Commercialisation

The business of Sport: w11007742

Stage: Commercialisation

Word Count: 498

Commercialisation represents the final phase of the new product development. Kotler Harker & Brennan (2009) state that commercialisation of a product is how the product is introduced into the market. The information received from the test marketing phase allows a business to decide whether to launch their product into the market and how they are going to go approach the proposed target. During this phase the business will also need to consider any added extras which may accompany the product such as warranties  repairs and replacements. (Pride & Ferrel, 2011). Within a market plan an action plan must be apparent. (See appendix A) This includes activities such as recruiting and hiring, internet campaigns, advertisements and adequate stock in warehouses in order for the launch to be successful these activities must be implemented. (Havalder, 2010) 

However the commercialisation phase may add to the business expenses due to the high cost of advertising and promotion which aid in the products sales. This could cause an issue to smaller businesses as they will financially struggle to advertise to a larger target audience via the television, magazines etc., as they are very costly. Ultimately this could result in them able to reach potential customers. Alternatively, in order for smaller business to promote their product there are cheaper options such as local advertisements, blogs and podcasts. (Pride et al 2011)

Commercialisation of a product will only take place, if the following three questions can be answered.(See appendix B) These include:

When? The product must be launched during a certain time bracket to reach the right target audience. The Deep Heat Support Bandage is a mass product therefore unless competitors release new similar products this shouldn’t really affect the launch of the product due to the fact it isn’t seasonal. Although the launch of the bandage may be best in summer as events such as the Olympics, World Cup and Wimbledon may encourage people to get back into sport. 

Where?  The bandage’s launch will begin locally, aiming at athletes of all ages in local sports clubs. This will be less cost efficient due to limited resources available.

Whom? By beginning with targeting a local audience, the products success can be tested before, as revenue increases the product can then be advertised on the internet leading to sales in retail stores in hope that the benefits of the product will be recognised by the population.

The AIDA  principle, developed by Lewis (1898) identifies the four steps a business needs to take the target audience through if they want them to buy the product or attract them to the advertisement.(Maclure, 2011)

The bandage will develop awareness through the existence of the product. This will then create interest from the intended target audience by paying attention to the bandages benefits such as eases pain, the fact that it is reusable and flexible to each individual customer. Desire for the product will hopefully help ease the injury whilst participating in sport. The desire will also be created by offering all customers a 3 month warrantee on the bandage, allowing them to confront the business if they are unhappy with their purchase. This helps maintain a healthy relationship between the business and customer, also allowing the business aware of potential problems/improvements. The purchasing of the product results in the action, in hope that the circle continues.

Appendix A

Appendix B

References:

Armstrong, G., Kotler, P., Harker, M & Brennan, R (2009). Marketing an Introduction. Harlow: Pearson Education Limited.

Havalder, K.K. (2010) Business Marketing: Text and Cases. 3^rd edn. New Delhi: Tata McGraw Hill Education Private Limited.

Maclure, N. (2011) Product Commercialisation. [online] Available at: http://www.slideshare.net/nmaclure/product-commercialization [Accessed: 2 Feb 2013].

Petit, C., Dubois, C., Harand, A & Quazzotti, S (2011). ‘A new innovative and marketable IP diagnosis to evaluate, qualify and find insights for the development of SMEs IP practices and use, based on the AIDA approach’, World patent information. 33:1, pp. 42-50. Available at: http://www.sciencedirect.com/science/article/pii/S0172219010000098 [Accessed: 2 Feb 2013]

Pride, W & Ferrel, O (2011). Marketing Express. 2^nd edn. USA: South Western Cengage Learning

 Proven Models (2013) AIDA Sales Funnel. Available at: http://www.provenmodels.com/547 [Accessed: 1st Feb 2013].

Test Marketing

The Business of Sport:w11007742

Stage:Test Marketing

Word Count: 498

Armstrong, Kotler, Harker, Brennan (2009) identify test marketing as the stage at which trial products or services are introduced into a real setting in order to determine the reactions of potential consumers of a product. This stage allows product developers to introduce the product at a lower cost than full introduction but still test the entire marketing program on target consumers such as the positioning strategy, advertising, distribution and branding. (McDaniel, Lamb & Hair, 2011). Organisations use test marketing as it allows them to monitor and evaluate how well their product will sell before introducing it product into the market.

