Go/no-go criteria during grocery brand development

Past research into new product screening criteria have largely centered on industrial new products. This study investigates the criteria that managers use for screening and evaluating new grocery products or brands. Theory suggests that the branding, promotional, and trade needs of grocery brands mean that screening criteria for grocery product development will differ from those applied to industrial goods. Our methodology departs from earlier research in gathering information on the accept/reject criteria during new product development rather than examining the reasons for success and failure after launch. The results endorse many findings from the extant literature on new product development. However, we highlight a set of factors that new product managers regard as important to the go/no-go decision in new grocery product or brand development that differs significantly from previous studies. From a research perspective, our study findings make an important contribution to the field by developing measurement scales for addressing NPD in the grocery sector.

How screening criteria change during brand development

Purpose - Despite the increasing sophistication of new product development (NPD) research, the reliance on traditional approaches to studying NPD has left several areas in need of further research. The authors propose addressing some of these gaps, especially the limited focus on consumer brands, evaluation criteria used across different project-review points in the NPD process, and the distinction between "kills", "successes", and "failures". Moreover, they propose investigating how screening criteria change across project-review points, using real-time NPD projects. Design/methodology/approach - A postal survey generated 172 usable questionnaires from a sample of European, North American, Far Eastern and Australian consumer packaged-goods firms, providing data on 314 new product projects covering different development and post-commercialization review points. Findings - The results confirm that acceptance-rejection criteria vary through the NPD process. However, financial criteria dominate across all the project-review points. Initial screening is coarse, focusing predominantly on financial criteria. Fit with organizational, product, brand, promotional, and market requirements dominate in the detailed screen and pre-development evaluation points. At pre-launch, decision-makers focus on product, brand, and promotional criteria. Commercial fit, production synergies, and reliability of the firm's market intelligence are significant discriminators in the post-launch review. Moreover, the importance of marketing and channel issues makes the criteria for screening brands different from those of industrial markets. Originality/value - The study, although largely descriptive and involves a relatively small sample of consumer goods firms, offers new insights into NPD project evaluation behavior. Future, larger-scale investigations covering a broader spectrum of consumer product sectors are needed to validate our results and to explain the reasons behind managers' decisions. © Emerald Group Publishing Limited.

Product innovation in a new technology based firm

This thesis examines the "state of the art" of product innovation in new technology In the UK. The roles in innovation attributed to small and large firms are examined. Growing attention is being focused upon the small firm sector as a seedbed for Innovation and government policy has been changing to encourage the entrepreneurial new technology based firm (NTBF). The novel perspective of this research results from working in such a firm. It provides a longitudinal study of the management of innovation in conjunction with the corporate strategy of the firm. Given that the researcher was a participant and observer in the firm studied, the research is akin to action research in methodology but is better described as grounded theory. Theoretical concepts are drawn from the prescriptive literature describing corporate strategy, and from the empirical literature which has evaluated new product success and failure. Models of the Innovation process are discussed and appropriate strategies and reasons for product innovation failure in NTBFs are described. The strategy, structure and new product development progress of the company are examined, using both the researcher's observations and company documents. This provides information on the methods and practices adopted for product innovation in a NTBF. The thesis analyses the performance of the firm In terms of product innovation. The models and strategies derived from the literature are then tested in the light of the experience of the company. Conclusions are drawn regarding strategies for innovation in NTBFs and about the innovation process in general. The importance of a NTBF adopting a synergistic strategy is shown. Links are established between the existence of synergy in the strategy and coupling in the management of innovation. Innovation is shown to be a laterally interdisciplinary exercise and therefore the "pipeline model" Is criticised. Finally a set of guidelines Is produced for the managers of NTBFs.

