from the customers Or from the environment he is in.
3. New Products arising out of technological
Innovations.
4. New Products arising out of marketing oriented modification.
5. Government Policies/Laws
Product & Brand Management\
By Srikanth venkataswamy

Internal Source:
• R&D
• Top management
• Sales & marketing personal
• Production department
• Purchase department
• Employee suggestions
• CRM
External Source:
• Customers
• Competitors
• Consultants
• Advertising agencies
• Researchers/Investors
• Channel
• Public- unsolicited ideas
Product & Brand Management\
By Srikanth venkataswamy

A Method for obtaining new ideas focusing on the parameters.
1. Brain Storming:
2. Reverse Brain storming: A Group method for obtaining new ideas focusing on the negative.
3. Brain writing: A Group method Is a form of written brainstorming.
4. Gordon method: Methods of developing new ideas when the individuals are unaware of the
Problem.
It is problem –solving techniques Which
Involves a group not knowing the problem.
Thus ensures that the solution is not clouded by preconceived ideas and Behavioral patterns.
Product & Brand Management\
By Srikanth venkataswamy

5.
Check list method: Developing a new ideas through a list of related issues.
6.
Free Association: Developing new ideas through a
Chain of Word association.
7.
Forced Relationship : Developing a new idea by looking at product combination. (IFRAD Method) Ex :
Paper & Soap = Paper Soap
8.
Collective Note book Method: Developing a new idea by group Members regularly recording Ideas.
9.
Attribute listing: Developing New ideas , listing By looking at the positive and Negatives.
10.
Big Dream Approach : Developing new ideas by
Thinking without constraints and thinking BIG .
Product & Brand Management\
By Srikanth venkataswamy

Developing Strategies for Existing
Products
1.
Evaluate the performance of all the Existing products or product lines by using product evaluation matrix
2.
By Using Perceptual mapping technique examine the relative strengths and weakness of the company’s products in comparison to competitors products
3.
Based on the above analysis decide the product strategies for the existing Products that is which products should be continued Or maintained
Which products should be modified , which products or product lines Should be dropped and which new product items or product lines are to be added.
Product & Brand Management\
By Srikanth venkataswamy

Other techniques Generating of New ideas
• Attribute analysis
• Heuristic ideation technique (HIT)
• Benefit-structure analysis: determines what specific benefits and characteristics are desired by consumers for a particular product or service.
• Market gap analysis
• Benefit-deficiency analysisIt identifies perceived deficiencies in what is currently provided.
Product & Brand Management\
By Srikanth venkataswamy

• Attribute Analysis, which is a simple method of breakdown and analysis.
• Attribute analysis simply asks how the attributes can be varied, thinking creatively about these variations
• Consider the simple engineering task of making improvements to a chair.
• The attributes of the chair include the material used to make it, its shape, weight, rigidity, loadbearing capability, and so on.
• We can thus use wood, metal or plastic (but how about paper?), make the chair large or small (what about a pet’s chair?), flexible or rigid (how could you turn a briefcase into a chair?) and so on.
Product & Brand Management\
By Srikanth venkataswamy

• Heuristic Ideation is a very efficient group technique that helps to generate new and innovative ideas.
• The participants compare two items or concepts that are not apparently related, in order to stimulate idea generation.
Product & Brand Management\
By Srikanth venkataswamy

Hereunder you find the technique procedure:
• Choose two items of interest that already exist, e.g. if I sell novelty goods, I might select a particular china mug with a floral decoration on it, and a particular novelty greetings card.
• Make a list of each component, e.g. the components of the mug may include: handle, square shape, coloured china, floral decoration, coffee sized, etc. The cards components might include: glitter decoration, poetic message, can be sent by post, etc.
• Construct a matrix, where the rows list the components of the one product the columns list the components of the other, and each cell corresponds to a combination of one element from each product.
Product & Brand Management\
By Srikanth venkataswamy

