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Q1: Dairy Milk Silk Mousse indicates what kind of innovation from a consumer
perspective and why?

Dairy Milk Silk Mousse represents dynamically continuous innovation from a

consumer perspective. This type of innovation involves a significant modification to an
existing product that enhances its appeal and offers a new experience to consumers
without requiring major behavioral changes. Dairy Milk Silk Mousse has retained the
familiar base of Dairy Milk Silk but introduced a mousse center, providing a unique
texture and flavor profile. This modification is substantial enough to create a
differentiated product experience, appealing to premium chocolate consumers who
seek novelty and indulgence. The innovation builds on Cadbury’s established brand
equity and meets consumer demand for luxurious, creamy chocolates, enhancing
brand loyalty in the premium segment.

Q2: Suggest two idea generation methods (one from 'voice of consumers' and one
from 'open innovations') to the company to identify different options of variants for
Dairy Milk Silk. Suggest the methods with logical reasoning.

1. Voice of Consumers Method: Customer Focus Groups

o Explanation: Customer focus groups allow Cadbury to gather direct

insights from its target audience. By organizing sessions where selected
consumers can taste-test various chocolate prototypes and discuss their
preferences, Cadbury can gain detailed feedback on potential new
flavors, textures, or ingredients.

o Logical Reasoning: Focus groups provide qualitative insights into

consumer preferences, attitudes, and buying behavior, enabling Cadbury
to tailor product variants more accurately. For example, if focus group
participants express a preference for lower sugar content or nut-based
textures, Cadbury can consider launching healthier or more textured Silk
variants. This method ensures that new variants align closely with
consumer tastes, increasing the likelihood of market acceptance.

2. Open Innovation Method: External Idea Contest

o Explanation: Cadbury can organize an idea contest inviting consumers,

food enthusiasts, and culinary innovators to submit their ideas for new
Dairy Milk Silk variants. Winners could receive a prize, and their ideas
could be prototyped as potential product offerings.

o Logical Reasoning: An external idea contest leverages the creativity of a

broader audience, often resulting in unique and unconventional product
concepts that may not emerge from traditional R&D teams. Additionally, it
promotes consumer engagement, as participants feel involved in the
 brand’s innovation process. This method can yield fresh ideas that
resonate with emerging trends (e.g., exotic flavors or sustainable
ingredients), helping Cadbury stand out in the competitive chocolate
market.

Q3: Suggest who will be the respondents to do modified beta tests for the mosquito
repellent spray and why? Further, enlist the process to conduct the modified beta
test with the suggested respondents.

Suggested Respondents for Modified Beta Test

1. Existing Customers in High Mosquito-Infested Areas:

o Why: Customers who live in regions with high mosquito prevalence are
ideal for testing the effectiveness and durability of the product in real-life
scenarios. They are likely to experience mosquito issues daily, providing
realistic feedback on the product’s performance over extended periods.

o Benefits: These respondents will give insights into the product’s longevity
(5-6 hours as claimed) and its efficacy under challenging conditions. They
are also less likely to reveal information about the product to competitors,
given they are trusted users of ABC's other pest control products.

2. Healthcare Professionals and Environmental Experts:

o Why: Professionals such as healthcare workers and environmental

scientists can validate the product's safety and natural claims. Their
feedback can help in assessing if the spray truly aligns with the "100%
natural" positioning and is non-toxic.

o Benefits: These respondents provide credibility and scientific insights

that can be used for future marketing. Their feedback also helps ensure
that the product meets any regulatory standards for natural mosquito
repellents, which is crucial for a successful launch.

