9 Stages of Product Development

NEW PRODUCT LAUNCH
STAGES OF PRODUCT DEVELOPMENT

(grand-finale)
Under guidance of Prof. V V Ramasastry
ANAND TUTEJA 1B-40
NANDITA KATIYAR 1B-54
ARUN PUNDIR 1B-43
GAURAV ROHATGI 1B-41
SHRAVAN RASTOGI 1B-59
RASWINDER JIT SINGH 1B-31
RUPAL NIMBHORKAR 1B-33
1. CLASSIFICATION OF HEALTHCARE INDUSTRY
2. OVERVIEW
3. FACTS ABOUT OUR COMPANY
4. CLASSIFICATION OF TIME MEASURING

INSTRUMENTS
5. IDEA GENERATION
6. IDEA SCREENING
7. CONCEPT DEVELOPMENT & TESTING

8. MARKETING STATEGY
9. FINANCIAL ANALYSIS
10. PROTOTYPE DEVELOPMENT & TESTING
11. TEST MARKETING
12. COMMERCIALIZATION
13. LIFE CYCLE MANAGEMENT

CLASSIFICATION OF HEALTHCARE INDUSTRY
The healthcare industry can be classified as

1) Medical service providers
2) Diagnostic service providers
3) Third party service providers
3a) Clinical trials
3b) Healthcare convenience service providers
3c) Medical Transcription & Telemedicine
3d) Health Insurance Providers
3e) Others (laundry , caterer etc)
4) Bio-pharmaceutical manufacturers
5) Medical Devices manufacturers
OVERVIEW
• The healthcare industry is expected to increase in size
from its current € 12.72 billion to € 29.6 billion by 2012.
• India will spend € 33.8 billion on healthcare in the next
five years as the country, on an economic upsurge, is
witnessing changes in its demographic profile
accompanied with lifestyle diseases and increasing
medical expenses.
• Revenues from the healthcare sector account for 5.2
% of the GDP and it employs over 40 lakh people.
• By 2012, revenues can reach up to 7 % of GDP and
direct and indirect employment can double.
OVERVIEW (contd….)
• Private healthcare will continue to be the largest
component in 2012 and is likely to double to € 26.41
billion.
• It could rise by an additional € 6.5 billion if health

insurance cover is extended to the rich and middle
class.
• Coupled with the expected increase in the

pharmaceutical sector, the total healthcare market in
the country could increase to € 39.22 - 54 billion (6.2-
8.5 per cent of GDP) in the next five years.
OVERVIEW (contd….)
• BP measuring watch has a huge untapped potential in
the Indian market as India has one of the largest number
of Hypertensives in the world. (164 per 1000 in urban and
157 per 1000 in rural areas – 2005 WHO report)
• Such watches exist in foreign markets but have still not
been introduced in the Indian markets.
• This watch gives the option of storing the record of
fluctuations in BP and thus helps in continuous
evaluation of the patient by the cardiologist.
• There is negligible competition in the Indian market and
the technology is already existing so there will be low
R&D costs.
FACTS ABOUT OUR COMPANY
1. Ours is a medical devices manufacturing company with strong
technological and R&D expertise. (Artistic designing is not our
strength)
2. Our company is trying to foray into the time measuring

devices industry.
3. Ours is a company that is financially sound enough to venture

into small & medium projects.
4. Our company has strong distributorship network in small

electronics & medical devices industries only.
CLASSIFICATION
OF TIME
MEASURING
INSTRUMENTS
Watches
Wrist watch
Stop Watch Others
Pocket watch
Mechanical Automatic
winding winding
Clocks
Instrument
Wall clocks Table clocks panel clocks
Sundials
With Without
alarm alarm
STAGE 1 :
IDEA GENERATION
IDEA GENERATION
OBJECTIVE : Systematic generation of maximum no. of
ideasPOSSIBLE
coherent to Market
SOURCESOpportunity, Company Objectives
OF INFORMATION : &
Company Resources.
 Need gap Study
 Feedback from the customers
 Internal - R & D, employees
 External market research
 Competitors
 Trade shows & fairs
 Seminars & workshops
BRAIN STORMING : 7 of us made a group &
had a detailed discussion regarding possible new
ideas and finally arrived at the following 15 ideas.
The brainstorming session had the following
features :
•No negative comments on any idea

