Product Management Wildcraft Stage-3

Contents
Pros and Cons of the New Ideas ............................................................................................................. 3 Multi tool pad ..................................................................................................................................... 3 Mini shaver cum toothbrush............................................................................................................... 3 Detachable lens for Mobile Cameras specifically Samsung ................................................................ 4 Bluetooth smart lock........................................................................................................................... 4 RFID tags for Luggage.......................................................................................................................... 5 Idea Screening......................................................................................................................................... 5 FORM, TECHNOLOGY AND BENEFITS...................................................................................................... 6 Form: ................................................................................................................................................... 6 Technology: ......................................................................................................................................... 6 Benefits: .............................................................................................................................................. 6 Full Screening .......................................................................................................................................... 7 Scoring Matrix ..................................................................................................................................... 7 Profile Sheet ........................................................................................................................................ 8 The Analytic Hierarchy Process ........................................................................................................... 8 Product Protocol ..................................................................................................................................... 9 Must Meet Criteria............................................................................................................................ 11 Should Meet Criteria ......................................................................................................................... 11 Design.................................................................................................................................................... 13 Product Architecture......................................................................................................................... 13 Concept Evaluation ............................................................................................................................... 14 The Risk/payoff Matrix...................................................................................................................... 15 A-T-A-R model ................................................................................................................................... 15 Information Requirement Planning Table ........................................................................................ 16

Pros and Cons of the New Ideas

Multi tool pad
Pros Cons Lack of experience in quality metal tool production like Knives

Contains all basic tools required for a trekking/adventure trips Smaller and compact version of a victorinox multi tool kit Fit anywhere inside Ex : Wallet Presence of knife gives additional safety factor in unknown territories High price is justified by metal quality following international standards Product is tailor-made for adventure sports/trekking which goes with companys existing product line

Mini shaver cum toothbrush

Pros Cons Wont fit for adventure sports/trekking o Less emphasis for personal hygiene during the trips o Less beneficial for short duration trips Doesnt goes with companys adventure image.

Easy to carry as it is a size of tooth brush Multiple Replaceable heads of tooth brush and shaver, which allows multiple people usage No need to carry tooth paste and saving foam Beneficial for regular travellers

Detachable lens for Mobile Cameras specifically Samsung

Pros

Reduces the risk of carrying DSLR cameras and Pointandshoot cameras Reduces the bulk factor which is seen in DSLR cameras Compatibility with all mobile phones with cameras of mega pixels 5 or more Helps in good clarity captures Sturdy

Cons Wont cater other than Samsung mobile users Indians still consider as carrying a DSLR camera as a style and status symbol

Bluetooth smart lock

Pros Cons Provides security to the valuables kept Battery of the cell phone should not inside the baggage run out of charge Caters to all segments of travellers Additional advantage for the existing product line as it has a good synergy with them Good value for money compared to traditional locks Upgrading consumers from traditional locking to smart locking system Any cell phone with Bluetooth can be used as the Key however the PIN would be a secret only to the owner Gives an alert/notification if anyone tries to breach the lock

RFID tags for Luggage

Pros Cons Strong competition from existing companies Can create burden to certain users in the process of attaching tag to each item

Help people who have forgetting tendency Assure secure travelling with ease Gives an alert if someone is taking the RFID attached item out of the radius of lock centre Bundling with existing product line

Idea Screening
Wildcraft Ltd. is trying to launch a new product into familiar market and wants a preliminary testing of the ideas. After the detailed interview, we have scaled down to launching only Bluetooth Smart Lock in the Mysore market. Though the company has a higher kill rate of ideas, it is visible that the products like Multi tool pad, RFID tags, Mini Shaver cum toothbrush does not have an equally competent environment to be launched as compared to Bluetooth Smart Lock. Thus we will now be passing Bluetooth smart lock through a series of product screens, to ensure the commercial viability and technological soundness of the product.

1) Growth Screen The market potential is high and untapped. Estimated growth of Bluetooth smart lock is supporting the new idea. This idea gives the company an opportunity to grow as this product will give user a true sense of security which can complement the sales of companys existing product line 2) Category Screen The product is new to market, that means there will be low competition to offer and hence the product will pass the category screen. The company can capitalise on the first mover advantage as there is no company presently offers such a product.