Test marketing is very expensive and gives competitors an advantage by giving them time to study new products, this shows that test marketing doesn’t assure success. (Kotler & Armstrong, 2012). Test marketing allows businesses to receive feedback from customers about the product in relation to the marketing mix, this will help to ensure all aspects have been considered by utilising the feedback in order meet customer’s needs, ready for the final launch. (See appendix A)

Many Businesses undergo test marketing. For example Adidas tried out an energy drink in Japan designed in collaboration with Coca-Cola. If the population of Japan approved of the prodct then the the product would then be distributed worldwide (Fashion Net Asia, 2010).

Test marketing the ‘Deep Heat Support Bandage’ will identify if the product needs improving and whether or not the marketing campaigns are successful. (Pride& Ferrel 2011).   Using information from test marketing, product developers can refine products to make them more commercially viable before embarking on a widespread project launch (McDaniel et al, 2011).

The ‘Deep Heat Support Bandage’ will go through the test marketing stage by being released into a smaller market. The product will first be available for local injured athletes to buy at £15, where stimulated marketing will occur, allowing consumers to try out the product, providing the developers with feedback. If the tested price provides satisfactory results, these can be used to develop the commercial proposal to launch the product to larger retailers and begin online sales. This is an appropriate price due to direct competitors, less technical products available to buy for £10+.

When advertising the bandage a number of adverts will be posted around local sports clubs to promote the product to the locals to try and create brand recognition. This reduces costs during the testing stage. If results are positive and sales are creating revenue, the product will then be promoted via sporting/health and fitness magazines and appropriate online stores in order to increase sales.

In assumption that the product has been established as a brand and there are no product modifications during the test marketing, sales promotion techniques can be introduced. For example, 15% off the next purchase for all customers, this will help create a relationship with the customer in hope that they will be a guaranteed returning customer. The promotional pricing can be used to increase sales in the short term and long term, undercutting competitors. Regular emails can also be sent to the customers providing them with the latest information on the product and asking them for feedback, which will help maintain the relationship with the customer.

Appendix A – The Marketing Mix

A business needs to consider the marketing mix in order to meet their consumers' needs effectively. The idea of test marketing is to help gauge the reaction from the product and suggest ways it could be improved for the launch.

No one element of the marketing mix is more important than another – each element ideally supports the others. Firms modify each element in the marketing mix to establish an overall brand image and unique selling point that makes their products stand out from the competition. In relation to the bandage the unique selling point is the thermo-crystallisation sensation inside the bandage. 

References:

Armstrong, G., Kotler, P., Harker, M & Brennan, R (2009). Marketing and introduction. Harlow: Pearson Education Limited

BBC Bitesize (2013) The Marketing Mix. Available at: http://www.bbc.co.uk/schools/gcsebitesize/business/marketing/marketingmixrev1.shtml (Accessed: 27^thJanuary 2013).

Fashion Net Asia (2010) Strategic Marketing - adidas and Coca-Cola team up to sell an energizer drink. Available at: http://www.fashionnetasia.com/en/IndustryNews/BusinessResources/Detail.html?id=1543 (Accessed: 27th January 2013).

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

Pride, W & Ferrel, O (2011). Marketing Express, 2^nd Edn. USA: South-Western Congage Learning.

Product Development

The Business of Sport: w11007742 

Stage: Product Development

Word count: 486

Armstrong, Kotler, Harker & Brennan (2009) state that product development is where the concept is developed into a tangible product allowing the design team to evaluate the products functionality and see if the product meets the consumer’s needs. The product development stage of a new sports product is made up of  sub stages; product construction, packaging, branding, product positioning and attitude and usage testing (Mullin, & Hardy & Sutton, 2000).

Product construction decisions need to be made to decide which materials are going to be used on the product. The Deep Heat Support Bandage will be constructed in the UK at the cheapest cost with a simple reusable design aiding to support and aid the consumers’ injury. The production stages of the bandage are computer design, the actual making of the bandage. (cutting, attaching and fastening and applying the thermal heat) All of which have a low construction price with each unit costing £10 with a selling price of £15, allowing for additional £5 profit. (See appendix A) The materials used to make the product will be of a better standard than competitors hence the large ‘jump in’ investment in order to compete with competitors such as the ‘Thermo Elbow Wrap’.