The development of heat recovery equipment from conception to commercialisation

A comprehensive survey of industrial sites and heat recovery products revealed gaps between equipment that was required and that which was available. Two heat recovery products were developed to fill those gaps: a gas-to-gas modular heat recovery unit; a gas-to-liquid exhaust gas heat exchanger. The former provided an entire heat recovery system in one unit. It was specifically designed to overcome the problems associated with existing component system of large design commitment, extensive installation and incompatibility between parts. The unit was intended to recover heat from multiple waste gas sources and, in particular, from baking ovens. A survey of the baking industry defined typical waste gas temperatures and flow rates, around which the unit was designed. The second unit was designed to recover heat from the exhaust gases of small diesel engines. The developed unit differed from existing designs by having a negligible effect on engine performance. In marketing terms these products are conceptual opposites. The first, a 'product-push' product generated from site and product surveys, required marketing following design. The second, a 'market-pull' product, resulted from a specific user need; this had a captive market and did not require marketing. Here marketing was replaced by commercial aspects including the protection of ideas, contracting, tendering and insurance requirements. These two product development routes are compared and contrasted. As a general conclusion this work suggests that it can be beneficial for small companies (as was the sponsor of this project) to undertake projects of the market-pull type. Generally they have a higher probability of success and are less capital intensive than their product-push counterparts. Development revealed shortcomings in three other fields: British Standards governing heat exchangers; financial assessment of energy saving schemes; degree day procedure of calculating energy savings. Methods are proposed to overcome these shortcomings.

Success factors of product innovation:an updated meta-analysis

Assessing factors that predict new product success (NPS) holds critical importance for companies, as research shows that despite considerable new product investment, success rates are generally below 25%. Over the decades, meta-analytical attempts have been made to summarize empirical findings on NPS factors. However, market environment changes such as increased global competition, as well as methodological advancements in meta-analytical research, present a timely opportunity to augment their results. Hence, a key objective of this research is to provide an updated and extended meta-analytic investigation of the factors affecting NPS. Using Henard and Szymanski's meta-analysis as the most comprehensive recent summary of empirical findings, this study updates their findings by analyzing articles published from 1999 through 2011, the period following the original meta-analysis. Based on 233 empirical studies (from 204 manuscripts) on NPS, with a total 2618 effect sizes, this study also takes advantage of more recent methodological developments by re-calculating effects of the meta-analysis employing a random effects model. The study's scope broadens by including overlooked but important additional variables, notably “country culture,” and discusses substantive differences between the updated meta-analysis and its predecessor. Results reveal generally weaker effect sizes than those reported by Henard and Szymanski in 2001, and provide evolutionary evidence of decreased effects of common success factors over time. Moreover, culture emerges as an important moderating factor, weakening effect sizes for individualistic countries and strengthening effects for risk-averse countries, highlighting the importance of further investigating culture's role in product innovation studies, and of tracking changes of success factors of product innovations. Finally, a sharp increase since 1999 in studies investigating product and process characteristics identifies a significant shift in research interest in new product development success factors. The finding that the importance of success factors generally declines over time calls for new theoretical approaches to better capture the nature of new product development (NPD) success factors. One might speculate that the potential to create competitive advantages through an understanding of NPD success factors is reduced as knowledge of these factors becomes more widespread among managers. Results also imply that managers attempting to improve success rates of NPDs need to consider national culture as this factor exhibits a strong moderating effect: Working in varied cultural contexts will result in differing antecedents of successful new product ventures.

Decision-making in product quality based on failure knowledge

Decision-making in product quality is an indispensable stage in product development, in order to reduce product development risk. Based on the identification of the deficiencies of quality function deployment (QFD) and failure modes and effects analysis (FMEA), a novel decision-making method is presented that draws upon a knowledge network of failure scenarios. An ontological expression of failure scenarios is presented together with a framework of failure knowledge network (FKN). According to the roles of quality characteristics (QCs) in failure processing, QCs are set into three categories namely perceptible QCs, restrictive QCs, and controllable QCs, which present the monitor targets, control targets and improvement targets respectively for quality management. A mathematical model and algorithms based on the analytic network process (ANP) is introduced for calculating the priority of QCs with respect to different development scenarios. A case study is provided according to the proposed decision-making procedure based on FKN. This methodology is applied in the propeller design process to solve the problem of prioritising QCs. This paper provides a practical approach for decision-making in product quality. Copyright © 2011 Inderscience Enterprises Ltd.

