Product Design and Marketing of OMSI - Case Study Example

RUNNING HEAD: Product Design and Marketing PRODUCT DESIGN AND MARKETING Name Course Instructor Date Table of Contents 1.0.Introduction 3 2.0.Product management 3 3.0.The product design 4 3.1.Idea generation 4 3.2.Developing and testing of the concept 5 4.0. The design principle and strategy 6 5.0. Business analysis 7 6.0. Beta and market testing 7 7.0. Technical implementation 8 8.0. Commercialization 8 9.0. Marketing Mix 9 9.1. New product pricing 10 9.2. Place 10 9.3. Promotion 10 1.0. Introduction OMSI is top computer hardware manufacturers in the United States. The company had become old fashioned and the prices on its products had become slipping as it had in the innovative development of its products to go in line with the advanced technology. Other market leaders and innovators like Logitech and Microsoft had put into the market new and advanced products that had met the growing demands of the clients. This had made the company loose out on its loyal clients to the firms and thus the need to develop and manufacture novel computer hardware products to compete effectively in the already competitive market. The company made efforts to design an ergonomically shaped computer mouse to replace the ancient viewed soap shaped mice that it had in the market. The company also needed to invent a new packaging strategy to win the hearts of the clients in the market (Ulrich, 2004). 2.0. Product management The firm had the services of the product management section that identified the needs through a market analysis. This enabled the firm to be in acquaintance with the market place and develop the personas for the product who will be the target market for the newly developed mouse. The market analysis was done through surveys, and group discussions through the social media and the email. The large respondents were mainly office workers and students from various learning institutions. The product management team had to validate the product solutions and design a frame work that the design team had to use in the designing a mouse that will meet the desires and needs of the target group. This included the analysis of the market, the existing technology and the available competition on the products that are to be designed and produced. The product analysis will largely be defined by the experiences of the users as well as the interface designs and the future trends. The design of the product had to thus fit the needs of a working and studying population which included researchers, doctors, teachers, students and administrative personnel (Mike, 2009). 3.0. The product design The firm innovatively corporate with the industrial designers in the development of a new mouse shape. The product had to be unique in design and ergonomic. The design had also to be uniquely different from the competitors so as to be attractive to the market. To attain this, the designers had to work with the knowledge that the clients are better educated and thus the need to have the product meet the intended standards. The designers had to produce a product that had benefits beyond its appearances and had to have advantages that are measurable and outweigh those of the competitors. The ergonomic advantage of the newly developed and designed mouse lied in its comfort in use, limited risks of injury while using it and the fact that it was cordless. This implied that the client needed not to have the mouse connected to the computer for it to function. The client and user only needed to fit the IP address of the mouse to the computer at the initial stage and it was good to function with the identified computer when switched on. The mouse had a cell that could last for a guaranteed ten years and was automatically charged by light via its environmentally friendly outer covering. The mouse suited all the sexes as persons with both small and large hands could effectively use the product (Joshi, 2005). 3.1. Idea generation The generation of the idea was realized through a SWOT analysis. The firm analyzed the Strengths, Weaknesses, opportunities and Threats that it had in the existing products as well as the weighing of the opportunities it had in the development of novel mice computer products into the large market that is not yet exhausted. The firm also invested heavily on the new global trend on “going green” as the newly developed products had to be environmentally friendly. The concepts had to undergo a screening to eliminate the concepts that were unsound based on the following principles. Who is the target market? What benefits the product will have to the target market. What is the future forecast of the target market? What is the market trend of the product? What is the technical feasibility of the product? What is the profitability of the product to the firm? Is the product sustainable? 3.2. Developing and testing of the concept The newly developed mouse had to be tested through the development of engineering and market details. The firm investigated the issues on intellectual property through a search of a data bases. Upon identifying that the product design is not registered as an intellectual property by any other firm, the firm sought to have it registered as per the intellectual property laws in the USA. The design identified the target users as the office based workers, students and researchers (Joshi, 2005). 