3) Strategic Role Screen The Company is already an established player in travel equipment/accessories. This product will help the company to achieve the strategic goal which is to become a market driven company with innovation at its heart. The company is mainly aiming the tourist and travellers. Bluetooth smart lock is to be priced at Rs. 750 which is affordable for the customer as it ensures security while travelling. 4) New Product Screen Bluetooth smart lock is new to the market product and Company already has a good number of loyal customers. In other words the Company knows its market. 5) Financial Screening India being an IT driven country, application developers are not so expensive and raw materials such as electronics items are easily available also. This will help us to lower the total cost of production. This ensures bringing down of the price of the new product which makes it appealing for the consumers.

FORM, TECHNOLOGY AND BENEFITS

FTB analysis for Bluetooth Smart Lock is as follows:

Form:
Bluetooth Smart Lock: In todays day and age, security is of great concern especially while travelling. A new product developed by Wildcraft uses Bluetooth to connect your Smart phone and your lock which is attached to your bag pack. The idea behind Bluetooth Smart Lock is that, by using your smartphone you gain more flexibility and security to lock and unlock your bag pack. Unlocking a bag pack with a smartphone remotely is convenient by itself but with Bluetooth Smart Lock you can instantly know when someone tries to unlock your luggage. The locking mechanism would be using a four PIN passcode. It will give user a true sense of security in case they fall asleep or leave the luggage on their travelling vehicles like cycles and bikes and also public transport like long distance buses.

Technology:
Need for technology is to convert the product concept into the final new product. The device is User friendly which involves an application in the mobile phone which connects to the lock via Bluetooth. Bluetooth smart lock is compatible with any Bluetooth enabled mobile phone.

Benefits:
There are many benefits which customer can look on Bluetooth Smart Lock. It can be used for locking baggage as well as cycles etc during adventure trips and during travels. It can be
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used for normal locking purpose also as the main aim of the product is to update customers from traditional locking system to smart locking technique.

Full Screening
Scoring Matrix
Values 2 point Less competent Less complex Maybe accessible Some Little Less Maybe available Some

FACTOR 4 point Competencies/skills Highly competent Technical Highly complexity complex Access to Easily technology accessible Manufacturing Very capabilities Customer/market Much needs Customer paying High capacity Raw material Easily available supply Environmental risk None

3 point Competent Complex Probably accessible Good Some Some Probably available Less

1 point Not competent Simple Not accessible Little None None Not available High

Factor Competencies/skills Technical complexity Quality Product Speed to Market Access to technology Manufacturing capabilities Customer/market needs Distributors Filling need Customer paying capacity Raw material supply Environmental risk TOTAL

Bluetooth Smart Lock Normal Locks Technical Accomplishment 4 3 4 1 4 3 3 4 4 1 2 3 Commercial Accomplishment 3 4 4 4 4 2 3 3 3 4 3 1 41 33

From the analysis, it clearly shows the company should launch this product in the market which accomplishes the task of upgrading consumers from traditional locking system to Smart locking techniques.

Profile Sheet
This sheet graphically arranges the Five-point scorings on the different factors.
Factor Market size Market growth Distribution capacity Market capability Manufacturing capacity Marketing capabilities Engineering capability Financial capability Supply options Strategic fit 1 2 3 . . . . . . . . . 4 . 5

The profile sheet approach confirms the need and advantage of launching the new concept as it strategically fits to the companys existing product line and business.

The Analytic Hierarchy Process

This technique systematically gathers expert judgment and uses it to make optimal decision.

Market Fit: As Bluetooth smart lock is new to the market, it will have the first movers advantage in the city. Logistics of wildcraft is efficient which makes the products available everywhere. Bluetooth smart lock is to be priced at Rs. 750 which is affordable for the customers which ensures security while travelling. As Mysore and whole of India is becoming an attractive destination for tourists and travellers the prevailing opportunity can be utilised. Technical Fit: The proposed product is technology driven which requires skilled application developers. The company can outsource the development of application as India offers IT services in a comparatively less price. Wildcrafts product designing department can create a new lock system which goes with the adventure image of the company.

Financial Risk: Wildcraft have to keep in mind about labor cost, outsourcing cost, engineering capability, geographical area etc. to avoid the losses and thus ensuring the feasibility of the new idea.