Methodology to create cost estimation models for engineer-to-order operations

This research addresses the problem of cost estimation for product development in engineer-to-order (ETO) operations. An ETO operation starts the product development process with a product specification and ends with delivery of a rather complicated, highly customized product. ETO operations are practiced in various industries such as engineering tooling, factory plants, industrial boilers, pressure vessels, shipbuilding, bridges and buildings. ETO views each product as a delivery item in an industrial project and needs to make an accurate estimation of its development cost at the bidding and/or planning stage before any design or manufacturing activity starts. ^ Many ETO practitioners rely on an ad hoc approach to cost estimation, with use of past projects as reference, adapting them to the new requirements. This process is often carried out on a case-by-case basis and in a non-procedural fashion, thus limiting its applicability to other industry domains and transferability to other estimators. In addition to being time consuming, this approach usually does not lead to an accurate cost estimate, which varies from 30% to 50%. ^ This research proposes a generic cost modeling methodology for application in ETO operations across various industry domains. Using the proposed methodology, a cost estimator will be able to develop a cost estimation model for use in a chosen ETO industry in a more expeditious, systematic and accurate manner. ^ The development of the proposed methodology was carried out by following the meta-methodology as outlined by Thomann. Deploying the methodology, cost estimation models were created in two industry domains (building construction and the steel milling equipment manufacturing). The models are then applied to real cases; the cost estimates are significantly more accurate than the actual estimates, with mean absolute error rate of 17.3%. ^ This research fills an important need of quick and accurate cost estimation across various ETO industries. It differs from existing approaches to the problem in that a methodology is developed for use to quickly customize a cost estimation model for a chosen application domain. In addition to more accurate estimation, the major contributions are in its transferability to other users and applicability to different ETO operations. ^

Social media to support collaboration in the product life cycle of SMEs

Abstract : The use of social media tools to support small and medium-sized enterprises (SME) to support their business activities throughout the product life cycle (PLC) phases represents an interesting opportunity. SMEs operate in very competitive environments, and face significant challenges primarily caused by their size disadvantage. By nature, social media tools and platforms can enable them to overcome some of these challenges, as they are often very inexpensive, familiar and easy to use, allowing them to reach large audiences they would not be able to reach with traditional and expensive marketing initiatives. To provide solutions to this problem, this research identified three main objectives. The first objective was to draw a picture of the existing academic literature on the use of social media tools in the PLC context to better understand how these tools were studied and used in businesses, and for what purpose. Second, this research aimed at understanding how SMEs actually use social media tools to support their different business activities to identify the gap between academic research and actual business practices. Finally, based on the findings highlighted from the previous objectives, this research aimed at developing theory on this topic by proposing a conceptual framework of customer engagement enabled by social media. The conceptual framework aimed at answering general questions that emerged from the initial two objectives: Why do some SMEs use social media to support customer engagement, while others do not? Why do firms use different social media tools to support their customer engagement initiatives? Why does the scope of customer engagement initiatives (i.e., across different PLC phases) vary between SMEs? What are the potential outcomes of conducting customer engagement initiatives for the organizing firms? In order to achieve these research objectives, the methodology employed for this research is threefold. First, a systematic literature review was performed in order to properly understand how the use of social media tools in the PLC context had been studied. The final results consisted of 78 academic articles which were analyzed based on their bibliometric information and their content. Second, in order to draw the contrast between the academic publications and managerial reality of SMEs, six semi-structured interviews were conducted to understand how these firms actually use social media to support different activities in each of the PLC phases. Third, five additional semi-structured interviews were performed to gather a deeper understanding of this phenomenon and generate theory to support the proposed conceptual framework. The conceptual framework focuses on the degree of customer engagement, which is comprised of the scope (PLC phases) of customer engagement and the technology (social media tools) employed to support these initiatives. Two sets of antecedents were examined, firm motivators and firm impediments, as they could both potentially affect the scope and the social media tools used to support customer engagement initiatives. Finally, potential customer engagement outcomes for SMEs developing these initiatives were also examined. The semi-structured interviews lasted approximately 25-35 minutes, and were performed using an interview grid consisting of 24 open-ended questions. The interview grid was developed based on the findings of the systematic literature review, and this qualitative approach allowed for a rich understanding of the interviewed SMEs’ use of social media tools to support and engage customers in their different PLC activities. The main results highlighted by this project demonstrate that this field is relatively recent and sees constant increase in research interest since 2008. However, most of the academic research focuses on the use of social media tools to support innovation activities during the new product development process, while the interviewed firms almost exclusively used the tools to engage customers in the later phases of the PLC, primarily for promotion, customer service support, and business development activities. Interestingly, the interviewed firms highlighted several benefits of using social media tools to engage customers, some of which could help them overcome certain size disadvantages previously mentioned. These firms are in need of further guidelines to properly implement such initiatives and reap the expected benefits. Results suggest that SMEs are far behind both large companies and academic research in their use of social media to engage customers in different business activities. The proposed conceptual framework serves as a great tool to better understand their reality and eventually better support them in their social media and customer engagement efforts. However, this framework needs to be further developed and improved. This research project provides a 360-degree view of the phenomenon of the use of social media to support customer engagement for SMEs, by providing both a thorough systematic review of the academic research and an understanding of the managerial reality of SMEs behind this phenomenon. From this analysis, a conceptual framework is then proposed and serves as a stepping stone for future researchers who are interested in developing theory in this field.

