New Product and Service Development

Spring 2011PP

The Thai Silk Company

• Found in 1951 by American entrepreneur, Jim Thompson

• After Jim Thompson disappeared in 1967, Mr. William Booth, his assistant, followed Jim Thompson’s passion. He leads the company to the Thai silk market again.

• Offer variety of Thai silk products such as fabrics, scarves, blankets, shirts and hand bags.

• Located in Thailand• We have showrooms and distributors all

over the world

Our situation

- Sale flat- Product slightly add new technique. (Instead of we can gain more sale every new collection, our sale stay the same.)- Product style looks quite old (so it’s difficult to expand our target market)- Less advertisement and event. Likely to use word of mouth (People don’t know much about brand so they might stick with the jim thompson old picture in their own thought)

New Product and Service Development Funnel

What we are doing..

- Designers have no freedom to design product on their own - Final decision comes from one person- Less brainstorming within designer team- No idea from outside - Product not unique sometimes create “me too” product- No meeting between other department and design department to get customer and sale history information

We fall in love with own idea!!

Collecting ideaInternal idea- Each one of designer team create their own idea- Designer can put the idea in to “Idea box” which provide by Design DirectorExternal idea- Collect idea from outside by provide “Internship program”, allow them to participate in ideation

Ideation

Activities- Brainstorming among designer to get more idea to create on their own- Trip to “International Textile Expo” to get inspiration and learn new technique from oversea

Ideation Screen: set “Broad Criteria”- Product must be a Contemporary interior style- Product must be inspired by Asian Culture- Product must consider in the next interior design trend

Ideation Screener- University professor- Designer team

Ideation

Expansion and Surface EvaluationCoordinate with other department to get market and competitive information

Market and customer information- Market research: what is the interior market want? - Market attractiveness: what is interior market interesting?- Internet research: online customer information, get international market information- Meeting with vendors in order to get the customer information

Competitive information-Meeting with Marketing manager in order to know the competitive information

Expansion and Surface EvaluationSurface Evaluation Screen- Product must add fabric finishing technique that suitable for furnishing industry- Product must add fabric texture technique- Product must contain silk more than 50% or 100% silk

Surface Evaluation Screener- Product Development team- Marketing team

Detailed EvaluationCoordinate with other department to get deep information about competitive, target group and manufacturer

- Review material requirement and specification- Cost estimation- Manufacturability- Financial Analysis: cash flow- Product positioning: Can product sell in other market section?- Competitive analysis

Detailed EvaluationDetailed Evaluation Screen- Product’s cost must not over than 500 Bht (per meter)- The operation insure to be able to build it (machine, employee’s skill)- Product can sell in handbags and Accessories section- Product must have at lease 1 thing step ahead of our competitive

Detailed Evaluation Screener- Product Development manager- Marketing manager- Production manager- CEO

Cross-Function DevelopmentOperation- Production line- Duration time- Capacity- Prototype

Sale & Marketing- Cost and profit- Pricing- Distribution plan

PR- Special event in Jim Thompson’s house- Advertisement: magazine, media- Project joint venture with other brands

Human Resources- Employee (Sale representative) training

CFD Gate : CEO- Final approve on prototype before running production- Get approve on activity

TestingActivities - Operation run production on trial market- Trail market distribution: partial distribution, only main store- Test on top vendor

Testing Gate- Production flow- Quality of product- Feedback from vendors and customer in store

DeploymentActivities- Operation run full production- Plan full distribution- Product quality control- Adequate stock inventory- Visual merchandiser ready to work on new product- All GPP put in place

Deployment Gate- Every department that involve in check on each activities that should be ready to work

LaunchActivities- Start to sale on full distribution- PR run events and advertising

Post-Launch ReviewActivities- Sale growth- Review costs and profits- Review strengths and weaknesses- Gather feedback from customer

Post-Launch Review Gate- Analysis on data review if product.. Good: keep selling, add promotion Bad : recall to main store, sell on partial distribution Problem from customer: stop selling, recall to inventory- Fix problems

Thank you