New Products
The two-dimensional matrix concept is common in business strategy. There are a number of matrices that can be used to help understand a business or the opportunities that exist. A product positioning matrix can help to determine where the best opportunities lie (SmartDraw, 2008). For example, the bubble gum product idea would show that the product itself is not differentiated, but the collector containers would help to differentiate the product. The holders themselves, however, do not add value. The axes of any two-dimensional matrix are flexible -- they can be whatever dimensions management wants to study. If cost is on the matrix, then the cost of obtaining the rights to the album covers is an important consideration.
Cooper (2001) proposes a matrix featuring "products" and "markets" to help identify good product ideas that might fit specific markets. For example, the bubble gum market has certain demographic characteristics. The better the product matches up with the market, the more likely it will be to succeed. If the bubble gum market is the same as the CD-purchasing...
If it is not, then a better gimmick to sell come should be devised. It could be that gum purchasers are too young to buy CDs -- the appeal could be a toy or cartoon character in that case.
Another two-dimensional matrix is the perceptual map. Better used with established products, the perceptual map outlines highlights the positioning in the market of current brands. It can help an established brand to understand its place in the industry, but it can also be used to devise new products by finding gaps in the current marketplace (BrandingStrategy, 2009).
The application of perceptual mapping in new product development is fairly straightforward. The first step of the process is to define the two dimensions that need to be studied. These should be based on the factors that the predominant consumer preferences in the industry (Greenacre, n.d.). In gum, that is probably going to be price and differentiation. Then, the map must be populated. All of the different gum brands should be included, based on their combination of price and…
