New Product Development

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New Product Development

• Team Presenters
• Ka Man Chan (Joyce)
• Cheng-Ting Chen
• Kwan-Han Chen
• Thomas Hoffer

2
Presentation Outline

• Two New Product Ideas
• Industry Focus
• Strengths
• Problems
• Trends
• Consumer Segments
• Identification
• Evaluation
• Selection
• Description
• Product Innovation Charters (PIC)

3
Two New Product Ideas

• First Product Concept
• Multifunctional writing utensil
• Features
• Pen
• Pencil
• Highlighter
• Ruler
• LED light
• Eraser

4
Industry Focus Strengths

• Multifunctional Pen
• Convenience All basic writing utensils and
  useful accessories on one unit
• Compact Fits into any purse, pocket, desk
  compartment
• Stylish Modern and sophisticated appearance
• Reusable Ink refills, battery replacement
• Pricing Potential cost reductions for consumer

5
Industry Focus Problems

• Multifunctional Pen
• Thickness Features may make pen difficult to
  grasp/hold
• Weight Features could make pen difficult to
  maneuver
• Unpopular Features Some options on the
  instrument could be undesirable by consumers

E R G O N O M I C S
6
Industry Focus Trends

• Writing Instrument Competitive Market
• Primary Competitors
• BIC
• Pentel
• Avery Dennison
• Sanford (Paper Mate)

7
Industry Focus Trends

• Additional industry perspectives/outlooks
• Mature industry

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Industry Focus Trends

• Additional industry perspectives/outlooks
• History
• Modern Pens (circa 1900s to present)
• Fountain pens
• Ball point pens
• Erasable pens
• Fly pens

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Industry Focus Trends

• Additional industry perspectives/outlooks
• Multifunctional Pen Uncommonly seen writing
  utensil in the United States
• Consumers still appear to prefer traditional
  writing instruments
• Example Students still commonly use a wooden
  pencil instead of an mechanized pencil

Comparable Example BIC E3 3 in 1 Pen
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Consumer Segments Identification Evaluation
Writing Utensil Users
Individual Writing Utensil Users
Corporate Writing Utensil Users
Basic Writing Utensil Users
Multi-Functional Writing Utensil Users
Basic Writing Utensil Users
Multi-Functional Writing Utensil Users
Office Workers
Teachers
Professionals
All Students
Stay-at-Home Workers
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Consumer Segments Selection Description

• Promising writing instrument consumer market
• Students Pre-college aged, college aged
• Stay-at-Home workers Telecommuters
• Office Workers Secretaries, clerks, managers
• Teachers Professors
• Professionals Engineers, accountants, doctors,
  nurses, designers

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Consumer Segments Example

• The Percentile of Average Age for Usage

P E R C E N T
Age
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Product Innovation Charters (PIC)

• Multifunctional Pen
• Background The introduction of this new product
  would improve upon the existing
  competition/alternatives by offering a more
  compact and convenient instrument able to satisfy
  consumers most basic writing needs.
• Focus We understand the consumers need of pens,
  highlighters, erasers, rulers and even an LED
  light in a convenient and compact form. Using
  the latest technology to minimize and compress
  each component into a single unit, it will be
  more compact and convenient to for students or
  businessmen to carry. We hope to be recognized
  as the most innovative, technically competent
  company in these sorts of products.

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Product Innovation Charters (PIC)

• Multifunctional Pen
• Goals-Objectives In the short term, our company
  is hoping to gain brand recognition with the
  products successful introduction to our target
  markets. Our long term goal is to persuade 95
  of office retailers in the United States with our
  target market customers to display and sell the
  product.
• Guidelines We will take existing comparable
  products and improve upon their functionality for
  its entry into the marketplace. Necessary care
  will be taken to establish patent-protected
  positions in this new product development.

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Two New Product Ideas

• Second Product Concept
• Device combining the processes of washing and
  drying clothes in one cycle

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Industry Focus Strengths

• Combined Washer and Dryer
• Convenience
• Single cycle for all washing and drying processes
• Saves time Elimination of transferring clothing
  between machines
• Compact Saves valuable living space

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Industry Focus Problems

• Combined Washer and Dryer
• Drying Time Moisture caught in drum could keep
  clothes damp
• Smaller Loading Size Compact unit
• Maintenance Lack of support due to technicians
  unfamiliarity with new device
• Price New technological development (High RD
  costs and no current economies of scale) will be
  expensive for consumers to purchase

18
Industry Focus Trends

• Washer and Dryer Competitive Market
• Primary Competitors
• General Electric
• Whirlpool
• Frigidaire
• Haier
• LG Electronics
• Thor Appliance
• Quietline

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Industry Focus Trends

• Additional industry perspectives/outlooks
• Mature industry

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Industry Focus Trends

• Additional industry perspectives/outlooks
• History
• 1970 Washer and dryer combination emerged
  (mainly for commercial use)
• Unpopular Power usage, extended drying time
• Currently Combination units more efficient and
  effective

Quietline
Thor
Examples
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Consumer Segments Identification Evaluation
Washer and Dryer Consumers
Household Consumers
Business Consumers
Consumers Living In Apartments
Consumers Living In Houses
Fitness Center And Hotels
College Dorms
Married Couples
Single Parents
Single Adults
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Consumer Segments Selection Description

• Promising washer and dryer consumer market
• Fitness Center and Hotels
• Married Couples Mother and father households
  with children
• Single Adults Never married or divorced and
  living in apartments
• College Students College dorms

23
Consumer Segments Example

• Newer Vs Old Fashion Machines

P E R C E N T
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Product Innovation Charters (PIC)

• Combined washer and dryer
• Background A major growth opportunity for a new
  device is combining the processes of washing and
  drying clothes (without moving garments from the
  washer to dryer). It will be a differentiated
  product due to its many advanced features,
  reducing the average time of doing laundry.
  Although other all-in-one washer and dryers
  exist, none will be comparable in features,
  efficiency, or quality.
• Focus The technology dimension looks to provide
  a quality, high efficient washer/dryer combo unit
  to the market. For the market dimension, our
  product will be able to enter a market where the
  competition has regrettably overlooked. The
  introduction of this new product would improve
  upon the existing competition/alternatives by
  offering consumers a faster, compacter,
  convenient and energy efficient solution to
  cleaning clothes.

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Product Innovation Charters (PIC)

• Combined washer and dryer
• Goals-Objectives We want our target market
  customers to save time and energy costs by
  purchasing the product. In the short term,
  successful introduction of the product will be
  achieved if our product gains 90 of our target
  market awareness. In the long run, the company
  is looking for a 10 increase in market share.
• Guidelines It will be a differentiated and
  adaptive product because of its new features that
  reduce the average time of doing laundry. Using a
  system of selective distribution allows producers
  to have more control over the product to avoid
  further problems created by multiple retailers,
  such as lowering the price without a limit to
  obtain more customers.

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• Questions or Comments?