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Tutorial

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Tutorial

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    1. Tutorial How to design R&D Projects (R&D 1)

    3. Sources of information related to R&D projects

    4. The “Report” shows the base R&D project of your marketed brands

    5. The “Report” lists all Sonite or Vodite R&D projects List of available R&D projects as well as on-going ones New brands can be launched or existing ones can be upgraded with available projects The brand will have the physical characteristics specified in the project The current base cost is the transfer cost of the units produced, for the first production batch of 100,000 units If the cumulative production level is lower, the unit transfer cost will be higher If the cumulative production level is higher, the unit transfer cost will be lower The minimum base cost is the minimum cost that can be specified in a cost-reduction R&D project with the same physical characteristics

    6. Sources of information related to R&D projects

    7. “Newsletter” content Physical characteristics Base costs Price of all marketed Sonite or Vodite brands

    9. The “Benchmarking” study shows estimates of competitive R&D budgets Useful to determine when first Vodite brands will be launched

    11. The “Semantic Scales” study is a visual description of segment needs and brand perceptions

    12. The “Semantic Scales” study tracks the evolution of segment needs The lifetime of an R&D project is several years long Design R&D projects that will be attractive in a few years time

    13. Additional charts show exact coordinates of ideal points and brand perceptions on a 1-7 scale Compare brand perceptions with segment expectations. R&D will let you fill in the gap

    14. The “Semantic Scales” study plots brand perceptions against the brand physical characteristics Do graphical interpolations on these charts to calculate the characteristic in Kg, Dm3, KHz, W, … that corresponds to a given value on the 1-7 scale

    16. The “MDS” study is a visual description of segment needs & brand perceptions in three “composite” dimensions

    17. MDS dimensions are created using the MDS methodology and are a good outline of segment needs Brand physical characteristics and prices have an influence on MDS dimensions For example, Performance is strongly linked with Power and Max Freq

    18. The “MDS” study tracks the evolution of segment needs The lifetime of an R&D project is several years long Design R&D projects that will be attractive in a few years time

    19. Additional charts give exact coordinates of ideal points & brand perceptions on a -20 to +20 scale Compare brand perceptions with segment expectations. R&D will let you fill in the gap

    20. The “MDS” study plots the brand perceptions against the brand physical characteristics Do graphical interpolations on these charts to calculate the characteristic in Kg, Dm3, KHz, W, … that corresponds to a given value on the -20 to +20 scale

    22. The “Conjoint Analysis” study plots the utilities of various levels in the most important characteristics Higher utilities mean higher customer satisfaction levels Beware, the four levels are arbitrarily set. Maximum utility may be achieved for a fifth level

    23. The “Conjoint Analysis” study indicates what characteristics are the most important ones

    25. Repositioning an existing Sonite brand through R&D in 7 steps Decide on which segment to target using the MDS maps Determine what characteristics are important to that segment using the Semantic Scales or Conjoint Analysis Identify the dimensions where the gap between “Ideal” levels and your brand “Perceived” levels are the largest ones, using the Semantic Scales or MDS Decide on which brand characteristics you should modify. Small gaps and/or non-important characteristics can be ignored Calculate the “ideal” level in each characteristic you want to upgrade, using graphical interpolations. Remember to take the evolution of needs into account Estimate the future price of the brand when it is repositioned and decide on a “Base Cost” that will give you an acceptable profitability ratio or develop the project at the minimum possible base cost (R&D budget will be higher) Launch an R&D project with the new characteristics and the new base cost, using the current base project as a starting point

    26. A Complete Example : Repositioning SIBI SIBI : Based on PSIBI Weight = 19 Kg - Design = 8 - Volume = 60 dm3 Max Freq = 15 KHz - Power = 20 W Base cost = $99 (current cost = $79) Target Segment : Singles Most important characteristics : Power, Max Freq, Design Ideal Power in two years = 4.80 = 65 W Ideal Max Freq in two years = 4.70 = 30 KHz Ideal Design in two years = 5.20 = 7 R&D project PSIN1 Weight = 19 Kg - Design = 7 - Volume = 60 dm3 Max Freq = 30 KHz - Power = 65 W Develop project at minimum cost

    27. On your marks. Get set. Go! Respect the deadline

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