Concept Development & Testing

Concept Development and Testing

The third stage of the NPD process is concept development and testing. Concept development is the ongoing, continuous approach of finding the most appropriate design for a new product. Multiple designs consist of different materials, technology and physical appearance in order to grasp what the key product elements are so that the most premium product can be brought to market (Armstrong et. al. 2009).  

Lamb et al. (2010) described concept testing has been described within concept development as the preliminary stage to evaluate and test the success of a new product before it is actually brought to market. The concept is presented to a potential customer through an image, a statement or a verbal description. The sports product, brand and category are also considered at this stage of the NPD process. Many questions are asked;

. Is there need for the product?

. Is there a gap in the market for the product?

. What are the benefits of this product in relation to that of a competitor?

. What is the perceived value of the product?

. What are the customers’ purchase intentions in relation to the occasion and frequency of the purchase?

This stage is crucial in the development of a new (sports) product.

            Concept development and testing is also seen within the sport industry when a new sports product is being brought to market. Nike implements CD&T when bringing a new footwear product to market. They gather a mixed group of dedicated athletes from a variety of different sports to give constructive feedback and criticism on the shoes they are testing. This is in order to produce only the finest, most desirable to bring to the sports footwear market (Nike 2013).  Also within the sport industry, The Human Performance Centre at London South Bank University wanted to bring their concept ‘youbreathe’ – a vibration-training device for the respiratory system. As their market is broad – from athletes to asthma sufferers – they had to apply concept development and testing in order to develop the most appropriate, customer-fitting product (LSBU, 2013).  

            In regards to the Cricket Spike idea that was brought through from the idea generation and screening phase, concept developments were created in order to test on the potential customers of the product. Three possible concepts of this are:

1)       Cricket trainer with a button on the sole that folds and unfolds the spike so that the athlete can have either a spiked trainer or general trainer.

2)      Cricket trainer with reeling system on the sole that folds and unfold the spike so that the athlete can have either a spiked trainer or general trainer.

3)      Cricket trainer with detachable spikes that can be taken off or put on by using a spike-remover device; allowing an athlete to have either a spike trainer or general trainer.

A concept scoring matrix was created after the concepts were tested by potential customers. This matrix discovered that concept 1 has the highest potential for success in the sport cricket marketplace.

	CONCEPT 1	CONCEPT 2	CONCEPT 3
EASE OF USE	5	2	3
TARGET MARKET (Size)	4	4	4
LOW NUMBER OF COMPETITORS	4	4	3
ENHANCING THE CRICKET SHOE MARKET	5	3	3
DEMAND	4	3	4
POTENTIAL PRODUCT GROWTH	5	2	3
TOTAL SCORE	27	18	20
RANK	1	2	3

N.B. 1 – Low, 5 – High.        

Word Count - 500.  

Reference List

Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2009) Marketing: an introduction. Essex: Pearson Education.

Lamb, C. W., Hair Jr, J. F., & McDaniel, C. D. (2010) Essentials of marketing. Ohio: Cengage Learning.

London South Bank University (2013) Product testing and development. Available at: http://www1.lsbu.ac.uk/sports/hpc/technology.shtml Last accessed 25th November 2013.

Nike. (2013) Consumer affairs. Testing products for Nike. Available at: http://help-us.nikeinc.com/app/answers/detail/a_id/530 Last accessed 25th November 2013.

           

 

Idea Screening

Idea Screening

The Business Dictionary (2012) state that idea screening is simply analysing and evaluating innovative product ideas and their surrounding market(s).

          Hooker & Monas (2008) described idea screening as the process that determines whether to further develop a suggested innovative product. The general concept of the process is to decide if a product is actually viable and to establish the profitability – if any – of the product. Once evaluated, if a product is deemed unfeasible, then it will be eliminated from enhancing and therefore, developing any further in the NPD process.

          When a suggested idea reaches the screening phase, businesses have to undertake market research; questions are asked to the organisation’s target market, for example; whether the customer would benefit from the product, whether the customer would buy the product and also how much they would be willing to pay for the product. Additionally, businesses will evaluate the idea by looking at the potential product life cycle and peak sale times, i.e. if the product is highly seasonal. Another consideration businesses use is the Ansoff Matrix. This is in order to determine where the product lies in terms of its market (Hüllsmann & Pfeffermann, 2011).

          The Decision Making Matrix is another tool used by organisations to ask questions and break down ideas in order to assess their feasibility; potential customers give answers about concepts surrounding the product idea (ASQ, 2004). This matrix is essential in the process of idea screening.

          Nike’s manufacturing vision is ‘to create and to deliver great products through a sustainable, Nike, Inc.-wide sourcing base’. As they will only use recycled or organic materials to manufacture their products - when undergoing idea screening - they only choose to develop those that use the lowest number of toxic chemicals. Nike is one of the biggest sport companies in the world; every product they produce will have endured screening. Their products have gone on to make Nike a net profit of over £500million per-annum (Nike, 2013). Hence, proving how important idea screening is when developing new products.

          In relation to the ideas placed forward in the idea generation blog, the decision-making matrix was completed in order to discover which idea would be worthwhile to take forward to the next phase of NPD (Appendix A). Results show that the Cricket Spike idea was the strongest product due to the consistent high scoring. However, it was also proven that the golf ball idea was not feasible for a number of reasons. From this, structure should be developing within the cricket spike idea; e.g. the product will benefit the cricket market via introducing new technology that resolves a cost-based problem, therefore the product has serious potential across the sport industry if it were diversified correctly.

          To summarise, the decision-making matrix is a key concept to consider when deciding which ideas to take to the next phase of the NPD process. Idea screening plays an essential role in the NPD process and without it; the most feasible, suitable products would not be brought to market.

Appendix A

Reference List

ASQ (2004) Decision Matrix. Available at: http://asq.org/learn-about-quality/decision-making-tools/overview/decision-matrix.html Last accessed 18/11/13.

Business Dictionary (2012) Idea Screening definition. Available at: http://www.businessdictionary.com/definition/idea-screening.html Last accessed 18/11/13.

Hooker, R. & Monas, S. (2008) Shoestring Venture: The Start-Up Bible. New York: Bloomington. p189.

Hüllsmann, M. & Pfeffermann. (2001) Strategies and communications for innovations. Heidelberg: Springer.
Nike, Inc. (2013) Designing Products. Available at: http://nikeinc.com/pages/products Last accessed 18/11/13.