3. Selected Households for Discrete Testing (Signed Under Non-Disclosure

Agreements - NDAs):

o Why: Selecting a group of diverse households helps the company test the
product across different demographics and environments, ensuring broad
market feedback. NDAs ensure that the product remains confidential
during testing.

o Benefits: This group can provide comprehensive feedback on the

product’s ease of use, scent, and effectiveness across different
household settings. Since they are under NDAs, the risk of product details
leaking to competitors is minimized.
 4. Hotel and Hospitality Partners in Mosquito-Prone Regions:

o Why: Hotels in mosquito-prone areas often have a vested interest in

using mosquito repellents to ensure guest comfort. They can offer
feedback on the product's effectiveness in larger, open spaces.

o Benefits: These partners can provide feedback on product usage in a

commercial setting, such as durability across larger areas and guest
satisfaction. Their insights help refine the product for potential B2B
applications.

Process to Conduct Modified Beta Test

1. Recruitment and NDA Execution:

o Identify and recruit respondents from the selected groups, ensuring

diversity in geographical location and exposure to mosquito-infested
areas. Each respondent signs an NDA to protect the confidentiality of the
product.

2. Product Distribution with Instructions:

o Distribute the mosquito repellent spray to the selected participants along

with detailed usage instructions. This includes recommended spray
frequency, area of application, and any specific precautions to maintain
uniform testing conditions.

3. Baseline and Feedback Collection:

o Request respondents to record their initial observations, including the

mosquito presence before use, any noticeable decrease after
application, and other initial impressions (e.g., scent, ease of use).
Baseline data allows for comparison before and after using the product.

4. Testing Period with Structured Feedback Forms:

o Over a period of two weeks, respondents use the product as per

instructions. Provide them with structured feedback forms to record
observations on factors like duration of effectiveness, scent, user
satisfaction, and any side effects. Encourage detailed feedback and
suggest documenting any unique usage scenarios (e.g., indoor vs.
outdoor use).

5. Interviews and Focus Group Sessions (if applicable):

o For select participants, conduct follow-up interviews or focus group

sessions to discuss their experiences in detail. This qualitative feedback
 helps in understanding user emotions, preferences, and any potential
barriers to regular use.

6. Data Analysis and Product Adjustments:

o Collect all feedback data and analyze for common themes or issues. For
instance, if many respondents report that the spray’s effect does not last
as long outdoors, ABC might adjust the formula or provide additional
usage guidance.

7. Final Evaluation and Pre-Launch Modifications:

o Based on the analysis, make final adjustments to the product before its
official launch. This includes fine-tuning elements like fragrance, spray
mechanism, and label instructions. Use insights from expert feedback to
ensure regulatory compliance and bolster marketing claims.

By conducting this structured, confidential beta test, ABC can refine its product based
on real-world feedback while protecting its unique formula from competitors.

Q4: Suggest an appropriate packaging for Olitia Olive tea. While suggesting about
the packaging, your answer needs to include suggestions about levels of
packaging, packaging material, color, and design of packaging.

1. Levels of Packaging:

o Primary Packaging: Each tea sachet should be individually wrapped in

biodegradable, moisture-proof material. This helps retain freshness,
protects the tea leaves from environmental exposure, and supports
Olitia’s commitment to natural products.

o Secondary Packaging: A recyclable cardboard box can hold the 20 tea

sachets. This box should have a soft matte finish to convey a premium
feel, with a snug fit to prevent sachet movement. It could also include an
inner seal for added protection against moisture.

o Tertiary Packaging: For bulk distribution and transportation, strong

corrugated boxes with branding should be used. This protects the product
during transit and makes stacking easy for retail displays.

2. Packaging Material:

o Primary Material: Use biodegradable paper or compostable foil for

individual sachets, which aligns with Olitia’s environmentally friendly
image.
 o Secondary Material: A high-quality, recyclable cardboard or paperboard
for the outer box, ideally sourced sustainably, further emphasizes Olitia’s
natural brand.

o Eco-friendly Focus: By using compostable and recyclable materials,

Olitia can appeal to eco-conscious consumers and reinforce its brand
values of purity and sustainability.

