PM 2nd Stage

7/30/2019 PM 2nd Stage

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Product ManagementWildcraft Stage-3


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ContentsPros and Cons of the New Ideas ............................................................................................................. 3

Multi tool pad ..................................................................................................................................... 3

Mini shaver cum toothbrush............................................................................................................... 3

Detachable lens for Mobile Cameras specifically Samsung ................................................................ 4

Bluetooth smart lock ........................................................................................................................... 4

RFID tags for Luggage .......................................................................................................................... 5

Idea Screening ......................................................................................................................................... 5

FORM, TECHNOLOGY AND BENEFITS ...................................................................................................... 6

Form: ................................................................................................................................................... 6

Technology: ......................................................................................................................................... 6

Benefits: .............................................................................................................................................. 6

Full Screening .......................................................................................................................................... 7

Scoring Matrix ..................................................................................................................................... 7

Profile Sheet ........................................................................................................................................ 8

The Analytic Hierarchy Process ........................................................................................................... 8

Product Protocol ..................................................................................................................................... 9

Must Meet Criteria ............................................................................................................................ 11

Should Meet Criteria ......................................................................................................................... 11

Design .................................................................................................................................................... 13

Product Architecture ......................................................................................................................... 13

Concept Evaluation ............................................................................................................................... 14

The Risk/payoff Matrix ...................................................................................................................... 15

A-T-A-R model ................................................................................................................................... 15

Information Requirement Planning Table ........................................................................................ 16


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Pros and Cons of the New Ideas

Multi tool pad

Pros Contains all basic tools required for a

trekking/adventure trips

Smaller and compact version of avictorinox multi tool kit

Fit anywhere inside Ex : Wallet Presence of knife gives additional

safety factor in unknown territories

High price is justified by metalquality following international

standards Product is tailor-made for adventure

sports/trekking which goes with

companys existing product line

Cons Lack of experience in quality metal

tool production like Knives

Mini shaver cum toothbrush

Pros

Easy to carry as it is a size of toothbrush

Multiple Replaceable heads of toothbrush and shaver, which allows

multiple people usage

No need to carry tooth paste andsaving foam

Beneficial for regular travellers

Cons

Wont fit foradventuresports/trekking

o Less emphasis for personal hygieneduring the trips

o Less beneficial for short durationtrips

Doesnt goes with companysadventure image.


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Detachable lens for Mobile Cameras specifically Samsung

Pros

Reduces the risk of carrying DSLRcameras and Pointandshoot cameras

Reduces the bulk factor which is seenin DSLR cameras

Compatibility with all mobile phoneswith cameras of mega pixels 5 or

more

Helps in good clarity captures Sturdy

Cons

Wont cater other than Samsungmobile users

Indians still consider as carrying aDSLR camera as a style and status

symbol

Bluetooth smart lock

Pros

Provides security to the valuables keptinside the baggage

Caters to all segments of travellers

Additional advantage for the existingproduct line as it has a good synergy

with them

Good value for money compared totraditional locks

Upgrading consumers from traditionallocking to smart locking system

Any cell phone with Bluetooth can beused as the Key however the PIN

would be a secret only to the owner

Gives an alert/notification if anyonetries to breach the lock

Cons

Battery of the cell phone should notrun out of charge


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RFID tags for Luggage

Pros

Help people who have forgettingtendency

Assure secure travelling with ease Gives an alert if someone is taking the

RFID attached item out of the radius

of lock centre

Bundling with existing product line

Cons

Strong competition from existingcompanies

Can create burden to certain users inthe process of attaching tag to each

item

Idea Screening

Wildcraft Ltd. is trying to launch a new product into familiar market and wants a preliminary

testing of the ideas. After the detailed interview, we have scaled down to launching only

Bluetooth Smart Lock in the Mysore market. Though the company has a higher kill rate of

ideas, it is visible that the products like Multi tool pad, RFID tags, Mini Shaver cum

toothbrush does not have an equally competent environment to be launched as compared to

Bluetooth Smart Lock.

Thus we will now be passing Bluetooth smart lock through a series of product screens, to

ensure the commercial viability and technological soundness of the product.

1) Growth Screen

The market potential is high and untapped. Estimated growth of Bluetooth smart lock is

supporting the new idea. This idea gives the company an opportunity to grow as this product

will give user a true sense of security which can complement the sales of companys existing

product line

2) Category Screen

The product is new to market, that means there will be low competition to offer and hence the

product will pass the category screen. The company can capitalise on the first mover

advantage as there is no company presently offers such a product.


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3) Strategic Role Screen

The Company is already an established player in travel equipment/accessories. This product

will help the company to achieve the strategic goal which is to become a market driven

company with innovation at its heart. The company is mainly aiming the tourist and

travellers. Bluetooth smart lock is to be priced at Rs. 750 which is affordable for the customer

as it ensures security while travelling.

