Creating New Product Or Service
Once you have drafted it, start the reviewing process.
- Cut out unnecessary words and phrases.
- Think about what you are really trying to say, then say it in as few words as possible.
This exercise often yields options for taglines and slogans. It helps us realize that, as marketing people, we have just a few brief moments to catch the attention of our potential customers.
the bussines company I chose to study is Tesla. New products,service and features must be;
Creating a driver app like Uber and Lyft under the Tesla company
giving rides with or without driver
some delivery options and exc.
[Your Company Name] is a [manufacturer, distributor, marketer, service provider] of [describe your product or service].
Our company is at the [seed, start-up, growth] stage of business, having just [developed our first product, hired our first salesman, booked our first national order].
Product or Service
Explain how your product works or how the service is used. What burning marketplace needs are addressed by your product? What value do you add to the product?
The Mentors also have a wealth of experience when it comes to positioning their products. See http://www.moneyhunter.com/htm/mentor/mentors.htm
[The company] produces the following products; [list products here, in order of highest sales or significance in product line]. Be sure to refer readers to product pictures, diagrams, patents, and other descriptive material.
[The company] delivers the following services; [list services here briefly, in order of highest sales or significance in product line].
Be sure to refer readers to brochures and material describing your service.
Presently, our [product or service] is in the [introductory, growth, maturity] stage. We first developed our [product or service] in 19[xx] and have made [x] improvements and redesigns since then. Provide a history of product developments, introductions, and improvements leading up to the present day. Table form may be appropriate.
Unique features or proprietary aspects of Product
This is a crucial paragraph. Investors must see something unique, proprietary, or protected about your product or service.
Our products are unique because of [of secret ingredient, our patented process, our proprietary manufacturing process].
Others in the market are able to provide somewhat similar [products or services], but we are able to differentiate ourselves in the market because of [x].
We have [applied, been granted, licensed] a patent for [x], an abstract of which can be found in appendix [x]. We have integrated this into our process which others will not be able to duplicate. Our lead product, [x] addresses the following customer needs [x] and delivers [x] benefits to customers.
Tell us about the unique value-added characteristics your product line or process provides to customers and how these characteristics translate into a competitive advantage for your company.
Research and Development
Our research and development is headed by [name of person or contractor] whose major objective is to use market input to [develop products that solve problems or provide superior benefits to customers]. Last [period], our R&D yielded the following products and innovations; [list products or innovations]. [Your Company name] has spent [% of revenues, or absolute $] in the past year in R&D, and plans to spend [% or $] in the next [period].
Our R&D occasionally yields innovation without input from customers or the marketplace. Our product selection criteria in this case is as follows; [relatively low investment requirements, positive return on investment, fit with present strategy, feasibilty of development and production, relatively low risk, time to see intended results, buyer in common]. Our R&D will require additional resources in the future. These will include [people, capital expenditures] to [speed up development process, test results more efficiently].
New and Follow-on Products
Responding to market needs, we plan to follow [product or service] with extensions to our line which include [x,y,and z].
Our target introduction dates for these products are [x,y,and z], which corresponds with [a major trade show, industry event]. In addition, we plan to introduce the following new products in the upcoming season; [x,y,and z].
Our [product, service] is [manufactured in house, assembled in house from components from various vendors, (service) provided by our staff, or subcontracted to field consultants]. [Raw materials, sub-assemblies, components] used in our products are readily available from a variety of manufacturers who can meet our quality standards.
Critical factors in the [production of our product, or delivery of our service are [x, and y].
Enumerate and explain capital equipment, material, and labor requirements. Are the above items readily available? Do you have multiple supply sources? List inventory requirements, quality and technical specifications, hazardous materials
Our [product or service] is unique because [x,y,or z] and/or we have an advantage in the marketplace because of our [patent, speed to market, brand name].
Sad fact: this is the most crucial but worst-prepared section of most business plans.
What markets are you competing in? If you make glove-compartment hinges, don’t gush about the $80 billion automobile market. You make hinges — not cars — for that market, so tell us how many hinges were sold last year. Are there other markets where you sell your products?
For specific information on understanding your market, see How to Hunt, http://www.moneyhunter.com/htm/hunt.htm
We [expect to compete, are competing] in the [define niche] of the [define industry]. This market was approximately [$x] at [wholesale or retail] last [period available], according to [site resource]. We believe, the major future trend in the industry will be toward [environmentally oriented, miniaturized, high quality, value oriented] product offerings.
Market research [cite source] suggests this market will [grow/shrink] to [$x] by the year [19xx]. We expect the niche in which we compete to [grow,shrink, remain stagnant] during this time. The major forces affecting this change will be [falling cost of computers, explosion of home-based businesses, tendency for baby boomers to have less kids- and pamper their pets]. The area of greatest growth within the industry will be [x].
Identify where you got this information, and how up to date it is.
We define our market segment as [the writing and drawing instrument segment of the school/home/office products industry, the low fat dairy products segment of the food industry]. This segment has been [volatile, steady] in the last few years. Industry experts [name them] forecast [x] for the industry in the next few years.
The major market segments [segment a, segment b, segment c]. List, in general, the types of customers you are likely to reach (retailers, electrical contractors, catalog buyers, etc.)] The [a] segment of the market is based on [product type] that retail in the [x to y] price range. Most of the sales in the segment are delivered through the [catalogs, retailers, manufacturers reps, OEM’s].