Aplicação da metodologia Advanced Product Quality Planning no desenvolvimento de um novo produto no setor automóvel

Este projeto surgiu com a necessidade da constituição de uma equipa multidisciplinar, incluindo uma pessoa responsável pela qualidade no desenvolvimento de um novo produto da fábrica. O produto é a estrutura metálica de um encosto de trás de um automóvel. Para o desenvolvimento do produto foi usado o método Advanced Product Quality Planning, vastamente utilizado no setor automóvel. Com o intuito de melhor perceber os problemas que podem surgir no novo produto foi estudado um produto fabricado no local de estágio e outro produzido numa outra fábrica do mesmo grupo, que têm algumas semelhanças a nível de processo e de design, respetivamente. Foram utilizadas algumas ferramentas da qualidade para explorar os problemas existentes na fábrica a nível do produto já existente e comprovado se algumas ações de melhoria propostas foram, ou não, bem-sucedidas. Com os outputs retirados da análise dos defeitos internos e externos foi elaborado o Plano de Controlo, que inclui a listagem de controlos necessários para se conseguir prever a qualidade do novo produto.

Development of variable displacement oil pump for internal combustion engines

In the last years the need to develop more environmentally friendly and efficient cars as led to the development of several technologies to improve the performance of internal combustion engines, a large part of the innovations are focused in the auxiliary systems of the engine, including, the oil pump, this is an element of great importance in the dynamics of the engine as well a considerable energy consumer. Most solutions for oil pumps to this day are fixed displacement, for medium and high speeds, the pump flow rate is higher than the needs of the engine, this excess flow leads to the need for recirculation of the fluid which represents a waste of energy. Recently, technological advances in this area have led to the creation of variable displacement oil pumps, these have become a 'must have' due to the numerous advantages they bring, although the working principle of vane or piston pumps is relatively well known, the application of this technology for the automotive industry is new and brings new challenges. The focus of this dissertation is to develop a new concept of variable displacement system for automotive oil pumps. The main objective is to obtain a concept that is totally adaptable to existing solutions on the market (engines), both dimensionally as in performance specifications, having at the same time an innovative mechanical system for obtaining variable displacement. The developed design is a vane pump with variable displacement going in line with existing commercial solutions, however, the variation of the eccentricity commonly used to provide an variable displacement delivery is not used, the variable displacement is achieved without varying the eccentricity of the system but with a variation of the length of the pumping chamber. The principle of operation of the pump is different to existing solutions while maintaining the ability to integrate standard parts such as control valves and mechanical safety valves, the pump is compatible with commercial solutions in terms of interfaces for connection between engine systems and pump. A concept prototype of the product was obtained in order to better evaluate the validity of the concept. The developed concept represents an innovation in oil pumps design, being unique in its mechanical system for variable displacement delivery.