The packaging will be minimal as possible in order to be environmentally friendly, which will be low in cost. This will include a plastic wrapper to protect the bandage and a instructions leaflet providing information on how to apply the bandage, how it works and how to generate the heat menthol sensation inside the bandage. The cost of this is approximately 14p per unit. (See Appendix B)

The Bandage brand is accessible for any aged injured sports performer to access as it targets such a mass target audience. The bandage will be sold to local injured athletes to begin with, building up a good reputation and brand recognition before targeting larger retailers such as Sports Direct and other relevant stores such as ‘Fitness First and possibly chain stores such as Boots Health and Beauty. The brands unique selling point is the menthol heat through exothermic crystallization of supersaturated solutions generated inside the bandage. Trade mark protection will be in place (Armstrong et al 2009) to ensure legal protection to prevent potential competitors copying the idea.

Businesses use perceptual or positioning maps to help them develop a market positioning strategy for their product or service. The maps are based on the perception of the buyer, known as perceptual maps (Beech & Chadwick, 2007).Market segmentation and positioning is crucial as it allows the potential customers to be split into specific groups, showing where existing products and services are positioned in the market so that the firm can decide where is best to locate their product, enabling them to fill in the gap in the market, or by simply positing themselves near existing products in order to be a potential competitor in the market. (McDonald & Dunbar 2010) (See Appendix C)

Appendix A - Costs and Expenses

Appendix B: Packaging 

Clear Cellophane Gusset Bags

50 x 90 x 155

25 x 55

£5.66

£21.25

£37.77

£34.00

£28.33

 - £28.33/2000 = 0.14

References:

Armstrong, G., Kotler, P., Harker, M & Brennan, R (2009). Marketing and introduction. 8^th edn, Pearson education ltd: Harlow.

Beech, J., Chadwick, S. (2007) The Marketing of Sport

Buyometric. (2010). HoMedics Hot and Cold Therapy Elbow Wrap.Available: http://www.homedics.co.uk/uk/hot-and-cold-therapy-elbow-wrap.html. Last accessed 4th December 2012.

McDonald, M & Dunbar, I (2010). Market Segmentation: how to do it, and how to profit from it. 4^th edn [online], Goodfellow publishers.  Available at: http://lib.myilibrary.com/Open.aspx?id=289717  (Accessed 17/12/12).

Mullin, B., Hardy, S., Sutton, W. (2000) Sport Marketing 3rd edition

 Poly bags Ltd (2012) Polybags. Available at: http://www.polybags.co.uk/shop/small-5-8-wide_c904.htm  (Accessed 17/12/12).

Business Analysis

The Business of Sport: W11007742 

Stage: Business Analysis 

Word count: 500

Armstrong, Kotler, Harker & Brennan (2009) state that the business analysis reviews sales, expected demand, costs, and estimated profit for a product or service. It is important for an organisation to have a structured business plan in order to run the business effectively identifying specific courses of action that may need to be taken to ensure the business runs effectively. (Lamb, Hair & McDaniel 2011). A business analysis consists of 5 sections; sales, market, demand projections, cost projections and competition.

A a business should conduct a sales estimation. Similar product sales figures of revenue and expenditure must be compared to create a sales forecast (Armstrong et al 2009) The forecasting allows the business to compare figures regularly to see how well the product is selling in comparison to the planned sales and revenue. (See appendix A)

The forecasting figures should reflect on the financial state of the market. The recent recession may impact some business as potential customers will have less disposable income to spend on luxury products. However this should not affect the Deep Heat Support Bandage because it is in a mass market and there is always going to be injured athletes, which means the product is always going to be needed, guaranteeing sales. Research shows that there has been a rise in sports injury cases by 14% in a year. (NHS, 2012) New research by Barclays Spaces for Sports has revealed that just under 30% of the nation pick up 22 million sporting injuries per year. 80% of which being a sprain or muscle pull (Barcalays, 2005) While research is limited on specific sports bandages, there is increasing applications in the treatment of minor-to-moderate injuries will boost global demand for sport bandages of 4.2% annually through 2013. (ReportLinker, 2012)

The growth of sales is higher than planned in the second month, however could be improve due to be firstly selling the product to different sports clubs as this is the trial period before the product is sold to retailers. Once the product has become recognised and successful in these firms hopefully connections with retailers such as ‘Sports Direct’ and ‘Boots’ will develop, helping secure a strong channel of distribution.

Production cost per bandage is just over £10, materials being approximately £8 and additional costs being around £2. (Appendix A) The selling price is £15, resulting in a total profit of £5.  Costs will be saved throughout the manufacturing process due to relatives being in the machinery business therefore the cost of use of machinery will be cheaper. A profit was made in the first two months means the product is being successfull.

