prod dev process for exp mkts arj - english

8/3/2019 Prod Dev Process for Exp Mkts Arj - English

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THE PROCESS OF PRODUCT AND

PACKAGING DEVELOPMENT

Rahim Jabbar

19 June 2007

PRODUCT DEVELOPMENT FOR GLOBAL MARKET


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Main Discussion (1)

The Reasons and Scope of Product Development

The Reasons for the Need of Product Development

Some Goals of Product Development

Product Development Stage (PD)

The Cycle of Planning and Implementing Product

Development

Technical and Economical Tests for Each Stages of Product

Development

Assessment ofOpportunity Costs

Key Questions in Product Development

THE PROCESS OF PRODUCT AND PACKAGINGDEVELOPMENT


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Main Discussion (2)

Product DesignDefinition of Product Design

Inputs for Product Design

Consumer Awareness Product Vision

Understanding Product Vision

Understanding Product Concept

Understanding Product DefinitionProduct Design: Vision, Concept and Product Definition



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Main Discussion (3)

Examples of the Format of Product Design

Product Vision

Product Concept

Product Definition

Product PackagingDefinition

Packaging for End Consumer

Packaging for Shipping

Packaging from Marketing Standpoint

Packaging Materials

Packaging for Export Market



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Main Discussion (4)

Principles of Good Designs

Creating Product Design Exercise

Child Toy

Leather Shoes

Muslim(ah) Clothing



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THE REASONS AND

SCOPE OF PRODUCTDEVELOPMENT


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The Reasons for the Need of Product Development

TARGET

CUSTOMER/

CONSUMER

SEGMENT

Product ofCompetitor

B

Product of

CompetitorC

Product of

CompetitorA

Product ofCompetitor

D

Your

Product

MANUFACTURING METHODS&TECHNIQUES

(MANUFACTURINGTECHNOLOGY)

RawMaterials

RawMaterials

CHANGES TO CUSTOMERS,COMPETITOR PRODUCTS, MANUFACTURINGTECHNIQUES AND RAW & SUPPORTING MATERIALS CHANGES THE COMPETITIVE POSITION OF YOURPRODUCT NEEDS CONTINUOUSDEVELOPMENT TO MAKE IT A

PREFERRED CHOICE FOR CONSUMERSKandungan Isi Makalah ini Merupakan Hak Cipta Rahim Jabbar


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Some Goals of Product Development

Kandungan Isi Makalah ini Merupakan Hak Cipta Rahim Jabbar

CUSTOMER SEGMENT OR TARGET MARKET

OLD NEW

P

R

O

D

U

C

T

O

L

D

CONTINUOUSPRODUCTDEVELOPMENT

DEVELOPMENT OF OLDPRODUCTS FOR NEWMARKET SEGMENTS

N

E

W

DEVELOPMENT OFNEW PRODUCTS FOROLD MARKET

SEGMENTS

DEVELOPMENT OF NEWPRODUCTS FOR NEWMARKET SEGMENTS

PRODUCT DEVELOPMENT IS ABSOLUTELY NEEDEDTO STRENGTHEN MARKET POSITION AND TO DEVELOPMARKETS


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SCOPE OF PRODUCT DEVELOPMENT

PRODUCT DEVELOPMENT IS A SERIES OF

ACTIVITIES TO BRING NEW PRODUCT CONCEPTS

INTO A FINISHED RESULT WHICH IS SALEABLE AND

READY TO BE MARKETED



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TECHNICAL STAGES OF

PRODUCTDEVELOPMENT


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THE CYCLE OF PLANNING AND IMPLEMENTATIONOF PRODUCT DEVELOPMENT (PD)

PRODUCTDEVELOPMENT

IDEA GENERATORDEVELOP IDEAS

PRODUCT

DESIGN

PRODUCTMANUFACTURE

PRODUCT

LAUNCHING

RESULTEVALUATION

Continue/Repeat

STOP

Continue/Repeat STOP

Contiune/Repeat

STOP

IS PRODUCTSMOOTHING AND

RENEWALFEASIBLE?

NO!

YES/OK!

FailsTesting

FailsTesting

FailsTesting

YES/OK!

YES/OK!

YES/OK!

?

?

?