•People encouraged to give wild ideas
•People were allowed to modify others’ ideas
1. Daily use stopwatch
2. Sundials
3. Radio alarm clock
4. Car clocks with weather forecasting & navigation
5. Pen watches
6. Auto turn-off devices
7. Toy & fancy clocks
8. Antique clocks & watches
9. BP measuring watches with alarm system
10. Jewellery watches
11. Chest watches
12. Chess stopwatches
STAGE 2 (GATE 1) :
IDEA SCREENING
OBJECTIVE : To reduce the no. of ideas by
dropping the poor ideas & spotting good
ideas.
OUR METHODOLOGY : Screening in 2 steps

STEP I : Brief analysis of
 Product
 TMS
 Competitor
 Rough estimate of market size
 Rough estimate of product price
 Rough estimate of time & cost
 Rough estimate of ROR
By doing this first step we eliminate 8 of the 15 ideas.

IDEAS ELIMINATED :
1. DAILY USE STOPWATCH : Minimum possibility of new

innovative features that can be added & minimum margins
available.
2. SUNDIALS : Market size is very small & distribution capability

in that market is weak.
3. RADIO ALARM CLOCKS : Market size small due to decreasing

popularity of bulky radios.
4. CHESS STOPWATCHES : Distribution ability is restricted in the

sports market.
5 . PEN WATCHES : Distribution insufficient in stationery
segment.
6 . ANTIQUE CLOCKS & WATCHES : Unsustainable DA &

market saturated due to too many competitors.
7 . JEWELLERY WATCHES : Distribution insufficient in

the jewellery market. Moreover jewellery designing is
not company’s core competency.
8 . TOY & FANCY CLOCKS : Distribution insufficient in

toys segment.
STEP II : Detailed analysis of the remaining ideas by
allocating the following weightages & checking for
compatibility of the opportunities with the company’s
objectives & resources :
 Strategy & objectives 20 %

