COMMERCIALISATION

After the product is tested in the sports market, it leads to the final stage of the new product development process (NPD), i.e. Commercialisation. Beech and Chadwick (2007) suggested the decision to market the product can be based on the results of test marketing and maybe a direct copy of this, or can be amended based on any identified weaknesses. This stage sets several tasks into motion such as ordering production materials and equipment, starting production, building inventories, skipping the product to field distribution points, training the sales force, announcing the new product to the trade, and advertising to new customers (Lamb, Hair and McDaniel, 2011). Also suggested that products like the Dunk Pad would range for a few weeks of preparation as it can use existing equipments for manufacturing. The Dunk Pad could be one of those successful new products to deliver a meaningful and perceivable benefit to a sizable number of people or organisations and are different in some meaningful way from the intended substitutes.

Commercialisation of Sugru

Commercialisation of Sugru

The sports uses of Sugru

Developed by a team of product designers and material scientists, Sugru is a self setting rubber that can be formed by hand, and bonds to almost anything and turns it into a strong and flexible silicone rubber (Sugru, 2014). This product is yet to be launched in a cycle trade in February 2014. This product is set to be worth to cyclists by making it simple to mount lights to lids and GPS units to handlebars. The strength and durability of the product makes it ideal for outdoor sports. The weather, environments, or any external agents have no influence on the functioning of the product. Sugru helps athletes and outdoor types repairing leaking hiking boots, customize Olympic fencing foils, and patch up punctures in camping mats, or gore-tex rain gear, amongst other sporting uses (BikeBiz, 2014).

Commercialisation of the Dunk Pad

The decision to commercialize the Dunk Pad would be based on the results of the test marketing and a direct copy the test marketing process. This will lead to ordering production equipments which would be similar to the shoe sole injection machines (diagram below), which will mould the external material with flexible and durable rubber and ensuring the protection of the internal Load N Launch technology of the Dunk Pad. This would then be used to be customised into various colors and designs for sales purposes such as Jordan theme, Newcastle Eagles theme, autographs of players on the Dunk Pad and mainly depending upon customer choices. The product would have sample designs of various colors attracting both genders. This would then be sent for packaging and distribution points. Distribution would be via online website, retail outlets, and sports events sales. Sample pieces of the product would be sold to various basketball coaching academies, basketball half time events, dunk competitions rewards, etc. The marketing would mainly depend on the methods used for test marketing and would be enhanced with new video commercials launched on social media and methods to ambush market at local street shows. Videos of the dunk stunts that could be performed and details of the instructions to use would be spread from the website to every potential customers by electronic mail, handouts, posters, text messages, and various advertising activities. The sales team would be a set of trusted hardworking employees with the same passion for sport and especially basketball, who would be trained and demonstrated the details of the Dunk Pad and set of sales all over the neighboring areas to start with and then as the word spread, the promotions would advance. 

Sample Demonstration Activity of the Dunk Pad

Sample Demonstration Activity of the Dunk Pad - II

Shoe Sole Injection Molding Machine used for the manufacture of the Dunk Pad

References

• Beech, J. G., & Chadwick, S. (Eds.). (2007). The marketing of sport. Pearson Education
• Lamb, C. W., Hair Jr, J. F., & McDaniel, C. D. (2011). MKTG 5. CengageBrain.com.
• Bike Biz. (2014) January New Product round up. Bikebiz. Web. Accessed on: 7 Feb. 2014 from <https://www.bikebiz.com/news/read/january-new-product-round-up/015896>.
•  Sugru. (2014). Outdoor & Sport. Sugru. Web. Accessed on: 7 Feb. 2014 from <http://sugru.com/great-for/outdoor-and-sport>.