4) New Product Screen

Bluetooth smart lock is new to the market product and Company already has a good number

of loyal customers. In other words the Company knows its market.

5) Financial Screening

India being an IT driven country, application developers are not so expensive and raw

materials such as electronics items are easily available also. This will help us to lower the

total cost of production. This ensures bringing down of the price of the new product which

makes it appealing for the consumers.

FORM, TECHNOLOGY AND BENEFITS

FTB analysis for Bluetooth Smart Lock is as follows:

Form:Bluetooth Smart Lock: In todays day and age, security is of great concern especially while

travelling. A new product developed by Wildcraft uses Bluetooth to connect your Smart

phone and your lock which is attached to your bag pack. The idea behind Bluetooth Smart

Lock is that, by using your smartphone you gain more flexibility and security to lock and

unlock your bag pack. Unlocking a bag pack with a smartphone remotely is convenient by

itself but with Bluetooth Smart Lock you can instantly know when someone tries to unlock

your luggage. The locking mechanism would be using a four PIN passcode. It will give user a

true sense of security in case they fall asleep or leave the luggage on their travelling vehicles

like cycles and bikes and also public transport like long distance buses.

Technology:

Need for technology is to convert the product concept into the final new product. The device

isUser friendly which involves an application in the mobile phone which connects to the lock

via Bluetooth. Bluetooth smart lock is compatible with any Bluetooth enabled mobile phone.

Benefits:

There are many benefits which customer can look on Bluetooth Smart Lock. It can be used

for locking baggage as well as cycles etc during adventure trips and during travels. It can be


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used for normal locking purpose also as the main aim of the product is to update customers

from traditional locking system to smart locking technique.

Full Screening

Scoring Matrix

Values

FACTOR 4 point 3 point 2 point 1 point

Competencies/skills Highly

competent

Competent Less competent Not competent

Technical

complexity

Highly

complex

Complex Less complex Simple

Access to

technology

Easily

accessible

Probably

accessible

Maybe

accessible

Not accessible

Manufacturing

capabilities

Very Good Some Little

Customer/market

needs

Much Some Little None

Customer paying

capacity

High Some Less None

Raw material

supply

Easily available Probably

available

Maybe

available

Not available

Environmental risk None Less Some High

Factor Bluetooth Smart Lock Normal Locks

Technical Accomplishment

Competencies/skills 4 3

Technical complexity 4 1

Quality Product 4 3

Speed to Market 3 4

Access to technology 4 1

Manufacturing capabilities 2 3Commercial Accomplishment

Customer/market needs 3 4

Distributors 4 4

Filling need 4 2

Customer paying capacity 3 3

Raw material supply 3 4

Environmental risk 3 1

TOTAL 41 33


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From the analysis, it clearly shows the company should launch this product in the market

which accomplishes the task of upgrading consumers from traditional locking system to

Smart locking techniques.

Profile Sheet

This sheet graphically arranges the Five-point scorings on the different factors.

Factor 1 2 3 4 5

Market size .

Market growth .

Distribution capacity .

Market capability .

Manufacturing capacity .

Marketing capabilities .

Engineering capability .

Financial capability .

Supply options .

Strategic fit .

The profile sheet approach confirms the need and advantage of launching the new concept as

it strategically fits to the companys existing product line and business.

The Analytic Hierarchy Process

This technique systematically gathers expert judgment and uses it to make optimal decision.

Market Fit:

As Bluetooth smart lock is new to the market, it will have the first movers advantage in the

city. Logistics of wildcraft is efficient which makes the products available everywhere.Bluetooth smart lock is to be priced at Rs. 750 which is affordable for the customers which

ensures security while travelling. As Mysore and whole of India is becoming an attractive

destination for tourists and travellers the prevailing opportunity can be utilised.

Technical Fit:

The proposed product is technology driven which requires skilled application developers. The

company can outsource the development of application as India offers IT services in a

comparatively less price. Wildcrafts product designing department can create a new lock

system which goes with the adventure image of the company.


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Financial Risk:

Wildcraft have to keep in mind about labor cost, outsourcing cost, engineering capability,

geographical area etc. to avoid the losses and thus ensuring the feasibility of the new idea.

Product Protocol

Target market:

Ultimate : Adventures people who travels a lotProduct positioning

Engineered for maximum securityProduct attribute(benefits if possible):

The devise will be unlocked within two second once the password is entered E-key will to be provided to family, friends and visitor who have compatible

Bluetooth devise

It will be small, portable, cheap, and effective.Competitive comparison:

As the product will be new to the market, the product is first of a kind.Augmentation dimension:

Generous warranty Education about the product to the customer

Timing:

As the product is new to the market, the product will be launched sooner and will be sold

through exclusive outlets.