 Marketing skills & experience 25 %
 Financial resources 15 %
 Distribution capability 15 %
 Production capabilities 15 %
 R&D capabilities 10 %
Idea Rating (CAR CLOCKS WITH
WEATHER MONITORING & FORECASTING)
Fit Between Product Idea & Company Capability Idea Rating
New Product Relative
Success Factor Imp 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1
Company Strategy
& Objectives 0.20 0.14
Marketing Skills
& Experience 0.25 0.15
Financial
Resources 0.15 0.09
Channels of
Distribution 0.15 0.045
Production
Capability 0.15 0.12
R&D Capability 0.10 0.08
1.00 0.625
Idea Rating (AUTO TURN OFF DEVICES)
Fit Between Product Idea & Company Capability Rating
Company Strategy
Marketing Skills
Financial
Resources 0.15 0.09
Channels of
Production
1.00 0.755
Idea Rating (BP MEASURING DEVICES
WITH ALARM SYSTEM)
Company Strategy
Marketing Skills
Financial
Resources 0.15 0.12
Channels of
Production
1.00 0.915
Idea Rating (CHEST WATCHES)
Company Strategy
Marketing Skills
Financial
Resources 0.15 0.12
Channels of
Production
1.00 0.91
Idea Rating (HIGH PRECISION WATCHES)
Company Strategy
Marketing Skills
Financial
Resources 0.15 0.12
Channels of
Production
1.00 0.725
Idea Rating (CUSTOMIZED WATCHES & CLOCKS)
Company Strategy
Marketing Skills
Financial
Resources 0.15 0.135
Channels of
Production
1.00 0.850
Idea Rating (INSTRUMENT PANEL CLOCKS)
Company Strategy
Marketing Skills
Financial
Resources 0.15 0.12
Channels of
Production
1.00 0.785
So finally on the basis of these scores, we
have short-listed the following 4 ideas in this
stage which will further go to CONCEPT
DEVELOPMENT & TESTING STAGE
1. BP measuring watches with alarm system
2. Chest watches
3. Instrument panel clocks
4. Customized clocks
STAGE 3 (GATE 2) :
CONCEPT
DEVELOPMENT
& TESTING
CONCEPT
STATEMENTS
BLOOD PRESSURE MEASUREMENT
WATCHES WITH ALARM SYSTEM
• Wrist watches.
• Can measure blood pressure, pulse rate & body temperature using embedded high
technology sensors.
• Will beep & vibrate if BP goes beyond a certain level which can be prefixed by the
operator.
• Can keep a full track of all fluctuations in the blood pressure over a period of time
and thus helps in good follow-up of the patient. So it will help the doctor also in
monitoring the patient.
SEGMENTS :
a) Health conscious people
b) Established Hypertensives
c) People at high risk of developing
Hypertension
BENEFITS :
a) Self monitoring by patient
b) Help in controlling emotions & anger
c) Easy & accurate follow up by the
doctor
OCCASIONS OF USE :
a) Throughout the day
b) Periods of stress & anxiety
CHEST WATCHES
• Comes with a chest belt which has a sensor that measures & transfers vital signs like
body temperature, blood pressure, pulse and respiratory rate to the wrist watch which
displays these readings. Gives the benefit of self-monitoring & control.
• Suitable for athletes, sportspersons & health conscious people.
• Can be used during workouts, jogging & otherwise household work also.
CUSTOMIZED CLOCKS AND
WATCHES
Will bear the brand name & logo of
company. Customization can be done in
straps, dials, needles & frames.
Will target the kids & youngsters.
Can be used as gift item.
INSTRUMENT PANEL
CLOCKS
SEGMENT : Scientists, Researchers, Labs
BENEFITS : Quality, Accuracy & Precision
OCCASIONS : Experiments, Academics
EVALUATION
ANALYSIS OF THE SOURCE OF D.A.
BP MEASUREMENT
PANEL CLOCKS
CHEST WATCH
INSTRUMENT
CUSTOMISED
WATCHES
CLOCKS
TECHNICAL VIABILITY 8 8 7 8
PRODUCTION AT LOW COST 9 9 9 9
FINANCIAL VIABILITY 8 8 9.5 7
DISTRIBUTION VIABILITY 9 9 9 9
BRANDING / MARKETING 7 7 8.5 8
TOTAL 41 41 43 41
ANALYSIS FOR THE ATTRACTIVENESS OF T.M.S
BP MEASUREMENT
PANEL CLOCKS
CHEST WATCH
INSTRUMENT
CUSTOMISED
WATCHES
CLOCKS
MARKET SIZE 7 9 9 8
MARKET GROWTH 6 8 8.5 8.5
PROFITABILITY 8 9 9 8
COMPETITION 8 7 9 8
RESTRICTION 7 7 5 7
TOTAL 36 40 40.5 39.5

Total of D.A. & T.M.S.
BP MEASUREMENT
PANEL CLOCKS
CHEST WATCH
CUSTOMISED
INSTRUMENT
CLOCKS
WATCHES
D.A.
41 41 43 41
T.M.S.
36 40 40.5 39.5
TOTAL 77 81 83.5 80.5

2 1
Technological Break Down Structure
Watches
Specialized
Stop watches Sundials Alarm clocks Car clocks Antique clocks Wrist watches Pocket watches
watches
Grand father
Wrist watches Desktop clocks GPS enabled Health Adventure Specialized Digital
clocks
Auto Parameter Parameter

Radio Alarm GPS and
Stand alone synchronizing monitoring monitoring Sport High Precision Collectibles Analog
Watches Waypoint
watches watched watches
Metered Dosage
Wrist watches Water resistant Atomic clocks
watches
All Weather Research

Market Break down structure
Regular Users Specialized Users
Affluent People Scientists

Students Long haul Drivers
Fashion Conscious users Patients
Office Goers Health Conscious people
Children Aviators
Adventurers Factory Workmen
Model Type Movement Display Price Features
Car clocks Wired to Car battery Digital/Analog Low To High Features like lap timers/
Multiple alarms, Radio,