3. Color Scheme:

o Earthy and Natural Tones: Colors like olive green, beige, and white
should dominate. Olive green can be the primary color to highlight the
main ingredient, while beige and white accents add a sense of purity and
health.

o Soft Pastels for Premium Appeal: Use subtle, soft colors rather than
bright ones to maintain a premium, calming aesthetic. These colors evoke
the product’s natural qualities and appeal to health-conscious
consumers.

4. Design Elements:

o Minimalistic and Elegant: Use a minimalist design with a matte finish to

enhance the premium look. A small, elegant illustration of olive branches
or leaves can symbolize the natural aspect of the tea.

o Informational and Educational: The packaging should contain details

about the health benefits of olive tea, such as “Rich in Antioxidants” and
“Boosts Immunity.” This educates consumers and encourages purchase.

o Innovative Features: Consider adding a resealable zip-lock for

consumers who wish to keep the tea fresh after opening the main
package. This feature also adds convenience and enhances the product’s
perceived value.

Q5: Suggest to the company an effective promotional media-mix and message for
the target group during the launch campaign of Olitia Olive tea to create awareness
for generating sales.

1. Promotional Media Mix:

o Social Media Marketing: Leverage platforms like Instagram, Facebook,

and Pinterest to target health-conscious individuals. Use influencers in
the wellness and organic food space to review and promote Olitia Olive
tea. Create visually appealing content, including images of the product,
recipe ideas, and educational posts about the health benefits of olive tea.
 o Content Marketing and Blogging: Publish blog posts on Olitia’s website
or partner with health-focused blogs to write articles about the benefits of
olive tea. Topics could include “Why Switch to Olive Tea?” or “Natural
Ways to Boost Immunity.” This approach establishes Olitia as an expert in
natural wellness.

o In-Store Promotions: Position the product in premium health and

organic stores with attractive displays and free samples. Sampling allows
consumers to experience the unique flavor and benefits firsthand, driving
trial purchases.

o Email Marketing: Send targeted emails to existing subscribers and

potential customers interested in organic and natural products. The
emails could include an introductory offer, along with information on the
health benefits of olive tea.

o Collaborations with Wellness Centers: Partner with yoga studios, gyms,

and wellness centers to offer tea samples or information pamphlets. This
provides access to a health-focused audience and builds credibility.

2. Message for Target Group:

o Core Message: “Experience the Power of Nature with Olitia Olive Tea –
Your Caffeine-Free Antioxidant Boost.”

o Supporting Messages:

▪ “Nurture your health with every sip.”

▪ “The natural way to boost immunity and vitality.”

▪ “Pure ingredients, rich benefits – for a healthier you.”

o Brand Story Focus: Highlight Olitia’s dedication to natural farming and

sustainable practices. This resonates with environmentally and health-
conscious consumers and differentiates Olitia Olive tea as a trustworthy,
high-quality product.

By using this media mix and a well-defined message, Olitia can effectively reach its
target market, generate product awareness, and drive sales for the new Olive tea.
Modified Beta

A Modified Beta Test is a variation of the standard beta test used by companies to test
a new product in a real-world environment while incorporating additional safeguards or
adjustments to maintain confidentiality or control specific variables. Here’s a
breakdown of both tests and how they differ:

Beta Test

• Definition: A beta test involves releasing a nearly final version of the product to a
select group of users from the target audience to gather feedback on its
performance, usability, and potential issues in a real-world setting.

• Objective: The main goal is to detect any remaining bugs, usability issues, or
areas of improvement before the product’s official launch. It allows users to
experience the product in their typical environments, providing authentic
insights.

• Participants: Generally, a limited number of customers who are typical end-

users, selected to represent the broader target market.

• Disclosure: Beta testing usually does not require stringent confidentiality

measures, as it is often conducted openly, especially for products like software
or consumer electronics. Competitors may sometimes become aware of the
product’s features.

Modified Beta Test

• Definition: A modified beta test is a controlled version of a beta test, where

certain adjustments are made to either the test process or participants to
address specific goals, such as maintaining confidentiality or focusing on certain
variables like safety or performance.

