Day 30 - New Products revised.ppt

Day 30 - New Products revised.ppt - as you do for your...

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Product Development in MB Day 30
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Product Development in MikesBikes: which can be filled with one of: (1) a new road bike, (2) a new youth bike, or (3) a new mountain bike. Each has its own unit variable costs, style & technical specifications. All have development costs of $1 million. In future rounds, you can alter the style & technical specifications which can impact the unit costs.
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In this example, the road bike (Annihilator) has development costs of $1 M, a projected unit cost (COGM) of $338, style specs of 29 and tech specs of 57. To introduce the road bike you need to select that segment, then click on the design below “Available Designs”, and click apply. Then, don’t forget to….
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… find the new menu listing under Product Marketing for that new road bike and enter pricing, advertising etc. decisions for that new model just
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Unformatted text preview: as you do for your current mountain bike. Of course, when you add a new product, some of your other decision screens will change to include that new product. For example, you will need to plan adequate capacity for both products and produce some of your new product as well as the old one. A second option is to launch a youth bike. This screen shows the youth product plan selection. A third option is to add a second mountain bike. But before you do so, consider the effect a second mountain bike might have on your current mountain bikes sales. Finally, you can also develop an existing bike, by changing its design or abandoning it entirely. This is done through the Development decision screen. To open this screen, expand the current Adv6 (your mountain bike) menu item and click on Development....
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Day 30 - New Products revised.ppt - as you do for your...

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