Tattletale Toy Company ® Interactive Toy Launching Process By: OC October 23, 2005
CONTENT Backround Vision/Mission Product Description Objectives Stage Gate Process
BACKROUND Tattletale Toy Company® was established in 1990. Products are currently in over 100 stores across the U.S. New toys are launched 7-8 times a year.
VISION To build Tattletale Toys® into one of the top toy companies in the U.S. MISSION To successfully launch a new interactive toy product to increase profits and brand awareness.
PRODUCT DESCRIPTION Interactive Toy Target Group: Children aged 5-10 Pricing: $25.00 a piece
OUR MISSION Using the stage gate plan, our company will plan, strategize, and implement to achieve our objectives.
OBJECTIVES Sell a total of one million interactive toys during the year of 2006. Increase our brand awareness rate to 25%. Gain more customers by selling an in-demand product.
Must Meet Go/Kill Point STAGE GATE OUTLINE Discovery Interactive Toy Must Meet Go/Kill Point Gate 1 Stage1 Gate 4 Stage4 Gate 5 Stage 5 Gate 2 Stage 2 Gate 3 Stage 3 Post Launch Review
Discovery IDEA GENERATION Interactive Toy Discovery IDEA GENERATION Collected from: Sales Reps. from International Toy Fair Marketing Dept. Analyzing competitors’ interactive toys Graphic Artist’s Designs Home office input
Gate 1 Market attractiveness Differential advantage Fit with company policy Strategy alignment Project feasibility Magnitude of opportunity If no killer variables detected, go to next step…
Stage 1-Scoping Preliminary Market Assessment Contact with key users, focus groups, concept test with handful of potential users, market acceptance and market potential. Preliminary Technical Assessment Involving a quick in-house appraisal of the proposed product development and manufacturing routes. Technical and manufacturing feasibility. Possible technical, legal, regulatory risk and roadblocks. Preliminary Business/Financial Assessment Possible times and costs to execute. How long will it take to get money back for project’s expense.
Gate 2 Sales force and customer reaction Proposed product Potential legal Technical Quick and simple financial calculation Review by sales management Technology is feasible, attractive product, advantage of product Decide to kill or go on…
Stage 2-Detailed Investigation Target market definition Delineation of the product concept A product positioning strategy Product benefits to be delivered Product features Attributes, requirement and specifications Customer needs, wants, preferences that help define the winning new product Competitive analysis Technical do-ability/manufacturability A detailed financial analysis
Gate 3 Results of financial analysis Decision to heavy spend Decide to kill or proceed…
Stage 3- Development Stage 3 In house or lab test Marketing or manufacturing activities also proceed in parallel: market analysis, customer feedback (customer opinion sought on the product as it takes shape during development) Development results: rapid prototype, working model, first prototype Detailed test plans Market launch plans Production plans Updated financial analysis Regulator, legal and patent
POST DEVELOPMENT REVIEW Gate 4 Gate 4 POST DEVELOPMENT REVIEW Revised financial analysis based on more accurate data Detailed marketing and operations plans are reviewed for probable future execution Test or validation plans for immediate implementation Decide to kill or go on…
Stage 4 Testing and Validation Production process Customer acceptance Economics of the project In house product test Trial limited production Pretest: trial sell, test market financial analysis
Gate 5 Quality of activities at testing and validation Expected financial return Operation startup plans Marketing plan is reviewed Financial review Decision to kill or proceed…
Stage 5 Full Production and Market Launch Marketing Plan Production of Operations Plan
Post Implementation Review Latest data on revenues Costs Expenditures Profits Timing Discuss strengths and weaknesses Discuss what we can learn from project How we can do the next one better