Conjoint and new product development BBA

Conjoint and new product development BBA - New Product...

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
New Product Development and Line Extensions Halloran - BUS
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Stages of New Product Development Idea generation Concept development Feasibility screening Concept testing Product development Product testing Market testing Go-no-go decision (throughout) Halloran - BUS
Background image of page 2
Concept Development What makes a good concept? Highlights a “point of pain” Provides a tangible benefit (functional and emotional) that eases the pain Crucial: Support or Reasons why the product can make claim. Examples include: Statistical (4 out of 5 dentists….) Evidential (In clinical trials, Ambient….) Historical (For generations, Hershey….) Ingredients (A full day supply of vitamin and minerals) Expert (Recommended by R. Jarvik, maker of Artificial Heart) Conclusion – secondary benefit or repeat of “pain easer” Halloran - BUS
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Concept Example Halloran - BUS Why does the tea that comes from bottles never taste like real brewed tea? Introducing the new gold standard in bottled iced tea. This great tasting iced tea will remind you of the best glass of tea you’ve ever had because we make it with no compromises. We use only hand-picked tea leaves for the best quality, and then brew them in purified water with a unique blend of minerals at the ideal temperature for protecting the delicate tea leaves and ensuring a clean tea taste. Each bottle is the result of 50 years of our NESTEA tea expertise and has all the healthful benefits of home brewed tea, including anti-oxidants. Now you can enjoy iced tea more without the work of brewing it. POINT OF PAIN PRODUCT INTRODUCTION AND BENEFIT SUPPORT CONCLUSION
Background image of page 4
Common Formal Tests Concept testing Focus groups Surveys Demonstrations Product testing Product tests Discrimination and preference testing Market tests Halloran - BUS
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Important Concept Tests Conjoint Analysis/Concept Optimizer BASES Halloran - BUS
Background image of page 6
Value of Good Design 80% of a product’s manufacturing costs are incurred during the first 20% of its design (varies with product category). Conjoint Analysis is a systematic approach for matching product design with the needs and wants of customers, especially in the early stages of the New Product Development process. Source: Mckinsey & Company Report
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The basic outputs of conjoint analysis are: ² A numerical assessment of the relative importance that customers attach to attributes of a product category ² The value (utility) provided to customers by each potential feature (attribute option) of an offering ² Identification of product designs that maximize market share or other indices. What Does Conjoint Analysis Do? (Measure Importance by Assessing Preferences)
Background image of page 8
² Should we offer our business travelers more room space or a fax machine in their room? ²
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/20/2012 for the course BUS 347 taught by Professor Timholleran during the Fall '11 term at Emory.

Page1 / 42

Conjoint and new product development BBA - New Product...

This preview shows document pages 1 - 10. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online