SOWT Analysis of Each Idea for New Product Development - Case Study Example

Topic: SOWT analysis of each idea for new product development. The task of finding and finalizing on new product development was discussed at length among all group members. Several products came to our minds and we discussed the practicality of transforming those ideas into real products. First of all, the idea of temperature controlled vests was suggested and discussed. We did a SWOT analysis of producing ‘temperature controlled vests’, which is given below: SWOT Analysis of Temperature controlled vests Strengths Outer fabric – wind proof and water proof. This feature of the temperature controlled vests makes it suitable for most outdoor activities. It has scientific arguments for smooth working – Far infra-red light from the Sun. It has therapeutic properties; the fibre used in manufacturing the vest is made of natural ore-oxide, which is safe and helpful in blood circulation. Weaknesses Required battery support -- battery working is not a simple and easy process. It requires specified rechargeable battery, circuit board, control IC board and thermostatically reacting control IC board. The four temperature control settings make it more of a cumbersome procedure. It takes at least three hours in recharging. Too technical to control temperature, requiring four temperature settings and elastic adjusters on the undershirts. The battery life is not long life; maximum rechargeable limit is 400 times. Battery working depends on a long list of accessories, including rechargeable batteries, a charger, a digital heating controller, a battery case and a car recharger, carrying them all is another job. Upkeep and maintenance required. In-side of the vests uses a special environmental film with super-soft fibre to conduct heat and electricity. This high temperature-resistant material needs to be washed by hand, to be kept clean. Opportunities Product demand is going to increase in future, as more people are indulging in winter sports. Golfers, fishermen, hunters and leisure sports enthusiasts would be its buyers. The leisure, winter and adventure tourists would create a niche segment of its market. Market is competitive. Product differentiation could result in attracting and strengthening customer base. Cost could be made competitive to maintain customer loyalty. Senior citizens could be niche market, as they need to save more from negative impact of winter climate when going outside for walking, jogging and performing other routine duties. Threats There is no new market to be exploited, as it is not a new product to be launched. Taking a share of the market from competitors won’t be easy and it would be time taking to capture and take hold of the potential market share. Limited seasonal usage. Winter season is temporary according to geographical locations on the globe. The product requirement is seasonal; as long as there is winter, demand increases, change in season to summer or rainy, dampens demand as well of the product. The product development requires sustainable financial backing. Manufacturing process involves complex electrical fittings, assembling of different parts into one product. Investment volumes could be high enough to recommend continuous financial support, which, if not available, would result in market loss. Taking into consideration the threats to temperature controlled vests from market forces of sluggish demand, seasonal requirement and competition from other suppliers, group members decided to discard the idea of developing temperature controlled vests. Next suggested item was ‘Fake Nails’. SWOT Analysis of ‘Fake Nails’ Strengths Fake nails are low-cost item that requires no maintenance in financial terms. Being a fashion item of women; it is an accessory item of stylish ladies who can’t stand the cracking, splitting and breaking of natural nails. Automatically, it becomes the liking of a particular segment of women who wear trendy clothes and sculptured nails in different colours and designs add to the overall appeal. Fake nails are available in a range and variety to choose from. They could be laid in fibre-glass, silk or acrylic. Variety in colour and design satisfies the taste buds. Weaknesses Application drawbacks -- if not applied and removed correctly, fake nails can harm the natural nails Health hazards of fungal infection -- wrong application can be harmful as seeping of water in between the two layers of nail can cause fungal infection. Also, fake nails don’t make the natural ones healthier in any way. Manicurist required -- fake nails require touching to prevent nail lift-off. As the glue weakens, artificial nails get separated from natural ones. Otherwise also, regular visits to the manicurist are required to fill in the fake nails as they grow out with natural ones. Opportunities Niche market. Being a fashion item of stylish women, fake nails have a niche market that is going to absorb the supply and demand is not going to decrease as more and more women are going to be fashionable due to their increased earning capacities and matching with the changing fashion trends, would opt for fake nails as a fashion accessory. Emerging fashion trend. Fake nails add glamour to an individual’s personality. They are a means to show-off how women maintain them with artistry. Fashion is going to remain forever whether it is a risky application and could be a health hazard. Threats Specific expertise required -- application of fake nails requires expertise. It’s not like applying make-up by you or like applying nail polish and removing it. As shortage of time is a major criterion, business women don’t find sufficient time to spend on such time consuming activities Market competition -- there is huge market and hard competition. As it is low-budget item, players are too many. It would be difficult to survive on current market behaviour. Unnatural -- Artificiality of product: Being an artificial product, covering a natural one, it can’t have mass appeal. Women prefer to maintain their natural nails through beauty techniques and polishing them in matching colours. The idea of manufacturing artificial nails was rejected by the group members. Then, a team member suggested developing ‘Kids sticky seat to stop them falling off their chairs’. A thorough research was conducted on the viability of developing such a new product. A SWOT Analysis of the product was made. SWOT Analysis of ‘Kids sticky seat to stop them falling off their chairs’ Strengths Provided core stability. It is a fact that little children lack core stability, which this product ‘Kids sticky seat’ will provide. Useful item for little ones’ safety: Little children fall very often. The product would save them from falling injuries. Weaknesses Too technical – highly technical item Material made of polymer – a chemical compound, which can’t be okayed for kids products. Opportunities Niche market of particular segment-- the item in question covers a particular segment of population – little kids. Emerging new concept-- parents give top preference to the safety of their little ones. Threats Risky proposition Government safety regulations Being new product, no ready market As the idea of developing kids sticky sheet to stop them falling off their seats was discarded, a new idea suggested was developing the product -- ‘Baby strap-Head rest for when holding the baby. Often, it is found that carrying a baby for a long time makes parents tired and to get relief, Baby straps will help holding the baby without fearing their sudden fall. A SWOT Analysis was conducted, which follows: SWOT Analysis of ‘Baby-Strap Head rest for when holding the baby’ Strengths An essential item for carrying little kids easily – Sometimes it becomes a tedious job, some babies are quite bulky. It becomes easy to carry them and perform other duties at the same time. Wide reach – Kids products have mass reach and value. Experience, knowledge and data on product available, as it is already available in market. Weaknesses Variation in strap sizes according to height – if there are parents of huge difference in height, they require straps of different sizes. Regular straps available with carriers High cost a deterrent – generally, parents don’t buy costly products as usage time is limited. The product has no use as the child grows. Opportunities Already developed market – this product ‘Baby strap’ has a developed market. It will save money on popularizing the concept through marketing initiatives like advertisement. Modern life-style trend – Parents like to carry their little ones on their shoulders when going outside. It has a niche target market of little kids. Threats Product size requirements differ according to the height of the person Limited demand period, as the child grows Product might have legal issues arising for kid’s comfort. This idea was also not unanimously selected for our course new product development. A group member suggested developing a product on the pattern of ‘Head Band’, which could be used when putting make-up on. As the need of a head band was taken for granted, a research was made. The SWOT Analysis of ‘Disposable head band when putting make up on’ was carried out, which is given below. SWOT Analysis of ‘Disposable head band when putting make up on’ Strengths Item of common use – it means bulk production and sale. Ready market – Already used by sportsperson while playing and ladies in particular as a trendy item when going outside. No heavy investment – being disposable in nature, light material used, which requires no heavy investment. Experience, knowledge and data available – being a routine wearing item, data, knowledge and experience on how to develop the product is already available. Hair-line not disturbed – the primary feature of hair band is that it saves hairline from spoiling. The idea appeals to teenagers who are very particular about their hair styles. No washing required because of its disposing feature. Weaknesses Very competitive market; difficult to survive. It is such an ordinary thing of use that market for such products has already reached saturation point. Temporary usage – its main feature could turn into a drawback. Another extra accessory to be kept handy or in purse when applying make-up Unnecessary expense because of limited life Opportunities Niche target market of younger generation, sportsperson and women. Being disposable, it is innovative, new product Item of mass usage, hence constant demand. Threats Associated business risks of competition. New entrants in the established market won’t find competitive edge over traditional players. Short life of product – being disposable in nature, has a short life Being disposable and cheap, quality issue may arise Not suitable for all skin types: as material used is plastic and that too disposable, it won’t be good quality and could be irritant to soft skin. After doing SWOT Analysis on ‘Disposable head band when putting make-up on’, it was not found an idea worth pursuing. Another suggested idea was ‘Car seat cover – for protection from dirt’. Off late, certain new laws have been formulated regarding children’s safety while sitting in car. It has become mandatory to use specially customized car seats according to the size and weight of the baby. So, the idea was found worth thorough research and SWOT Analysis, which is given below. SWOT Analysis of car seat cover for protection from dirt The idea behind was to produce a car seat cover that could be resold after the baby has grown up and there is no more further requirement. It was intended to save the seat from damage of any type, dust and getting rough so that it might be resold. Strengths Already developed market – car seat manufacturing market is already developed. Full variety and range: There are too