Asiakkaan osallistuminen innovaatio- ja tuotekehitysprosessiin

Tässä tutkimuksessa tarkastellaan asiakkaan ja valmistajan osallistumista yhteistoiminnalliseen innovaatio- ja tuotekehitysprosessiin ja sen vaikutuksia yritysten kilpailukykyyn. Asiakaslähtöinen avoin innovaatio- ja tuotekehitystoiminta on yksi merkittävä kilpailuedun lähde, sillä se mahdollistaa tuotevariaatioiden nopeamman lanseerauksen ja asiakastarpeiden huomioimisen tuotekehitystoiminnassa. Tämän empiirisen tutkimuksen tavoitteena oli selvittää millä tavoin kulutustavaroihin kuuluvien muoti- ja sportvaatteiden suunnittelussa yhteistoiminnallinen innovaatio- ja tuotekehitystoiminta on mahdollista toteuttaa ja miten sitä voidaan hallita. Tutkimus toteutettiin kvalitatiivisena tapaustutkimuksena. Empiirinen aineisto kerättiin teemahaastatteluina tapausorganisaatiosta. Yhteistoiminnallisesta kehittämisestä ei ole olemassa yhtä kattavaa teoriaa, jota voitaisiin hyödyntää. Tämän vuoksi yritysten on luotava itse yhteistoiminnallisen innovaation ja tuotekehityksen viitekehys, joka parhaiten palvelee liiketoiminnan tarpeita. Viitekehys ja käytettävät menetelmät sekä yhteistoiminnallisuutta tukevat työvälineet ovat riippuvaisia mm. toimialasta ja sen markkinatilanteesta, liiketoimintamalleista, yrityksen toimintaympäristöstä, asiakkaista ja kehittämisen kohteeksi valitusta tuotealueesta. Empiirinen tutkimus osoittaa, että yhteistoiminnallinen innovaatio voi olla kilpailuedun lähde sekä valmistajille että asiakkaalle, mutta vaatii aina yrityskohtaista sopeuttamista. Tutkimuksen mukaan hyvin johdettu yhteistyömalli, oikeat tuotevalinnat ja asiakasinformaation monipuolinen hyödyntäminen vaikuttavat positiivisesti kehittämisprojektin tuloksiin.

Interrelated product design activities sequencing with efficient tabu search algorithms

This paper proposes and investigates a metaheuristic tabu search algorithm (TSA) that generates optimal or near optimal solutions sequences for the feedback length minimization problem (FLMP) associated to a design structure matrix (DSM). The FLMP is a non-linear combinatorial optimization problem, belonging to the NP-hard class, and therefore finding an exact optimal solution is very hard and time consuming, especially on medium and large problem instances. First, we introduce the subject and provide a review of the related literature and problem definitions. Using the tabu search method (TSM) paradigm, this paper presents a new tabu search algorithm that generates optimal or sub-optimal solutions for the feedback length minimization problem, using two different neighborhoods based on swaps of two activities and shifting an activity to a different position. Furthermore, this paper includes numerical results for analyzing the performance of the proposed TSA and for fixing the proper values of its parameters. Then we compare our results on benchmarked problems with those already published in the literature. We conclude that the proposed tabu search algorithm is very promising because it outperforms the existing methods, and because no other tabu search method for the FLMP is reported in the literature. The proposed tabu search algorithm applied to the process layer of the multidimensional design structure matrices proves to be a key optimization method for an optimal product development.

Interrelated product design activities sequencing with efficient tabu search algorithms

This paper proposes and investigates a metaheuristic tabu search algorithm (TSA) that generates optimal or near optimal solutions sequences for the feedback length minimization problem (FLMP) associated to a design structure matrix (DSM). The FLMP is a non-linear combinatorial optimization problem, belonging to the NP-hard class, and therefore finding an exact optimal solution is very hard and time consuming, especially on medium and large problem instances. First, we introduce the subject and provide a review of the related literature and problem definitions. Using the tabu search method (TSM) paradigm, this paper presents a new tabu search algorithm that generates optimal or sub-optimal solutions for the feedback length minimization problem, using two different neighborhoods based on swaps of two activities and shifting an activity to a different position. Furthermore, this paper includes numerical results for analyzing the performance of the proposed TSA and for fixing the proper values of its parameters. Then we compare our results on benchmarked problems with those already published in the literature. We conclude that the proposed tabu search algorithm is very promising because it outperforms the existing methods, and because no other tabu search method for the FLMP is reported in the literature. The proposed tabu search algorithm applied to the process layer of the multidimensional design structure matrices proves to be a key optimization method for an optimal product development.

