NEW PRODUCT MANAGEMENT
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CHAP1105.ppt Chapter 5
Finding and Solving Customers’ Problems
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Problem-Based Concept Generation
Figure 5.1
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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.
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Gathering the Problems
- Internal records (routine contacts with customers).
- Direct inputs from technical and marketing departments.
- Problem analysis with customers (ask them what are the problems with the current product, not what they want).
Problem Analysis Applied to the Smartphone
- Keeping the unit clean.
- Breaks when I drop it.
- Battery doesn’t stay charged long enough.
- Finding it in dark.
- Battery dies in mid-conversation.
- Who “out there” hears me?
- Dropped calls.
- Looking up numbers.
- Voice fades in and out.
- Hard to hold.
- Health risks?
- Can’t cradle between ear and shoulder.
- Disruptive instrument.
- Can’t see facial/body language.
- Rings too loud/too soft.
- Wrong numbers.
- Fear of what ringing might be for.
- Difficulty in looking up numbers.
Figure 5.2
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The Bothersomeness Technique of Scoring Problems
Figure 5.3
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List of pet owners' problems:
A
Problem Occurs
Frequently
B
Problem is
Bothersome
A x B
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
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
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Example of Problem Analysis: Dyson’s 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
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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?
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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.
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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.
- Domino’s 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 Domino’s new competitive position.
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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
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Relevance Tree Form of Dynamic Leap Scenario
Figure 5.4
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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.
Figure 5.6
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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.
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Brainstorming Techniques
- Brainstorming circle
- Reverse brainstorming
- Tear-down
- Phillips 66 groups (buzz groups)
- Delphi method
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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).
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Online Communities
- Any group that interacts using online social networking or a similar medium.
- Open online communities (Facebook)
- Lead user communities (tivocommunity.com)
- Firm-organized communities (J&J’s 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)
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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
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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.
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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
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List of pet owners' problems:
A
Problem Occurs
Frequently
B
Problem is
Bothersome
A x B
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