The closest competitor is the ‘Homedics Ultimate Hot & Cold Therapy Wrap’ priced at £9.99. However this product does not have the deep heat thermal element and is not water resistance therefore not as durable. The wrap is also only eligible to buy on the internet, and not yet in retailers.  It must be taken into consideration companies may begin to copy the bandage idea, therefore the product must me constantly developed to best satisfy customers.

Appendix 

Appendix A:

The cash flow forecast shows the forecast for first two months for the ‘Deep Heat Support Bandage’, including all aspects of income and expenditure resulting in a profit  being made. The bandage will be sold for £15 with 2,000 being made per month for the duration of the first month. 

The Neuroprene material can be purchased in bulk, with 1.5mm doubles lined Neuroprene at £17.30 for 1000mm x1270mm which will make 3 bandages. The crystilized deep heat Supersaturated Solutioncan be made from a combination of deep heat and a hand warmer like product, total costs being £5 (deep heat £2, supersaturated solution £3), which will aid in making 3 bandages. Velcro will also need to be purchased as this will enable the bandage to adjustable aiding in maximum support to the injury. The total cost of the Velcro is £1.84 for 1m which will also make 3 bandages.  

The initial costs of the materials to make one bandage is £8.01. In order to make 2000 bandages for the first month the total expenditure will be £16,200. However the manufacturing of the product will also be additional costs, and the fixed asset is the start-up cost of the use of machinery to manufacture the product.

Costs will be saved throughout the manufacturing process due to relatives being in the machinery business therefore the cost of use of machinery will be cheaper. Decision to buy own machinery will be made on the progression of the product and how much revenue is left over to spend.

Although there seems to be an increase in the net cash flow for cash outgoings, this is because more products have been made. However it is not a total loss because each product sale is making a total profit of £5 resulting in a total profit of £12,500 being made in the first month however this does not include outgoings. It is a positive outcome that more products are being made as this means more sales have been granted, which will hopefully lead to distributing products to retailers in the next month.

The increase in sales in month 2, increases the sales revenue, resulting in profits gained. If this successful cycle continues  the business will be able to think about buying there own machinery and developing links with greater chains stores in order to maximize sales. It is important the company breaks even or makes additional profits in order to establish success.

References:

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

Buyometric. (2010). HoMedics Hot and Cold Therapy Elbow Wrap.Available: http://www.homedics.co.uk/uk/hot-and-cold-therapy-elbow-wrap.html. Last accessed 4th December 2012.

Lomo Industries Ltd. (2011). Neoprene Sheets. Available: http://www.ewetsuits.com/acatalog/Neoprene-Sheets.html. Last accessed 13th December 2012.

McDaniel, C & Lamb, C & Hair, J (2008). Introduction to marketing. London: Thomson Learning . p280-298.

unkown. (2005). Survey reveals sporting injury rate in the uk.Available: http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?task=popup1group&value=11147&target=_blank&site=pfs. Last accessed 10th December 2012.

Unkown. (2012). Muscle Strains and their Prevention. Available: http://www.physioroom.com/prevention/muscle_strains.php. Last accessed 4th December 2012.

 

http://www.google.co.uk/products/catalog?hl=en&sugexp=les%3B&gs_rn=0&gs_ri=hp&tok=gdodySc1RYpcz422iL3g9w&cp=7&gs_id=p&xhr=t&q=deep+heat&bav=on.2,or.r_gc.r_pw.r_cp.r_qf.&bvm=bv.1355272958,d.d2k&bpcl=39942515&biw=1366&bih=667&um=1&ie=UTF-8&cid=3626622367601457827&sa=X&ei=f53JULyXLOWI0AWixYCoCw&sqi=2&ved=0CFQQ8gIwAQ

 

http://www.google.co.uk/products/catalog?hl=en&q=hand+warmers&um=1&ie=UTF-8&cid=18076311365492

924257&sa=X&ei=nJ3JUPjCBo3D0AXY5YHIDw&ved=0CG0Q8wIwAQ

 

 http://www.amazon.co.uk/TRIXES-Adhesive-Sticky-Velcro-Strips/dp/B0098LT9Z4/ref=sr_1_7?ie=UTF8&qid=1355390857&sr=8-7

Market Strategy and Development

The Business of Sport: W11007742

Stage: Marketing strategy and development

Word count: 497

A marketing strategy is the logic behind how a business achieves its marketing objectives whilst identifying how customers will be satisfied in the chosen market. (Armstrong, Kotler, Harker & Brennan 2009) For a business to achieve specific aims it must consider the target market, positioning and sales within the first few years. It must outline perceived price and distribution and the planned long term sales and goals as these can all impact success. These are important in the marketing strategy stage as they allow the business to have benchmarks,  comparing and evaluating against competitors, ensuring the product is ready to be put into the market place.

