SEARCH FOR A BUSINESS IDEA

Choosing an Idea:

Establishing yourself as a successful entrepreneur depends, in part upon choosing a good idea. That idea must only be good for the market, but good for the project and good for the entrepreneurs. It should also be manageable by you without much dependence on others. Importantly the idea should give satisfying  results to you. 

As an entrepreneur when you are searching for an idea worthy of your commitment don’t pursue one idea at a time. Develop five or ten in parallel until one emerges so appropriate that it begins to dominate your thoughts and fantasies.

Choice of a product:

The product was first introduced in the late 60’s and the concept of a sanitary napkin was popularized through the 70s while the 80s introduced new variations like beltless napkin and tampons.

Since the very concept of a sanitary napkin was so new to India, one realized that conventional retailing alone was not enough to sell the product. What was important was educating women about the product and about personal hygiene, so the manufacturers started schools, screening firms on menstruation and how to cope with it. This was followed up by free sampling.

Estimated to be a growing Rs.30 crore industry (that’s an astonishing 180 million pieces) with a growth rate of more than 15 percent, manufacturers are unanimous that this still just the tip of the iceberg. It is likely to scale new heights in the 90s.

The market leaders and pioneer in the field is undoubtedly Johnson and Johnson with Carefree, Stayfree, OB tampons and now Fresh day Panty liners

OBSERVATIONS

With the constant awareness campaign the entrepreneurs have targeted the consumers and made an impact on them. The product has a ready market. Technology is available. Raw material is in plenty. With the widening of the market the demand for the product has increased many fold. It is profitable. It is healthier, comfortable and socially accepted. Market is vast but tricky. The product is tempting entrepreneurs/ manufactures to step into this field.

SELECTION OF PRODUCT

At this stage, the entrepreneur is concerned with identifying a particular product that he hopes to market successfully at a reasonable profit. Therefore the selection of the right product is very essential for being successful in the business venture. The right product here means that which can be marketed at a reasonable profit which will go towards growth business.

THE ADOPTION PROCESS:

The adoption of an innovation demands planned management of change (overcoming the resistance to change) An adoption process is a process bringing about a change in a buyer’s attitudes and perception. Consumer adoption process covers the steps that a consumer usually goes through in determining the feasibility of buying new products

1.     Awareness: A person learns about a new idea, product or practice. He has general information about it, e.g. through advertisement. He has however limited knowledge about special qualities, usefulness, performance etc. regarding the innovation. He merely knows about its existence.

2.     Interest: He now develops an interest in the innovation. He demands more detailed information about the new product, its utility its performance and so on. He listens with interest to Jingles on the radio or TV ads, reads press ads and learns more about it from others, and is now inclined to actively seek the desired information from sales – persons, opinion leaders, peers, friends, etc.   

3.     Evaluation or mental trial: The accumulated information and evidences are weighed by the person in order to assess the basic soundness or worth of the innovation. He tries to weight the value of the new product and the extent to which it is good for him. In a sense, he conducts a mental trial of the new product.

4.      Trial (physical): The person now is ready to put the idea into practice. Competent personal assistance is necessary to put the innovation to use.

5.      Adoption: It is the final stage in which he makes a decision to but. The person now decides to adopt the new idea, product or practice for continued use. If post purchase experience is good, he becomes a repeat buyer and a talking advertisement of the innovation.

PRODUCT PLANNING AND DEVELOPMENT STRATEGY

Marketers have four alternative ways of bringing about an increase in sales and profits:

1.     Market penetration: It involves the expansion of sales of the existing products in the existing markets by selling more to present customers or gaining new customers in the existing markets.

2.     Market Development: In market development a present product is introduced to a new market or segment. Market development is the creation of new markets by discovering new applications for existing goods, e.g. Mini – bus may be made available for goods or passengers.

3.     Product development: Product development occurs when a firm introduces new products into a market in which it is well established. Product development is the introduction of new products in the present market, e.g. new synthetic fibers for known textile products.

4.     Diversification: Diversification occurs when a firm seeks to enter a new market with a completely new product. Such a firm has neither market expertise not product knowledge.

NEW PRODUCT IDEA

Excluding the continual search for new ideas, the time and costs involved in the activities relating to product planning and development process from experience in the U.S>A is as follows:

Many innovative ideas are needed to find one good idea worth for commercialization and many new ideas fail to pass the screening stage. Few ideas are compatible with the corporate resources and goals. Finally five ideas are eliminated for lack of profit potential. Finally having profitability only one new product idea becomes eligible for market introduction and officially enters its life cycle.

PRODUCT PLANNING AND DEVELOPMENT PROCESS

1.     New product ideas: We visualize the detailed features of a model product. Ideas may be contributed by scientists, professional designers, rivals, customers, sales force top management, dealers etc. We may need sixty new ideas to get one commercially viable product.

2.     Idea screening: We have to evaluate all ideas and inventions. Poor or bad ideas are dropped and through the process of elimination, only the most promising and profitable ideas are picked up for further detailed investigation and research.

3.     Concept development and testing: All ideas that survive the process of screening (preliminary investigation) will be studied in detail. They will be development into mature product concepts. We will have a precise description of the ideas and features of the proposed product. At this stage, we can incorporate consumer preference into out agenda for concept development and testing product ideas.

4.     Business Analysis: Once the best product concept is picked up, it will be subjected to rigorous scrutiny to evaluate its market potential, capital investment rate of return on capital etc. Business analysis is a combination of marketing research cost benefit analysis and assessment of competition.

5.     Product development Programme: We have three steps in this stage when a paper idea is duly converted into a physical product.

a. Prototype development giving a visual image of the product.

b. consumer testing of the model or prototype and

c. branding, packaging and labeling. 

6.     Test Marketing: The entire product marketing programme is tried out for the first time in a small number of well – selected test markets, i.e. test markets i.e. test cities or areas. Test marketing is necessary to find out the viability of a full marketing programme for national distribution. Customer reactions can be tested under normal market conditions. It helps the company to learn through trial and error and to get additional valuable clues for product improvement and for modifications in our marketing mix.

7.     Commercialization: Once the test marketing gives the green signal for the product with or without expected modifications the company can proceed to finalize all features of the product. Now marketing management launch a full – fledged advertising and promotion campaign for mass distribution.
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