4.0. The design principle and strategy Given the recession that has been witnessed globally and the grown literacy on technology, consumers have been smart to choose products that are of high productivity, quality and of acceptable price ratios. The designing of the products had to experience oriented as it had to revolve around the satisfaction of the constraints at the best prices ever. The design of the product was guided by five primary strategies which included the cost advantage, the prominence of the design, feature leadership, concentrated application and the desirable alternatives (Cooper, 2008). To begin with, the designing of the product had to have a cost advantage which envisaged the minimization of the costs in its production, assembly and design of the product. Secondly, the design had to meet the prominence requirements as it focused on the aesthetics, packaging, presentation, ergonomics and innovativeness. This had to ensure that added value is given to the consumer through the enhancement of the products usability, sensory perception and thus be able to stir up the shoppers emotional reactions that are related to their desires and needs. Thirdly, the product had to have a future leadership by delivering solutions that are highly innovative. In addition, the product had to be concentrated in its application as it is to be tailored to meet the needs and desires of particular group or category of clients. The product had to make available the alternative options for the clients that will fit the performances. Lastly, the product had to have a desirable alternative as the design has to be in line with the existing scope of products in its category (Khurana & Rosenthal, 1998). The selection of the product development strategy depended highly on the mode through which the firm intended to position its products in the market place and maintain a competitive advantage over the other competitors. The firm had to thus to be adaptive and evolutionary. The firm had not only to design the mouse based on improving on the already existing product but also to be able to design novel products based on the existing technology trend and had to suit the needs of the working and studying population. The designed product had to deliver capabilities that are not only similar but more advantageous to the previous and what the competitor is offering. The new product thus had a feel of a smooth stone with a universal appeal (Mike, 2009). 5.0. Business analysis An investigative business analysis of the product was conducted in the region to enable the firm estimate the likely appropriate selling price in respect to the available competition and the feedback given by the target clients. The business analysis was also vital in the identification of the quantity of products based on the volumes and the market size that the firm had to release into the market using the Fourt-Woodlock equation. This will make it possible for the firm of identify the profitable margins and the break-even point (Westkämper, 2000). 6.0. Beta and market testing To begin, the firm will introduce a prototype of the newly designed mouse to the market. This will enable the firm to test the attractive effects of the product packaging to the target population as well as the typical usage of the product. To attain adequate results, the firm is to conduct focused group interviews with the customers at the upcoming trade shows. This will enable the firm to get effective feedback of its products from the target group and thus be able to make customer based adjustments to the product where necessary. The firm will then generate a product initial run and have it sold to the test market and thus be able to determine its acceptance by target group (Smith, 2002). 7.0. Technical implementation The introduction of the new computer mice will not have any introduction of a new program on the computer soft ware as the device will be remotely sensed as a newly hardware that is to be added on the computer for use. The hardware will be installed on the computer as software just like any portable USB disk. Through this process, the firm will finalize all the system of quality management on the product as well as conduct an estimation of the resources. The firm will also be required to do a publication of all the requirements as per the USA trading laws and perform supplier collaborations. This will be in addition to the logistical plans that will effectively enhance the supply if the products to the supply chain stores. The firm is to develop a resource and program review plan to assess the distribution and the performance of the distributed products in the market (Ullman, 2009). 8.0. Commercialization The firm will then launch the product in to the market. The firm is to advertise the product through the Social media networks, Television and other audio visual electronic media and perform promotions in the trade shows that are to be organized in collaboration with the other computer manufacturers. This is to be followed by the filling in of the distribution pipeline by the mice products through a critical path analysis (Kahn, 2004). 