Entrepreneurship and family firms : a case study in growth and survival

Entrepreneurial marketing has gained popularity in both the entrepreneurship and marketing disciplines in recent times. The success of ventures that have pursued what are considered non-traditional marketing approaches has been attributed to entrepreneurial marketing practices. Despite the multitude of marketing concepts and models, there are prominent venture successes that do not conform to these and have thus been put in the ''entrepreneurial'' box. One only has to look to the ''Virgin'' model to put this in context. Branson has proven for example that not ''sticking to the knitting'' can work with the ways the Virgin portfolio has been diversified. Consequently, an entrepreneurial orientation is considered a desirable philosophy and has become prominent in such industries as airlines and information technology. Miles and Arnold (1991) found that entrepreneurial orientation is positively correlated to marketing orientation. They propose that entrepreneurial orientation is a strategic response by firms to turbulence in the environment. While many marketing successes are analysed in hindsight using traditional marketing concepts and strategies, there are those that challenge standard marketing textbook recommendations. Marketing strategy is often viewed as a process of targeting, segmenting and positioning (STP). Academics and consultants advocate this approach along with the marketing and business plans. The reality however is that a number of businesses do not practice these and pursue alternative approaches. Other schools of thought and business models have been developing to explain differences in orientation such as branding (Keller 2001), the service-dominant logic (Vargo and Lusch 2004) and effectuation logic (Sarasvathy 2001). This indicates that scholars are now looking to cognate fields to explain a given phenomenon beyond their own disciplines. Bucking this trend is a growing number of researchers working at the interface between entrepreneurship and marketing. There is now an emerging body of work dedicated to this interface, hence the development of entrepreneurial marketing as an alternative to the traditional approaches. Hills and Hultman (2008:3) define entrepreneurial marketing as ''a spirit, an orientation as well as a process of passionately pursuing opportunities and launching and growing ventures that create perceived customer value through relationships by employing innovativeness, creativity, selling, market immersion, networking and flexibility.'' Although it started as a special interest group, entrepreneurial marketing is now gaining recognition in mainstream entrepreneurship and marketing literature. For example new marketing textbooks now incorporate an entrepreneurial marketing focus (Grewal and Levy 2008). The purpose of this paper is to explore what entrepreneurial approaches are used by entrepreneurs and their impact on the success of marketing activities. Methodology/Key Propositions In order to investigate this, we employ two cases: 42Below, vodka producers from New Zealand and Penderyn Distillery, whisky distillers from Wales. The cases were chosen based on the following criteria. Firstly, both companies originate from small economies. Secondly, both make products (spirits) from locations that are not traditionally regarded as producers of their flagship products and thirdly, the two companies are different from each other in terms of their age. Penderyn is an old company established in 1882, whereas 42Below was founded only in 1999. Vodka has never been associated with New Zealand. By the same token, whisky has always been associated with Scotland and Ireland but never been with Wales. Both companies defied traditional stereotypes in marketing their flagship products and found international success. Using a comparative a case study approach, we use Covin and Slevin's (1989) set of items that purport to measure entrepreneurial orientation and apply a qualitative lens on the approaches of both companies. These are: 1. cultural emphases on innovation and R&D 2. high rate of new product introduction 3. bold, innovative product development 4. initiator proactive posture 5. first to introduce new technologies and products 6. competitive posture toward competitor 7. strong prolictivity for high risk, high return projects 8. environment requires boldness to achieve objectives 9. when faced with risk, adopts aggressive, bold posture. Results and Implications We find that both companies have employed entrepreneurial marketing approaches but with different intensities. While acknowledging that they are different from the norm, the specifics of their individual approaches are dissimilar. Both companies have positioned their products at the premium end of their product categories and have emphasised quality and awards in their communication strategies. 42Below has carved an image of irreverence and being non-conformist. They have unashamedly utilised viral marketing and entered international markets by training bartenders and hosting unconventional events. They use edgy language such as vodka university, vodka professors and vodka ambassadors. Penderyn Distillery has taken a more traditional approach to marketing its products and portraying romantic images of age-old tradition of distilling as key to their positioning. Both companies enjoy success as evidenced by industry awards and international acclaim.