Marketing requirement:

The launch of new product will be campaigned through local daily newspaper, radioand regional television channel.

We will need a sales forecast for this introduction. The positive experience of social confidence will be shown to the customer because

of use of smart lock.

Financial requirement:

The entire funding for the Development / Launch phase / Manufacture / Marketingand Sales / Distribution costs for its first two years of operation will be funded

through reserve cash and loan from the financial institution.


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Production requirement:

During initial period the raw will be out sourced and once the demand for the productincreases the company will built its own plant to meet the require demand.

As company is known for its quality products, quality standards will maintains for thenew product.

Regulatory requirement:

The product will adhere to regulatory framework frame by the state government.Corporate strategy requirement:

Corporate strategy is driving this project, as we are known for adventure and outdoorgear company centred around outdoor activities like camping, mountain climbing,

trekking and backpacking; we seek diversification of markets, enhanced reputation for

innovations, and sustainable margins.

Potholes:

As it is technical product sometime it may happen that the lock will not respondsometimes to some Bluetooth devises.

Acceptability of electronic locks in Mysore Market.


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Must Meet Criteria

Criteria Normal lock Bluetooth Smart Lock

Strategic alignment No Yes

Existence of market need Yes Yes

Likelihood of Technical

Feasibility

No Yes

Product advantage Yes Yes

Environmental health and

safety policies

Yes Yes

Return versus risk No Yes

Show stoppers No Yes

Should Meet Criteria

VALUES

4 Points 3 Points 2 Points 1 Point

Much Some Little None

Factors Normal lock Bluetooth

Smart lock

1.STRATEGIC

a. To what extent does the project align with businessstrategy?

2 3

b. What is the strategic importance of the project to thebusiness?

3 3

Total 5 6

2.PRODUCT ADVANTAGE

a. To what extent does the product offer unique benefits? 2 4b. To what extent does the product meet customer needs

better than the competition?

1 4

c. To what extent does the product provide excellentvalue for the money?

2 4

Total 5 12

3.MARKET ATTRACTIVENESS

a. What is the market size? 4 2b. What is the market growth rate? n/a n/ac. What is the competitive situation ( the more intense

and price based, the lower score)

4 2

Total 8 4

4.SYNERGIES

a. To what extent does the product leverage marketing,distribution or selling strengths?

1 3

b.

To what extent does the product leverage technicalknow- how or expertise? 2 4


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c. To what extent does the product leveragemanufacturing or operations expertise?

1 2

Total 4 9

5.TECHNICAL FEASIBILTY

a. How big is the technical gap relative to otherproducts?( the smaller the gap the higher the score)

2 4

b. How complex the product technically?(the less complex, higher the score)

3 2

c. What is the technical uncertainty of the outcome? ( thehigher uncertainty , higher score)

1 2

Total 6 8

6.RISK VS RETURN

a. What is the expected profitability? (NPV) n/a n/ab. What is the per cent return?(IRR/ROI) n/a n/ac. What is the payback period- how fast is the initial

investment recovered?

n/a n/a

d. What is the certainty of the profit or sales estimates(pure guess or highly predictable)

n/a n/a

e. To what extent is the product low cost and fast to do? 3 3Total 3 3

GRAND TOTAL 31 42

After analysing the must meet and should meet criteria we can conclude that Bluetooth smart

lock has higher score than Normal lock and company should go ahead for this project.


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Design

Design plays a very important role in the creation of the product. A lot of great idea concepts

when converted into products fail to capture the market because the consumers are not happy

with the design of the product.

The contributions of the Design to the New Products Process should be as follows:

Bluetooth smart lock is going to have a design to meet consumers need mostly creating a

standard design so that the consumer finds its easy to use and portable to carry it around.

Product Architecture

It is a process by which a customer need is developed into a product design. The product

contains various components and this needs to be divided into various chunks. It is how the

functional elements are assigned to the chunks and how the chunks are interrelated.

Bluetooth smart lock will have the following chunks:

Chunk 1: Mobile Application

Chunk 2: LED light

Chunk 3: Battery/Power Source

Chunk 4: key

Considering the above chunks we are illustrating the step wise process for the product

architecture development so that it can applied to make sure the products design will be in

keeping with Customers Needs and also the Product Innovation Charter.

Design for Speed to Market

Design for Ease of Manufacture

Design to Meet Customer Needs

Design for Differentiation

Design to Build or Support Corporate Identity

Design for the Environment


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Step 1: Product Schematic: The schematic shows the components and functional elements

of the product and how they are interconnected.