Product & Brand Management\
By Srikanth venkataswamy

• Cross out for elimination any cells that correspond to existing products, e.g. ‘floral design, sent by post’.
• Identify any cells that have market potential as they stand e.g. ‘coffee sized mug, can be sent by post’, ideal for gift packaged product.
• Looking at the table from another angle, try to identify any cells that look creatively thought provoking, but in need every more work.
• Develop the highlighted cells into workable ideas.
HIT comes from its use of the 3 ‘rules of thumb’:
• That new ideas are usually combinations of elements of existing ideas;
• That the core of many new product ideas can often be captured by a two-element combination;
• That combination of dissimilar items (‘chalk/cheese’) work better than similar items (‘chalk/limestone’).
Product & Brand Management\
By Srikanth venkataswamy

Screening criteria usually involve three factors:
1. Market Criteria
2. Product criteria
3. Financial criteria
Product & Brand Management\
By Srikanth venkataswamy

Criteria For Screening New Product Ideas: contd…
1. Markets criteria:
The More frequently & widely used in market criteria are: a) Market size b) Market share c) Market growth d) Market positioning e) Market distribution features Etc..
Product & Brand Management\
By Srikanth venkataswamy

Criteria For Screening New Product Ideas: contd…
2. Product Criteria:
The product criteria are: a) Product newness: b) Technical Feasibility c) Organizational support d) Legal Consideration e) Servicing requirements etc.
Product & Brand Management\
By Srikanth venkataswamy

Criteria For Screening New Product Ideas: contd…
3. Financial Criteria:
Financial criteria includea) Profitability b) Return on investment c) Cash flow
Product & Brand Management\
By Srikanth venkataswamy

Converting product idea into Product concept
Product & Brand Management\
By Srikanth venkataswamy

What is Branding ?
The marketing practice of creating a name, symbol or design that identifies and differentiates a product from other products
Product & Brand Management\
By Srikanth venkataswamy

• Entire Process involved in creating a unique name and Image for a Product
(good or Service) in the Consumers' mind, through Advertising campaign with a Consistent theme.
• Branding aims to Establish a significant and differentiated presence in the Market that attracts and retains loyal Customers.
Product & Brand Management\
By Srikanth venkataswamy

The American Marketing Association
(AMA) defines a brand as a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers .
Product & Brand Management\
By Srikanth venkataswamy

Here are just a few benefits you will enjoy when you create a strong brand:
1.
A strong brand influences the buying decision and shapes the ownership experience.
2.
Branding creates trust and an emotional attachment to your product or company. This attachment then causes your market to make decisions based, at least in part, upon emotion-- not necessarily just for logical or intellectual reasons.
3.
A strong brand can command a premium price and maximize the number of units that can be sold at that premium.
Product & Brand Management\
By Srikanth venkataswamy

4.
Branding helps make purchasing decisions easier. In this way, branding delivers a very important benefit.
In a commodity market where features and benefits are virtually indistinguishable, a strong brand will help your customers trust you and create a set of expectations about your products without even knowing the specifics of product features.
Product & Brand Management\
By Srikanth venkataswamy

5.
Branding will help you "fence off" your customers from the competition and protect your market share while building mind share.
Once you have mind share, you customers will automatically think of you first when they think of your product category.
6.
A strong brand can make actual product features virtually insignificant.
A solid branding strategy communicates a strong, consistent message about the value of your company.
A strong brand helps you sell value and the intangibles that surround your products.
Product & Brand Management\
By Srikanth venkataswamy

7.
A strong brand signals that you want to build customer loyalty, not just sell product.
A strong branding campaign will also signal that you are serious about marketing and that you intend to be around for a while.
A brand impresses your firm's identity upon potential customers, not necessarily to capture an immediate sale but rather to build a lasting impression of you and your products.
Product & Brand Management\
By Srikanth venkataswamy

8.
Branding builds name recognition for your company or product.
9.
A brand will help you articulate your company's values and explain why you are competing in your market.
10.
People do not purchase based upon features and benefits but get acquitted with the brand
Product & Brand Management\
By Srikanth venkataswamy