• Objective: It serves the same purpose as a beta test (gathering user feedback
and identifying final issues) but with added restrictions or tailored conditions to
ensure sensitive information is not exposed to competitors, or to meet certain
regulatory or safety standards.

• Participants: Respondents may include trusted users, loyal customers, or

internal testers who have signed non-disclosure agreements (NDAs) to prevent
information leaks.

• Disclosure and Control: Modified beta tests often involve NDAs or carefully
selected participants to protect the product from early exposure. Additionally,
the test environment may be partially controlled to focus feedback on specific
product attributes.
Key Differences

1. Confidentiality: Modified beta tests emphasize confidentiality, often using

NDAs, while regular beta tests may be more open to public or semi-public
testing.

2. Control over Variables: Modified beta tests may restrict the testing environment
or focus on specific product aspects, whereas standard beta tests allow for
broad, unrestricted use.

3. Participant Selection: Modified beta tests usually have stricter participant

selection criteria, often choosing individuals or groups that align with
confidentiality needs and product objectives.

In summary, a Modified Beta Test is used when a company needs to gather beta-level
insights while protecting sensitive information or controlling certain variables, making it
a more secure and focused version of the traditional beta test.

Here are the elaborate steps to conduct a Modified Beta Test effectively, ensuring
confidentiality and controlled feedback:

Step 1: Define the Objectives and Scope

• Identify Test Goals: Clearly outline what you aim to achieve from the modified
beta test. Common objectives include gathering feedback on specific product
features, assessing usability, or verifying performance in specific scenarios.

• Determine Scope: Define the aspects of the product you want to focus on, such
as durability, ease of use, or effectiveness. Also, decide on the environment (e.g.,
home, workplace) and any usage limitations for participants.

• Confidentiality Goals: If secrecy is important, consider which features or

aspects need to be hidden from external audiences or competitors.

Step 2: Select the Right Participants

• Define Target Profiles: Identify the types of participants who can best test the
product under controlled conditions. Look for users who represent the broader
target market but are trustworthy and able to provide detailed feedback.

• Establish Selection Criteria: Choose participants based on their reliability,

location, familiarity with the product category, and likelihood to honor
confidentiality. If needed, select participants from a pool of loyal customers or
internal employees.

• Screen Participants: Conduct interviews or surveys to screen participants

based on your criteria to ensure they fit the profile and will provide valuable
insights.
Step 3: Establish Confidentiality Measures

• Sign Non-Disclosure Agreements (NDAs): To protect sensitive product details,

ensure all participants sign NDAs before starting the test. This legally binds them
to maintain confidentiality about the product.

• Restrict Access to Competitors: Avoid selecting participants who might share

details with competitors or are in regions where competitors have significant
influence.

• Define Confidentiality Guidelines: Clearly communicate to participants what

they can and cannot disclose during the testing period. This includes
discouraging social media sharing or discussing the product in public forums.

Step 4: Prepare Test Materials and Instructions

• Provide Product and Supporting Materials: Ensure each participant receives

the product and any required accessories or instructions for usage.

• Clear Usage Instructions: Give participants detailed guidance on how to use

the product, any precautions, and specific scenarios to test. For example, if it’s a
mosquito spray, specify frequency of application and the ideal environment for
testing (indoor vs. outdoor).

• Define Testing Guidelines: Emphasize areas you want feedback on (e.g.,

effectiveness, scent, ease of use) to guide participants' focus.

Step 5: Set Up Feedback Mechanisms

• Feedback Forms: Provide structured feedback forms with specific questions

about different aspects of the product. Use a mix of qualitative and quantitative
questions to get detailed responses.

• Surveys and Questionnaires: Develop pre- and post-test surveys to assess user
expectations and compare them to their experiences.

• Regular Check-Ins: Schedule regular check-ins (e.g., weekly) via email or phone
to monitor participants' experiences and address any issues they may have. This
helps in maintaining participant engagement and ensuring timely feedback.

