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).