SEM721: Product Development Report - Global Market Analysis and Design

This report details the product development process for a new luxury pen, encompassing market research, competitor benchmarking, and design specifications. It begins with an executive summary and table of contents, followed by an introduction outlining the report's scope. The report delves into global and local market analysis, identifying key customer preferences and market segmentation. It then assesses competitors like Pente and Faber-Castell, evaluating their product offerings and market strategies. The report also explores product pricing, patent searches, and relevant legislation, including the Competition and Consumer Act 2010 and the Environment Protection and Biodiversity Conservation Act 1999. Inspiration boards, mood boards, mind maps, hand sketches, storyboards, and mock-ups are used to visualize the product. The report further details the design process, including CAD modeling, selection matrices, and product design specifications. Finally, it concludes with a discussion of future work, price strategy, and the targeted market. This report is a comprehensive analysis of the product development lifecycle.

Progressive product development
report
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Executive Summary
The report includes global and local market analysis, Competitor benchmarking, Product price point,
Patent Search, mood board, mind map, laws and legislation for developing a new product. It further
includes the different aspects of designing the product.
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Table of Contents
1B – Market research, concept generation, concept development and project proposal.....................4
Introduction...........................................................................................................................................4
Conclusion...........................................................................................................................................13
Reference list.......................................................................................................................................14
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1B – Market research, concept generation, concept development and
project proposal
Introduction
The report includes a product development procedure. The product is a pen; the assignment
includes global and local market analysis of the pen. It includes the potential competitors. Moreover,
it includes the laws and legislations followed for developing a new product. Lastly, it includes a
detailed description o the designing of the product.
Global and local market analysis
In order to develop the new product the organisations must go perform an effective market analysis.
The market of pen is segmented based on its uses. The preferences of the customers are also
important while considering the development of a pen. The characteristics of the luxury pen that
makes it in the demand commodity are unique design, material, compactness and durability. The
customers often demand for a pen that will allow the customers to create an impression in front of
their clients while signing a document or any contract (Hakansson, 2015). In global market it has
been found that the writing instruments have more demand and the sales rate of the writing
instruments are high. Therefore, for selling the pen it is required that the pen has a moderate range
and is worth the value. The design of the pen will be attractive and will help the buyers to make an
impression with it. The potential customers of the product will be mainly the business persons; it is
mainly because the requirement of stylish and a durable pen is more for these customers.
However, there are many competitors in the market who design such pens and acquire a good sales
record. In order to stand out in the market the pens should give some extra features like it can have
a space for a spy camera and the rates of such pen will be moderate and less than the competitors’
pen. The promotion of the product should be done in a more innovative way, so that the targeted
customers can be aware of the product. The promotion will be done through digital advertisements,
hoardings and banners. The advertisement will also include a famous personality, for example an
actor. This will help in attracting more customers.
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Figure 1: showing the local market analysis of a pen
(Source: Ashby et al., 2012)
Figure 2: Showing the Global market demand of pens
(Source: Lindström et al., 2012)
Competitor benchmarking
Competitors: Pente, and Faber castel.
The above mentioned companies are considered to be the potential competitors because they are
considered as the market players due to their high sales rate. The Hypereraser ZE32 of Pente is the
most demanded among the customers due to its metal body design, and the Pink Pearl 400A design
of Faber castel is famous almost everywhere due to its classic design. The companies also provide
good range of discounts to their customers. The design of the pen sold by Faber castel is preferred
more by the customers due to its comfortable structure.
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Figure 3 showing: a table of the competitors and the details of their products
(Source: Sommer et al., 2012)
Product price point
The price of the product is an essential part for maintaining proper sales of the product in the
market. The price of the product will be based on the customer buying behaviour. It has been
observed that many customers go for a moderate price range while buying a pen. Therefore,
considering the point of view of the customers the price of the new pen will be $19. A per the
market search report pens from $19-$22 are considered as moderate range and has highest sales
rate in the market. It falls under the value based price; the price is designed based on the psychology
of the people.
Patent Search
The Australian patent database is considered as a proper place for searching if one has limited
resources. One can find same invention and avoid the time and cost for an extensive research work.
This can also help in determining the technical areas in which one can concentrate on the search
effort.
Patent search helps to:
Determine the owner of the IP: It can be the case that ownership of a patent is transferred. After
being notified about the change, one will be able to record the details in the patents register. The
Patents Act 1990 provides for the people who rely on the patents’ register for knowing the owner of
a patent (Moser, 2013).
To check that the IP that is used is not being infringed: If a new product is introduced then one must
make sure that it does not infringe someone else’s patent. A patent infringement is not always
necessary for every product.
Obtain information about the product on the competitors for the purpose of research: This will be
helpful to design around the patent and to get a step ahead of competitors.
