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 the process of constantly applying Deep Heat.

 

Appendices

Appendix 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