Step 6: Conduct Testing

• Testing Period: Allow participants a predefined period to use and experience the
product. This period should be long enough for them to interact meaningfully
with the product but short enough to maintain momentum.
 • Monitor Confidentiality Compliance: Periodically remind participants about
confidentiality expectations and review any public or online activity to ensure no
information is leaked.

• Provide Technical Support: Have a support system in place for any issues or
queries participants may have during the test, ensuring they can fully test the
product without obstacles.

Step 7: Collect and Analyze Data

• Collect Feedback from Participants: Gather all feedback forms, survey

responses, and interview notes. Ensure all data is organized and categorized by
feedback themes (e.g., product efficacy, usability).

• Analyze for Common Trends: Look for common issues or positive feedback
themes. If multiple participants report the same issue, it may be a critical area
for improvement.

• Evaluate Performance Against Goals: Assess how well the product meets the
objectives set in Step 1. Identify areas that require modifications before launch.

Step 8: Conduct Follow-Up Interviews or Focus Groups

• Follow-Up Interviews: For participants who provided significant insights,

conduct one-on-one interviews to explore their feedback in greater depth.

• Focus Groups (Optional): Arrange small focus groups with participants to

discuss their experiences collectively, which may reveal insights not captured in
individual feedback.

• Probe for Details: Ask follow-up questions to clarify ambiguous feedback and
gain specific details on participants' likes, dislikes, and suggestions.

Step 9: Implement Changes Based on Feedback

• Identify Key Changes: Based on the feedback and analysis, identify necessary
changes to improve the product. Prioritize issues that were most commonly
mentioned or that align with the original test objectives.

• Update Product or Documentation: Make any modifications to the product,

packaging, or user instructions to address the issues identified during the test.

• Prepare Final Launch Strategy: Use the test results to refine your marketing
strategy, addressing any product concerns and highlighting positive feedback in
promotional materials.

Step 10: Final Evaluation and Approval

• Evaluate Modified Beta Results: Summarize the test outcomes, highlighting
strengths, areas for improvement, and modifications made.

• Seek Stakeholder Approval: Present the modified beta test results and final
product adjustments to key stakeholders for final approval before launch.

• Plan Full Launch: If the modified beta test results meet expectations and
address most issues, proceed with preparations for the full product launch.
 Introduction to Product Management

What is a product?
• A product offers the benefits which a consumer expects to receive from a product.
• It is a unit of exchange between the buyers and sellers.
• A product is anything that can be offered to a market for attention, acquisition, use or
consumption that might satisfy a want or need. (Kotler)

Understanding Product in marketing environment

Classification of Consumer Products

1. Classified by how long they last
a. Durable
b. Semi-durable
c. Nondurable

2. Classified by how consumers buy them

a. Convenience: Staple, Impulse, Emergency
b. Shopping
c. Specialty
d. Unsought

Prof. Anita Goyal, IIML, PM Page 1

 3. Level of Involvement in purchase process
a. Low involvement
b. High Involvement

4. Type of Benefit
a. Functional
b. Emotional

5. Spectrum of Tangibility
a. Tangible = Good
b. Intangible = Services

Levels of Product
1. Core Benefit = Core Concept
- It is answer to what the customer is really buying? And the answer is need.
2. Basic Product = Generic Product
- Turning the core benefit in an offer which consumer can buy or use
3. Expected Product
- A set of attributes consumers expect when they purchase a product.
4. Augmented Product
- A set of attributes that exceeds customer expectations
- Helps to differentiate the offer from competitors
5. Potential Product
- Possible augmentations or transformations the product might undergo in future

Features / Elements of Product

1. Extrinsic Elements: Packaging, After Sales Service, Warranty/Guarantee, Brand Name
2. Intrinsic Elements: Ingredients, Design, Size, Shape, Weight, Colour, Variety

The value of a product is a mix between

1. Value of features/ attributes (represents all attributes like packaging, design,…)
2. Value of its image (represented by brand)

The more the value of attributes will increase, the more will be the image and the more a
consumer will be ready to spend money.

