Usually comes up in Q7 Ms. Marshall 6th year Business

Internal sources of ideas Skills & Hobbies Experiences Community Needs Brainstorming R&D Intrapreneurship

Ms. Marshall 6th year Business External Sources of Ideas Customer Feedback Competition State Agencies Market Research Co. Media Import Substitution

Internal- new business Internal- existing business External 1. Skills & Hobbies1. All of column one1. Customer Feedback 2. Experiences2. Research & Development 2. State Agencies 3. Community Needs3. Intrapreneurship3. Media 4. Brainstorming4. Competition 5. Import Substitution 6. Market Research Ms. Marshall 6th year Business

SourceExplanationExample 1. Skills and HobbiesThe entrepreneur own strengths and interests often provide inspiration. Cully & Sully had a shared interest in the food industry. 2. ExperiencesPersonal frustration with not being able to find a product or service or noticing a way to improve it. Richard Branson set up Virgin Atlantic because he was not happy with the service he got with other airlines. 3. Community NeedsRecognising community needs & wants that are not being satisfied. e.g. a convenience store beside new apartments. 4. BrainstormingEveryone calls out as many ideas as possible, none are dismissed. e.g. Cadburys staff would do this when thinking of new flavours Ms. Marshall 6th year Business

SourceExplanationExample 1. IntrapreneurshipThe business could have an employee suggestion scheme offering rewards. Idea generation and development techniques could be used. e.g. Art Fry, a worker at 3m, invented the Post-it 2. Research & Development Dept. could be staffed with innovative and technical staff to come up with new products. Pfizer – pharmaceutical co – spends $7 billion annually on R&D Ms. Marshall 6th year Business

SourceExplanationExample 1. Family & FriendsHave experiences that can spark an idea. Levi Roots Reggae Reggae Sauce is based on his grandmothers recipe 2. State AgenciesSome agencies provide ideas for new products and markets. Enterprise Ireland produces market research reporting opportunities around the world. 3. MediaMay get ideas from internet, articles, trends taking place. Relaunch Wispa Campaign from customers led to Cadburys reintroducing the bar 4. CompetitionCopying their competitors.Coca Cola brought out Deep River Rock after seeing the success of bottled water. Ms. Marshall 6th year Business This was not accepted as a stand alone reason in the LC 2013

SourceExplanationExample 5. Import SubstitutionEntrepreneurs see products that are successful in other countries and start to make them here. Tayto crisps were started up in 1954 after the success of King Crisps. Ballygowan was set up in the 1980s when the sales of imported mineral water was increasing. 6. Market ResearchUse a market research company to spot gaps in the market and market trends. Companies can then exploit these gaps or niche markets. Amarách consulting conduct market research. 7. Changes in Societynew legislation can result in new ideas Hands free kits for phones in a car. Patio heaters for pubs – smoking ban 8. Customer FeedbackThrough market research, complaints or compliments. Could result in changes in or further developments of existing product. McDonalds Salads Plus introduced to attract young females Ms. Marshall 6th year Business

 Q6 (A) Outline the internal and external sources of new product ideas for companies like Google. (20 marks)  Note:  1)Because it was outline they were looking for a heading and a brief description.  2)You did not have to make reference to Google, however, this was not clear in the paper. So in an exam situation you should!  3)Two internal and two external ideas were required. Ms. Marshall 6th year Business

 1. Idea Generation  2. Product Screening  3. Concept Development  4. Feasibility Study  5. Prototype Development  6. Test Marketing  7. Product Launch Ms. Marshall 6th year Business NB: Must be known in order with examples applied at each stage

StageExplanationExample 1. Idea GenerationThe business can find ideas from both internal and external sources. Brainstorming is a useful technique here. Cadburys employees are encouraged to experiment with bags of ingredients. They also travel the world to look for the latest technology. 2. Product ScreeningGo through all the ideas to see which have potential. Conduct a SWOT analysis on each idea. Cadburys employees reject bars that don’t have the right balance of ingredients, e.g. not enough chocolate 3. Concept Development Involves writing an essay on each idea – what does the product do? What is the USP? For every new chocolate bar Cadburys launch, 50 don’t make it past the development stage. 4. Feasibility StudyIs it technically and financially possible to make the product? Might do up CFF or B/E chart. How much could Cadburys sell the bar for? Is there enough demand to break even? Ms. Marshall 6th year Business

