PRODUCT MANAGEMENT

What is Product Management?

• Product Management is the process of designing, building, operating and maintaining a good or service

• Product management ensure that production not just manufacturing product but creating a product that people will want to buy and continue to use

Cont’d

• Production is a heart of product but product management ensures that costumer’s voice not rush

• Product management adds thing like marketing and customer support to create complete product

• Product Management is performed by multi-disciplinary team whose goal is building, operating and maintaining product

• Team members may include product managers, software developers, designer, engineer, financial analyst, marketer etc

Product Manager’s Responsibility

• Defining and planning product lines and product enhancements

• Managing product contract and sales• Setting strategic direction based on

customer needs and business goal• Interpreting strategic goal into

operational tasks• Evaluating risks and trade off

Cont’d

• Proposing contingency plans• Analyzing business process and

creating applications to improve or support those process

• Branding• Working with designer to create look

and feel• YOU can add the rest by yourselves

What is new product?

• New to the world products• New category entries• Additions to product lines• Product improvements• Repositioning

Design must reflect the practical and aesthetic in business but above all... Good design must primarily serve the people (Thomas J. Watson)

3 Steps to Success

• Understand the consumers• Know what they want• Give it to them

What do you think with these products?

Understand the Customers

• Respecting them• Putting yourself in their shoes

Know What They Want

• What is important to them?• What motivates them?• What are their hopes?• What are their fears?• What are their dreams?• What are their aspirations?

Basic Ideas or Concepts

• The complexity of operations and decisions.

• Product innovation must be pushed.• The conflicting masters of new

products management:Value : Quality, Time, Cost

Career tips:

• Be multifunctional, not functionally parochial

• Be risk takers.• Think comprehensive • Be a combination of optimist and realist• Develop your creative skill both for new

product concept and for new ways of doing things

• Be comfortable in chaos and confusion

The New Product Process

The Facts…

• 50 – 80 % of new products fail (the greater the rate of new product development, the higher the failure rate )

• Although there are numerous reasons why new products fail, faulty management and planning are at the core of most failures.

• Therefore, managing the new product development process is a key to a healthy organization.

The Process

1. Opportunity Identification and Selection

2. Concept Generation3. Concept/Project Evaluation4. Development5. Launch

Basic New Products Process

Phase 1: Opportunity Identification and Selection.

Identify the opportunity as a part of business operation, see the opportunity of new product, sensitive to the marketplace, research, evaluate, and grading the opportunity.

Phase 2: Concept Making

This phase is started with selecting opportunity which has highest potentiality by involving customer. Collecting the new concept and find opportunity to get the best new product.

Phase 3: Project / Concept Evaluation

Evaluate the concept of new product from technical, marketing, and financial aspect.

Phase 4: DevelopmentA. Technical Support

Making prototype design, test, and validity. Start production & market testing.

B. Marketing Support

Prepare strategies, tactics, and launch marketing plan. Prepare business plan and product augmentation (packaging, brand, etc)

Phase 5: Launch

Commercialize plan and prototype from development phase, start to distribute and sell new product, manage to launch product to get the objectives that have been agreed in final business plan.

The Concept Life Cycle

• Started from opportunity (the real start) to the profit (the real finish).

Product Life Cycle

• All products has its time • Profit fluctuates based on product life

cycle • Each stage need different strategies

in each functions (marketing, financial, operational and human resources)

To Improve Product Life Cycle

1. Increase product using time by offering many benefits

2. Offering alternatively other function of product

3. Modify existing product in term of product content, packaging, volume, benefit etc

4. Targeting new customer

Fail in new market?

• Research from Deloitte & Touche has shown that 95% of new products have failed in new market.

• For example: Tara Nasiku

• Other example?

Way to new product process

Kategori produk

existing new

B

R existing

A

N new

D

Line extension Brand extension

Multibrand New brand

Strategies

1. Line extension:- Pantene shampoo: sachet- Nescafe: non cafein, espresso- Coke: cherry coke, diet coke

2. Brand extension:- Nuvo soap hand sanitizer- Cadburry chocolate ice cream- Pepsodent toothpaste candy

Strategies

3. Multibrand:

- Toyota corolla: brand Lexus

- Qantas airlines: Jetstar (economy class)

4. New Brand:

- Coca cola: Frestea

- Bintang tujuh: Extra Joss