Developing a new product - framework

Question 1

Our client has developed a new biodegradable product, which is both a soft drink and a car wax. What should the company be thinking about?

How would you approach this problem?

Answer 1

1. Product
2. Market strategy
3. Customers
4. Financing

Question 2

[New Product] What questions would you ask about the product? (5)

Answer 2

1. What’s special or proprietary about our product?
2. Is the product patented?
3. Are there similar products out there? Are there substitutions?
4. What are the advantages / disadvantages of this new product?
5. How does the new product fit in with the rest of our product line?

Question 3

[New Product] What questions would you ask about the company’s market strategy? (7)

Answer 3

1. How does this affect our existing product line?
2. Are we cannibalizing one of our existing products?
3. Are we replacing an existing product?
4. How will this expand our customer base and increase our sales?
5. What will the competition response be?
6. If it’s a new market, what are the barriers to entering this market?
7. Who are the major players and how much market share does each firm have?

Question 4

[New Product] What questions would you ask about financing? (3)

Answer 4

1. How is the project being funded?
2. What is the best allocation of funds?
3. Can we support the debt? What if interest rates change? What if the economy sours?

Question 5

[New Product] What questions would you ask about customers? (4)

Answer 5

1. Who are our customers?
2. How can we best reach them?
3. Can we reach them through the internet?
4. How can we ensure that we retain them?