【正文】 roducts New to World New to Company ? Repositioning ? Line Extensions ? Breakthroughs—Major Product Modifications ? ―Me Too‖ Products New Products–3 New Products as Part of Corporate Strategy Markets Products Existing Existing New New Market Peration Market Development New Product Development (Diversification) New Products–4 The New Product Development Process Design Identifying customer needs Sales forecasting Product positioning Engineering Marketing mix assessment Segmentation Opportunity Identification Market definition Idea generation Testing Advertising amp。 Competitor monitoring amp。 4 180。rr Environmental is developing a new air pollution control system (thermal oxidizer) to pete against existing offerings from Waste Watch, Thermatrix, and Advanced Air. Key offering attributes: ? Thermal efficiency ? Delivery time ? List price ? Delivery terms Q: What to offer? Who will buy/who to target? Where will share e from? New Products–35 New Products–36 Attributes ? Price (4 options) ? Delivery_terms (4 options) Efficiency Delivery time List Price Exceed by 9% 6 months $600k Exceed by 5% 9 months $700k Meets target 12 months $800k Short by 5% 15 months $900k Delivery terms Installed, 2year guarantee Installed, 1year guarantee Installed, service contract FOB seller, service contract A total of 256 (4x4x4x4) different offerings can be designed from these options! An Example Conjoint Study: Air Pollution Control Equipment ? Performance specs (4 options) ? Delivery time (4 options) New Products–37 Market Share Computation: (Air Pollution Control Equipment) Sunoco Mattel ICI Base 0 0 0 Meets target 5 10 10 Exceed 5% 35 0 40 Exceed 9% 40 0 50 12 months 20 5 3 9 months 30 20 8 6 months 40 10 10 $800k 5 20 2 $700K 8 35 5 $600K 10 50 10 Inst_ser 6 5 10 Inst_1Yr 8 10 20 Inst_2Yr 10 20 30 Customer’s Utility New Products–38 ? Market consists of three products and three customers Product Market Share Computation (Air Pollution Control Equipment) Waste watch Thermatrix Advanced Air Performance specs Exceed 5% Exceed 20% Meet Specs Delivery time 9 months 9 months 6 months List Price $800k $900k $700k Delivery terms FOB_ser Inst_1Yr Inst_ser New Products–39 Computed Utility for Products Market Share Computation: (Air Pollution Control Equipment) Waste Watch Thermatrix Advanced Air Sunoco 70 78 61 Mattel 40 30 75 ICI 50 78 40 ? Maximum Utility Rule: If we assume customers will only buy the product with the highest utility, the market share for Thermatrix is 2/3 and 1/3 for Wahlco. ? Share of preference rule: If we assume that each customer will buy each product in proportion to its utility relative to the other products, then market shares for the three products are: Waste Watch: % Thermatrix: Advanced Air: New Products–40 Identifying Segments Based on Conjoint Part Worths () Analyze file in Cluster Analysis to obtain the above results. New Products–41 Members in Each Segment Segment 1. Companies in this Segment include ? Cummins Engineering, Illinois Tools, Mattel, NesteResin, Ralston Purina, New World Technologies, Baltimore Gas, Applied Coatings, Pharmasyn, and Thermal Electric. ? These are smaller panies that operate in industries without major pollution problems. They want an equipment that meets EPA efficiency target, medium delivery times, have high price sensitivity, and require installation and warranty. New Products–42 Members in Each Segment Segment 2. Companies in this Segment include ? ICI, Mobil, Maytag, Texaco, Union Carbide, Dow Chemicals, Boise Cascade, and 3M. ? These are large chemical and paper panies that have pollution issues to deal with. They want an equipment that Exceeds EPA efficiency target, have long delivery times (perhaps for installation in new factories that they build), have moderate price sensitivity, and do not require installation help or warranty (FOB). New Products–43 Members in Each Segment Segment 3. Companies in this Segment include ? Deere, Intel, Air Products, Sunoco, HP, Conagra, KimberlyClark, Hershey, and Westinghouse Electric. ? These are large panies that seem to operate in industries with less severe pollution problems. They want an equipment that Exceeds EPA efficiency target, prefer quick/medium delivery, have low price sensitivity, and moderately prefer installation and warranty. New Products–44 Other Aspects to Consider ? Incorporate revenue potential of a product ? Market share ? Incremental margin over base product ? Design optimal product by segment ? Segment 1 (Value segment): A product that meets EPA target, with delivery of 6 months, priced at 600K, and with installation and 2year warranty has the potential to get 42% share of the market and good revenue potential against the three existing petitors. ? Segment 3 (Premium segment): A product that exceeds EPA target by 5%, with delivery of 9 months, priced at 700K, and with installation and 2year warranty has the potential to get 31% share and high revenue potential. New Products–45 Situations Where Conjoint Analysis Might Be Valuable ? The new concept involves important tradeoffs affecting design, production, marketing, or other operational variables. ? Product/service is realistically deposable into a set of basic attributes. ? Product/service choice tends to be high involvement.