StageExplanationExample 5. Prototype Development The first working model of the product. This is tested and refined to work out any bugs. Cadburys have 150 qualified testers to check their products. 6. Test MarketingLaunching the product to a small segment of the market and evaluating consumers reactions to it. These reactions are used to refine the marketing mix. Cadburys have a pilot plant for small scale production. They could test market in a supermarket or one of their factory shops. 7. Product LaunchFull-scale production now begins and a marketing campaign is undertaken. Spots or Stripes? Cadburys introduce approx products a year, approx 8 will be totally new. Ms. Marshall 6th year Business

 Idea Generation: Kellogg’s conducted market research to identify a set of new food ideas that would be suitable for developing a new crunchy nut product. It asked customers what they would like in a new product and it looked at trends and new products in the cereals market. Kellogg’s used all of this research to generate a list of possible options for a Crunchy Nut product.  Product Screening: Kellogg’s put all the ideas generated up on boards. The had pictures showing product ideas and a description of what the new product would be like. Ms. Marshall 6th year Business

 Concept Development: Following surveys, research revealed the Bites idea was the most popular. Kellogg’s developed the following concept: they would be an extension of the Crunchy Nut family but would provide a new flavour and texture for consumers.  Feasibility Study: Market research helped calculate a sales forecast for the new product. All the figures revealed that Crunchy Nut Bites would be highly profitable and so Kellogg’s proceeded with the idea. Ms. Marshall 6th year Business

 Prototype Development: Kellogg’s made a number of prototypes including a nutty triangle. The Crunchy Nut Bites recipe was refined using the feedback from customer surveys.  Test Marketing: At Kellogg’s, every product has to undergo the ‘In Home Usage Test’. Consumers are given the product to try for several days and this enables Kellogg’s to see how consumers interact with the product. At the end of the trial, consumers complete a questionnaire. This measures how appealing the product is.  Product Launch: Kellogg’s launched Crunchy Nut Bites in September Sales data show it was one of the best performing brands to launch in the breakfast cereal category with a sales value of almost €10 million in its first full year of sales. Ms. Marshall 6th year Business

 Galaxy Games Ltd is a small indigenous company, operating in the new gaming technology sector. It was founded by two college graduates, David Whelan and Jane Ward. David is a software engineer and a web architect while Jane is a marketing graduate. Their design team recently identified some ideas for new games in action-adventure, music, and e-learning.  After reviewing the various ideas put forward, ‘Knights' Domain’, a new action-adventure game that involved building a fantasy kingdom, was chosen. The design team decided to use Irish music and cutting-edge graphics to set the game apart. Jane completed a business report, including a detailed break-even analysis, to determine the potential of ‘Knights' Domain’. Following on from this report, the design team introduced more challenging levels to the game and added more 3D graphics. The game was introduced to a group of transition year students from a local secondary school, who commented positively on the different levels and on its distinctive graphics. The product ‘Knights' Domain’ was launched in various games stores with an advertising campaign accompanying the launch. Ms. Marshall 6th year Business

 ABQ 2013  (A) Outline the stages involved in the product development process of ‘Knights Domain’ for Galaxy Games Ltd. (30 marks)  Note: 5 6 marks each. Name, explain, link. Had to be in the correct order. Ms. Marshall 6th year Business

 2012  Idea Generation and Feasibility Study are important stages before a new product or service is launched onto the market. Discuss the stages underlined above, referring to a product or service of your choice. (20 marks)  2011  Outline internal and external sources of product innovation for Kilronan Ltd. (20 marks) (No need to refer to company)  2010  Distinguish between ‘Prototype Development’ and ‘Test Marketing’ as stages in the development process of a new product. (10 marks) Ms. Marshall 6th year Business

 2009  Olympian Ltd is a company that produces a range of high quality branded sportswear. Following a lengthy market research process, the firm is now expanding its business to include a new range of Hoodie Tracksuits, aimed at the teenage market.  (A) Outline the stages involved in the development process of the new range of Hoodie Tracksuits. (20 marks)  2008  Evaluate the importance of ‘Feasibility Study ‘and ‘Prototype Development’ in the development process of a new product of your choice. (15 marks)  2006  Deirdre Moloney hopes to start up her own cosmetics and personal beauty products business aimed at the consumer market. She has approached you as a marketing consultant for some marketing advice.  In one single report, explain to her: (see page 115)  The stages in the development of a new product/service. Ms. Marshall 6th year Business

 2005  (A) Discuss four external sources of new product or service ideas. (25 marks)  2004  A ‘Feasibility Study’ is used to: (10 marks)  2003  Illustrate two internal and two external sources of new product or service ideas. (25 marks)  2001  Prototype development involves…(10 marks) Ms. Marshall 6th year Business