Functions of Product Manager

Product managers have these tasks:
– Develop a long-range and competitive strategy for the product
– Preparing an annual marketing plan and sales forecast
– Working with advertising and merchandising agencies to develop copy, programs, and
campaigns
– Stimulating support of the product among the sales force and distributors

Prof. Anita Goyal, IIML, PM Page 2

 – Gathering continuous intelligence on the product’s performance, customer and dealer
attitudes, and new problems and opportunities
– Initiating product improvements to meet changing market needs

Product Life Cycle

• There are three levels of PLC.
• At the highest level of aggregation is the product class, category or industry
• Second is the combined life cycle for number of closely competing brands = Product
form PLC
• At the third level, it is brand or model life cycle

Packaging Decisions
Packaging – Meaning
• Packaging consists of all the activities of designing and producing the container or
wrapper for a product.
• It is the enclosing of a physical product that requires protection from tampering.
• Package is a covering or container for a product that provides product protection,
facilitates product use and storage, and supplies important marketing communication.

Classification- By way of Packaging

- Vacuum Packaging: Air is removed from the package before sealing.
- Aseptic Packaging: Package is sterilized primarily to contain the eatables.
- Retort Packaging: Through aseptic processing primarily for ready-to-eat foods.
- Shrink Packaging: Plastic film is placed tight on container through heating process.
- Strip Packaging: like medicines.
- Gas Flush Packaging: Air in package is replaced by gases like nitrogen.
- Moisture-proof Packaging
- Blister Packaging: Like in toothbrushes.
- Skin Packaging: A thick plastic sheet is drawn over product placed normally on hard
card board kind of base. Product become immobilized and can’t shift from its place
within package.
- Tamper-evidence Packaging

Levels of Packaging
• Primary Package – next to product
• Secondary Package
• Tertiary Package

Prof. Anita Goyal, IIML, PM Page 3

Features of Packaging
• Material used
– Glass, metal cans/foil, plastic films, paperboard boxes, jute, cloth, paper, …..
– Transparent / Opaque
– Expensive / cost effective
– Environment friendly
• Shape
• Size
• Colour
• Graphics
• Information / Communication
– Primarily label
– Many a times non-separable

Types of Packaging
 Unit package: Consumer size. It can be
1. Multipack = Several small items/units are offered in one pack
2. Bundled package (usually for gifts)
 Shipping package – for transporting unit packages

Purposes of Packaging
• Protect the product on its way to the customer
– From dust and dirt, heat, rain, and others
– During shipment/transportation
– Prevent tampering
– Deter shoplifting
– Maintains quality
• Protect the product after it is purchased
– From evaporation, spilling, and spoilage
– Child-proof
• Identifying the brand/company’s product = recognition
• Help gain acceptance from the middleman
– Must be suitable for stacking and displaying
• Information tool
• Help persuade consumers to buy the product = attraction
– Silent sales-person
– Takes care of self-service part
• Positioning
• Differentiation

Design Effective Package

• Can be a product’s differential advantage
– Zip-lock
– Compact (easy storage)
– Aesthetic appeal
– Reusable jars

Prof. Anita Goyal, IIML, PM Page 4

 – Self-contained applicator
– Re-fills
– Results in
• Ease of use
• Safety
• Long time usage possibility
Thus increases utility of the package through innovation and gives competitive advantage

Labeling
• A label is a part of a product that carries information about the product and the seller.
• Labeling refers to any written or graphic communications on the packaging or on a
separate but associated label

Types of Label
• Brand label
• Descriptive label
• Grade label

Information / Communication Elements

For Consumers
• Product facts
– Ingredients, Flavours, Directions for use, Suggestions for alternative uses,
Directions for storage, Safety warnings, Nutritional Info, MRP
– Manufacturing date, Expiry date
– Product benefits
• Warranty information, Toll-free number /contact address, customer service info