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TECHNICAL TESTS FOR EACH STAGE:WHETHER THE IDEAS/DESIGNS ARE

TECHNICALLY FEASIBLE

Are the rawmaterials easy to

obtain?

Can we obtainManufacturing

Techniques and

the necessaryequipment?

Estimate rawmaterials costs

Estimate purchasecosts of equipment

and training

Review whether

the total costsworth the

overall benefits

OK

NEXT STAGE

REVIEW

??

!!!

??


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ECONOMIC/BUSINESS TEST FOR EACH STAGE:COSTS VERSUS BENEFITS

Determine the typesOf costs related to

product development(including

the cost of risk)

Define the benefits

of productdevelopment

Estimate thefinancial value of

all costs

Estimate the

financial value ofall benefits

Review total costsversustotal benefits

OK

NEXTSTAGE

REVIEW

??

!!!

??


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ASSESSMENT : OPPORTUNITY COST

Dont forget about opportunity cost, which ispotential benefits lost if the company does notstart product development

Usually, an insightful Small-Medium-Enterprise (SME) level businessperson will

calculate opportunity costs thoroughly


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KEY QUESTION

The main question of SME business-person isnot whether to conduct product development,but rather :

How can product development be conductedaccording to our business conditions and in amanner that best fits the wants and needs ofthe target market, in order to obtain maximum

effectiveness with the most efficientfunding?.


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PRODUCT DESIGN


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DEFINITION OF PRODUCT DESIGN


Product Design is the result of the product design process(which is a part of Product Development) that consist of aseries of technical activities in three stages as follow:

Understanding inputs on the business opportunitiesof new product designs

Developing Concepts and Product Definitions

Applying the Product Concepts (Making the Product)


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TARGET MARKETSEGMENT:

WHAT ARE THEIRSPECIFIC NEEDS OF

THE PRODUCT

YOUR PRODUCTDESIGN

(To be developed)Strengths & Weaknesses

of your currentproduct

COMPETITORSPRODUCTS

(Existing)

COMPARISON:ATTRIBUTES, UTILITIES,

USES, BENEFITS

COMPETETHROUGHUNIQUENESS

ConsumerInsights

PRODUCT STRATEGY INPUTS FORPRODUCT DESIGN

ProductVision


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CONSUMER INSIGHTS PRODUCT VISION (1)

Awareness and understanding about target

consumers/customers is usually gained through Consumer

Research and Study of Competitors Products.

Research may be Qualitative Research or QuantitativeResearch. (Both require significant funding).

SME Businesses can conduct simple and cheap research

through(1):Observing customers/consumers that use your products and

trying to understand the whats and whys


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SME Businesses can do a cheap research through (2) :

Placing yourself in the consumers/customers shoes (role

playing) and asking yourself what you would want if you

were to use the products for yourself. You can go through the

stages of asking what, how, and why until you find the

essence of what you want out of the product.


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SME Businesses can do a cheap research through (3):

In-depth interviews conducted by yourself of a person

representative of the customer group (perhaps by buying

lunch). The interview is done through staged questions(i.e. what,how, why) until you can figure out what the

interviewee wants and what values are most important to

him/her.


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SME Businesses can do a cheap research through (4):

Studying the products of competitors, if necessary including

taking them apart and breaking them down to understand what

are they made of and the methods of manufacture. This is useful

to compare and find out the strengths and weaknesses ofcompetitors products.

(Story of an entrepreneur whos able to reach the same

conclusion both through high-cost research and throughpersonal interviews and in-depth contemplation which both

eventually become a deep and wide awareness of his product)


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UNDERSTANDING PRODUCT VISION (1)

PRODUCT VISION ANSWERS THE QUESTION:

WHAT KIND OF PRODUCT DO WE WANT TO MARKET?

WHAT ATTRIBUTES ARE NOT AVAILABLE IN OUR AND

COMPETITORS CURRENT PRODUCTS, WHICH WE WILL

THEN MAKE AND MARKET, BECAUSE THEY ARE WANTED

BY THE CONSUMERS?



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UNDERSTANDING PRODUCT VISION (2)

PRODUCT VISION ANSWERS THE QUESTION:

WHAT OR KINDS OF DIFFICULTIES OR DRAWBACKS

CAN BE FOUND IN CURRENT PRODUCTS THAT YOU

WANT TO REDUCE OR ELIMINATE?