TEST MARKETING

After product and marketing programs have been developed, it leads to the seventh stage of the NPD process known as Test Marketing. Lamb, Hair and McDaniel (2011) define test marketing as the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. This helps to determine the products sales potential, consumer groups, overall levels of demand and success of marketing mix in attracting the targeting customer segment (Beech and Chadwick, 2007). According to Lamb, Hair and McDaniel (2011), the locations to test the product should reflect market conditions in the new products projected market area. The demographics and purchasing habits of consumers reflect the overall market of the product. The downside of test marketing as mentioned by Beech and Chadwick (2007), could be competitor organisations get to see the new product and may have time to launch a substitute product or distort the test by some form of promotional activity.

Launch of Puma evoPower Test Boot 

Official Puma evoPower Camo

Puma launched a teaser boot of the evoPower football collection, two weeks prior to the launch of the official evoPower Camo boots. The product is said to incorporate the same technology and innovation as the official product, but with a camouflage design. The product is said to be tested in the market by endorsing players such as Cesc Fabregas, Mario Balotelli and Marco Reus to wear the boots in training and competitive games. Puma has not revealed the detailed features and benefits of the boots, but has mentioned that the design of the actual product would deliver an even greater level of power and accuracy. The boots are available of selected online retailers until the date of the launch of the official product (Puma, 2014).

Puma Test Marketing - Cesc Fabregas in Puma evoPower Camo product 

Application of Test Marketing to Dunk Pad

The Test Marketing of the Dunk Pad could be introduced and tested in market locations such as London, Manchester, and Birmingham. England Basketball (2014) has introduced events such as IM Basketball, Ball Again, and Sure shot, and the NBA Global Games (2013) hosted at the above locations could be ideal to test the marketability of the Dunk Pad. Such events attract basketball consumers from all over UK, and are also prime locations of sport participation and consistency of basketball participation as shown in the figures below. 

Active People Survey - (Sport England, 2012-13)

Sport England - Basketball participation rate in the UK

These cities could have a big impact on the introduction of the Dunk Pad as per its demographics and consumer purchasing habits. The Dunk Pad could be tested by advertising campaigning like street events near the high profile basketball events to demonstrate the attractiveness and usage of the Dunk Pad. The Dunk Pad could be demonstrated to various basketball consumers, and let them use the product to show their basketball dunking skills and talent on the street which can be viewed by all the fans entering the venue of the basketball games. Basketball dunking competitions could be hosted around the events or at the half time break of the game, to let professional players and fans use the Dunk Pad to show their skills of dunking to the audience. Samples of the Dunk Pad could be rewarded to the winning participants. These basketball events hosted in the selected locations can attract media attention, which according to Lamb, Hair and McDaniel (2011), is the best way for the advertisement of the Dunk Pad to attract attention of consumers outside the selected market and on a wider scope across the UK.

Lastly, videos could be made to show the usage and unique skills of dunking by various age groups with the Dunk Pad and could be posted on YouTube, Facebook and other social media to market the product. As said earlier, this could lead to attraction of competition but if the product could increase awareness of the Dunk Pad as a brand, this could help dominate over the competition. Also, decrease the timeline between the Test Marketing and Commercialization stage. 

References

• Beech, J. G., & Chadwick, S. (Eds.). (2007). The marketing of sport. Pearson Education
• England Basketball. (2014). Calendar of future events. England Basketball. Retrieved on January 31, 2014, from http://www.englandbasketball.co.uk/
• Lamb, C. W., Hair Jr, J. F., & McDaniel, C. D. (2011). MKTG 5. CengageBrain.com.
• NBA. (2013). NBA Global Games 2013.NBA. Retrieved on January 31, 2014, from http://www.nba.com/global/
• Puma. (2014). PUMA RELEASES ITS MUCH ANTICIPATED evoPOWER TEST BOOT.Mynewsdesk. Retrieved on January 31, 2014, from http://www.mynewsdesk.com/se/puma-nordic/pressreleases/puma-releases-its-much-anticipated-evopower-test-boot-945543
•  Sport England. (2013). Player numbers breakdown by sport. Active People Survey. Retrieved on January 31, 2014, from http://www.sportengland.org/research/who-plays-sport/by-sport/who-plays-sport/
• Sport England. (2013). Who plays sport - the latest data. Active People Survey. Retrieved on January 31, 2014, from http://www.sportengland.org/research/who-plays-sport/national-picture/

PRODUCT DEVELOPMENT

On analyzing the business aspects of the desired product, this leads to the sixth stage of the NPD process which is Product Development stage. This stage involves the physical development of the actual product, i.e. a prototype of the product and a sketching of the marketing strategy for the desired product. Lamb, Hair and Mcdaniel (2011) suggests that the process of development works effectively when all the areas (research and development, marketing, engineering, production, and even suppliers) work together, which allows to shorten the development process and reduce costs. 