• A brand has the power to evoke positive feelings about your product and generate goodwill in the mind of the customer.
• Your brand is your most valuable asset as it creates an emotional connection between you and your customers.
• Your brand name is therefore a critical component of your marketing agenda.
Product & Brand Management\
By Srikanth venkataswamy

Defining your brand is like a journey of business self-discovery. It can be difficult, time-consuming and uncomfortable.
First step:
It requires, at the very least, that you answer the questions below: a) What is your company's mission? b) What are the benefits and features of your products or services? c) What do your customers and prospects already think of your company? d) What qualities do you want them to associate with your company?
Do your . Learn the needs, habits and desires of your current and prospective customers.
And don't rely on what you think they think. Know what they think.
Once you've defined your brand, how do you get the word out?
Product & Brand Management\
By Srikanth venkataswamy

We can select names from three vantage points.
1. Strategic Impact: This is the ability of a new name to get attention (within a category), generate interest, and deliver a new message.
2. Semantic Value: Too often a name is selected simply by its literal meaning or rejected because of a few personal associations. In our selection process, we look beyond a word’s literal meaning and analyze other possible associations that the name might suggest. Is the name multifaceted? Can it deliver new energy to the category?
3. Phonetic Structure: Does the name look and sound natural or artificial? Does it offer a pleasing, rhythmic quality? Is it constructed to create a balance between vowels and consonants? Is it likely to be memorable because of its stress patterns? Does it help to convey the right tone?
Product & Brand Management\
By Srikanth venkataswamy

Defining your brand is like a journey of business self-discovery. It can be difficult, time-consuming and uncomfortable. It requires, at the very least, that you answer the questions below:
What is your company's mission?
What are the benefits and features of your products or services?
What do your customers and prospects already think of your company?
What qualities do you want them to associate with your company?
Do your . Learn the needs, habits and desires of your current and prospective customers. And don't rely on what you think they think. Know what they think.
Once you've defined your brand, how do you get the word out? Here are a few simple, time-tested tips:
Get a great logo.
Place it everywhere.
Write down your brand messaging.
What are the key messages you want to communicate about your brand? Every employee should be aware of your brand attributes.
Integrate your brand.
Branding extends to every aspect of your business--how you answer your phones, what you or your salespeople wear on calls, your e-mail signature, everything.
Create a "voice" for your company that reflects your brand.
This voice should be applied to all written communication and incorporated in the visual imagery of all materials, online and off. Is your brand friendly? Be conversational. Is it ritzy? Be more formal. You get the gist.
Develop a tagline.
Write a memorable, meaningful and concise statement that captures the essence of your brand.
Design templates and create brand standards for your marketing materials.
Use the same color scheme, logo placement, look and feel throughout. You don't need to be fancy, just consistent.
Be true to your brand.
Customers won't return to you--or refer you to someone else--if you don't deliver on your brand promise.
Be consistent.
This tip involves all the above and is the most important tip on this list. If you can't do this, your attempts at establishing a brand will fail.
Product & Brand Management\
By Srikanth venkataswamy

Desirable qualities for a brand name include:
(1) It should suggest something about the product’s benefits and qualities.
Examples: DieHard, Easy-Off, Craftsman, Sunkist, Spic and Span,
Snuggles, Merry Maids, NationsBank.
(2) It should be easy to pronounce, recognize, and remember. Short names help. Examples: Tide, Aim , Puffs. But longer ones are sometimes effective. Example: “Love My Carpet” carpet cleaner; “I
Can’t Believe It’s Not Butter” margarine, Better Business Bureau.
(3) The brand name should distinctive. Examples: Taurus, Kodak , Exxon.
(4) The name should translate easily into foreign languages. Before spending $100 million to change its name to Exxon, Standard Oil of
New Jersey tested several names in 54 languages in more than 150 foreign markets. It found that the name Enco, when pronounced in
Japanese , referred to a stalled engine .
(5) It should be capable of registration and legal protection. A brand name cannot be registered if it infringes on existing brand names.
Product & Brand Management\
By Srikanth venkataswamy