Introduction to product management

Suresh Paul Antony | IIM Trichinopoly

Agenda
About the course
Theory Assessment Case method Housekeeping issues

Learning philosophy

Course prerequisites Product management Successful products The process Course structure

About the course

Is this a theory course?

Assessment
Class participation & Quiz
20%

Success or failure factors

15%

End-term exam
40%

Strategic planning for new products

25%

Shades of Class Participation

PHYSICALLY PRESENT! You have JUST SKIMMED THROUGH the case. You had a weak grasp of case facts. Your analysis was poor or inadequate. You repeated points. You did not listen to others. And you wasted our time. You gave us FACTS AND MORE some recommendations and justified them as well. Your comment(s) or analysis was / were accurate. You did understand the material but did not extend our thought process or move the discussion forward. AVERAGE THOUGH. Your analysis of relevant case facts and figures was substantive. That helped extend or deepen the discussions and move it forward. You made efficient use of class time. Your articulation extended beyond the case facts, was creative and NOT RUN OF THE MILL. The discussion got lost. Or you gave it a whole new direction. You displayed intellectual leadership and helped the class draw new insights, concepts or frameworks from the cases. WE HAVE LEARNT FROM YOU.

Quiz

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]?

Strategic planning for new products

Choose any organization that recently tested or launched 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

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]

Reading material
Journal articles
Hard copies

Handouts [PPTs]
Soft copies

Additional material
Ask

Where to upload? ACP?

Other house-keeping issues

Course prerequisites
Kotler et al, Principles of marketing
Chapters 7 to 9

Industry speaker Learning teams formation LT presentations

Learning philosophy
What is that?

Successful & failed products

The museum or cemetery?

Some world-class product failures

Edsel [Ford] Corfam synthetic leather [Dupont] Polavision [Polaroid] Heaven's Gate western movie [United Artist] Videodisc [RCA]

TV-Cable Week magazine [Time] PCjr [IBM] New Coke Premier cigarette [R. J. Reynolds] Simplesse fat substitute [Nutrasweet]

And some IND-class ones

Vaccumiser [Real Value] Ganga [Godrej Soap] Moti [TOMCO] Petit Beurre [Britannia] Slimscoop [Amul] PIP [TV] Sparsh [Marico] Vespa [LML] PL170 [APSL] Pride, Blaze [Kinetic] Sunfill [Coca Cola] Street [Hero Honda] Big Bite [Parle] Paloma [Lipton]

How to measure?

How did they succeed?

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 sought for

Serendip
Horace Walpole [17171792] in letter to Horace Mann [28-Jan-1754]
Formed from Persian fairy tale The Three Princes of Serendip whose heroes were always making discoveries, by accidents and sagacity, of things they were not in quest of. Stem
Serendip [Arabic Sarandib, Sanskrit Simhaladvipa

Eureka
In the field of observation, chance favors only the prepared mind [Louis Pasteur] Ability to connect the dots that lead valuable insights Newtons Apple

Serendipity and knowledge

Major role in scientific discoveries & inventions Leap of faith Prerequisites
Open mind Curiosity & the CAT

Failure rates
> 90% concepts fail during development Even fewer considered successful after launch Booz, Allen & Hamilton, 1982
Failure rates 33 - 35%

Association of National Advertisers, 1982

27% of line extensions 31% of new brands in categories [where company already had product] 46% of NPs in new categories fail

Cooper, 1982
31% of industries & 46% of consumer NPs fail

Can this be left to chance?

Company-wide planning process
Envision Develop Produce Test Commercialize Sustain Dispose

Organizational offerings
Satisfy
Needs Wants

Organizational objectives

NPD process
Identify the strategic role of new products, then Marketing Strategy Development Concept Development and Testing Business Analysis Product Development

Idea Screening

Market Testing

Idea Generation

Commercialization

How to succeed?
Learn from past experience
What works? What does not?

Understand systematic approach to planning

To organize process

Assemble toolbox
Ideas Heuristics Tools

Where does it start from?

Vision, Mission, SBU Strategy Opportunity identification, Strategic planning

Customer analysis Competitor analysis

Segments

Product Policy [PLC, Lines, Product-Market Portfolio], The Idea, Branding fundamentals [Awareness, Knowledge, Identity, Personality, Associations, Architecture]

Bundle of Benefits bination Differentiation

Target market

Positioning Concept testing

Tactical branding Product use testing Packaging decisions Test marketing Pre-launch & launch management Product recalls Brand equity

Technical development & testing

Marketing development & testing

Commercialization & Launch

And now what questions do we have?

Course content Team composition Project deliverables
DDs

Case discussion in-class Class representative 2-way communication

Thank you.