Radio alarm clock Battery/AC power Digital High
Versatile
Waypoint tracking ,
GPS Watches Battery Digital High
Weather functions
Specialized health Health monitoring,
Battery Digital High
Watches Recording, alarm functions
High resale value,
Jewelry or luxury Hand cranked/Battery/
Analog Very High Fashionable, Customizable
watches crystal/eco drives
and Novelty Factor
Water resistant/weather
Hand
proof/ Lap timers/stop
Sport watches movement/Battery/Ha Digital or analog Low to High
watch functions/Rugged/
nd wound/ Solar
Scratch resistant
Novelty Factor,
Manual or hand
Antique Analog Very High Collectible, High resale
cranked
value,
Customizable, fashionable
Kids Battery Digital or analog Low to medium
, Rugged
PDC FOR BP
MONITORING WATCHES
Market Related Criteria For BP
monitoring wrist
1-poor 2-Fair 3-Good watches
4-very Good 5- Excellent
Market demand for product 5
Market Need for product 4
Uniqueness relative to competition 5

Competitive Advantage 5
Ability to explain product to consumer 4
Trade channel for product 4
Company’s understanding of the product 4
Customers acceptance of product 4
Synergy of new product with current product offered 5
TOTAL 40
Technology Related Criteria for BP
Monitoring watches
Uniqueness of Technology
5
Potential life cycle of Technology
4
Ability to develop the technology
5
Ability to patent the technology
5
Ability to keep the development cost under control
2
Ability to manufacture the technology
4
Applicability of technology to future product
5
Ability to keep the minimum potential risk associated with the
technology
2
TOTAL
32
Background Arena Goals/ Special
Objective guidelines
To Provide Company has Company aims To Provide
precision strong R & D to capture accurate and
capabilities and reliable
electronics a heritage of 35 % of the BP/Pulse/Temper
and medical high precision market share in ature
devices medical two years measurements
devices with up to 2 hours
of data storage
Mission Statement
• We are an established watchmaker in the
Premium and value segment and aim to
capture 35% of the Medical and health
conscious market in 1 year by providing
benefits like real time Health diagnostics
and Monitoring.
PDC FOR CHEST WATCHES
Market related criteria for Chest watches
1-poor 2-Fair 3-Good 4-very Good 5- Excellent

TOTAL 35
Technology related criteria –
Chest watches
3
3
5
5
2
5
5
technology
3
TOTAL
31
To Provide Company has Company aims To provide an all
precision strong R & D to capture in one medical
capabilities and diagnostic system
electronics a heritage of 35 % of the with alarm
and medical high precision market share in fucntions
devices medical two years
devices
Mission Statement
• We are an established precision electronics
supplier in the medical and electronics
segment and aim to capture 10% of health
conscious and patients in two years by
providing an all in one health monitoring
system.
PDC FOR INSTRUMENT
PANEL CLOCKS
Market related criteria for
Instrument panel clocks

TOTAL 31
Technology related criteria -
instrument panel watches
3
3
4
3
2
3
4
technology
2
TOTAL
24
To Provide Company has Company aims It will
precision strong R & D to capture incorporate user
capabilities and assignable
electronics a heritage of 35 % of the parameter
and medical high precision market share in monitoring and
devices medical two years real time
devices monitoring
functions.
Mission Statement
segment and aim to capture 30% of
industrial and aviation displays segment in
two years by providing benefits like
precision displays and real time monitoring
of user assigned parameters
PDC FOR
CUSTOMIZED WATCHES
Market related criteria for Customized clocks

TOTAL 33
Technology related criteria -
Customized clocks
3
3
5
4
2
3
5
technology
3
TOTAL
28
To Provide Company has Company aims To provide a
precision strong R & D to capture completely bare
capabilities and bone product with
electronics a heritage of 35 % of the a variety of add
and medical high precision market share in on and inter
devices medical two years changeable
devices casings and
straps.
Mission Statement
segment and aim to capture 30% of the
customized watches and fashion segment in
two years by providing benefits like
changeable dials and snap on straps and
changeable casings.
Aggregate Total
Market Score Technology Score

Score
BP Monitoring
Watches
40 32
72
Chest Watches 35 31 66
Instrument 31 24 55
Panels
Customized 33 28 61
Watches
Competitors of BP Measuring Device
 As this is a new concept , there is no direct competitor of this

device.
 However indirect competitors exist , namely

 Sphygmomanometer
 Electronic inflatable measuring devices
 High Price Branded Wrist Watches
• The perception maps are plotted on the following parameters :

