Test Marketing

Test Marketing

The penultimate stage of the NPD process is test marketing. Actual performance is observed as a new product/service is placed in one or more selected market(s) to analyse whether the product will be viable or not (Kotler & Keller, 2012). McDaniel, Lamb & Hair (2011) further back up this point by stating how introducing a new product into a limited market will gather the views of potential customers.

This stage allows developers of new products to introduce the product at a lower cost than that of first introduction, however, it still tests the entire marketing program on potential consumers, for example the positioning strategy, branding, distribution and advertising. Although, there are some flaws within test marketing as there are extra financial costs incurred with the introduction process and also competitors may take advantage due to this being a lengthy process (Kotler & Armstrong, 2012).

Within the sport industry, an example of this would be Body Armor’s chest protection pad that they had developed due to the product not being accepted to date (Professional Athletic Equipment Inc, 2013). There were certain issues with the product in regards to the high costs of getting all teams to wear a protective product and also there were doubts on whether the product would affect an athlete’s performance and/or mobility. Therefore, Body Armor was then tested at a variety of places, including Baseball youth teams and other universities. From the study it was derived that the product did not affect performance but actually improved it, this was due to the mentality of the athletes being more confident as they felt more protected and safe wearing the Body Armor. Scotland Food & Drink (2012) go on to suggest that market testing is essential in the New Product Development process and should be done not just in the sport industry but across all business industry.

In regards to the cricket spike idea (SB SpikeSwitch) that has come through previous stages of the NPD process, test marketing would be implied appropriately. The organisation that is SB SpikeSwitch would have to consider laws when test marketing the spike, such as intellectual property of the spike which suggests that upon entry into the market, patents, trademarks and other copyright material will protect the spike from being copied by competitors. Therefore, it is necessary to market test the product to the appropriate audience in order to gain a more specific view on the realistic use of the product.
During the late winter/early spring, when cricket training starts for all clubs nationwide, the spike will be taken to the top 20 universities in the UK to be tested on potential buyers in order to gain actual information on what people think of the product. The product will also be taken to every UK County’s cricket ‘hub’, where the best up and coming players in the country can test the product to grasp the feasibility of the spike.

Word Count 485.

Reference List

Kotler, P. & Armstrong, G. (2012) Principles of Marketing.14th Edition. London: Pearson Education.

Kotler, P., & Keller, K. (2012) Marketing Management. Essex: Pearson Education.

Mcdaniel, C.D, Lamb, C.W, & Hair J.F, (2011) Introduction to Marketing. 11th Edition. Ohio: South-Western Cengage Learning.

Professional Athletic Equipment Inc. (2013). Business Plan. Available at : http://wsj.miniplan.com/spv/3256/3.cfm#1030000. Last accessed 29th January 2014.

Scotland Food & Drink. (2012) How do I: conduct a test market? Available at: http://www.scotlandfoodanddrink.org/site/guide_doc/How-do-I-conduct-a-test-market-2.pdf Last accessed 29th January 2014.

Product Development

Product Development

The sixth stage of the NPD phase is product development. Kotler & Keller (2012) described product development as the construction of the physical form of an idea via the development of prototypes. This involves converting all of the characteristics, specifications and requirements discussed about in previous phases of the NPD process, into an actual materialistic product ready to be taken to market (Durmuşoğlu & Barczak, 2011). Also within product development, Kotler & Keller (2012) stated that there are four other aspects that need to be included in this phase, they are:

• Product construction decision – Materials, method, costs, sizes/colours
• Packaging – Materials, costs.
• Branding – Product name, logo, trademark protection, perceived image amongst consumers
• Positioning – Market segment and positioning in relation to competitors products

A sporting example of the phase of product development can be seen when Warrior were introducing their first ever football boot, the ‘Skreamer K-lite’. At Manchester City’s training camp in the Alps, 2012, captain Vincent Kompany was pictured wearing a pair of prototype Warrior football boots to train in (SoccerReviews, 2012). This shows how a developing new sport product first has to be tested for the reliability of the functioning of that product via the use of a prototype. Adidas also use the same method when producing a new football boot. Their new f50 product in 2014 proved to be extremely beneficial in terms of the materials, colours, name and logo involved (Adidas, 2014). This does not just occur in football boots however, as seen in 2013 when the new ‘Stair-rover’ skateboard was introduced. This was a previous improvement of an old version that had been updated via new materials, products and positioning; the skateboard had several prototypes before its final release (Gizmag, 2013).

In relation to the Cricket spike idea that has came through previous phases of the NPD process, relevant aspects of product development have been incorporated. They are as follows:
• Product construction:
Materials- Heel will be TPR-cradled to secure the boot around the foot for comfort and to stop loss of energy, Outer-sole made from compression-moulded EVA for ventilation, comfort, support and durability. Under-Sole will be rubber with metal spikes folding up/down.
Method/Costs- Product will be massed produced in a plant within Eastern Asia (Thailand, China) to ensure minimum costs. Cost per unit will be approximately £7.50 including labour, materials etc.
Size/Colours- Shoe will be available in sizes UK4-13. There will be 3 colours for the outer-design of the shoe; white, blue or red.
• Packaging
Materials- Shoe will be given in a black meshed bag. (see Appendix A for an example).
Costs- Meshed bag will cost approximately £0.30p per unit to produce.
• Branding
Name- SB SpikeSwitch
Logo- See appendix B.
Protection- The product will be fully patented and trademarked therefore none of the close competitors can produce anything similar.
Perceived image- Product will hope to be perceived as an innovative, reasonably-priced, problem solving solution that saves money in the long term.
• Product positioning
See appendix C for product positioning map.

Word Count 496.

Appendices 

Appendix A

Appendix B

*NB – This is a rough sketch of the logo and not the finalised version

Appendix Ci

 Appendix Cii

*Appendix Ci shows the product positioning of SB SpikeSwitch in comparison with it's relevant competitors. Appendix Cii shows where Sports Direct (the outlet in where my product will be sold) is viewed overall within the sports industry. These 2 diagrams prove - as they are positioned at similar positions to each other - that SB SpikeSwitch cricket spikes will be a perfect match to sell in Sports Direct stores nationwide.

Reference List

Adidas Online. (2014) Men’s adizero f50 TRX FG boots. Available at: http://www.adidas.co.uk/mens-adizero-f50-trx-fg-boots/F32789_580.html Last accessed 16th January 2014.

Durmuşoğlu, S. and Barczak, G. (2011). The use of information technology tools in new product development phases: Analysis of effects on new product innovativeness, quality, and market performance. Industrial Marketing Management. Volume 40, Issue 1. pp. 320-321.

Gizmag Online. (2013) Stair-descending skateboard hits Kickstarter. Available at: http://www.gizmag.com/stair-rover-skateboard-kickstarter/27981/ Last accessed 16th January 2014.

Kotler, P., & Keller, K. (2012) Marketing Management. Essex: Pearson Education.

SoccerReviews Online. (2012) Vincent Kompany Training in Warrior Sports Prototype Boot. Available at: http://soccerreviews.com/news/unreleased-warrior-sports-skreamer-klite/ Last accessed 16th January 2014.