New Product and Service Development

1. New Product and Service Development Spring 2011 PP

2. The Thai Silk Company • Found in 1951 by American entrepreneur, Jim Thompson • After Jim Thompson disappeared in 1967, Mr. William Booth, his assistant, followed Jim Thompson’s passion. He leads the company to the Thai silk market again. • Offer variety of Thai silk products such as fabrics, scarves, blankets, shirts and hand bags. • Located in Thailand • We have showrooms and distributors all over the world

3. Our situation • Sale flat • Product slightly add new technique. (Instead of we can gain more sale every new collection, our sale stay the same.) • Product style looks quite old (so it’s difficult to expand our target market) • Less advertisement and event. Likely to use word of mouth (People don’t know much about brand so they might stick with the jimthompson old picture in their own thought)

4. New Product and Service Development Funnel

5. What we are doing.. • Designers have no freedom to design product on their own • Final decision comes from one person • Less brainstorming within designer team • No idea from outside • Product not unique sometimes create “me too” product • No meeting between other department and design department to get customer and sale history information We fall in love with own idea!!

6. Ideation • Collecting idea • Internal idea • Each one of designer team create their own idea • Designer can put the idea in to “Idea box” which provide by Design Director • External idea • Collect idea from outside by provide “Internship program”, allow them to participate in ideation • Activities • Brainstorming among designer to get more idea to create on their own • Trip to “International Textile Expo” to get inspiration and learn new technique from oversea

7. Ideation • Ideation Screen: • set “Broad Criteria” • Product must be a Contemporary interior style • Product must be inspired by Asian Culture • Product must consider in the next interior design trend • Ideation Screener • University professor • Designer team

8. Expansion and Surface Evaluation • Coordinate with other department to get market and competitive information • Market and customer information • Market research: what is the interior market want? • Market attractiveness: what is interior market interesting? • Internet research: online customer information, get international market information • Meeting with vendors in order to get the customer information • Competitive information • Meeting with Marketing manager • in order to know the competitive • information

9. Expansion and Surface Evaluation • Surface Evaluation Screen • Product must add fabric finishing technique that suitable for furnishing industry • Product must add fabric texture technique • Product must contain silk more than 50% or 100% silk • Surface Evaluation Screener • Product Development team • Marketing team

10. Detailed Evaluation • Coordinate with other department to get deep information about competitive, target group and manufacturer • - Review material requirement and specification • Cost estimation • Manufacturability • Financial Analysis: cash flow • - Product positioning: • Can product sell in other market section? • - Competitive analysis

11. Detailed Evaluation • Detailed Evaluation Screen • Product’s cost must not over than 500 Bht (per meter) • The operation insure to be able to build it (machine, employee’s skill) • Product can sell in handbags and Accessories section • Product must have at lease 1 thing step ahead of our competitive • Detailed Evaluation Screener • Product Development manager • Marketing manager • Production manager • CEO

12. Cross-Function Development • PR • Special event in Jim Thompson’s house • Advertisement: magazine, media • Project joint venture with other brands • Human Resources • Employee (Sale representative) training • CFD Gate : CEO • Final approve on prototype before running production • Get approve on activity • Operation • Production line • Duration time • Capacity • Prototype • Sale & Marketing • Cost and profit • Pricing • Distribution plan

13. Testing • Activities • Operation run production on trial market • Trail market distribution: • partial distribution, only main store • Test on top vendor • Testing Gate • Production flow • Quality of product • Feedback from vendors and customer in store

14. Deployment • Activities • Operation run full production • Plan full distribution • Product quality control • Adequate stock inventory • Visual merchandiser ready to • work on new product • All GPP put in place • Deployment Gate • - Every department that involve in check on each activities that should be ready to work

15. Launch • Activities • Start to sale on full distribution • PR run events and advertising

16. Post-Launch Review • Activities • Sale growth • Review costs and profits • Review strengths and weaknesses • Gather feedback from customer • Post-Launch Review Gate • Analysis on data review if product.. • Good: keep selling, add promotion • Bad : recall to main store, sell on partial distribution • Problem from customer: stop selling, recall to inventory • - Fix problems

17. Thank you