 Price VS Quality
 Ease of use VS Quality
 Ease of use VS Price
Product Perception Map : PRICE - QUALITY
HIGH PRICED
BRANDED WATCHES
ELECTRONIC INFLATABLE
MEASURING DEVICE
SPHYGMOMANOMETER
BP MEASURING
WATCHES
Product Perception Map : EASE OF USE - QUALITY
SPHYGMOMANOMETER MEASURING DEVICE
BP MEASURING
WATCHES
HIGH PRICED
BRANDED WATCHES
Product Perception Map : EASE OF USE - PRICE
SPHYGMOMANOMETER MEASURING DEVICE
BP MEASURING
WATCHES
HIGH PRICED
BRANDED WATCHES
DETAILED CONCEPT DESCRIPTION
1. FORM : A sturdy & sleek watch with sensors on the
underside.
2. QUANTITY : 1 per pack with the instruction booklet & an

extra free strap.
3. MATERIAL : Made of bio-compatible non allergic rust free

material.
4. AESTHETICS : Sleek & stylish. Available in 4 colors –

Navy Blue, Grey, Lemon & Pink. Strap also available in
various colors. Completely mimics the appearance of a
normal watch.
 BELIEVABLE CLAIMS : The watch monitors the
BP regularly. Beeps if there is an abnormal
increase due to anxiety or emotions & warns the
patient to be in control. Also stores weekly data
that can be transferred to the doctor’s PC for
monitoring & follow up.
 TECHNOLOGY : Made of the latest German

technology. Fool proof tried & tested.
 COMFORT : Very comfortable. Has a velvet

cushion coating on the underside of the strap. Soft
non irritable sensors on the underside of the body.
8. REASON FOR PREFERENCE : It’s the first of its kind in
the market. Gives extreme emotional flexibility to the
hypertensive patients.
9. AFFORDABILITY : Priced at a competitive 300 rupees.
10. RISK FREEDOM : Made of reliable non allergic &

comfortable material. No side effects.
11. VALUABILITY : Price considerably low as compared to the

benefits offered hence increases the value tremendously.
12. CONTRAINDICATIONS : People with artificial

pacemakers installed in their bodies should not use this
watch as it interferes with the frequency of the pacemaker.
People with Siderosis should also avoid the watch.
13. AVAILABILITY : Available at all major surgical stores. Tie
ups with major pharmacy chains. Also available through the
internet channel.
14. ACTIONABILITY : Easy to wear, maintain & replace

batteries.
15. SHELF LIFE : Unlimited. However battery life restricted to 6

months.
16. PORTABILITY : Can be worn anywhere, even in water

during swimming or in gym during exercise. Easy to carry.
Provided with a shock insulating case.
17. EASE OF USE : Just program it according to doctor’s

instructions & wear it. Everything else will be taken care of
by the watch.
STAGE 4 :
DEVELOPING A
MARKETING STRATEGY
Marketing Strategy Development – ITERATIVE PROCESS
OBJECTIVE : To find an AFFORDABLE, BALANCED & COST EFFECTIVE marketing strategy.
 TMS SIZE : 90,00,000 hypertensives out of a total of 5 crore

hypertensives in India.
 TMS STRUCTURE :
 Upper Class & Upper Middle Class
 Primarily Urban
 Medical NGOs working for social welfare
 TMS BEHAVIOR :
 Health Conscious People
 People having blood pressure problems
 Patients away from doctors & requiring continuous monitoring
 PLANNED PRODUCT POSITIONING :
 SHORT TERM GOALS :

 1st year :
 SALES : Rs 12,00,00,000 /-
 PROFIT / LOSS : Loss of Rs. 2,43,90,000 /-
 2nd year :
 SALES : Rs 13,75,00,000 /-
 PROFIT / LOSS : Profit of Rs. 31,00,000
I. Product Variants – Watches will be available in
different strap sizes and body colors – Navy blue, grey, lemon,
pink.
II. Pricing Strategy –

