Marketing Applications and ManagementMs. Halleck
The WBHS Apprentice
PRODUCT MODIFICATION PROJECT
Marketers and entrepreneurs must be aware of the constantly changing trends in consumer needs and wants and how changes in existing products can satisfy these desires. Modifications in products help to extend a product’s life and can draw an entirely new market toward the product.
In this project, you will, as an individual or team, demonstrateyour creativity and marketing knowledge through the development and presentation of your own unique household consumerproduct modification; (includes goods from the kitchen, bathroom, home office, family room, garage, etc. and can be packaged for the class presentation).
You will be expected to:
- Choose a product
- Develop a new and unique product modification
- Create new product name
- Produce a drawing of the product
You will create a PowerPoint presentation to help convince investors that your new product is the best one available. In it you will:
- Define the market for the product
- Price the product
- Develop an advertising and promotion mix and chart
- Explain the competitive advantage over similar products
- Use the PP to convince venture capitalists (investors) to choose your company
Each of you will also play the part of a venture capitalist looking for opportunities in new products. Each person will have $250,000 to invest in the emerging modifications. No more than $100,000 may be spent in one place. Over 2 million dollars is available to a company and it only takes $250,000 to get the product out of the prototype stage and into the production stage. At the end of presentations, a blind investment format will be used. Investments made in products which receive at least $250,000 will triple in value. Those investments made in the other products will be lost because the product was undercapitalized and not successful in the marketplace. You will decide which product has the best chance of success and invest accordingly. The top three product modifiers based on total seed money, as well as the three wealthiest investors will be rewarded through extra points and of course, food. Collusion of any kind is not allowed and will result in disqualification and loss of points.
*Venture capital (VC) is financial capital provided to early-stage, high-potential, growthstartup companies. The venture capital fund makes money by owning equity in the companies it invests in.
I am looking forward to seeing quality presentations. Your modification must be original (or else disallowed) and as realistic as possible (no anti-gravity devices!). Best of luck on your assignment. Be sure to keep your idea to yourself until products are locked in.
Product Modification Presentation Guide
Use this guide to help you put together your project. Information about your product should include, but not be limited to the questions given to you below. They are provided to get you going in the right direction and give you the type of information to be covered.
Original Product Info. - Explain as much as you can about the original product you are modifying. Include how the original product works and its use, the ingredients or construction. What was the product like when first introduced? What various forms does it come in? What previous changes have been made in the product? 20 pts.
Product Modification Information – What consumer aggravation or frustration is inherent in the original product? In detail describe your product modification and then, how it solves the problem stated by you. Does it make life for the consumer more convenient, save time, save money, increase the quality of life, make things safer, etc.? Identify the unique selling points or special features that give your product a comparative advantage. 30 pts.
Name Branding Strategy – Explain the rationale behind the naming of your product. What feeling do you want the consumer to have when hearing the name? How does it relate to competitor names? 10 pts.
Product Drawing – Illustrate the product you have designed. Use a separate page and put time and effort into it. (If you can find someone with artistic talent, you may use them for this part) 20 pts.
Target Market – Detail who your target market is (it’s not Everyone!). Use demographics, past use of similar products, trends in that area, who would buy the product and who would use the product (if different). How large of a market is there? 20 pts.
Pricing Strategy – Explain the price you will offer for your product, and compare it with those of the modified product or similar competitors. How does price this fit in with your target market? What makes the price of your product a secondary issue to the value of owning your product? 20 pts
Advertising Strategy – Display your advertising pie chart, with a legend, and explain in a paragraph your decisions. Are there major types of advertising you won’t use? Explain why not. 20 pts
Investor Information – Explain how investors can get involved in your product! Is there a minimum amount of money one needs to invest to participate (the max. is 100k)? As a venture capitalist, should they be looking for a short-term or long-term investment? Do you see the company going public in the future, or will it stay a privately held company? Why should they feel excited about your product over others? 20 pts.
I amlooking forward to seeing quality presentations. Again, investments made in products which receive at least $250,000 will triple in value. Those investments made in the other products will be lost because the product was undercapitalized and not successful in the marketplace. The top product modifiers based on total seed money, as well as the wealthiest investors will be rewarded through extra points and a surprise. Let the games begin!
DUE DATE: March 31, 2011