New Product & Services Development

Sunway Extreme Park

By WW19 Nov, 2006

Introduction

• Sunway Extreme Park is Malaysia's first and only theme park dedicated to motorized and outdoor adventure sports within a place

• Founded on Nov 2003

• The park covers 150 acres

• EP poised to become the leading outdoor activity hub in Malaysia, drawing in visitors from and around Malaysia as well as internationals.

• EP features on assortment of thrills and heart pumping adventures like Go-Karting, All Terrain Vehicle (ATV) & Paintball to meet every extreme need.

Mission

Become the leading motorized and outdoor adventures activity hub in Malaysia and

South East Asia

Introduce and Continuous provide the excitement of extreme games to X-game

lover

Situation Analysis

• Threaten by the growth of competitors • Niche market discourage the growth of company

• Lack of excitement on existing activities

• Lack of manpower

• Insufficient use of company fund

• Slow growing of revenue

• Products are more expensive than competitor

Threaten by the growth of competitors

Product/Year

Go-Kart ATV Paintball

2003 1 0 0

2004 1 0 2

2005 3 0 5

2006 5 2 9

Situation Analysis

• Threaten by the growth of competitors • Niche market discourage the growth of company

• Lack of excitement on existing activities

• Lack of manpower

• Insufficient use of company fund

• Slow growing of revenue

• Products are more expensive than competitor

0

20

40

60

80

100

120

140

Revenue

Slow growing of revenue

Situation Analysis

• Threaten by the growth of competitors • Niche market discourage the growth of company

• Lack of excitement on existing activities

• Lack of manpower

• Insufficient use of company fund

• Slow growing of revenue

• Products are more expensive than competitor

Products are more expensive than competitor

Product Quantity Price

(EP)

Price (Competitor)

Paintball 3 Section – 100 pallets

MYR 70 MYR 50

Go- Kart 8 Laps MYR 15 MYR 15

Go- Kart Mini Grand Prix (26 laps)

MYR 55 MYR 40

ATV 20 minutes Scenic ride

MYR 60 > MYR 70

Implement Stage-Gate process

Discovery

Gate2Stage 1

Scoping

Gate3Stage 2

Build Business

Case

Gate4Stage 3

Develop-ment

Gate5Stage 4

Testing & Valida-

tion

Stage 5Launch

Gate1

Post Launch Review

All Stage: Prepare by team members

All Gates: Censor by upper management & Consumer

The way of breakthrough Ideas

• Look for disruption in customer’s industry

• Use of Customer Research to uncover new opportunities

• Work with Lead or Innovative customers

• Ideas from Suppliers

• Ideas Bank

• Harness the creative ability of the entire Organization

Discovery

G2Stage

1

G3Stage

2

G4Stage

3

G5Stage

4Stage

5

G1

Post Launch Review

Discovery of New Product

• New Innovation Product e.g. Product never been in the market before, new ideas• New Product Lines

e.g. import existing activities in available in he market, like bungee jump, jet ski, buggies, rock climbing, etc

• Additional existing Product linee.g. dirt kart, beginner & intensive ATV, buggies

• Improvement Revisions to existing productse.g. New track for go kart, new game design for paintball,

• Repositione.g. The product change the target towards ladies player,

• Cost reduction Product e.g. reduce the existing price or associate with promotion or package.

Discovery

G2Stage

1

G3Stage

2

G4Stage

3

G5Stage

4Stage

5

G1

Post Launch Review

“Must Meet” & “Should Meet” criteria

Go/Kill point

We might have more than 100 ideas from the discovery stage, and here is the stage we censor it till only about 10 ideas left

Does the ideas : - fit with company policies? - opportunities and Market attractiveness? - Killer Variables, eg environmental issues, legislative actions - can be developed and produce

Discovery

G2Stage

1

G3Stage

2

G4Stage

3

G5Stage

4Stage

5

G1

Post Launch Review

Inexpensive & Desk research

• Preliminary Market assessment• Preliminary technical assessment• Preliminary Financial/business assessment

• e.g. internet research, from agency like A.C Nielsen, Library research, existing company data, etc

Discovery

G2Stage

1

G3Stage

2

G4Stage

3

G5Stage

4Stage

5

G1

Post Launch Review

“Must Meet” & “Should Meet” criteria

Go/Kill point

In this gate, we need to screen and left only 2-3 ideas

Repeat Gate 1 criteria screening

Start involving accounts/sales team+ Pay back period+ Simple Financial calculation

Discovery

G2Stage

1

G3Stage

2

G4Stage

3

G5Stage

4Stage

5

G1

Post Launch Review

Detailed Investigation

• Market analysis – Market investigation and market research

• Users’ preference, need and wants study

• Competitive analysis

• Detailed technical assessment

• Concept testing

• Financial and business analysis

• Essentials and design of the product features attributes, requirements and specification

Discovery

G2Stage

1

G3Stage

2

G4Stage

3

G5Stage

4Stage

5

G1

Post Launch Review

“Must Meet” & “Should Meet” criteria

Go/Kill point

Repeat Gate 1 Gate 2 criteria screening

CHOOSE “THE 1”

= “ Go to a heavy spend” !!

Discovery

G2Stage

1

G3Stage

2

G4Stage

3

G5Stage

4Stage

5

G1

Post Launch Review

Development

• In house tests

• Parallel marketing & operations

• Market launch plans

• Continue - Customer feedback & Marketing analysis

• Updated financial analysis

• Regulation, legal and patent issues are resolved

Discovery

G2Stage

1

G3Stage

2

G4Stage

3

G5Stage

4Stage

5

G1

Post Launch Review

“Must Meet” & “Should Meet” criteria

Go/Kill point

• Check on the progress and the attractiveness of the product

• Financial analysis• Go to test!!

Discovery

G2Stage

1

G3Stage

2

G4Stage

3

G5Stage

4Stage

5

G1

Post Launch Review

Testing and Validation

• Test on: - Product itself - Production process - customer acceptance - economics of the projects

• e.g. In house product test, users at field trials, pre-test the market, revised the business and financial analysis.

Discovery

G2Stage

1

G3Stage

2

G4Stage

3

G5Stage

4Stage

5

G1

Post Launch Review

“Must Meet” & “Should Meet” criteria

Go/Kill point

• Operations & Marketing plans review• Quality of testing• Quality of validation• Financial review• Launch!!

Discovery

G2Stage

1

G3Stage

2

G4Stage

3

G5Stage

4Stage

5

G1

Post Launch Review

LAUNCH!!!

Discovery

G2Stage

1

G3Stage

2

G4Stage

3

G5Stage

4Stage

5

G1

Post Launch Review

Review period = 6-12 months after the product launch

• Review costs• Review profits• Review strengths• Review weaknesses• Review what learned

Discovery

G2Stage

1

G3Stage

2

G4Stage

3

G5Stage

4Stage

5

G1

Post Launch Review

• http://www.extremepark.com.my/parkmap/index.html