NEW PRODUCTS

MANAGEMENT
Merle Crawford
Anthony Di Benedetto
10th Edition

McGraw-Hill/Irwin Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
 Chapter 05

Finding and Solving Customers Problems

5-2
Problem-Based Concept Generation

5-3
Problem Analysis: General Procedure
1. Determine product or activity category
for study.
2. Identify heavy users.
3. Gather set of problems associated
with product category.
Avoid omniscient proximity rate
importance of benefits and levels of
satisfaction.
4. Sort and rank the problems according
to severity or importance.
5-4
 Problem Analysis Applied to the Cell
Phone
Keeping the unit clean. Health risks?
Breaks when I drop it. Cant cradle between
Battery doesnt stay ear and shoulder.
charged long enough. Antenna breaks off.
Finding it in dark. Flip cover breaks off.
Battery dies in mid- Disruptive instrument.
conversation. Cant see facial/body
Who out there hears me? language.
Dropped calls. Rings too loud/too soft.
Looking up numbers. Wrong numbers.
Voice fades in and out. Fear of what ringing
Hard to hold. might be for.
5-5
The Bothersomeness Technique of
Scoring Problems

List of pet owners' problems: A B AxB

Problem Occurs Problem is
Frequently Bothersome
Need constant feeding 98% 21% .21
Get fleas 78 53 .41
Shed hairs 70 46 .32
Make noise 66 25 .17
Have unwanted babies 44 48 .21

5-6
Problem Analysis: Sources and
Methodologies
Experts
Published Sources
Contacts with Your Business Customers
or Consumers
Interviewing
Focus groups
Observation of product in use
Role playing

5-7
 Example of Problem Analysis:
Dysons Air Multiplier Fan
Conventional fan problems:
Spinning blades chop airflow
Hard to clean
Blades can be dangerous to children
Fan tips over
Energy inefficient
Air Multiplier: bladeless (uses technology adapted from
hand dryers), and attractively designed.
Airstream is smooth and danger is eliminated
Low center of gravity eliminates tipping
Much more effective and efficient cooling
No blades to clean 5-8
 Typical Questions for Problem
Analysis Focus Groups
What is the real problem here what if the
product category did not exist?
What are current attitudes and behaviors of
focus group members toward the product
category?
What product attributes and benefits do the
focus group members want?
What are their dissatisfactions, problems, and
unfilled needs?
What changes occurring in their lifestyles are
relevant to the product category?

5-9
 Observation and Role Playing in
Problem Analysis
Carmakers send their designers out to parking
lots to watch people and how they interact with
their cars (Ford called this gorilla research).
Honda got insights as to how large the
passenger compartments of their SUVs should
be by observing U.S. families.
Bausch and Lomb generated ideas on making
contact lenses more comfortable by getting pairs
of executives to act out skits in which they
played the eyeball and the contact lens.

5-10
 Problem Analysis in Action
Toyota pickups were perceived as too small for
North American tastes. Redesigned with a V8
engine and a much roomier passenger
compartment.
Dominos Pizza, for years known for average
quality but fast delivery, found that taste was
frequently mentioned as a problem in focus
groups. Intense product development led to a
better pizza which is Dominos new competitive
position.
5-11
 Scenario Analysis

Extending vs. leaping

Using seed trends for an extend scenario
Techniques:
Follow trend people/trend areas
Hot products
Prediction of technological changeover
Cross-impact analysis

5-12
Relevance Tree Form of Dynamic
Leap Scenario

5-13
 Wild Card Events and
Their Consequences
No-Carbon Policy: Global warming may cause governments
to put high taxes on fossil fuels, shifting demand to alternative
sources of energy. This changes the allocation of R&D
investment toward alternative energy, possibly causes new
energy-rich nations to emerge, and ultimately may lead to a
cleaner environment for everyone.
Altruism Outbreak: This is the random acts of kindness
movement solve social problems rather than leaving it up to
the government. Schools and other institutions will revive due
to community actions, and perhaps inner cities would be
revitalized.
Cold Fusion: If a developing country perfects free energy, it
becomes prosperous overnight. It gains further advantages by
becoming an energy exporter.
5-14
 Solving the Problem
Group Creativity Methods/Brainstorming
Principles of Brainstorming:
Deferral of Judgment
Quantity Breeds Quality
Rules for a Brainstorming Session:
No criticism allowed.
Freewheeling -- the wilder the better.
Nothing should slow the session down.
Combination and improvement of ideas.
5-15
 Brainstorming Techniques
Brainstorming circle
Reverse brainstorming
Tear-down
Phillips 66 groups (buzz groups)
Delphi method

5-16
 Electronic Brainstorming
Supported by GSS (group support systems) software.
Overcomes many drawbacks of brainstorming (only one
can talk at a time, fear of contributing, social loafing).
Participants sit at networked terminals.
Contributions are projected on screen, and also recorded
(so no errors are made in transcription).
Can be done over multiple sites via computer linkups or
videoconferencing.
Can handle larger size groups (into the hundreds).

5-17
 Online Communities
Any group that interacts using online social networking
or a similar medium.
Open online communities (Facebook)
Lead user communities
(http://www.tivocommunity.com)
Firm-organized communities (J&Js
http://www.babycenter.com)
Private online communities set up by service
providers like MarketTools (under 500 members)
Proprietary online communities (thousands of
members that statistically represent a target market)

5-18
 Use of Online Communities
Listen to the voice of the customer
Monitor public communities and blogs to
spot new trends and opportunities
Establish rapport with customers and
enable customer support
Build emotional bonds with the customer

5-19
 Online Community in Action:
Del Monte Pet Food Division
Working with MarketTools, analyzed data from millions
of blogs, forums, and message boards,
Identified biggest concerns of pet owners.
Identified new customer segment (Dogs Are People,
Too)
Created invitation-only online community to encourage
customer innovation (500 consumers)
Community generated and refined ideas for new
breakfast product.
New product, Sausage Breakfast Bites, launched in half
the normal time.
5-20
 Drawbacks to Online
Communities
They are hard work
Costly and time consuming (hire
moderators and facilitators)
Takes time for the community to mature
Organizing the content so it is easy for the
members to find
Member privacy, confidentiality, content
ownership, and other legal issues
5-21