Research has shown that the ‘Homedics elbow wrap’ is considered the closest competitor. (Buyomedic, 2010) However the bandage does not appear to have menthol heat in which the Deep heat support bandage provides.

The Deep Heat Support Bandage is situated in a mass market because although the product targets athletes, it can enter new markets by targeting non-athletes. While research is limited on specific sports bandages, there is increasing applications in the treatment of minor-to-moderate injuries will boost global demand for sport bandages 4.2% annually through 2013. (ReportLinker, 2012) Tendon/strain injuries are very popular injuries in the sports industry. (PhysioRoom, 2012) For example the PhysioRoom state in a survey of injuries at a professional football club, it was reported that 26.8% of all injuries involved muscles and tendons bandage will help support athletes injuries. There will always be injured athletes therefore there will always be a place in the market for the bandage.

The price of the bandage is approximately £15, which may vary due to the size of the product. The price is slightly higher than competitors due to the menthol heating included therefore more costly to manufacture. The bandage will be promoted in sports clubs and social networking . Information about the product will be received via newsletters and emails. If this is successful and the product receives positive feedback, the product will be promoted via web searches. The bandage will first be distributed at small retailers such as local athletic/football clubs in hope it will create revenue in order to expand to bigger firms such as ‘Sports Direct’ eventually marketing supermarkets and chain-stores. To achieve long term goals the product must create enough revenue in the first year to make a profit, resulting in the product selling in stores.

This development stage decides the growth of the product, this allows designers to makes a working prototype of the product, allowing the designers to see if the products manufacturing is realistic. (Lamb, Hair & McDaniel, 2008) During the development stage the ‘Ansoff’s Decision Matrix’ can be used which focuses on potential and present product through existing/new products, in existing new markets, emerging a four product marker combination. 

The product life cycle can also be used during the development stage, the products follows a sequence of stages including: introduction, growth, maturity, and sales decline.  It enables the business to see if the right decisions are being made at each stage which aids in the products success.

References

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

Buyometric. (2010). HoMedics Hot and Cold Therapy Elbow Wrap.Available: http://www.homedics.co.uk/uk/hot-and-cold-therapy-elbow-wrap.html. Last accessed 4th December 2012.

McDaniel, C & Lamb, C & Hair, J (2008). Introduction to marketing. London: Thomson Learning . p280-298.

Unkown. (2012). Muscle Strains and their Prevention. Available: http://www.physioroom.com/prevention/muscle_strains.php. Last accessed 4th December 2012.

Unkown. (2012). New market research report on wound management products. Available: http://www.news-medical.net/news/20100204/New-market-research-report-on-wound-management-products.aspx?page=2. Last accessed 4th December 2012.

Concept and Development Testing

The Business of Sport: W11007742

Stage: Concept Development and Testing

Word count: 497

Concept development is the third stage of the new product development; it is journey of the product before the finished product is available for buy. The concept development is used to test the success of the product, including different designs such as the physical appearance and different materials. (Armstrong, Kotler, Harker & Brennan 2009) The concept development process measures the consumer’s enthusiasm to a picture or written statement that’s been created about the product. (Lamb, Hair & McDaniel, 2008) It is essential the process adapts to the concepts in order for the manufacturing of the product to begin.

The ‘Deep Heat Bandage Support’ is currently in the concept development process. A visual portfolio should be created in order to show consumers the bandage appearance, how the bandage can be used and how it will benefit the customer. The benefits of the bandage are; it will be affordable. It will be reusable as the bandage generates menthol heat through exothermic crystallisation of supersaturated solutions. The bandage will be water-resistant therefore suitable for all athletes in all weather conditions. It benefits the consumer as it includes a heat menthol sensation providing adequate support, preventing further damage to the injury.

The concept development will be based on the material of the bandage whether it is made out of, Neoprene, Physicool, TubiGrip. Neoprene can be made water resistant therefore reusable whilst providing flexibility, resulting in the best possible comfort for the customer.

The concepts are then tested with potential customers; this is identified as concept testing. (Armstrong et al 2009) The customer’s reactions/responses help identify which concepts to develop further. The customer will be asked several questions about the product such as; did you understand the concept of the product? Did the bandage support your injury? Would you buy the product? (Armstrong et al 2009) By asking these questions the customers’ needs can be met, helping the product break into the correct market and reach its potential target audience.

