October 16, 2007

Approaches to new product development - Part I

During my way back from Mumbai to Bangalore[early this morning] , I was reading an interesting book "Lateral Marketing" by Philip Kotler and Fernando Trias.The book had an interesting section where the innovations from various fields were classified on basis of Size, Design etc.Some of those approaches to new product development are given below:

[Note : This article is divided into two sub-parts and the next one would follow soon]

1. Innovation based on modulation:
Consists of :
Increasing or decreasing any characteristics of the product or the service.
Effects in the market:
Amplification of targets.
Ability to better serve concrete segments.
Examples:
Juices: with low sugar content, with more fruit, with vitamins, without additives etc.
Banking: with monthly interest payment, without charges for credit card usage, with high number of offices, with higher trained staff etc.
Module based innovations vary any basic characteristic of the product or service by increasing or reducing the weight, importance or degree of that characteristic.
2. Innovation based on sizing:
Consists of :
Variations of volume, quantity or frequency.In this case, the product or service never changes.
Effects in the market:
Amplification of targets.
Amplification of consumption occasions.
Examples:
Soft drinks: Half a liter, one liter, two liters etc.
Internet connection service:Free usage in the night, Bonus of 30 minutes per day etc.
Sizing based innovations consist of introducing a new product or service in the market by varying the volume, frequency or number of products(or services) offered.
3. Innovation based on packaging:
Consists of :
Modifications of container or packaging.
Effects in the market:
Amplification of targets.
Amplification of consumption occasions.
Examples:
Chocolates: One container [containing chocolates] is a small, simple paper-box sold in kiosks or candy shops.A much bigger paper-made box is marketed in supermarkets or hypermarkets and it's function is family consumption at home.
Banks:Banks having different brands oriented to different target markets expressed through the office layouts etc.There are banks for lower class, middle class, higher middle class and higher class.
Packaging based innovations consist of creating new products by modifying only the container, the packaging or the environment.Many times, the packaging changes can be made together with the sizing changes.
Approaches to new product development - Part II would be covered in the next article.

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1 Comments:

At Oct 18, 2007, 12:48:00 PM , Blogger Aditya said...

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