Product Protocol
Target market: Ultimate : Adventures people who travels a lot Product positioning Engineered for maximum security Product attribute(benefits if possible): The devise will be unlocked within two second once the password is entered E-key will to be provided to family, friends and visitor who have compatible Bluetooth devise It will be small, portable, cheap, and effective. Competitive comparison: As the product will be new to the market, the product is first of a kind. Augmentation dimension: Generous warranty Education about the product to the customer Timing: As the product is new to the market, the product will be launched sooner and will be sold through exclusive outlets. Marketing requirement: The launch of new product will be campaigned through local daily newspaper, radio and regional television channel. We will need a sales forecast for this introduction. The positive experience of social confidence will be shown to the customer because of use of smart lock. Financial requirement: The entire funding for the Development / Launch phase / Manufacture / Marketing and Sales / Distribution costs for its first two years of operation will be funded through reserve cash and loan from the financial institution.
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Production requirement: During initial period the raw will be out sourced and once the demand for the product increases the company will built its own plant to meet the require demand. As company is known for its quality products, quality standards will maintains for the new product. Regulatory requirement: The product will adhere to regulatory framework frame by the state government. Corporate strategy requirement: Corporate strategy is driving this project, as we are known for adventure and outdoor gear company centred around outdoor activities like camping, mountain climbing, trekking and backpacking; we seek diversification of markets, enhanced reputation for innovations, and sustainable margins. Potholes: As it is technical product sometime it may happen that the lock will not respond sometimes to some Bluetooth devises. Acceptability of electronic locks in Mysore Market.

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Must Meet Criteria

Criteria Strategic alignment Existence of market need Likelihood of Technical Feasibility Product advantage Environmental health and safety policies Return versus risk Show stoppers Normal lock No Yes No Yes Yes No No Bluetooth Smart Lock Yes Yes Yes Yes Yes Yes Yes

Should Meet Criteria

VALUES 4 Points Much 3 Points Some Factors 2 Points Little Normal lock 1 Point None Bluetooth Smart lock 3 3 6 4 4 4 12 2 n/a 2 4 3 4

1.STRATEGIC a. To what extent does the project align with business strategy? b. What is the strategic importance of the project to the business? Total 2.PRODUCT ADVANTAGE a. To what extent does the product offer unique benefits? b. To what extent does the product meet customer needs better than the competition? c. To what extent does the product provide excellent value for the money? Total 3.MARKET ATTRACTIVENESS a. What is the market size? b. What is the market growth rate? c. What is the competitive situation ( the more intense and price based, the lower score) Total 4.SYNERGIES a. To what extent does the product leverage marketing, distribution or selling strengths? b. To what extent does the product leverage technical know- how or expertise?

2 3 5 2 1 2 5 4 n/a 4 8 1 2

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c. To what extent does the product leverage manufacturing or operations expertise? Total 5.TECHNICAL FEASIBILTY a. How big is the technical gap relative to other products?( the smaller the gap the higher the score) b. How complex the product technically?(the less complex , higher the score) c. What is the technical uncertainty of the outcome? ( the higher uncertainty , higher score) Total 6.RISK VS RETURN a. What is the expected profitability? (NPV) b. What is the per cent return?(IRR/ROI) c. What is the payback period- how fast is the initial investment recovered? d. What is the certainty of the profit or sales estimates (pure guess or highly predictable) e. To what extent is the product low cost and fast to do? Total GRAND TOTAL

1 4 2 3 1 6 n/a n/a n/a n/a 3 3 31

2 9 4 2 2 8 n/a n/a n/a n/a 3 3 42

After analysing the must meet and should meet criteria we can conclude that Bluetooth smart lock has higher score than Normal lock and company should go ahead for this project.

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Design
Design plays a very important role in the creation of the product. A lot of great idea concepts when converted into products fail to capture the market because the consumers are not happy with the design of the product. The contributions of the Design to the New Products Process should be as follows:

Design for Speed to Market

Design for Ease of Manufacture Design for Differentiation Design to Meet Customer Needs Design to Build or Support Corporate Identity Design for the Environment

Bluetooth smart lock is going to have a design to meet consumers need mostly creating a standard design so that the consumer finds its easy to use and portable to carry it around.

Product Architecture
It is a process by which a customer need is developed into a product design. The product contains various components and this needs to be divided into various chunks. It is how the functional elements are assigned to the chunks and how the chunks are interrelated. Bluetooth smart lock will have the following chunks: Chunk 1: Mobile Application Chunk 2: LED light Chunk 3: Battery/Power Source Chunk 4: key Considering the above chunks we are illustrating the step wise process for the product architecture development so that it can applied to make sure the products design will be in keeping with Customers Needs and also the Product Innovation Charter.

