Twenty Toughest Questions for New Product Propositions


CONCEPT/PRODUCT

REASON FOR BEING

What is the essence of your proposition?  (Do consumers readily understand what you are offering?  Is your idea unique?

PRICE/VALUE

Is your product judged to be a good consumer price/value?  (Both in an absolute as well as a relative sense vs. competition?)

HEDONICS

How well does your product perform?  (Hedonics vs. competition?)

PROMOTION

How do you plan to promote?   (What kind/magnitude of advertising?  Coupons? Trade deals? Other?

MAGNITUDE

What is the magnitude of the proposition? (What does the sales curve look like -- Year I, II, etc.?)

PROFITABILITY

How profitable do you expect this product to be? (When will you break even? What is the product contribution?  ROI?  ROA?

COMPANY

VISION

Does this product fit with the long-term vision? (Does it shift the portfolio favorably? Does it strengthen current business?

MARKETING LEVERAGE

Does the product offer any long-term marketing leverage? (Does it offer the opportunity to solidify / strengthen your current position or launch you on a new course?)

TECHNOLOGY LEVERAGE

Does the product take advantage of / leverage current technology? (Is the idea patentable? Protected? Insulated? For how long?)

CAPITAL INVESTMENT

What is the capital investment required? (Does the product require a specialized manufacturing environment / machinery?  Is it adaptable to other products present or near future? What is the projected internal, rate of return?

CONSUMERS

TARGET SEGMENT

Who is the primary consumer for this product? (Who, if any, might be secondary target segments? Any others?)

LONG-TERM TRENDS

How well does your proposition fit with the long-term consumer trends? (Is this a long-term business proposition? How will people integrate this into their lives? Does the product have long-term relevance to your total portfolio?)

CUSTOMERS

TRADE REACTIONS

How will your trade customers react/respond to the product? (What impact might it have on your other products?)

SPECIAL CONSIDERATIONS

Will any special considerations be required in order to gain distribution? (Merchandising allowances? Stocking fees? Failure fees? Etc.)

TIMING

When do you plan to enter the market? (Where? How - test or commercial venture? Expansion plans?)

COMPETITION

COMPETITIVE SET

Who do you see as your competition? (Primary? Secondary?)

COMPETITIVE REACTIONS

How might the competition react/respond to your introduction? (How do you plan to respond in turn?)

CLARIFICATIONS

CERTAINTY

How do you know that?  (Is your position based on fact or intuition?  Do you have more than one source of substantiation?)

CRITICAL ASSUMPTIONS

What are your critical assumptions?  (What could upset your business proposition?  Critically?  Fatally?    What are the major unanswered questions?  How/when will you answer?)

ODDS OF SUCCESS

What are the odds of success?  (What is the likely outcome? Does this require exceptional cooperation to execute?)