Before the prototype is created there are still a number of questions to consider. For example;

Is there a gap in the market place? Yes, there is currently no evidence of an existing menthol heated support bandage in the market.

What is the perceived value? No more than £15. However, this will depend on the size of the bandage for example a knee support will be more costly than ankle support as it uses more materials.

Who is the target market? All athletes of all ages with injuries, however the product can also be aimed at non-athletes to widen the target market

Concept development and testing is used by organisations in the sport industry. FIFA used concept testing to evaluate the extent to see if footballs are in the exact same condition from the first to the last minute in a football game, testing was done under laboratory conditions (FIFA 2012).

The concept development and testing process outlines the best possible product, resulting in potentially being a profitable product in the market.

References:

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

FIFA (2012) FIFA QUALITY CONCEPT FOR FOOTBALLS. Available at: http://footballs.fifa.com/Quality-Concept (Accessed 23rd November 2012)

McDaniel, C & Lamb, C & Hair, J (2008). Introduction to marketing. London: Thomson Learning . p280-298.

11007742 - Assignment 2a - Idea Screening

The Business of Sport: W11007742

Stage: Idea Screening

Word count: 550

 

Developing new products that do well in the marketplace is a difficult task that requires company funds and dedicated resources. In order to establish a good idea, many ideas are passed through the first filter in the product development process.  This stage is identified as idea screening.

Idea screening process involves shifting through ideas previously generated, examining the strength of the products, eliminating ideas that are inconsistent with the organisations new product strategy or inappropriate for other reasons. (McDaniel & Lamb & Hair, 2008) This enables companies to focus attention to more highly successful product ideas as pursuing non feasible ideas can be costly for organisations. Screening a new sports product idea involves answering important questions about the idea. The questions help determine the potential market for the product, how competitors will react to this new product, cost, quality, customer demand etc. (Armstrong & Kotler, 2009)

A screening checklist is essential during the Idea Screening stage; it identifies the general characteristics of new products. Some of these characteristic include; potential profit, size of target market, competitors and the level of risk. (Armstrong & Kotler, 2009)  When analysing the new product the Decision Matrix can be used by sports organisations. This evaluates, compares product ideas. Each product is given a score on an established rating scale depending upon the established criteria in which the product is judged. The product rating is then multiplied by the weighed criteria and the points are added. (Armstrong & Kotler, 2009)  
The product with the highest score may not necessarily be the chosen product; however it can help aid in the discussions which determines whether the product is going to be developed further. An example of a Decision Matrix is show in appendix A and B.

Research on new ideas previously generated shows the product, ‘Waterproof Socks.’ already exists the market, founded by ‘Sealskins.’ The customer demand for new waterproof socks would be low as SealSkins already sell a range of waterproof socks which are well manufactured, and satisfying to customers therefore no already meets the criteria, no further development can be made to the product. 

However there is currently no existing market for ‘Deep Heat Compression Bandage’. Research has shown Deep Heat and support bandages currently exist in the market as separate products, and there are similar products such as ‘Deep Heat Pads’ and area well known, and  popular amongst a wide range of customers. However there is no evidence of the two products combined, leaving a gap in the market for product resulting in no direct competitors.

The product would be beneficial and appealing to athletes, and others who suffer from muscular aches, sprains, and strains, resulting in a large target audience. The product is designed to protect and support, effectively relieving muscle pain, supporting the injury to which it is applied, without having to apply the cream/spray and the bandage separately.  It would be technically feasible to manufacture at a cheap cost, just a case of combining and developing the two existing products. The product would be affordable for customers and it would not date, meaning there is always a place in the market for it. It would satisfy customers in terms of quality, reliability and durability, not forgetting it would be convenient as it eliminates having to constantly apply the deep heat.

 

Appendices

Appendices A – Example of A Bike Decision

 

 



Appendix B – Example of a Decision Matrix Layout

References:

Kotler, P & Armstrong,G. (2012). New Product Development. In: Eric Svendsen Principles of Marketing. 14th ed. England: Pearson Education Limited. p282-290

McDaniel, C & Lamb, C & Hair, J (2008). Introduction to marketing. London: Thomson Learning . p280-298.

Nancy, R. (2004). Decision Matrix . Available: http://asq.org/learn-about-quality/decision-making-tools/overview/decision-matrix.html. Last accessed 19th November 2012.

NZIFST . (2010). PRODUCT IDEAS SCREENING. Available: http://www.nzifst.org.nz/creatingnewfoods/idea_generation6.htm. Last accessed 19th November 2012