Maximum in first year and then gradually decrease to compete with competitors.
Skimming layer by layer.
Differential Pricing i.e. prices will be different for individual customers,
corporate customers, NGOs.
III. Distribution
 Tie ups with

 Hospitals
 Doctors
 Pharmacies
 NGOs
 Health Associations
 Internet Channel
 Direct Selling through exclusive outlets in 4
Metros
 Exclusive kiosks in big hospital campuses.
IV. Promotion Strategy
 Advertising budget – Rs. 5 crore

 Split 50:50 national : local
 1/3rd into TV , 1/3rd into newspapers, 1/3rd into direct
selling & tie ups
 Special offers for senior citizens i.e. > 65 yrs of age
 Long run sales & profit goals.
 Product quality –To start high & continue to improve through R&D.
 Price – Moderate.
 Variants expand over the year.
 Promotion Budget- To increase each yr by 2-5 %
 With initial Ad /sales promotion split of 65 : 35 evolving eventually to 50 : 50 by

the end of 3rd year.
STAGE 5 (GATE 3) :
FINANCIAL ANALYSIS
CASE DETAILS
No. of hypertensives in India= 5 crores
Target market segment= Upper middle class
and upper class primarily urban
Target population= 9,000,000
Cost per unit 1st year = Rs 3000 per unit
2nd year = Rs 2500 per unit
3rd year = Rs 2000 per unit
REALISTIC SCENARIO
OPTIMISTIC SCENARIO
PESSIMISTIC SCENARIO
Financial Objectives
1. Payback time < 4 yrs
2. BEP (sales value) < Rs. 15 Crore
3. Maximum Loss < Rs 5.5 Crore
4. IRR for first four years must not be < - 10 %
5. All the above conditions must be fulfilled even

in the pessimistic scenario.
Realistic Scenario
• Discounting rate= 15%

• Maximum investment exposure = Rs3.5 cr
• Payback = 1.8 years
• IRR = 3.5 %
Optimistic scenario
• Sales go up by 10%
• Cost of goods sold come down by 10%
• Discounting rate = 15%
• Maximum investment exposure = Rs3.5 cr
• Payback = 1.2 years
• IRR = 6 %
Pessimistic scenario
•Sales come down by 10%

•Costs of goods sold increase by 10%
•Maximum investment exposure = Rs3.5 cr
•Payback = 3.77 yrs
•IRR = - 4.75 %
The concept clears the financial
objectives of the company even in
the Pessimistic Scenario.
Hence we proceed further !

• Awareness
• Trial
• Availability
• Repeat Purchases
• The no. of hypertensives in India are approximately
5 crore.
• The target population is upper middle class and the
upper class which is approximately 9 million.
• Through aggressive marketing campaigns 60 %
can be made aware of the product
• 30 % of the target market can be expected to try
the product
• 5 % of these customers willing to buy the product
• 50 % of availability of the product in the existing
distribution channel
No. of units sold in First year
= 9000000 X 0.6 X 0.3 X 0.5 X 0.05
= 40,500
Price of each unit = Rs 3000 /-
Sales = 40500 X 3000

= Rs 12,15,00,000 /-
Sensitivity Analysis
TARGET AWARENESS TRIAL AVAILABILITY REPEAT PURCHASE
POPULATION PURCHASE FREQUENCY
9000000 0.6 .3 .5 .05 1

40500
9000000 0.61 .3 .5 .05 1

41175
9000000 0.6 0.31 .5 .05 1

41850
9000000 0.6 .3 0.51 .05 1

41310
9000000 0.6 .3 .5 .051 1

41310
9000000 0.6 .3 .5 .05 2

81000
•The most important parameter is the
PURCHASE FREQUENCY but watch
being a search good is generally not purchased
more than once a year.
•Therefore TRIAL RATIO which is the next

most important parameter should be
considered & focused on.
( EXPECTED / ESTIMATED
COMMERCIAL VALUE )
CON- NPV PROB PROB DEV. MKTNG ECV
COSTS COSTS
CEPT (in Rs OF OF
(in Rs (in Rs
cr) TECH COMM
SUCCESS
cr) cr)
SUCCESS
BP 33.65 0.9 0.4 3.5 5 4.114

