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HENTRE (ENTREPRENEURSHIP)

CHAPTER 5 :The Right Product For The Right Market

Objectives:
1. New product development
2. Product conceptualization and the creative mind
3. The new product development

NEW PRODUCT DEVELOPMENT

Successful new products spring from the convergence of: (1) the creative mind; (2) the
technical mind; and (3) the business mind. All three minds come together in the
entrepreneurial mind.

The Entrepreneurial Mind

The creative mind conceptualizes and designs a product
that consumers find some use for. It likewise produces a product
that is pleasing to see, touch, smell, hear, and taste. It also produces
a product that creates emotional attachment and eventually becomes a significant
personal expression of the consumer.

The technical mind is the technology originator.

The business mind harnesses the potentials of new products by creating the market
space for them.
Product Conceptualization and the Creative Mind
Using the lampturn example, let us examine how the entrepreneurs employed the
creative mind, technical mind, and business mind in order to come up with a viable new
product. First, let us take a look at how they achieved the creative mind’s three product
levels of appeal.
Product Development and the Technical Mind
In order to convert the product concept into a viable product, the technical
mind must intervene to provide the quality and performance specifications through
technology. In the case of Lampturn, the product simply required the application of
existing technology (or technology rendering).
For better grasp of these technical specification, the following is the kist that the
entrepreneur came up with as they consult these experts.
First:
Use of 25 watts bulbs
use the fan bladed domes
Second:
use of high impact plastic paper
use the strong wooden frames
Third:
use of size that is not more than 16 inches in height and 10 inches wide.
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HENTRE (ENTREPRENEURSHIP)

use of quality electrical supplies.

Product Launch and the Business Mind
The business mind brings the product from the prototype stage to the production
phase and, finally, to its ultimate destination, the marketplace. The product must be
made shop-ready for commercial purposes.
Fourth:
Use of subcontractors, namely, Tahanang Walang Hagdan.
Fifth:

Entrepreneurs supplied the materials to the subcontractors including the pre-

assembled electrical contraption.
The New Improved Product
There are many existing products in the market that are serving the needs and
wants of customers but not that well. The existing products are being tolerated because
there are enough features and attributes to make the customers want to buy the
product.
Part 1: Preliminary Testing
In the first part, the entrepreneurs consulted food experts and read the literature
on food processes. They were told that, “fried garlic submerged in oil and sealed in a
bottle as a food system was very unstable.
 The right garlic size and shape that would be the easiest to cook and the most
pleasing in appearance;
 The expected yield of FGO from one kilo of unpeeled garlic;
 The right frying temperature;
 The minimum peeling time for garlic; and
 The minimum mincing time for garlic,
Part 2: Establishment of Specification for the Product
In the second part of product development, the entrepreneurs determined the
exact specifications for the product based on the raw material and the vegetable oil to
be used. The entrepreneurs chose four different options on the kind of garlic to be used
and two different options for the vegetable oil (after eliminating the very expensive oils
for cost reduction purposes).
Part 3: Standardization of the Production Process
The third phase of product development involved the standardization of the entire
food preparation and cooking process. The entrepreneurss wanted to standardize the
frying time, the optimum oil usage and oil recycling frequency, and the optimum soaking
time in calcium chloride.
 Please refer to the link below for a Documentary about: entrepreneurial
mindsethttps://www.youtube.com/watch?v=8NBnoVrLFPU
 Please refer to the link below for a Documentary about: new product
https://www.youtube.com/watch?v=3CpApLhJ-34

Reference:
www.rexpublishing.com.ph
Entrepreneurship by Dr. Eduardo A. Morato Jr.