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The strategies that should be followed for not infringing someone’s patent are given below:
Ensuring that all categories are searched properly
Determining a outstanding patent application
Searching the abstract of the patents electronically
Acquiring detailed technical information about the new product
Gathering knowledge about the targeted customers of the product
Using Australia patent search to avoid the time and resources for conducting a wider research
Legislation and standards
Manufacturing standards is used for ensuring that the products, services and systems are safe. The
following factors comprises of the manufacturing standards for manufacturing a pen:
Product safety standards: The manufacturers of consumer goods should obey with mandatory
product safety standards. This is for legally selling the goods in Australia. The information standard
may also apply. Safety information standards should also be followed for different types of products.
Packaging and labelling codes and standards: The manufacturers packaging goods for distribution
should be aware of specific packaging and labelling codes and standards, which are limited to certain
goods.
The laws and regulatory bodies, which should be followed for manufacturing the pen, are as follows:
The Competition and Consumer Act 2010: This Act covers almost every area of the market, like the
relationship between the suppliers, wholesalers, retailers, and consumers. The purpose of this Act is
to develop the welfare of the people in Australia by encouraging fair trading and competition, and
through the provisions of consumer protections. Implication of this act will help to make a fair
business in the market (Fuller, 2016).
Environment Protection and Biodiversity Conservation Act 1999: This Act is the Australian
Government’s main area of Environment legislation. This framework provides protection to the flora
and fauna, ecological communities and heritage places. Therefore, it will be ensured that while
manufacturing the pen, there no harmful ingredients should throw outside, which can harm the
environment.
Hazardous Waste (Regulation of Exports and Imports) Act 1989: The main purpose of this Act is to
ensure that the hazardous waste is dealt appropriately, so that human beings and the environment
are protected from the harmful effects of hazardous wastes. By following this Act the export and
import process of the business can be safe for the environment (Morbidoni et al., 2011).
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Inspiration board
Mood Board
Mind Map
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Hand sketches and storyboards
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Sketch 1: shows the basic design of a pen, where the simplicity is given more emphasis on. This will
attract the customers who like simplicity. The material used for making this pen is hard plastic.
Sketch 2: Shows a design of a fountain pen that is comfortable in using because it is designed in a
way that the griping portion of the pen can be soothing to the fingers. The higher officials of any
business will be attracted towards this design as they find this design very appealing and impressive.
The material used for making this pen is metal.
Sketch 3: Shows the design of a high quality stylish pen, which is mainly used by people who love to
show off their style statements. The targeted customers here are mainly the high class business
men.
Sketch 4: Shows a design of a simple ink pen, the material used for this pen is a mix of plastic and
metal. This will attract the people who want to buy a pen just for its use.
Mock-Ups
This is a high end fountain pen that is made for attracting the high class business men. The higher
officials of a business will easily get attracted to it as they believe in creating a good impression to
their clients while signing a deal. This pen also has high durability.
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This image shows the testing of the pen. According to the person who used the pen, they found it
very stylish and the flow of the ink was smooth. They enjoyed writing with this pen. The pen was
also tested by some business officials who found this pen impressive. They had an amazing
experience using this pen and showed interest in buying it after its launch in the market. Thus, from
the test it is clear that the pen will attract enormous customers from the target market and the sales
rate of the product will also be good.
Development of individual concept proposal
CAD, computer-aided and drafting is referred to as the computer technology for design and design
documentation. The CAD software was used to design the high definition fountain pen. This software
has also helped in designing the pen by letting the designers use multiple light sources, rotate
objects in three dimensions and make designs from any angle. The automotive application of CAD
has helped to design the model in an extensive way. The computation geometry of CAD has helped
to understand the exact measurements for designing a pen. The parametric model allowed the
designers to use the objects in a more modified way. This model also allowed the designer to
implement changes in the later stage. This is useful software for designing any kind of products,
hence designing the pen was a good experience in CAD 3D computer modelling.
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Selection matrix
The design of the pen is done due keeping in mind the preferences of the people specially the higher
officials of a business. The designing concepts was developed interviewing various people. Next the
cost of the product was decided keeping in mind the competitors and the customer preference. The
pen was designed with the help of CAD computer designing model.
Product design specifications
The design of the product is done for meeting the requirements of the higher officials of the
business. Their main requirement was the style and quality of the pen. The targeted customer
wanted a high-end design pen for making their clients impress when signing any document.
Team's selected design concept and further work
For further work the team will design the product more efficiently keeping in mind the price
strategy, target market and the competitors. The product will contain high end design and will
include stylish designs that will attract the higher business officials. Considering the point of view of
the customers the price of the new pen will be $19. A per the market search report pens from $19-
$22 are considered as moderate range and has highest sales rate in the market. There are many
competitors in the market who design such pens and acquire a good sales record. In order to stand
out in the market the pens should give some extra features like it can have a space for a spy camera
and the rates of such pen will be moderate and less than the competitors’ pen.
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