WATCHES
STAGE 6 (GATE 4) :
PROTOTYPE
DEVELOPMENT
AND TESTING
1. TARGET MARKET SEGMENT..
Class: Upper middle , Elite class

Age: 35 to 80 years
Profile: Health conscious people, established
hypertensives, people with high risk of
developing hypertension
2. POSITIONING
Check your blood pressure ,keep a

weekly record of it, transfer this
data to your doctor, get an
appointment
- all this while on the move wearing
your favorite watch.
3. PRODUCT ATTRIBUTES..
 Blood pressure measuring device inbuilt in a wrist watch.
 Bluetooth compatibility for data transfer and a mini memory

card for data storage
 Stylish looks
 Waterproof
 Alarm enabled
4. COMPETETIVE COMPARISION..
No competition as it’s the first of its kind
However indirect competitors exist , namely

• Sphygmomanometer
• Electronic inflatable BP measuring devices
• High Price Branded Wrist Watches
5. AUGMENTATION DIMENSION
 Free one year warranty

 Safe and durable
 Competitive post sales service
 Monitors your blood pressure and
avoids risk of heart attack by warning
you in case your blood pressure
increases due to anger, excessive
exercise, exertion etc.
6. TIMING
 Product launch after diwali i.e. 3rd/4th week

of November as a new innovative product
7. MARKETING REQUIREMENTS
One month prior to launch

 Advertisements in newspapers, radio,
televisions
 Tie up with pharmaceuticals so as to provide
doctors with a complementary watch and
promote our product.
 Provide hospitals with posters
 ~40,000 units in 1year
8. FINANCIAL REQUIREMENTS
• We have sufficient funds

• Breakeven: By 1.8 years
• Development cost required: Rs 3,50,00,000
• Marketing cost required:
• Rs 5 crore for the 1st Year
• Rs 3.5 crore for the 2nd Year
9. PRODUCTION REQUIREMENT
 Cutting edge technology

 Highly sensitive sensors
 Nano technology
10. REGULATORY REQUIREMENTS..
 ISO 14971: 2007 (It specifies a process

for a manufacturer to identify the
hazards associated with medical
devices)
 HMU certification
 Indian Medical Association Recognition
11. CORPORATE STRATEGY..
 Top management committed to for

development while middle management
responsible for product management.
 KAIZEN
 Our corporate competency is our distribution
network and patented superior technology.
12. POTHOLES..
 High maintenance
 Initial discomfort of use (slightly bulky)
STAGE 7 (GATE 5) :
TEST MARKETING
TEST MARKETING
Gives opportunity to test the product & the Marketing

program :-
• Positioning Strategy.
• Advertising .
• Distribution
• Pricing
• Branding and packaging
• Budget levels
CONSUMER PRODUCT
TESTING
Standard Test Controlled Test Simulated Test

Markets Markets Markets
STANDARD TEST MARKETS
• Find small no of representative test cities.

• Conduct full marketing program /campaign
• Use store audit, consumer & Distributor
surveys to gauge product performance.
• Use results to forecast national sales and
profits, discover potential product problems
& fine tune marketing program.
• Length of test marketing 15 – 20 days and
analysis 10 days
• Tie ups with Fortis hospital, Delhi as a test market.
• Tie up with them as the product to be used, to be promoted

to all patients, with high or low BP and also to senior
citizens.
• Offer attractive schemes and discounts to the hospitals on

bulk purchases.
• Ad campaigns in all media : TV commercials , newspaper,

radio, internet, billboards.
• Hoardings all over town.
• Collaborations with hospital for introduction at medical

seminars and meets.
• Promotional pamphlets to be provided outside hospitals.
• Have stalls and counters in seminar, meets and gatherings.
• Give free merchandise to aware people of the product, with

different slogans and depictions (caps , t-shirts , badges, pens)
STAGE 8 :
COMMERCIALIZATION
LAUNCH & COMMERCIALIZATION..
• Direct marketing.
• Introduced in various hospitals.
• Ad campaigns in all media : TV commercials , newspaper, radio,

internet.
LAUNCH & COMMERCIALIZATION..
• Brand ambassador : Famous Heart Specialist

NARESH TREHAN
• Tagline: YOUR HEALTH IN YOUR HANDS
• Hoardings all over town, in hospitals.
• Free Health Checkups in various cities.

