New product launch is a moment of high vulnerability. There is always a thrill associated with revealing to the marketplace your best efforts and waiting to hear the accolades and collect the profits. There is also the very great fear that
big investments have been made to birth the new product and the accolades and profits won't come.
Fear of missing the mark with a new product is very real and very big.
Confidence can replace fear if the foundation of the new product development
project is laid early and vetted thoughtfully.
Success in developing new products only comes when three factors are all
supportive.
- Existence of a Convincing Market Opportunity is the first necessary factor.
- Consistency of the Market Strategy with company history is the second
necessary factor.
- Adequate Resource Capabilities is the third necessary factor.
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are identifiable by the
unique constellations of customer, supplier and competitor information that
surrounds them. Federici Business Group spots these constellations by a
combination of voice of the customer and supplier data collections, competitive
environment and market trend analysis. This information is used to highlight gaps
in the product offerings already in the desirable market, which in turn are used to
define prospective new product concepts.
Not all new product concepts defined from current product gaps are worthy new
product candidates. At Federici Business Group, we follow the principles of
J. Cagan and C.M. Vogel (“Creating Breakthrough Products”, Pearson Education,
Inc., Upper Saddle River, NJ (2002).) and submit every prospective new product
concept to SET analysis before making a recommendation for commercialization.
SET (Social, Economic and Technology) analysis looks for those unique
constellations of social/cultural trends, economic realities and state-of-the-art or
emerging technology attributes among the prospective product concepts that
really will be winners. In SET analysis the values and lifestyle decisions of the
target customers are added to what is known about their disposable income and
Pugh chart evaluation of each product concept's technical strength to rank the
new product candidates according most likely to succeed for a company with a
complimentary market strategy and adequate resource capabilities.
Being first-to-market is not the only choice. Consider Apple Computer and its iPod
product. There were plenty of MP3 music players available for sale when the iPod
was launched and now the iPod owns the market for MP3's and downloadable
music. Generally there are four recognized market strategies: First-to-Market,
Analyzer, Defender and Reactor. They can all be profitable. They are all risky in
different ways.
Federici Business Group can analyze for the market strategy that
works best for your company and which among the competing new product
candidates aligns best with that strategy and risk taking profile.
is an obvious assessment to
do before embarking on a new product development project. Sometimes less
obvious is that competing new product candidates require different resources and
different amounts of resources to commercialize. A relatively low risk new
product development project can become unsustainable if proper expertise,
facilities, materials, technology, environmental precautions, time or money are
not there when needed.
Ensure commercialization to completion and successful
market launch by having Federici Business Group help vet those new product
candidates whose resources requirements are within grasp.
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Go to Market with the Confidence!
Have Federici Business Group help Your New Product
Development Process through Consulting, Training, and
Facilitation.
Launching your Great New Business
503.288.8496
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