PRODUCT DEVELOPMENT

PRODUCT DEVELOPMENT

Your Contact

Stefan Andrei, Marketing Manager Mobile: 0040.745.388.986; E-mail: [email protected]

2

Exact Product Creator means

product development

through…

Overview Step out and see the bigger picture!

Trends Look for needs and expectations that may turn into trends

• A tool that facilitates the construction of new products, brands, brand extensions, line extensions etc

• What do we get in the end? Fully developed products & brands ready to use by the brand managers

What is Product Development?

Product development process (Exact Product Creator)

Step 1 Define consumer segments and/ or

sub segments

Step 2 Product

development matrix (segments vs. product

types)

Step 3 Consumer benefits (what each segment

want from each product)

Step 4 B.A.C. process

(transform benefits into characteristics)

Step 5 Define product

options

Step 6 Test product options

acceptance

Step 7 Fine tune products

Step 8 Test product options

potential

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Research Involved

The research involved in the process consists in 2

categories/ types:

market data that generates product

development

market data that validates products

• Using the data from the Exact Market Mapping (U&A), the market segments that present potential for different product types are established.

• A full description of the segments is required in order to later facilitate the communication process.

• Method: Market Mapping

Step 1 Define consumer segments and/ or sub segments

• A matrix is created using two axes: segments and product types

• The matrix will be filled with 2 types of data: competitors and their actual products and services.


Step 2 Product development matrix (segments vs. product types)

• The previous constructed matrix will be completed by adding the benefits expected by clients of each segment (the degree in which the competitors are fulfilling the clients’ needs is determined).

• The benefits represent the premises for new products.


Step 3 Consumer benefits

Example of Market Segmentation

Cluster 3

Volume 12%

Weight 15%

Cluster 2

Volume 38%

Weight 40%

Cluster 1

Volume 50%

Weight 45%

Price oriented

Attention paid to food quality

Volume : percentage of total consumption (Penetration x Frequency) Weight : percentage households

Light users

NUTRITIONISTS

Average users

Heavy users

HOUSEWIVES

UTILITARIANS

Volume split per category

Housewives Nutritionists Utilitarians

White loaf bread 70% 10% 20%

Traditional bread 10% 15% 3%

Graham loaf bread 5% 40% 2%

Toast 10% 10% 50%

Graham toast 5% 25% 25%

total 100% 100% 100%

Example of PD Matrix - Volumes

Housewives Nutritionists Utilitarians

White loaf bread

Traditional bread

Graham loaf bread

Toast

Volume Competition

Consumer Benefits Consumer Description

Graham toast

PD Matrix

• The process represents the reverse of the sales/ marketing process.

• The process requires the involvement of the marketing & strategy, technical department and research.

• Method: Workshop session

Step 4 B.A.C. process

Characteristics Attributes Benefits

• Based on the characteristics generated in the previous step, product options are generated using combinations of the characteristics.

• The product options are generated by marketing & technical department in order to comply respect Company business objectives.

• Method: internal workshop

Step 5 Define product

options

• Each set of options undergoes a qualitative test in order to verify that product features really transmit to the clients the expected benefits.

• The test is designed a tool to seek for improvements in each product option.

• Method: Qualitative research

Step 6 Test product options acceptance

• As a result of the qualitative test each product option is fine tuned.

• Product features are modified in order to transmit (generate at client level) the expected benefits (Step 3).

• The adjustments are made by the technical department under the guidance of marketing.

• Method: internal workshop

Step 7 Fine tune products

• Finally after fine tuning, product options are tested in order to establish the potential of each product.

• The purpose of the testing is on one hand to establish the success of the product vs. competitor products and one the other hand to rank the product options and facilitate the choice of one per each matrix cell.

• Method: Quantitative research

Step 8 Test product options potential

A. generation of product(s) based on clients’ expectations

B. detailed description of target groups

C. benefits & values to be communicated

D. USP of each generated product

E. structured matrix of competitors and competitor products that allows rapid decisions and actions

Main results of product development process

Thank you!

Your Contact

Stefan Andrei, Business Development Consultant Tel.: 0745.388.986; E-mail: [email protected]