many industries involved in a big way making car seats of different designs, colours and sizes. Getting data on the product and learning from others’ experiences, product could be made more trendy and innovative than others. Resale feature, saving expenditure – the product is meant to be resold after usage for a short span as the child grows. USP – attractive designs and prints Weaknesses Difficult to cope with huge variety in chair designs Technically unfeasible to produce such a vast range at initial stage of product development. Safety issues – The new law concerning little children car seats – their size and age specifications could arise safety issues as the primary purpose behind formulating new law is the safety aspect of little kids while in car. Opportunities Developed market – car seat covers’ market is fully developed. You know where you stand in the race of providing some thing better than others either by applying pricing tactics, improving quality of the product, increasing advertising to capitalize on concern over child safety issues. Life-style trend – parents love to take care of their loved ones in all possible ways and don’t hesitate to buy products in appealing designs. Hence, demand for the product will always be there. Innovative Niche target market – Little kids up to certain age provide a niche target market. Threats Difficult to manage vast design range – cloth designs come in vast range of colour scheme and variety of designs. It is difficult to be competitive in such categories of product, to create a different product. No USP – seat cover or specifically kids car seat cover is too ordinary a product that doesn’t command any USP. Next on the list of emerging ideas was the product named ‘Disposable glass cleaners’. Initially, it was taken to be a promising idea, as we carry our glasses always in a case and disposable glass cleaners could fit the bill, erasing the need of carrying liquid cleaners. A SWOT Analysis proved the idea not worth trying. SWOT Analysis of ‘Disposable glass cleaners’ Strengths Easy to carry — they can be taken along without any problem. Cheap – they are cheap, so pricing is never an issue. Weaknesses Disadvantages of proposition – producing disposable lens and goggles’ glass cleaners in soft cloth packing without combination of liquid cleaner is a new proposition. Generally, they are made available in tissues and liquid lens cleaner – pump bottles of anti-fog, anti-static lens cleaning fluids, both. Opportunities Competitive market – full of opportunities. Already many companies are supplying disposable lens cleaners. Customer loyalty can be created with right mix of communicating tactics, practicing pricing tactics of quantity discount Niche target market – All those people who wear glasses of any type – either sun goggles or lens form a niche market of customers. When going outside, they require to clean them with something handy and disposable too. Threats Glass boxes already contain cloth cleaners – glass boxes, where glasses or lens are kept after usage, already contain a tissue cloth, which could be reused or disposed off according to the need of the person. Slowly but steadily, we succeeded in finalizing on one idea. It was developing a product named ‘Luminescent Tent Sheet’. Initial research was very encouraging of the product being useful and innovative. The idea is to develop a product that could replace light. A piece of cloth coloured by luminous paint could light the tent. With the rise in adventure and sports tourism, demand for such a product that saved the hardship of carrying batteries and related equipment could be swelling in proportions, as it is easy to carry. A SWOT Analysis was carried as below: SWOT Analysis of Luminous Tent Sheet Strengths Innovative concept – It is such an innovative idea to use luminous paint over a piece of cloth that other products of this category like luminous thread or luminous sheet can’t stand. Carries advantages of proposition – it is a novel concept; an idea, which hasn’t been tried earlier. Competitive advantage over other alternatives – There are a lot of products’ range using the concept of ultra-violet (UV) light sensitive products -- glow-in-the-dark items like safety stickers, luminous threads and ropes etc. Cost-friendly & easy to carry -- the concept of painting a cloth to use it as lighting tent is a cheap alternative. There is no need to carry battery; cloth itself is a battery. USP Weaknesses Associated risks with new product launch – it doesn’t have any brand image, as it is a new product. Lack of competition in the same category – Being a new innovative idea turned into reality, there won’t be any pressure to be competitive. Opportunities Full market potential – as market for the product ‘luminous tent sheet’ is yet to be exploited, it has potential. New market, both vertical and horizontal – market can be covered both ways – at local level or larger scale through offensive marketing strategies to grow market share, customer purchases and market demand. Niche target market of sports lovers – the product ‘luminous tent sheet’ is an urgent requirement of adventure sports lovers. New business development and product development opportunities Rising demand because of global increase in adventure tourism Threats New idea takes time to popularize Threat from competitors’ related products As the basis of lighting the tent is luminous paint, coated over plain sheet, turning it into luminous tent sheet is not only a revolutionary concept in comparison to lighting provisions at odd hours made by carrying batteries, but also a practical cheap and best alternative to other means of lighting. Pictures: Kids car seat SWOT Analysis Luminous tent sheet luminous tent sheet Temperature controlled vest Disposable head band Fake nails Kids seats Disposable head band Baby strap Disposable sun-glass cleaner Disposable towellettes Read More