Preliminary marketcategory assessment consumer interest market size market

Preliminary marketcategory assessment consumer

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! Preliminary market/category assessment – consumer interest, market size, market potential, competition… ! The concept refinement of the idea into a concept, early testing, concept refinement and shaping…. ! Preliminary technical assessment – can we make it, prelim packaging analysis, R&D requirement, manufacturing, inputs and ingredients….
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Gate 2: Concept Screen ! More detailed assessment of key concepts that moved through from ideation – before heavier spending takes place ! Strategic importance and fit ! Product and competitive advantage ! Consumer response and purchase likelihood – basis of forecasts ! Leverage core competences ! Technical feasibility ! Financial concerns – costs, price, rewards
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Stage 2: Business Case ! A detailed investigation involving primary research – market and technical leading to product and project definition, project justification, and projects plans ! A final concept (or several) to assessed and potentially be taken forward to development ! Finalise the financial business case ! Finalise the Marketing business case ! Finalise the Technical business case ! Caveat: nothing is ‘real’ until we try and sell it – so far we have only estimated
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Evaluation Acid Test Questions: Real? Win? Worth it? ! IS THE MARKET REAL? ! What is the potential of the target market? ! What will the product life cycle be? ! IS THE PRODUCT REAL? ! Can it be manufactured (delivered)? ! What will it cost? ! CAN OUR COMPANY BE COMPETITIVE? ! Does it fit our core competences (present or future)? ! Is our advantage sustainable? ! CAN THE PRODUCT BE COMPETITIVE? ! What are its determinant attributes? ! What market share will it achieve? ! WILL IT MAKE MONEY? ! What is the ROI, NPV, etc.? ! When will it break even? ! ARE THERE OTHER BENEFITS? ! Will we gain experience or build relationships? ! What will we gain other strategic advantages? Is it real? Can we win? Is it worth doing? Day, 2008
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Gate 3: Go to Development ! This is the last point at which the product can be “killed” before serious financial commitments are made ! Designing and engineering work ! Plant tooling ! Purchasing plant and materials… ! Gatekeepers here need to really endorse the business case ! Checking the stage activities needed have been undertaken well from ideation to concept to specification ! Checking the quality of the analysis and any testing undertaken ! Checking the assumptions on which forecasts, costs, demand have been built
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Stage 3: Development ! Focused on the physical design and development of the product ! Technical and engineering work ! Lab and in-house tests of function – alpha tests and trials ! Market and consumer analysis continues here – is the market still real, does the customer value what is being developed? ! Outcome is a well developed prototype
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Gate 5: Go to Testing Are we ready to holistically test the whole new product?
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Stage 4: Testing ! This stage validates the entire viability of the project – the product, the production and operations process, customer acceptance, overall economics of the project ! Many tests can be undertake ! In-house product tests – quality and performance in the ‘lab’ ! User, preference, or field trials – does it work under ‘real’ conditions ! Trial, limited or pilot production – debug manufacturing, improve cost analysis !
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  • Three '17
  • new product development, NPD, product innovation

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