For Distribution
• Universal Product Code (UPC)
– The set of black bars or lines, readable by scanners, creates a national system of
product identification (bar code)
• Batch Number
• Handling/Storage info

Prof. Anita Goyal, IIML, PM Page 5

 Product-Mix Strategies

About Product-Mix
• Product mix (Product assortment)
• It is the total group of products that an organization makes available to customers

• Product mix has a certain:

• Width
• Length
• Depth
• Consistency

• Width of product mix is the number of product lines a company offers.

• Product Line is a firm’s total product offering designed to satisfy a need or desire of
target customers.
• Length of product line refers to total number of types in the product line.
• Depth of product mix is the number of versions offered of each product in the line
• Consistency of product mix refers to how closely related the various products lines are in
end use, production requirements, distribution channels or some other way.

Product-mix Strategy
• Adding a new product line
• Removing an existing product line

Product Line strategy

1. STRETCHING (Adding new products to line) [Adding to Length]
• Downward line stretch - augments a line by adding offers at the lower end
• Upward line stretch – adds higher priced and claiming more quality offers
• Two-way stretch – adds products at both upper and lower ends
• Neutral Stretch – adds products at existing price and quality parameters
2. FILLING (Adding to the Depth)
3. CONTRACTING (Dropping products – Reducing Length and/or Depth)

Risk for extending mix

• CANNIBALIZATION
This indicates the loss of sales of an existing brand when a new item in a product line or a
new product line is introduced. In other words, when a new item eats up sales on an
existing brand as the firm’s current customers simply switch to the new product

Prof. Anita Goyal, IIML, PM Page 1

 Flat Panel Display Product Clas s

Width=2 LCD TV P Lines Plasma TV

Items
Types 42 LG 80 FR 50 PG 61 UR
Jazz (LG-80) 32 LG 80 FR PG 61
32 LG 80 UR 42 PG 61 UR

52 LG 70 YR 50 PG 12 UR
LG 70 47 LG 70 YR PG 21
42 LG 70 YR 42 PG 21 UR

47 LG 60 FR PC 5 32 PC 5 RA
SCARLET LG 60 42 LG 60 FR
32 LG 60 UR
PG 70 60 PG 70 FR
47 LG 53 FR
42 LG 53 FR Length-4 Depth-6
LG 53
37 LG 53 FR
32 LG 53 FR

47 LG 30 FR Total Le ngth-9
42 LG 30 FR Total Depth-25
37 LG 30 FR
LG 30
32 LG 30 FR
26 LG 30 FR
Length=5 22 LG 30 FR
Depth=19
SKUs

Prof. Anita Goyal, IIML, PM Page 2

 Product Innovations

Types of Innovation
• Continuous innovation
– A modification of an existing product that sets one brand apart from its
competitors
– Gives users the added benefits
– Consumer doesn’t have to learn anything new (or a little) to use a continuous
innovation
= An incremental innovation
– Knockoff
• A new product that copies, with slight modification, the design of an
original product
• The knockoff is not an exact copy
• Ex: clothing, jewelry

• Dynamically continuous innovation

– A pronounced modification to an existing product that requires a modest amount
of learning or change in behaviour to use it
– Convergence
• Ex: Communication technologies

• Discontinuous innovation
– A totally new product that creates major change in the way we live
– When a product is there for the first time; the first car, the personal computer,
smart phone…
– It is actually like an invention.
– Kind of breakthrough
– = A disruptive innovation

Kinds of New Products

• From the producer’s perspective
– New to the world
– New product lines
– Additions to the existing product lines
– Improvements and revisions in the existing products
– Re-positioning
– Cost reductions (due to process innovations)

Reasons of Failure of Products

1. Marketing and Selling
a. Poor prediction of Competitors’ reactions
b. Overestimation of market size
c. Ineffective promotion
d. Lack of distribution coverage

