According to Trott, 2012, screening of business opportunity is an evaluation process that is not a one-time activity but needs to take place at every point of the new product development process.
Product lead-users and product experts are sought to help in this activity. The key to this screening process is to enable the selection of feasible ideas and elimination of those which are deemed unworkable.
There are typically 4 activities involved in the screening process, namely, initial screen, customer screen, technical screen and final screen.
Before venturing into a home-delivery food business, we need to perform an initial screen which is to evaluate if the service will fit with the ...view middle of the document...
Insights from local analysts should also be sought in order for us to know the factors that influence consumers’ decision-making process when they choose the food and services they prefer.
We also need to look at the existing businesses that are already providing the delivery service and the type of food and the area they are serving.
With the relevant data it will enable us to decide on the delivery area we want to service. For example, the decision can be based on an area with a large enough population with predominantly working couples who don’t have the time to cook due to their busy schedules. We can also decide on locations that are at most within a 30 minutes’ drive of the delivery area.
The main objective of product testing is to estimate the market’s reaction to the new product under consideration, prior to potentially expensive production and promotional costs (Trott, 2012).
There are a number of techniques that can be used in product/service testing. In this case, a suitable technique would be the concept tests. It is a qualitative technique whereby target customers’ reactions to the new products/services are obtained through group discussions. It is important that questions covered in the discussions help to reveal the selling point of the new product/service and the group it might appeal to.
Specifically, we can gather from the discussions on the delivery charges that consumers are willing to pay, the mode of placing the order (telephone/online/sms), the delivery time that they consider acceptable, the packaging of the food, the guarantee on the quality of food and etc.
Trott, 2012, states that in order for a new product to be successful in the market it must be different, stand out from the existing products and to be attractive. He also pointed out that the distinction has to be relevant to consumers.
Competitors can differentiate themselves based upon costs; they can price their products that are perceived to be value-for-money by consumers. They can also base the differentiation upon quality of the products/services they serve. For example, having a high quality packaging that can maintain the quality of the food even after a 20 to 30 minutes delivery time. Having a guarantee policy that the food delivered will be of an acceptable quality. For example, Pizza Hut has the “Hot Dot Guarantee” whereby they promised that the pizza they deliver will be hot or customers will get their next pizza for free.
Another differentiation could be in the form of technology. Customers love to have options when making their purchases. Competitors can provide customers with alternative mode of placing their orders, through telephone or online. Providing a tracking system where they can find out the current status of the...