9.0. Marketing Mix It is important for this organization to consider the marketing mix in developing a new shape for the intended mouse. Marketing mix is a very wide concept which largely includes various aspects of marketing which usually related to creating customer loyalty and awareness. The term is usually summarized by understanding the four P’s namely price, product, placement and promotion. When this organization understand this four P’s in relation to the development of mouse it is able to effectively blend which in turn form a marketing program that will ensure that the mouse will be a wanting satisfying good for the organization market (Bahadur, 2007). for the company to ensure it has a right marketing mix in the development of this new mouse the following condition need to met; The desired product needs to have the right features. It must have better quality as compared to other mouse in the market The price of the desired mouse should be right that is consumer need to purchase in large quantity so as to produce desired profit It is important that the designed mouse to be at the right place in the right time so as to make sure that goods arrive where needed There is need for that target group to be made aware of the existence of the commodity as well as the availability of the mouse through promotion. It is evident that successful promotion assist a firm to spread its cost over a larger output 9.1. New product pricing The pricing of the product is to be based on its impact to the intact product portfolio that will highly be on the internal and external value analysis. The entry price tag will largely be influenced by the existing competition and other novel technologies which will be in the market at the time the product will be introduced (Joshi, 2005). In all designed aspects of marketing mix, price creates and sets sales revenue. There is need for the company to understand that the price of the mouse is a great determinant of sales made. The mouse price should be determined by way of discovering what customers largely perceived the value of item in sale. For success determination of price, there is need to research on various customer opinions about the pricing of this new mouse. 9.2. Place It is important for the company to understand that although price may vary from product to product, it is estimated that a fifth of cost involves goes on getting the right customer for the products. Place is widely concerned with various ways in which the commodity will be stores and stored as well as ensuring that they are available to customers. Getting the right product to a desired right place within the right time should involve distribution system (Davenport, 2007). 9.3. Promotion Promotion largely entails communicating with various customers. It widely provides information which will assist the organization in making a decision to buy a service or product. The value which is linked with advertising or promotion of goods and services often represents a sizeable proportion of the desired overall cost of producing an item. Increased promotional activity is considered to be a sign of a response to a problem such as a desired competitive activity, this enables a company to build as well as develop a succession of messages which can be extremely cost effective (Jonathan, 2005). For instance, in developing a new mouse with a different shape the product element is basically the new product itself whereas getting the correct price involved involves widely examining customers’ perception as well as other rival products. Promotion on the other hand involve in engaging in various range of promotional activities such as competitions, product tasting and comparison. Finally, the place entails using the best displayed possible channel needed for distribution such as leading chain stores. It is important to note that the product should be viewed as the focal point in which the company marketing energy must focus on. For a successful market mix for this commodity, it is necessary to; Find out how to make the product designed Set up a unique production line Provide the finance and manufacturing the product should not only be considered as a responsibility of the designed marketing function. The following aspects will be determined by ensuring that the company engages in a productive marketing mix. For instance the company will be able to determine the appearance of the product which should be in line with the requirement of the computer accessories market. Also, the company will be able to understand the function of the product which should largely address customer needs which are largely identified through market research (Kahn, 2004). References Bahadur, N. a. (2007). Not Just Effective but Efficient: A New Blueprint for Marketing in an Era of Fragmented Media. New York: Booz Allen Hamilton. Cooper R.G., E. S. (2008, March 1). Maximizing productivity in product innovation. Research Technology Management , p. 20.24. Davenport, T. a. (2007). Competing on Analytics: The New Science of Winning. Boston: Harvard Business School Press. Jonathan, G. a. (2005). “Boosting Returns on Marketing Investment. McKinsey Quarterly (2) , 37. Joshi, R. M. (2005). International Marketing. New Delhi and New York: Oxford University Press. Kahn, K. B. (2004). PDMA Handbook of New Product Development, Second Edition. London: John Wiley & Sons. Khurana, A., & Rosenthal, S. (1998). "Towards Holistic "Front Ends" in New Product Development". Journal of Product Innovation Management 15 (1) , 57–75. Mike Gordon, C. M. (2009). The Path to Developing Successful New Products. . New York: MIT Sloan Management Review Press. Smith, P. G. (2002). Proactive Risk Management. New York: Productivity Press. Ullman, D. G. (2009). The Mechanical Design Process, 4th edition. New York: Mc Graw-Hill. Ulrich, K. T. (2004). Product Design and Development, 3rd Edition. New York: McGraw-Hill. Westkämper, E. (2000). Live Cycle Management and Assessment. Approaches and Visions Towards Sustainable Manufacturing. Annals of the CIRP, Vol. 49/2/2000 , p. 501–522. Read More