Prof. Anita Goyal, IIML, PM Page 3

 e. Expensive product
f. Inconsistent positioning
2. Technology and Process
a. Me-too product
b. Technical or design problem
c. Poor timing of launch
3. Customer Values
a. Unable to match product offerings to customer needs
b. Unable to track changes in consumer tastes
4. Organization and People
a. Lack of senior management support
b. No sustainable commitment and resources
c. Lack of organizational teamwork
d. Lack leadership
e. Lack long term vision
f. Obsession with current products

Stage-Gate Process by Robert Cooper

Prof. Anita Goyal, IIML, PM Page 4

New Product Development Process
• Idea Generation
• Idea Screening
• Product concept development, screening and testing
• Marketing strategy development
• Business analysis
• Technical / Product development
• Test marketing
• Commercialization

A cross functional team works on a new product project:

• A Strategy expert
• A Technical expert
• An Engineer
• A Designer
• A Manufacturing expert
• A Financial expert
• A Supply-chain specialist
• A Marketing-Sales expert

Prof. Anita Goyal, IIML, PM Page 5

 Idea Generation Methods
Voice-of-Customer Methods

1. Ethnographic Research
It involves observing customers for extended periods of time by staying or closely
spending time with them. It helps to know how customers use or misuse the product. This
method is difficult to follow in case of many product categories.

2. Customer Visit Teams

In this method a team of usually three members visit the customers for in-depth
interviews with carefully-designed interview guide to get user problems and needs.
Sometimes it is difficult to get honest answers.

3. Customer Focus Groups

FGD for idea generation need to be used with a clear focus of getting new ideas and to
know existing problems or needs of the customers. It is very important to have a skilled
moderator.

4. Lead User Research

It involves identifying lead users [innovative customers] who are able to provide
workable product ideas and not just end up with sharing product problems or needs. Lead
users face needs for products that do not exist in the market and find solutions
themselves.

5. The Customer or User Designs

It involves getting design ideas from the customers. It can be used through web with right
software.

6. Customer Brainstorming
It involves gathering a group of users and then conducting a formal brainstorming session
to uncover the problems faced by customers with the existing products. It is a generally
used method but is sometimes a challenge to conduct with B2B customers. It is also a
time-consuming approach and has difficulty to gather the relevant customers.

7. Customer Advisory Board or Panel

It involves a group of customers to advice on product problems and on customer needs.
However, many a times such a session ends with just general discussions.

8. Community of Enthusiasts
It is normally done through net. An online community helps to give inputs to generate
new ideas. Over a long run it proves effective, if maintained.

Prof. Anita Goyal, IIML, PM Page 6

Open Innovation Methods

1. Partners and Vendors

It is an existing method to get ideas from suppliers, dealers and the like as they remain in
contact with customers.

2. Accessing an External Technical Community

These are scientific, technical or expert community other than customers who offer their
services to the companies.

3. Scanning Small Businesses and Start-ups

This is to get ideas from entrepreneurial firms.

4. External Product Designs

Inviting designs (primarily designs and not intricate features) for the product from anyone
and not just from customers.

5. External Submission of Ideas

Normally through company website anyone can submit an idea. In this method, company
has to develop a channel (website) through which one can submit one’s idea. It is difficult
to manage and operate. It can also be done in collaboration with other companies having
innovative ideas or can work together on new ideas due to their expertise.

6. External Idea Contest

Companies may organize a contest where ideas are invited and selected idea gets
rewarded. It is expensive and risky as gets exposed to competition.

Other Methods

1. Peripheral Vision
It is scanning the environment and look for opportunities.

2. Disruptive Technologies
It is to identify or locate any breakthrough being worked upon by some R&D. It is very
difficult as it is rare to have such incidences.

3. Patent Mapping
By analyzing the existing patents, one can get an idea.

4. Idea Capture Internally

It involves generating ideas from one’s employees.

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