Step 2: Cluster Schematic Elements: The chunks are more defined in this and interactions

simpler so if there are any modification or changes, it can be easily facilitated.

Step 3 and 4: Create Geometric Layout and Check Interactions: The product is arranged

in several configurations to determine the best solution and understand what happens at the

interfaces between chunks.

Concept Evaluation

Concept evaluation implies both comparison and decision making. The goal of concept

evaluation is to expend least amount of resources on deciding which concept has the highest

potential for becoming a successful product. On the other hand the challenges in concept

evaluation are very limited data and knowledge on which to base the selection.

Component of

mobile App

Component of

LED Light

Component

of Battery

Component of

key

Chunk 1:

Mobile App

Chunk 4:

Key

Chunk 3:

Battery

Chunk 2:

LED light

Chunk 3 Battery/power source Chunk 4: Key

Chunk2: LED light

Chunk 1: Mobile Application


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The Risk/payoff Matrix

Decision to

If the product wereMarketed

A

Stop the project now

B

Continue to next evaluation

A. it would fail AA(no error) BA (go error)

B. it would succeed AB (drop error) BB (no error)

A-T-A-R model

This we use for designing an evaluation system for new product. This will tell us the forecast

sales and profit on new product.

Number of tourist visiting Mysore is 67,75,000 Number of tourist we think we can make aware of the new device: - 30 percent. Percentage of aware tourist who will decide to try product: - 20 percent. Percentage of intended triers who can get the product:- 60 percent Percentage of actual user who will purchase next time or recommend to family and

friends:- 30 percent.

Revenue per sale after promotion and trade margin:- 750 Unit cost, at intended volume:- 450

Profit contribution = potential*AW*T*AV*R*margin

= 6775000*.30*.20*.60*.30*(750-450)

= INR. 21951000

Thus INR.21951000 is the predicted profit.


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Information Requirement Planning Table

Research type- Exploratory research

Sampling technique- Convenience Sampling

Sample Size- 60

Questionnaire

Name___________________________________________

Age_____________________________________________

Occupation_______________________________________

Location__________________________________________

LOCATION TYPE FUNCTION Example

INITIAL QUESTION General questions General questions about the

customer and travel

accessories market.

Age Occupation Do you have

mobile phone

with Bluetooth?

Next few

questions

Probing Questions Buying behaviour of customer How often yougo for trekking?

Do you go foradventure

sports?

Next few

questions

Focused questions Opinion about Bluetooth

Smart Lock Backup

unlocking

OptionMajor Portion of

Questionnaire

Focused questions Product related Price Application Features


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Q.1 How often do you travel for reasons related to your work?

1. Once in a month2. Once in 3 months3. Once in 6 months4. Once in a year5. ______________

Q.2 How often do you travel for reasons not related to your work?

1. Once in a month2. Once in 3 months3. Once in 6 months4. Once in a year5. _______________

Q.3 Do you go for adventure sports?

1. Yes2. No

Q.4 Do you go for trekking?

1. Yes2. No

Q.5 In your travel do you get worried about the safety of the valuables in your luggage (i.e.

whether it is properly locked/whether the valuables in the luggage is unreachable)?

1. Yes2. No

Q.6 To ensure the safety of the valuables in your luggage what product do you use?

1. Traditional locks2. Number locks3. Chain locks4. Others___________

Q.7 Are you happy with the product that you are currently using?

1. Yes2. No3. Undecided

[Explain to them the idea of the Bluetooth Lock-its features, benefits and cost]


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Q.8 Have you heard of the concept of Bluetooth Lock?

1. Yes2. No

If yes,where?_____________________________________________________________________

__

Q.9 Do you have Bluetooth technology in your phone?

1. Yes2. No

Q.10 Do you think the idea of a Bluetooth lock is feasible/beneficial?

1. Yes2. No

If not,

reasons_____________________________________________________________________

_

Q.11 Do you think the product is rightly priced at Rs. 750/-?

1. Yes2. No3.

Undecided

Q.12 Would you purchase such a product if available in the market?

1. Yes2. No

Q.13 Would you want a back-up unlocking option also on the lock along with the Bluetooth

key?

1. Yes2. No3. Undecided

Q.14 What are all the benefits that you feel you can get out of the Bluetooth lock? (Can check

multiple options)

1. Better security to the valuables2. Better sleep during travel by buses, trains etc.3. Better security when you leave your luggage in the travelling vehicle4. Makes you an advanced user of security locks


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Q.15 Have you heard of the company Wildcraft?

1. Yes2. No

Q.16 Do you make use of products of Wildcraft?

1. Yes2. No

Q. 17 Are you happy with the products of Wildcraft?

1. Yes2. No

If not,

reasons_____________________________________________________________________

_

Documents

PM 2nd Stage