INTRODUCTION After several new product failures, the company began using customer input to help develop new products. In 1989, the fishing electronics industry is experiencing a downturn, and the company's sales and profits are slipping. The company, which has one product line (depth sounders) and a strong brand (Hummingbird), has conducted substantial market research on three new products. These products are project 901, hummingbird VHF Radio, Locator/ GPS navigator. Of these, project 901 is an extension of the depth sounder product, while the other two would be new product lines for the company. Top management is deciding which one or more of the three new products it should proceed with. In this paper, I will discuss the positive and negative aspects of each product ideas and my recommendations to Techsonic management New product ANALYSIS Listening to customers is the foundation of techsonic corporate structure. As sich techsonic business strategy puts customer needs on top of all initiatives. In this section, I will analyze the each techsonic new product ideas to make a decision of GO/ NO GO for each idea. I will measure each product using the following criteria. 1. Will the Project align with Techsonic business strategy? 2. Importance of the project to the business? 3. Extent to which the product will meet customer needs 4. Market size and growth rate if the product is commercialized? 5. How the project will leverage our marketing, distribution, and technological and manufacturing strengths? 6. Is the project technically feasible? 7. Expected profitability based on NPV? Project 901 This product is an extension to depth sounders. It is aimed at satisfying the important benefits that anglers sought 1. Find ... ... middle of paper ... ...f commercial success is 50% 50% of surveyed Customers are not aware of a locator brand and we cannot be sure if techsonic can produce a product that can address customer's problems. So probability of technical success is 50%. Locator market is very fragmented and we cannot be sure if techsonic locator can be commercially success GPS has a greater chance to be if technically successful if techsonic makes a joint venture with STEL (75%). GPS is a new product with great promise and 50% of surveyed customers are not aware of the product (Hence 50%) PROJECT INCOME STREAM COMMERCIAL COSTS DEVELOPMENT COSTS PROB OF TECH SUCCESS PROB OF COMMERCIAL SUCCESS NPV 901 19.85 12.73 0.61 100% 100% 6.51 VHF 2.95 2.09 0.576 100% 50% -1.2 Locator 2.54 1.99 0.30 50% 50% -1.74 GPS 7.52 2.38 0.76 75% 50% 0.275 Based on NPV analysis, Techsonic should do 901 and GPS projects
Ecton Inc. is a small company that develops innovative solutions in the medical imaging market. The latest device they have developed is the first portable, highly compact, fully digital, echocardiography. Traditional echocardiographies are large pieces of equipment that offer zero mobility. This rendered emergency rooms powerless to the convenience mobility offers. For example, if a doctor needed to receive an image of a patents heart they would have to schedule and move a patient to the location of the echocardiography. In an emergency situation this limits the data doctors require to make an accurate prescription if the patient cannot be move to the machine. By miniaturizing this device Ecton has ushered in a revolution in the medical imaging arena. The next step for the company is to decide how they are going to introduce the product to the market. This study has put me in the driver’s seat and offered me a glimpse of what the CEO was faced with when making this decision. I will provide my opinion regarding the next steps Ecton should perform moving forward with their newly developed disruptive technology.
TerraCog, which has been facing a drop in sales of its GPS products, had decided to meet consumer demands of a product with satellite imagery display by launching Aerial. However, the decision to launch Aerial has met with a roadblock on price. On one hand, the Production and Design & Development departments have expressed their inability to cut down price below $475. On the other hand, Sales department has shown a resistance for a price over $425.
Teletech Systems is extremely risky. It is a new market that could potentially bring in money. However, they only have two stores that are willing to participate in the pilot phase. They still have a patent pending and need 300,000 additional funds to bring the product to market. This is a very volatile purchase.
...ring its product to and giving a new-found idea of technology to millions. This is what the founders of the Dart had in mind when they were creating this special device. With their marketing plan this emphasizes it very precisely and will lead to the necessary acceptance of this new technology advancement.
Perform critical review of the results. Describe success of the marketing decisions and techniques. Synthesize a list of recommendations for marketing and management specialists employed by hi-tech startups in the manufacturing field.
-Customers: The company felt the importance of being customer-centric and innovate by adapting to customer
The tool helps marketers to examine threats in the development of new product and expansion into new markets. One of its major advantage is that it helps organisation minimize risks and exposing them future opportunities. The Y axis of the quadrant which can be seen be...
With technology develops, I believe more and more weakness will be reduced. Being able to weigh both advantages and disadvantages will allow a company to decide if this solution will properly meet their needs.
emerging or new market. It can originate from new technology or new market opportunities (Eliashberg, J., Lilien, G. L., & Rao, V. R. 1997). Literature defines product development as exploiting an untapped market opportunity and turning it into a value product for customer satisfaction. Development and introduction of a new product requires extensive research on understanding customer needs, market structure, emerging trends and analysing the internal & external competitive market environments. To evaluate customer satisfaction previous researches provide strong relationship between customer satisfaction and product quality, product features and value for money. ***
From the risk assessment, it is found that the most critical risk is the implementation of the GPS technology and the management decision on when to release the product to the public. There is less risk in other factors as the rest of the project is based on already available operation of Lawn Solutions ltd. However, as this is an autonomous product and is first of its kind, there is a lot of attention on this product. Thus, the media may play an important role on the marketing side of this project. This combination of risks means that attention needs to be placed on public relations and publicity. The report also documents the recommended steps to ensure the opportunities are taken. This report will be useful for the management in decision making to set priorities and improve the product’s performance in the market.
The eight stages of product development are designed to save time and resources. New product development ideas and prototypes are tested to ensure that the new product will meet customers’ needs and wants. The commercialisation stage is carefully planned to maximise product success, a poor start will affect product sales and could even affect the reputation and image of the new product. Finally in order to learn from any mistakes made, a review of the market performance is needed to access the success of the
Jassawalla, A.R. & Sashittal, H.C. (1998). An examination of collaboration in high- technology new product development processes. Journal
In the following sections, the proposal will review the existing products, provide a detailed description of the design, discuss the feasibility and benefits, as well as conclude the whole project.
TomTom is a massive navigation services and devices provider with a diverse portfolio of products from physical, navigation devices such as the TomTom Go, TomTom One and TomTom Rider to their digital maps and software for iPhone. TomTom is a trusted brand in which 3 out of 4 people recognise and are aware of the brand. The company are a market leader in Europe and 2nd in the US; they credit their success to their technology, large customer base, distribution power and prominent brand image. The company has been investing structurally and strategically in Research & Development to bring new and better products and services to its customers.
Discuss the potential uses that your chosen emerging technology could be put to within the industry.