Coaching Session 5 – Product Conceptualization & Development

Lesson Notes

In this lesson:

  1. The 6 steps in developing your product.
  2. Product Conceptualization
  3. Product Design & Prototyping
  4. Packaging
  5. Pricing

Your Million Dollar Product

A business survives because of its products and services. Product Development has 6 stages:

  1. Product Ideation
  2. Development
  3. Design
  4. Prototyping
  5. Packaging
  6. Pricing the Product

1 Product Ideation

Course Exercise

  • List your Top 3 Products Offerings
  • List your Value Propositions

2 Development

Research & Canvas

Make sure that you have the necessary resources to develop your product or service.

Identify your Unique Selling Proposition

Your USP is the unique feature of your product or your service that makes it different/stand out from the others.

Examples of USP

LIPSTICKS

A special moisturizing formulation to soften the lips and make it supple.

PERFUME

A supplier is able to provide you with a unique formulation

SOCIAL MEDIA MANAGEMENT

A special service or process

REAL ESTATE AGENCY

A special listing for valued clients

Course Exercise

  • Research on similar products to yours.
  • List the unique features of your product or what makes your product stand out.

3 Design

Product Design includes:

VISION

What is the purpose and function of your product and services? What problem will it seek to solve?

RESEARCH

Study and compare similar products and services. Determine their strengths and weaknesses.

USER ANALYSIS

Review your customer segment and study how they will use your product or avail of your service.

DESIGN IDEATION:

There are several methods in doing the ideation process.

  • Sketching helps the team visualize the product or process design.
  • Drafting scenarios using a Storyboard
  • Visualizing how your customer will use your product and incorporate it in your product design.

Course Exercise

  • Conceptualize and visualize your product design.
  • List down your ingredients or materials.
  • Sketch the initial concepts of your products or gather photos of your initial design.

4 Prototyping

A prototype is an early version or mock up of your product. A prototype is a quick model explaining the actual plans for the final product.

5 Packaging

The wrapping material around a consumer item that serves to contain, identify, describe, protect, display, promote and otherwise make the product marketable and keep it clean.

  • Storage and transportation bins

  • Bags

  • Food packaging

  • Primary Packaging

  • In-Store Packaging

The use of packaging turned into more of a sales tool, also known as the “silent salesman”, instead of a tool to simply hold items.

6 Pricing of the Product

Basic Rules of Pricing

  1. All prices must cover costs and profits.
  2. The most effective way to lower prices is to lower the costs.
  3. Review prices frequently to assure that they reflect the dynamics of cost, market demand, response to the competition, and profit objectives.
  4. Prices must be established to assure sales.

Four ways to establish pricing:

  1. Cost-Plus Pricing
  2. Demand Price
  3. Competitive Pricing
  4. Mark-up Pricing

Cost-Plus Pricing

Demand Pricing: Wholesaler

  1. Buys greater quantities than the retailer.
  2. Purchases at a lower price.
  3. Profits from a greater volume of sales of a product priced lower than that of the retailer.

Demand Pricing: Retailer

  1. Pays more per unit because he or she are unable to purchase, stock, and sell as great as the quantity of product.
  2. Charge higher prices to customers.

Competitive Pricing

Competitive pricing is generally used when there’s an established market price for a particular product or service.

  1. Know the prices each competitor has established.
  2. Figure out your optimum price and decide, based on direct comparison, whether you can defend the prices you’ve set.
  3. Charging higher? Provide better customer service or give added value to your product.
  4. Make sure you know the level of price awareness within the market.

Mark-up Pricing

Used by manufacturers, wholesalers, and retailers, a markup is calculated by adding a set amount to the cost of a product, which results in the price charged to the customer.

 

Portfolio

    • List your Top 3 Products/Offers
    • List your Value Propositions
    • Indicate the Estimated price of your products
    • Place your output onto the slides and update your portfolio deck.
    • Email the link or file to businessandproductdevelopment@surgedigital.agency

 

Email Subject: BPD – Portfolio 5

 

PORTFOLIO SUBMISSION GUIDES:

1. Video-On-Demand (VOD) Access
Submit your portfolios to courses@surgedigital.agency.
You can submit individually per coaching session or submit all required portfolios as one, in one email (attach your Google Drive).

2. VOD with Class Coaching
Send your portfolios to courses@surgedigital.agency.
Please submit individually per coaching session.

3. VOD with Mentoring
Send your portfolios to courses@surgedigital.agency.
Please submit individually per coaching session.

4. Premium Members
Submit your portfolios to courses@surgedigital.agency.
Please submit all required portfolios as one, in one email (attach your Google Drive).

 

“The moment you make a mistake in pricing, you’re eating into your reputation or your profits.” – Katharine Paine

 

CONTACT US!

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