A typical customer for our product is a person who current may use [alternative product or service] for [what purpose]. They are motivated to buy our product because of [its value, its quality, its usefulness]. We know this from [customer responses, trade show input, ad inquiries] and feel our customers perceive our products as [good value, superior performance, great taste].
Our product, does, however, have the following weaknesses; [higher price point than most other cheeses, weak brand identity in a commodity market]. We are working to position our product as [x] in order to reduce this vulnerability.
Our marketing plan is based on the following fundamentals;
We expect to penetrate the [x] segment of the market[s] and achieve this by using the [retail, mail order, multi-level marketing, internet] as our primary distribution channel[s]. In time, we plan to capture [%] share of the market.
We will position our product as [good value for price, top quality, cheap and fun], which is a position not presently being addressed by the competition. One demographic group in particular, the [elderly, hispanic, generationX, techies] has a particular need for this product, and we tailor our positioning accordingly.
Our pricing strategy is [describe policy or, at least philosophy]. Is this pricing based on cost? Gross margin objectives? Market?
We arrive at our pricing based on [cost, gross margin objectives, market prices, perceived value].
We review this pricing [monthly, quarterly, annually] to ensure that potential profits are not squandered. Customers seem willing to pay as much as [x] because of [explain reasoning].
The distribution channels we use for our product are [wholesalers, cataloguers, mass merchant retailers, consolidators]. These make sense for delivering our product to the end user because [customer profile, geography, seasonal swings]. The competition uses the [[wholesalers, cataloguers, mass merchant retailers, consolidators] channel. Our channel will prove more advantageous because [x].
Our major current customers include; [list top five, with one or two sentence descriptions]. The attached chart [see appendix z] demonstrates how our product reaches the customer.
Advertising, promotion, trade shows
Your purpose is to introduce, promote, and support your products in the marketplace. Although considered a cost, a properly designed and executed campaign is an investment.
[Your Company Name] has developed a comprehensive advertising and promotion strategy, which will be implemented by the best possible firm when funded is completed. We expect to have a presence in several national magazines as well as the trade press. We will produce our own ads and be a part of ad campaigns of our JV partners or OEMs. Our publicity plan is to remain in constant contact with editors and writers of the [trade journals that serve our industry] and seek stories and coverage that will [enhance our reputation, introduce us to buyers].
We plan to promote our product through a variety of [on site product sampling, demonstrations at high profile events, give-aways at fund raisers] and other high leverage events. The objective of all our promotions is to [expand the audience, position our product as a premium brand, strengthen our ties to the community].
[Your company name] participates in the following trade shows; [list trade shows, briefly describe organization that sponsors it and who attends, and describe presence there]. We have a regular [20-foot display booth of knock down construction which allows us to display our existing products and introduce new ones, or we prefer to attend trade shows as visitors and walk the show while displaying our wares only to pre-qualified buyers who will come to our nearby hospitality suite]. The following factors are taken into account when considering a trade show; will this event help deliver our message to our target audience? Does the location of the show have significance? Is the time frame convenient? Is it a “must-go show”?
Tell us about key competitors in regard to product, price, location, promotion, management, and financial position. False or incomplete information here translates as dishonesty and negligence to investors, bankers, etc. Do not delude yourself (or your investors) about your competition.
Look in your telephone book’s yellow pages. Look in the industrial directories at your local library. Search on-line databases that provide competitive profiles of other companies. Read industry magazines and look for advertisers.
Money Hunter can help you size up the competition:
We have no direct competition, but there are alternatives to our [product or service] in the marketplace.
We compete directly with [name competitor a, b, and c].
Provide a sample of each… [example…Acme Inc. is a $3 million sales manufacturer and marketer of pencils in the Northeast region. Acme Inc. is a division of Acme Corp, a public company with $800 million sales. The division sells pencils, pens, and other writing and drawing instruments. The recent trend for the division has been static, as the parent has not provided working capital to modernize machinery. Acme Inc. is managed by one Vice President who has been there for six months. The previous manager worked there for 11 months.]
The competition [does, doesn’t] [use the same means of distribution as the company, advertise in the same trade journals]. If the advertising is regular-it probably works!
Our [product or service] is unique because of [x] and/or we have a competitive advantage because of our [speed to market, established brand name, low cost producer status].
This is also a critically important part of the plan. Knowing your risks and having a strategy is a must for attracting an investor. There are several kinds of risk, especially among entrepreneurial, growing businesses. Be sure to address the following, and provide your strategy for dealing with them;
Some of the major risks facing our development include [limited operating history; limited resources; market uncertainties; production uncertainties; limited management experience, dependence on key management].
Moneyhunter’s Mentors know a thing or two about taking risks. See http://www.moneyhunter.com/htm/mentor/mentors.htm
This is also a critically important part of the plan. Use it to provide excitement and promise.
Although our business today has its share of risk, we feel we can overcome these risks because of [x]. We will address [market risk] by [doing a comprehensive study, partnering with a larger company who knows the market]. We feel we can address [pricing risk, product risk, management risk] by focusing on [x].
If we are able to overcome these risks, our company has the opportunity to [dominate a niche in the marketplace, become a major force in the industry]. We feel our brand could become known as the [place entrepreneurs look for financing help, the place people look for good tasting, low fat cheese]. We think we can achieve this goal in the next [x] years.
Specifically, our lead product [x], has the chance to [change the industry, affect many lives, improve performance in the [x] field]. This would also enable us to tap markets we have not yet begun to approach, such as [international sales, ethnic market, genX].