(REMEMBER: EVERY CONSUMER KNOWS EXACTLY

WHAT HE/SHE WANTS OUT OF YOUR PRODUCT. AS A

BUSINESSPERSON YOU CERTAINLY WANT TO

STRENGTHEN YOUR POSITION IN THE MARKET. THIS

CAN BE DONE AMONG OTHER THINGS BY

DEVELOPING QUALITY PRODUCTS THAT ARE

PREFERRED BY CONSUMERS.



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UNDERSTANDING PRODUCT CONCEPT

PRODUCT CONCEPT IS A WRITTEN DOCUMENT OFDESCRIPTION/EXPLANATION WITH SCHEMATICS OF A NEW

PRODUCT IDEA OR OF AN IMPROVEMENT OF OLD PRODUCTS.

THE DESCRIPTION/EXPLANATION INCLUDE ATTRIBUTES,

FUNCTIONS, USES AND THE BENEFITS OF THE PRODUCT TO

THE TARGET CONSUMER, ALONG WITH A GENERAL

EXPLANATION OF RAW MATERIALS AND SUPPORTING

MATERIALS USED AND THE METHODS/TECHNIQUES OF

MANUFACTURE (PRODUCTION TECHNOLOGY).



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UNDERSTANDING PRODUCT DEFINITION

PRODUCT DEFINITION IS THE ENLARGEMENT OF THE

PRODUCT CONCEPT WHICH INCLUDE TARGET SEGMENT,

POSITIONING STRATEGY, PRICE RANGE, DESIGN

SPECIFICATIONS, EVEN SALES FORECAST



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PRODUCT DESIGN:PRODUCT VISION, CONCEPT AND DEFINITION

Product Vision:Which consumer problems or

difficulties do you seekto fix by a new product?

What are the drawbacks ofcurrent products in the market

that you want to fix or eliminate?What new things do you

Want to offer?

Product Concept:Explanation and rough

description of new productideas or improvements

to old products.Include attributes, functions,

uses, target consumers,utilities for consumers,

Manufacturingmethods/techniques

Product Definition

Positioning strategy,price range,

design specification,sales forecast

CONSUMER

AWARENESS

ADDED

WITH INPUTS

FROM

MANUFACTURING

ASPECTS

ADDED WITH

INPUTS FROM

MARKETING

ASPECTS


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SAMPLE FORMAT OF

PRODUCT DESIGN


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SAMPLE FORMAT OF PRODUCT DESIGN (1)


Product Vision:We ( Small Business XYZ) intend to produce healthymarkisa juice extract packaged in attractive packagingReason: most markisa juice extract products in the markettoday is not suitable for customers who want to keep theirblood sugar level in check, or for customers who want to

limit their carbohydrate intake, since current productsavailable in the market utilize ordinary sugar as a sweeteneragent.Moreover, markisa juice extract products are typicallypackaged in standard glass bottles (similar to typical soybean sauce products)

(Note: Both aspects mentioned in the product vision are ideasources for the development of markisa juice extractproduct.Juice extract is produced from the squeezing or squashing offresh mature fruits.


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Product Concept:Healthy Markisa juice extract product is to provide the goodnessof fresh markisa fruit flavor, sweet enough for consumers who areconscious of their blood sugar level. This juice drink is a tasty thirstquencher that is also healthy.

This markisa juice extract contains lower levels of calorie since it

uses 75% artificial sweetener aspartame and 25% sugar. (For 1 (one)liter of clear markisa juice extract typically 200 grams of fine sugarflour is used);For the Healthy Markisa Juice Extract, aspartame is added in theamount equivalent to the sweetness of 150 grams of sugar (which isaround 1.5 grams, since aspartame available in the market is

around 100 times sweeter than sugar of the same weight. (The bestquality aspartame is around be 200 times sweeter than sugar ofthe same weight)


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Product Concept (Continued):The benefits of aspartame as substitute for sugar are:Enriching the sauce/taste materials of the drink.Does not cause faster teeth deteriorationUseful for controlling body weightUseful for diabetic patients

This markisa juice drink can become a part of a healthy food &drink diet

Manufacturing technique (Refer to a separate handout paper).Where sugar is required, substitute of its part with aspartameweight of the same sweetness level with the sugar weight

Packaging:Requires attractive bottle design.


