Hello, teacher. It's me, Minh Thùy.
Today, I am going to discuss Chapter 9, which focuses on developing
new products and managing the product life cycle.
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Let's begin with the new product development strategy.
- A firm can obtain new products in two ways. The first method is acquisition. ÁC QUI SÍ TION
For example:
- In 2014 THÉN TY 4 TIN, Facebook acquired the popular messaging app WhatsApp for $19 billion. This
acquisition allowed Facebook to expand its reach in the messaging space and tap into WhatsApp's
extensive user base, which, at the time, exceeded ỊT SÍ ĐỊT 6 HUNDRED BILITION 600 million active
users.
Another example is Big C, a retail chain in Vietnam, which was acquired by Korea's Lotte Group,
Thailand's Central Group, and domestic investors. This marked a significant shift in retail sector
ownership.
SLIDE
And the second method is new product development.
Here are a few examples of applying the concept of new product development:
1. Intel has invested heavily in Vietnam, particularly at Saigon Hi-Tech Park, to enhance the production
of 5G products and 10th-generation core chips.
2. Canon KHÁ NANH, a renowned camera brand, has been operating in Vietnam since the 1980s NAI TIN
AAI TI, with four factories and over 300 THREE HUNDREDS dealers in the country.
3. YODY, a successful Vietnamese fashion startup, operates 220 TWO HUNDRED TWENTY stores across
46 FOURTY SIX provinces and cities, demonstrating a market coverage strategy.
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So, new products are important to both customers and companies, bringing new solutions and variety to
their lives. They serve as a key source of growth and innovation. However, innovation can be very
expensive and risky.
SLIDE
"Let's move on to the product development process."
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When it comes to idea generation, which involves a systematic search for new-product ideas, the
company needs to find new ideas through three sources:
- Internal Idea Sources, such as R&D, executives, salespeople, scientists, engineers, and manufacturing
staff.
- External Idea Sources and crowdsourcing.
SLIDE
Regarding to External Idea Sources, we explore Distributors & Suppliers, competitors, and customers:
Distributors & Suppliers: They are close to the market and development processes.
Competitors:By keeping an eye on advertisements, analyzing sales, and studying products, we can
gather valuable clues.
Customers: Analyzing customer questions and complaints or actively inviting them to share ideas can
provide valuable insights.
- Additionally, Crowdsourcing involves inviting diverse communities of people, including customers,
employees, independent scientists, and researchers, to participate in the new product innovation
process.
SLIDE
Moving on to idea screening
We use a systematic write-up approach. Ideas are presented in a standardized format, and we employ
the Real-Win-Worth (RWW) method. This involves asking three key questions:
Is it real?
Can we win?
And is it worth doing?
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When it comes to concept development and testing, we distinguish between two key forms: product
concept and product image.
I will give you 2 examples of this
- Product Idea Example: Samsung, a globally recognized brand, strategically taps into the expanding
demographic of the Vietnamese market. With manufacturing facilities within Vietnam, they cater to the
local market with a diverse range of products.
- Product Image: Shifting the focus to a product image, let's take the case of Vinamilk, a prominent
Vietnamese dairy brand. Vinamilk has adeptly shaped its product image by emphasizing nutritional
benefits, advanced technology, and collaborations with international organizations. This strategy
ensures product safety and quality across its diverse range of dairy products.
SLIDE
Here are two illustrative examples of concept testing:
- Tesla's Model 3 Launch (2015): In 2015, Tesla unveiled the Model 3, an electric car, through pre-orders
that attracted a staggering 400,000 customers. This strategic move not only gauged customer demand
but also secured a substantial $400 million investment in the concept.
- Or Yamaha, a renowned instrument manufacturing company, engaged with customers to decide
between a knob or a sliding fader for their new electric keyboard. This decision-making process
was driven by understanding the preferences of their target audience.
