MKTG2505 PRODUCT AND SERVICE MANAGEMENT,

SEMESTER 2, 2015
PROJECT REPORT (GROUP ASSESSMENT)
STEP-BY-STEP GUIDE FOR DESIGNING AND EXECUTION OF A CONCEPT
TESTING PROCEDURE FOR A NEW PRODUCT/SERVICE CONCEPT
The new product/service development (NPD) process starts with opportunity identification
and progresses though several phases leading to the product/service launch.
In this assessment, following the same phases you will develop an innovative new product
concept and test it for its feasibility, to decide if it can proceed into next stages of NPD
process. This is a hands-on assessment item through which you will develop product/service
development skills. Your creativity is substantially tested here!!
Follow the steps outlined below. This will also be the format to be adopted in your report in
which you will describe how each of these steps was undertaken by your group.
You may use the steps outlined here as subheadings in your written group project report and
as a structure to organise your team product concept pitch.
Step 1 - Overview
Provide a brief outline of the project outlining the product concept that was addressed
and concept testing procedure followed hinting on some observations.
Step 2 - Opportunity identification and selection
This is about creatively recognizing market opportunities for a new product, service or a
solution. The concept you must have identified must lead to a substantial or radical
innovation. It shouldnt be an incremental innovation such as merely changing the
colour of a soft drink. It must be concept that can be developed into a marketable
product/service with existing technology. At this stage you must clearly spell out the
opportunity your group has identified and your thoughts for its market potential. (See
the discussions in Ch 2 and 3 and Figures 3.2 and 3.3 for helpful examples, in Crawford
& Di Benedetto, 2011). As a toy inventor said Notice what things your child plays
with, and try to spot whats lacking. Crowdsourcing customer blogs for existing
products will be useful sources. A mind-map may be a good technique to adopt.
Step 3 - Concept generation
A mere identification of an opportunity is not helpful in the NPD process. The most
fruitful ideation involves identifying problems people or business have and suggesting
solutions. Chapter 4 and 5 provide a systematic problem-based ideation process.
(1) Generate a clearly articulated product concept addressing consumer problems
identified above (You must explain the approach you adopted in your problem
analysis).

(2) Then, write a proper, formal concept statement which will include the following
components:
(a) Product form: The physical thing created, or in the case of a service, it is the
sequence of steps by which the service will be created.
(b) Technology: This is the source by which the form was attained. In most
products there will be one clear technology.
(c) Benefits: The product has value only if it provides some benefits to customers
(eg: uses, used with, used where so on).
Figure 4.4 in the textbook illustrates these elements in a single framework.
Step 4 - Developing a testable product concept
You will select one or more (in combination) of the following formats in designing concept
testing procedure.
(a) Narrative concept statement (persuasive or commercialized with sketch/picture)
Example: The Spray On hand Cleanser is a hand cleanser concentrate that completely
eliminate those lingering odours that comes from handling fish, onions, garlic, and
furniture polish. Not just a covering odour, it actually removes those nasty smells! Just
press the button and spray directly on to your hands, rub in for a few seconds and rinse
off. Its good bye to odours and stains. The Spray On Hand Cleanser comes in a
convenient half-litre can priced at $5.99 (including GST) each.

(b) Model (prototype) combined with a narrative similar to (a) above.

Example: A clay model or a prototype with some functional features (depending on the
product concept) combined with a narrative similar to (a) above.
(c) Virtual designs (eg: computer generated 2D or 3D) combined with a narrative similar to
(a) above.

