01. Introduction to Product Management Decision-making

7/27/2019 01. Introduction to Product Management Decision-making

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Introduction to product

management

Suresh Paul Antony | IIM Trichinopoly


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Agenda

About the course Theory

Assessment

Case method Housekeeping

issues

Learningphilosophy

Courseprerequisites

Product

management Successful

products

The process

Course structure


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About the course

Is this a theory course?


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Assessment

Class participation &Quiz

20%

End-term exam

4 0%

Success or failurefactors

15%

Strategic planning

for new products

25%


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Quiz


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Success or failure factors

Select two products or service, recently introduced into market[test, regional, national or international].

You call one of these as successful and the other not so successful.

Discuss in your report

Organizational and product portfolio background / history

Product's components [Core, Tangible, Augmented] Classification of new product [aka Booz et al scheme, Newness to firm and /

or market]

Why did the organization develop this product?

Key reasons for success or failure

Why would you call this product a success or failure?

What would have helped to make it succeed [in case of failure] or better

succeed [in case of success]?


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Strategic planning for new

products

Choose any organization that recently tested orlaunched a new product.

Newspaper / magazine clippings as relevant.

Corporate mission or strategic arena

Implications for new product development

Corporate goals and objectives

Situational analysis

New product goals

Degree of innovativeness

Precedence [Innovation vs. imitation]

Trade offs [Time or quality or cost or any other]

Screening criteria


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Case method

Breadth of situations & contexts Illustration of practices

Some best others not so best

Geographies

Asia [02], Europe [02], North America [11]

Industries

Auto [03], B2B [04], B2C [07], Online [02]


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Reading material

Journal articles Hard copies

Handouts [PPTs]

Soft copies

Additional material

Ask

Where to upload?

ACP?


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Other house-keeping issues

Course pre-requisites

Kotler et al,

Principles of

marketing Chapters 7 to 9

Industry speaker Learning teams

formation

LT presentations


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Learning philosophy

What is that?


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Successful & failed products

The museum or cemetery?


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Some world-class product

failures Edsel [Ford] Corfam synthetic

leather [Dupont]

Polavision[Polaroid]

Heaven's Gatewestern movie

[United Artist]

Videodisc [RCA]

TV-Cable Weekmagazine [Time]

PCjr [IBM]

New Coke Premier cigarette

[R. J. Reynolds]

Simplesse fatsubstitute[Nutrasweet]


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And some IND-class ones

Vaccumiser [RealValue]

Ganga [GodrejSoap]

Moti [TOMCO] Petit Beurre

[Britannia]

Slimscoop [Amul] PIP [TV]

Sparsh [Marico]

Vespa [LML] PL170 [APSL]

Pride, Blaze[Kinetic]

Sunfill [Coca Cola]

Street [HeroHonda]

Big Bite [Parle] Paloma [Lipton]


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How to measure?


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How did they succeed?


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Serendipity

Find something I didnt expect to find Happy accident

Aptitude for making desirable

discoveries by accident

Good fortune; luck

Faculty or phenomenon of finding

valuable or agreeable things not soughtfor


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Serendip

Horace Walpole [17171792] in letter toHorace Mann [28-Jan-1754]

Formed from Persian fairy tale The ThreePrinces of Serendip

whose heroes were always makingdiscoveries, by accidents and sagacity, ofthings they were not in quest of.

Stem

Serendip [Arabic Sarandib, SanskritSimhaladvipa


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Eureka

In the field of observation, chance favorsonly the prepared mind [Louis Pasteur]

Ability to connect the dots that lead

valuable insights Newtons Apple


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Serendipity and knowledge

Major role in scientific discoveries &inventions

Leap of faith

Prerequisites Open mind

Curiosity & the CAT


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Failure rates

> 90% concepts failduring development

Even fewer consideredsuccessful after launch

Booz, Allen &Hamilton, 1982 Failure rates 33 - 35%

Cooper, 1982 31% of industries &

46% of consumer NPs fail

Association ofNational Advertisers,1982 27% of line extensions

31% of new brands in

categories [wherecompany already hadproduct]

46% of NPs in newcategories fail


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Can this be left to chance?

Company-wideplanning process

Envision

Develop Produce

Test

Commercialize

Sustain

Dispose

Organizationalofferings

Satisfy

Needs

Wants

Organizational

objectives


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NPD process

IdeaGeneration

ConceptDevelopmentand Testing

MarketingStrategyDevelopment

IdeaScreening

BusinessAnalysis

Product

Development

MarketTesting

Commercialization

Identify the strategic role of new products,

then


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How to succeed?

Learn from past experience What works?

What does not?

Understand systematic approach toplanning To organize process

Assemble toolbox

Ideas Heuristics

Tools


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Where does it start from?

Vision, Mission, SBU Strategy


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Opportunity identification, Strategic planning

Competitor

analysis

Bundle of

Benefits

Differentiation

Customer

analysis

Segments

Target market

PositioningConcept testing

Product Policy [PLC, Lines,

Product-Market Portfolio],

The Idea, Branding

fundamentals [Awareness,

Knowledge, Identity,

Personality, Associations,

Architecture]

Tactical branding

Product use testing

Packaging decisions

Technical

development

& testin

Marketingdevelopment

& testinTest marketing

Pre-launch & launch management

Commercialization

& LaunchProduct recalls

Brand equity

And now what questions do we


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And now what questions do we

have?

Course content

Team composition

Project deliverables DDs

Case discussion in-class

Class representative 2-way communication


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Thank you.

01. Introduction to Product Management Decision-making

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