New Products Management

1. New Products Management Part IV: Development Chapter 13 Design

2. Purpose of Design Aesthetics Ergonomics Function Manufacturability Servicing Disassembly Item Being Designed Goods Services Architecture Graphic arts Offices Packages Figure 13-1 Range of Leading Design Applications

3. Figure 13-2 Award-Winning Product Designs Ford Ka: Straight lines and angular appearance represent a bold move away from the "jellybean" car design typified by the Taurus. Cycle time (concept to commercialization) was only 24 months! Apple eMate: Dark green case and "space age" look appeals to kids, from kindergarten to high school. Runs on Newton software which eliminated need for heavy disk drives and preserved sleek look. Designed for rough handling by kids. Price: $800 retail. Rubbermaid's Clear Classics Intellivent food storage containers: a steam vent in the lid allows the user to transfer food from freezer to microwave without removing the cover. Bissell's Little Green portable vacuum: Not only designed to be easy to carry and use, but also to look easy to carry and use when seen in a retail store.

4. Introduction • Quality is the dominant factor. • Total quality means building products that customers want and doing it in a way that delivers high value and meets customers expectations. • Each design and manufacturing element is aimed at satisfaction. Berkowitz, Chapter 13 2

5. Levels of Needs • Primary needs • Strategic benefits that characterize the CBP • Secondary needs • Tactical features associated with the perceptual dimensions of the CBP • Tertiary needs • Operational needs that correspond to detailed engineering attributes. • Establish the design features. Berkowitz, Chapter 13 3

6. Customer Driven Design • Listen to the customer. • Voice of the customer must be heard accurately and interpreted accurately if high quality products are to be designed and marketed successfully. • Relative importance of features is important. • Want to meet or exceed competition on important customer needs. Berkowitz, Chapter 13 4

7. Engineering Characteristics • Parallel to the customer needs are the physical means to deliver the benefits that meet the customer needs. • Avoid stating solutions too quickly. • May constrain creativity. • Customer requirements must be communicated to engineers in a language engineers understand. • Must identify descriptions of the physical product that are measurable and quantifiable and that relate to the customer needs. Berkowitz, Chapter 13 5

8. Key to success • Communication • Communication • Communication Berkowitz, Chapter 13 6

9. Quality Function Deployment • Encourages communication among functional groups early in the design effort. • Assures that design is focused on the voice of the customer. • House of Quality approach. • Relationship matrix • Obtained by consensus of the interfunctional team. • Once the matrix is complete, compare the customer perceptions to objective measures. Berkowitz, Chapter 13 7

10. Marketing Mix • Careful analysis and a focus on quality is also relevant to the marketing effort. • Initial marketing mix that is consistent with the CBP, initial sales forecasts, our best estimates of customer response and competitive reaction. • The marketing strategy must be coordinated. Berkowitz, Chapter 13 8

11. Advertising • KISS • Describe the key differentiating factor. • Communicate the product benefits in a manner that is consistent with the CBP. • Create a Unique Selling Proposition (USP). • AIDA • Aware, Interest, Desire, Action • Use awareness and availability as a guide for purchase rate. Berkowitz, Chapter 13 9

12. Pricing • Alternatives • Cost plus • Break-even • Below competition • Higher than competition. Berkowitz, Chapter 13 10

13. Promotion • Sampling • Couponing • Price-off • Introductory price offers. Berkowitz, Chapter 13 11

14. Display and Service • Support the CBP • Ensure that enough resources are available for post purchase service. Berkowitz, Chapter 13 12