Step 5 - Concept testing Survey development

Before technical work can begin on new ideas, they need to be evaluated, screened and sorted
out. This is a complex process which involves concept testing and full screen after which
the real product development will commence (outlined in Ch 8 through 12). You will use only
concept testing for this assignment using a survey of potential customers. This is to
determine what potential consumers thought about it and in particular to determine if they will
buy the product once its marketed? Follow the steps indicated below (see detailed steps in
page 216 233, Crawford & Di Benedetto, 2011);
(1) Define the response group in terms of key market segmentation criteria (eg;
demographic, geographic, psychographic and behavioural).
(2) Develop a survey questionnaire which you will administer to a defined likely market to
elicit all the information you need to determine whether the product concept is feasible
and can be moved to next prototype development stage. You will be provided with a
sample survey questionnaire which you will adjust to the product/service concept you
have developed.
(3) This study will adhere to the ethical requirements for research involving humans
stipulated by the University of Queensland. These requirements will be discussed in
lectures. Consult your tutor in developing the survey questionnaire and show the final
version.
Step 6 - Survey administration
(1) Survey respondents:
Administer the survey to potential consumers. As a convenient sample your potential
consumers will be your fellow students and others personally known to you. You will
need a minimum of 50 completed questionnaires, but more will provide the factuallyrich variation in responses. In particular the inclusion of people outside class will bring
in rich variety to your findings. [Class time will be allocated for filling up
questionnaires once the groups are ready]. As per UQ ethical requirements please
refrain from posting the questionnaire in any public domain.
(2) Comparison with a modified version of the product concept:
In administering the questionnaire, you will show them your product concept statement
first and get their buying intentions/responses. Then, you will show them a modified
statement with a different price and features. This enables student groups to provide a
comparative analysis of buying intentions to two sets of product features.
Step 7 - Analyse survey results
(1) Type the data into Microsoft Excel or SPSS or any other program that will allow you
to report averages and frequencies

(2) Using past industry calculations (will be provided later) and using the respondents
answers, definitely buy and probably buy you will work out the likely market share
for your product/service concept.
Step 8 - Observations and recommendations
Based on the findings of the survey, you will report whether the product concept is feasible, in
particular if it can be taken to the next stage: prototype development.
You will in particular report on the following, using appropriate graphs/tables/diagrams
developed through the data analysis.
(1) Overall feedback on questionnaire items
(2) Customer feedback on specific components of the product/service concept
(3) Market share calculation based on top box score items for the initial version of the
concept
(4) Market share calculation based on top box score items for the second version of the
concept
(5) Any other (itemised) observations that will be useful to the NPD team members who
are eagerly waiting for your specific feedback/recommendation to proceed with a
proper product development protocol.

Completed questionnaires should be submitted along with the report.

TIPS TO FORMULATE YOUR TEAM PRODUCT CONCEPT PITCH

In the world of new product development, marketers frequently pitch their innovative ideas
to potential investors and product developers to see if their ideas attract market interest. In
addition to preparing a written group project report, your team is required to make a product
concept pitch. Details for how to prepare for this assessment are outlined below.
Step 1 Watch an episode of The Shark Tank
If you have not heard of or previously seen the television show called The Shark
Tank head to http://tenplay.com.au/channel-ten/shark-tank and watch a few
episodes. There is an online library of episodes you can watch online to give yourself
an idea of how real world product developers must pitch their innovative ideas.
Step 2 Prepare your team pitch
After understanding the style of pitch that is expected of you based on The Shark
Tank television show, discuss as a team how you will approach the task. You must:
1. Use PowerPoint or Prezi to supplement your pitch.
2. Strictly adhere to the ten minute (10 min) maximum time for the team pitch.
3. Involve all team members in the pitch presentation. All team members have a
speaking role at some point in the pitch.
4. Show creativity in pitching your innovative idea. Come up with a team name; you
will also have a name for your new product/service concept.
5. Demonstrate a product prototype. If you are able, develop a mock-up of your
product to demonstrate to the audience; otherwise, product sketches are perfectly
acceptable (either hand-drawn or computerised).
6. We need to see how your product works, according to the elements of the
product concept statement. Tell us the a) form (functional and aesthetic),
technology (you will use some existing technology or combination of
technologies), and benefits to the targeted market segment?
7. Make clear to the audience how your product concept is radically innovative
from current market products/services. What need does your product address that
is not currently met in the market with existing products/services?
8. Follow the structure of the written project report to make your pitch.
Subheadings can be used organise your pitch, that is:
a. Provide a brief overview
b. Describe your opportunity identification and selection
c. Describe your concept generation and present concept statement
d. Pitch your concept (e.g., show sketches/live demo/show prototype)
e. Describe your survey data collection process
f. Present a summary of your survey results (use graphs and tables)
g. Present your ATAR calculations
h. Provide concluding observations/recommendations
More Details:
1. Pitches will be conducted in front of other teams. Classmates are your audience.
2. Team pitches will be conducted prior to submitting your written group project
report so that you can integrate feedback from your marker to improve.
3. You will be informed of your pitch time closer to the due date.