Nike's Product Creation and Development team

Kotler and Keller (2012) proposed that the aim of the research and development department must be to construct the prototype that performs under physical use and conditions, and produced within the acquired manufacturing budget and must include the following:

1. Construction and Packaging decisions of the product such as type and quality of the materials, method of production, size and colours, capacity of production unit, promotion and storage.
2. Branding Decisions such as name of the product, exclusivity, trademark protection, and desired image.
3. Positioning of the product such as target market and relative positioning against competitors.
4. Attitude and Usage setting which will lead to prediction of consumers perceptions and satisfaction with the desired product, and conducting functional and consumer tests.

Nike - First Nike FuelBand Prototype

Nike FuelBand Prototype

Nike's Product Creation and Development team are responsible for the Nike FuelBand, which is an electronic wristband which enables users to track thier activity. There were a number of prototypes imagined and created through the product development process, but they were finally brought down to two designs, i.e. a white leathery velcro bracelet marked with a green calculator like numbers and the other one is a black and bright green band that shows product emphasis on stark bright contrast like in the diagram above. Nike then faced issues with naming the product, the colour displays were not flexible and the battery backpack was the weakness of the initial prototype. This led to the involvement of external clients to develop the selected prototype which is now known as Nike FuelBand in the market (Synapse 2010).

The Application of the Product Development stage

Beech and Chadwick (2007) suggests that products such as the Dunk-Pad which have a short product life cycle and compete in niche markets, this stage of product development can be important and necessary revenue stream. The type and quality of material used in the construction of the Dunk Pad can be a variety of synthetic rubber and rubber compounds such as Duralon which is a combination of natural and synthetic rubber. This can be used to provide a smooth surface, resistance and durability of the product and can be initially manufactured with the machines used to in shoe sole manufacturing factories. This would be further influenced by Load and Launch technology which serves to help stabilize the foot and efficiently transfer energy created by the athlete toward the area of the dunk pad that impacts vertical leap.The size of the product will be of a standard size and colours can be of a variety such as blue, black, pink, purple, and red which will attract both the genders as well as open the options for personal customisations. The storage of the product can be made in large channels of cardboard boxes till separated individually to avoid external agents from ruining the product such as rain, sunlight, etc.

The name of the product is Dunk Pad which symbolizes its characteristics and will be an easier method to market the product among sport consumers. The product can be trademark protected to avoid replicas and avoid the risk of competition as it is a new product in a niche market. The product will be packaged with a cardboard box with a designs of basketball and details of distribution, price, instruction manual, and feedback. The packaging would be made at lowest cost as its just a method of conserving the product till it reaches the consumer via online, door-to-door deliveries, or retail outlets like NBA London outlets. The product would be tested in the market, such as usage testing of the product with sport consumers in basketball coaching academies, street events, dunking competitions, social media, personal contacts, and several other sources.

References

• Beech, J. G., & Chadwick, S. (Eds.). (2007). The marketing of sport. Pearson Education
• Kotler, P. & Keller, K.L. (2012) Marketing Management. Global Edn. Harlow: Pearson Education
• Lamb, C. W., Hair Jr, J. F., & McDaniel, C. D. (2011). MKTG 5. CengageBrain.com.
• Synapse. (2010). First Nike FuelBand Prototype. Synapse Wall of Mark Gile. Retrieved January 24, 2014, from http://www.synapse.com/wall-of-cool/markgi/first-nike-fuelband-prototype?destination=node/955

.