sample="quota" bates="512117418" isource="rjr" decade="1990" class="ui" date="19930125" Dr. E. Line exten sions & new products 1/25/93 objective produce a steady flow of superior differentiated products that consumers want NPD process claims action standards technical assessment product development most people buy claims - what distinguishes products is the claim or image - far more than performance leaf example with vasoline - (leaf mechanism is plasticization) for facial cream - not same mechanism "it doesn't matter" ? requirements claims evaluation product requirement marketability, commercial opportunity functional comparisons cost & price constraints performance standards product profile Technical Review product dev. specifications technology available research dev. outline technology not available program profile make sure our product delivers on the claim validate: - methodology of the test - how reproducible is it? - terms we use to measure product performance i. e. what does smoothness mean to us, what does it signify, etc? - appropriateness of statistical applications applied to these test. - the selection of methodology used to answer the question being asked (e.g., blind product testing should be a research tool only; delivering on concept is how marketing questions should be tested - Listerine example.) - the threshold used to determine tests' "meaningfulness" (i.e. intent to purchase issues) TESTING Blind product advant ge age greater sensitivity & separation of parameters (is this smooth than this (must be blind test)) testing against product identified product can address issue of meaningfulness & intent to purchase disadvantage a test win market win halo effect covers differences affect drives market to single product drives market to differentiation utility a research tool does product re-enforce its concept Carl Ehmann Vision & OBJECTIVES FOR 1993 2/12/93 for products 1) what is commercial endpt.? Visino - image of the future Mission - goals for the present } shorter term than objectives - output for the present } RJR R&D Vision We are the worlds tech. leaders in developing quality tobacco products as such we document benefits scientifically { 1) understand our customers - their concerns & benefits of tobacco products 2) extend our science & test to new business & current business opportunities 3) RJR values results - driven employees in pursuit of our vision, we will win in an environment of trust, collaboration, innovation & teamwork R&D Mission 70 focus activities to assure our tech investments are placed against the issues facing our business 1) differentiating full price brands (find ways) 2) decrease cost of products & processes (even for lower cost products 3) respond to the challenges raised by external affairs 4) provide a competitive advantage Objective Produce a steady flow of superior differentiated products consumers will like over a 95 million budget in R&D R&D Major Programs 1) full price brands support 2) cost reduction 3) external issues 4) new business opportunities 8 strategic goals of company support full price efforts reduce overall cost Support high impact N New P Product D Development Process claims action standards technical Assessment Product development 3% average p ay increase 3% ~