• Expanding to other metros and tier one cities.
• Slowly moving to tier two cities.
• Refreshing the advertisement campaign.
• Link the advertising to the commonwealth games. (Delhi)
• Develop telephone based or online processes for order

placements and service requests.
• Set up a helpline for people who want more information.

STAGE 9 :
LIFE CYCLE
MANAGEMENT
FOLLOWING ACTIONS ARE VISUALIZED
• Constant maintenance of focus as laid down

• No Gap
• Maintain motivation and zeal in the team
• KAIZEN = Improvement
• Meeting / conferences / interaction on weekly basis
• Constant visit by mgmt to different cities on promotional
rounds.
• Expanding to tier two cities
• Adding new designs.
• Refreshing the advertisement campaign.

Process Improvement cycle
PLAN EXECUTE
THINK LEARN

9 Stages of Product Development

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9 Stages of Product Development

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NEW PRODUCT LAUNCH

STAGES OF PRODUCT DEVELOPMENT

3. FACTS ABOUT OUR COMPANY

4. CLASSIFICATION OF TIME MEASURING

7. CONCEPT DEVELOPMENT & TESTING

10. PROTOTYPE DEVELOPMENT & TESTING

11. TEST MARKETING

13. LIFE CYCLE MANAGEMENT

The healthcare industry can be classified as

• It could rise by an additional € 6.5 billion if health

• Coupled with the expected increase in the

2. Our company is trying to foray into the time measuring

3. Ours is a company that is financially sound enough to venture

4. Our company has strong distributorship network in small

•No negative comments on any idea

OUR METHODOLOGY : Screening in 2 steps

By doing this first step we eliminate 8 of the 15 ideas.

1. DAILY USE STOPWATCH : Minimum possibility of new

2. SUNDIALS : Market size is very small & distribution capability

3. RADIO ALARM CLOCKS : Market size small due to decreasing

4. CHESS STOPWATCHES : Distribution ability is restricted in the

6 . ANTIQUE CLOCKS & WATCHES : Unsustainable DA &

7 . JEWELLERY WATCHES : Distribution insufficient in

8 . TOY & FANCY CLOCKS : Distribution insufficient in

 Strategy & objectives 20 %

R&D Capability 0.10 0.08

R&D Capability 0.10 0.08

R&D Capability 0.10 0.10

R&D Capability 0.10 0.08

R&D Capability 0.10 0.04

R&D Capability 0.10 0.09

R&D Capability 0.10 0.08

TOTAL 36 40 40.5 39.5

TOTAL 77 81 83.5 80.5

Auto Parameter Parameter

All Weather Research

Regular Users Specialized Users

Affluent People Scientists

Multiple alarms, Radio,

Uniqueness relative to competition 5

Uniqueness relative to competition 3

Uniqueness relative to competition 3

Uniqueness relative to competition 3

Market Score Technology Score

 As this is a new concept , there is no direct competitor of this

 However indirect competitors exist , namely

• The perception maps are plotted on the following parameters :

2. QUANTITY : 1 per pack with the instruction booklet & an

3. MATERIAL : Made of bio-compatible non allergic rust free

4. AESTHETICS : Sleek & stylish. Available in 4 colors –

 TECHNOLOGY : Made of the latest German

 COMFORT : Very comfortable. Has a velvet

9. AFFORDABILITY : Priced at a competitive 300 rupees.

10. RISK FREEDOM : Made of reliable non allergic &

11. VALUABILITY : Price considerably low as compared to the

12. CONTRAINDICATIONS : People with artificial

14. ACTIONABILITY : Easy to wear, maintain & replace

15. SHELF LIFE : Unlimited. However battery life restricted to 6

16. PORTABILITY : Can be worn anywhere, even in water

17. EASE OF USE : Just program it according to doctor’s

 TMS SIZE : 90,00,000 hypertensives out of a total of 5 crore

 SHORT TERM GOALS :

II. Pricing Strategy –

 Tie ups with