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Step 1: Product Schematic: The schematic shows the components and functional elements of the product and how they are interconnected.
Component of mobile App
Component of LED Light

Component of Battery

Component of key

Step 2: Cluster Schematic Elements: The chunks are more defined in this and interactions simpler so if there are any modification or changes, it can be easily facilitated. Chunk 1: Mobile App Chunk 2: LED light Chunk 3: Battery Chunk 4: Key

Step 3 and 4: Create Geometric Layout and Check Interactions: The product is arranged in several configurations to determine the best solution and understand what happens at the interfaces between chunks.

Chunk 3 Battery/power source

Chunk 4: Key

Chunk2: LED light

Chunk 1: Mobile Application

Concept Evaluation
Concept evaluation implies both comparison and decision making. The goal of concept evaluation is to expend least amount of resources on deciding which concept has the highest potential for becoming a successful product. On the other hand the challenges in concept evaluation are very limited data and knowledge on which to base the selection.

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The Risk/payoff Matrix

Decision to If the product were Marketed A Stop the project now B Continue to next evaluation

A. it would fail

AA(no error)

BA (go error)

B. it would succeed

AB (drop error)

BB (no error)

A-T-A-R model
This we use for designing an evaluation system for new product. This will tell us the forecast sales and profit on new product. Number of tourist visiting Mysore is 67,75,000 Number of tourist we think we can make aware of the new device: - 30 percent. Percentage of aware tourist who will decide to try product: - 20 percent. Percentage of intended triers who can get the product:- 60 percent Percentage of actual user who will purchase next time or recommend to family and friends:- 30 percent. Revenue per sale after promotion and trade margin:- 750 Unit cost, at intended volume:- 450 Profit contribution = potential*AW*T*AV*R*margin = 6775000*.30*.20*.60*.30*(750-450) = INR. 21951000 Thus INR.21951000 is the predicted profit.

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Information Requirement Planning Table

Research type- Exploratory research Sampling technique- Convenience Sampling Sample Size- 60

LOCATION

TYPE

FUNCTION General questions about the customer and travel accessories market.

Example

INITIAL QUESTION General questions

Next few questions

Probing Questions

Buying behaviour of customer

Next few questions Major Portion of Questionnaire

Focused questions

Opinion about Bluetooth Smart Lock Product related

Focused questions

Age Occupation Do you have mobile phone with Bluetooth? How often you go for trekking? Do you go for adventure sports? Backup unlocking Option Price Application Features

Questionnaire Name___________________________________________ Age_____________________________________________ Occupation_______________________________________ Location__________________________________________

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Q.1 How often do you travel for reasons related to your work? 1. 2. 3. 4. 5. Once in a month Once in 3 months Once in 6 months Once in a year ______________

Q.2 How often do you travel for reasons not related to your work? 1. 2. 3. 4. 5. Once in a month Once in 3 months Once in 6 months Once in a year _______________

Q.3 Do you go for adventure sports? 1. Yes 2. No Q.4 Do you go for trekking? 1. Yes 2. No Q.5 In your travel do you get worried about the safety of the valuables in your luggage (i.e. whether it is properly locked/whether the valuables in the luggage is unreachable)? 1. Yes 2. No Q.6 To ensure the safety of the valuables in your luggage what product do you use? 1. 2. 3. 4. Traditional locks Number locks Chain locks Others___________

Q.7 Are you happy with the product that you are currently using? 1. Yes 2. No 3. Undecided [Explain to them the idea of the Bluetooth Lock-its features, benefits and cost]

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Q.8 Have you heard of the concept of Bluetooth Lock? 1. Yes 2. No If yes, where?_____________________________________________________________________ __ Q.9 Do you have Bluetooth technology in your phone? 1. Yes 2. No Q.10 Do you think the idea of a Bluetooth lock is feasible/beneficial? 1. Yes 2. No If not, reasons_____________________________________________________________________ _ Q.11 Do you think the product is rightly priced at Rs. 750/-? 1. Yes 2. No 3. Undecided Q.12 Would you purchase such a product if available in the market? 1. Yes 2. No Q.13 Would you want a back-up unlocking option also on the lock along with the Bluetooth key? 1. Yes 2. No 3. Undecided Q.14 What are all the benefits that you feel you can get out of the Bluetooth lock? (Can check multiple options) 1. 2. 3. 4. Better security to the valuables Better sleep during travel by buses, trains etc. Better security when you leave your luggage in the travelling vehicle Makes you an advanced user of security locks

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Q.15 Have you heard of the company Wildcraft? 1. Yes 2. No Q.16 Do you make use of products of Wildcraft? 1. Yes 2. No Q. 17 Are you happy with the products of Wildcraft? 1. Yes 2. No If not, reasons_____________________________________________________________________ _

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