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Product Definition:

Positioning Strategy:Healthy Markisa Juice Drink is positioned as a healthy anddelicious thirst quencher product with the unique taste of themarkisa fruit.

Price Range:Price range is around 40% to 60% above the price of regular

markisa juice product (Note : this requires costs and pricecalculation)

Marketing Activity:Marketing communication activity is needed in the form ofhandout brochures distributed to customers outlets

Sales Forecast:Initially only a few hundred fiberites of 24 bottles each will beoffered to selected outles. Sales is predicted to increase byapproximately 10% per month. (Note: Monthly sales forecast isneeded.


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PRODUCT PACKAGING


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DEFINITION OF PACKAGING

AN INTEGRATED SYSTEM TO PRESERVE, PREPARE A

PRODUCT TO BE READY FOR DELIVERY ANDDISTRIBUTION TO END CONSUMERS IN THE MOST

EFFICIENT AND CHEAP MANNER

(W.T.O)

PACKAGING (1)


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PACKAGING FOR END CONSUMERS

- PACKAGING IN DIRECT CONTACT WITH ITS CONTENTS &

ITS SIZE IS RELATIVELY SMALL

AS NEEDED- ACTS TO PROTECT ITS CONTENTS FROM OXIDATION IN

THE OPEN AIR AND TO PROTECT AGAINST HUMIDITY AND

SUNLIGHT THAT CAN AFFECT THE PRODUCTS QUALITY.

PACKAGING (2)


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PACKAGING FOR DELIVERY/TRANSPORTATION PURPOSES

- ACTS AS THE PROTECTOR OF A NUMBER OF PACKAGINGFOR END CONSUMERS DURING HANDLING ANDDELIVERY/TRANSPORTATION PROCESS

- AS A TOOL OF GROUPING AND MOVING

- AS EXTERNAL PROTECTOR WHEN THE PRODUCT ISBEING STACKED IN WAREHOUSES OR STORAGE

FACILITIES

PACKAGING (3)


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INNOVATIVE AND ATTRACTIVE PACKAGING IS USEFUL TO

ATTRACT CONSUMERS ATTENTION.

PACKAGING IS ONE OF THE MAIN COMPONENTS OF BRANDED

PRODUCTS MARKETING. PACKAGING ACT AS ETERNAL

PROMOTER OF THE BRAND.

AS SUCH, GOOD PACKAGING CONCEPT MUST TAKE THE

FOLLOWING ASPECTS INTO CONSIDERATION:

CAPABLE TO PROTECT THE CONTENTS OF ITS PRODUCT

THE DESIGN INCLUDES DECORATIVE COLORED SURFACE

MOTIVESAND DISPLAY

LOGO DAN BRAND

PACKAGING (4)


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PACKAGING MATERIALS CAN BE MADE OF:

1. PAPER / CARTON

2. METAL : ALUMINUM, STAINLESS STEEL

3. GLASS

4. LAMINATED FLEXIBLE PACKAGING5. PLASTIC: SOFT, HARD, RIGID OR SEMI RIGID

CHOSEN MATERIALS DEPEND ON PRODUCTS THE

FUNCTION AND PRICE, EASE OF SHAPING AND EASE OFCREATING DISPLAY AND SURFACE DECORATIVE DESIGNS

PACKAGING (5)


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PACKAGING FOR EXPORT MARKET (1)

THE PACKAGING MUST BE ABLE TO PROTECT THE

PRODUCT UP TO A CERTAIN TIME

LIMIT.(INCLUDING DURING TRAVEL, UP TO THE

REQUIRED PRODUCT EXPIRY DATE)

DESIGN MUST BE ATTRACTIVE AND MATCHES THE

CULTURE OF ITS EXPORT DESTINATION COUNTRY


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PACKAGING FOR EXPORT MARKET (2)

PACKAGING AND PACKING MUST CONSIDER LOCAL

HANDLING IN ORIGIN COUNTRYS PORT ALL THE

WAY TO THE WAREHOUSE AND OUTLET

RETAILERS AT THE EXPORT DESTINATION

COUNTRY.

LABELINGMUST BE COMPLETE AND CLEAR.

THE PACKAGING MUST BE ENVIRONMENTALLY

FRIENDLY


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PRINCIPLE OF PRODUCT

DISPLAY DESIGN


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1. A GOOD PRODUCT DISPLAY DESIGN IS INNOVATIVE, I.E

PRESENTING SOMETHING NEW (NOT MERELY

DUPLICATING)

2. A GOOD DESIGN OF PRODUCT DISPLAY ENHANCES THE

USEFULNESS OF THE PRODUCT

3. A GOOD DESIGH OF PRODUCT DISPLAY IS

AESTHETICALLY CONCEIVED

Source: Adapted from Brauns Mission Statement as quoted by Bruce & Jevnaker, Management of DesignAlliances,Sustaining Competitive Advantage, Wiley, 1998 . (The two statements within brackets are the writers addition)

TEN PRINCIPLES FOR THE DESIGN OF PRODUCT DISPLAY(BRAUNS TEN PRINCIPLES OF GOOD DESIGNS*)


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4. A GOOD PRODUCT DISPLAY DESIGN DISPLAYS THE

LOGICAL STRUCTURE OF THE PRODUCT.

DISPLAY FOLLOWS FUNCTION .(Example : Tooth paste tube)

5. A GOOD PRODUCT DISPLAY DESIGN IS UNOBTRUSIVE

6. A GOOD PRODUCT DISPLAY DESIGN IS HONEST

Source: Adapted from Brauns Mission Statement as quoted by Bruce & Jevnaker, Management of DesignAlliances,

Sustaining Competitive Advantage, Wiley, 1998 . (The two statements within brackets are the writers addition)


- Continued


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7. A GOOD PRODUCT DISPLAY DESIGN IS ENDURING (WILL

NEVER LOOK OLD/OUTDATED)

8. A GOOD PRODUCT DISPLAY DESIGN IS CONSISTENT TO

THE SMALLEST DETAILS




- Continued


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9. A GOOD PRODUCT DISPLAY DESIGN IS ECOLOGICALLY

CONSCIOUS10. A GOOD PRODUCT DISPLAY DESIGN IS OF MINIMALIST

DESIGN




- Continued


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EXERCISE IN

CREATING PRODUCTDESIGN:

CHILD TOYLEATHER SHOESFEMALE MUSLIM

CLOTHING


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CHILD TOY

Sumber: How to Choose Children Toys, 2005


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LEATHER SHOES

Sumber: How Shoes Are Made


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MUSLIM FEMALE CLOTHING

References (1)


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References (1)

Capon, Noel and James M. Hulbert, Marketing Management

in the 21st Century, Prentice Hall, 2001Davidson, Hugh, Even More Offensive Marketing, Penguin

Books, 1997

Hiam, Alexander and Charles D. Schewe, The Portable MBA

inMarketing, John Wiley & Sons, Inc., 1992

Jabbar, Rahim, Approaches towards Segmentation,

Targeting & Positioning, 2002, (unpublished)

Business Week, 2001, The 100 Most Valuable Global Brands

WIPO, Intellectual Property, A Power Tool for Economic

Growth, 2002, internet edition, accessed 2nd August 2005 through:http://www.wipo/int/about_wipo/gen/wipo.dgo/wipo_pub_888/

html.
http://www.wipo/int/about_wipo/gen/wipo.dgo/wipo_pub_888/http://www.wipo/int/about_wipo/gen/wipo.dgo/wipo_pub_888/


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References (2)

Kennedy,Carol, Managing with the Gurus, Top level

Guidance on 20 management techniques, Century BusinessBook, 1996

Cowley, Don, Ed. Understanding Brands, Kogan Page 1991

Aaker, David A. Managing Brand Equity The Free Press,1991

Temporal, Paul, Branding in Asia, 2001

Knapp, Duane E, The Brand Mindset, The Mc-Graw Hill

Companies Inc., 2000

Upshaw, Lynn B., Building Brand Identity, John Wiley &

Sons Inc., 1995.

Arnold, David, The Handbook of Brand Management,Century Business, 1992.

Woodruff, Robert & Gardial, Sarah F., Understanding

Customer Values & Satisfaction, Blackwell Business, 2000.

prod dev process for exp mkts arj - english

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