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New Product and Services Development

Stage Gate ProcessKeltse Bilbao 2006

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Mission

Become the first

communication agency in the local market for Spanish and Latin American companies

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Objectives

• To represent different Spanish Governments in NY as Andalucia and Navarra

• Foment the promotion of the entrepreneurial relationship between Spain and United States offering business opportunities to exporting companies

• Incentive the investment and commerce between both countries

• Gain opportunities with Spanish companies from this relationship to offer them marketing strategies

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Vision

• Communication agency with a personalized service

– Unique plan for each company– Service– Accessible– Results oriented

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SWOT analysisCMNY

STRENGTHS

• Global marketing campaigns

• Personalized services to clients

• Great relation with Spanish companies and

potential customers

• Actual clients: MIT companies, technology

companies, Extenda and Navarra

• Tend of Spanish companies to work with

Spanish agencies: Same culture and language

OPPORTUNITIES• There are no Spanish agencies in NY local

market• Excellent relationship with governments• The competition tend to be multinational

agencies looking for a big budget and ad campaign

• Spanish economic situation• Law regularizations for Spanish products

THREATS• Complex and competitive market• US Hispanic agencies• If they related us with Extenda we can lose

opportunities• Spanish agencies tend to work directly with

importers and distributors• Latin American political situation• American law makes difficult some products

exportation, specially agro industry

WEAKNESSES

• We have no history in NY market

• We do not have clients yet

• We do not have a established brand in

This market

• Limited working team

• Dependence in out sources

• Limited on the execution in campaigns

outside NY

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Working ModelCMNY

Government Representations

SA“Bridge” company to

invoice a fee monthly to different Spanish

Governments.No costs, no structure

Spanish Governments

CMNYCommunication agencyOffering strategies andPromotion for Spanish products exported to

the US marketInvoice to Gov Rep SA

•Working with same structure•Straight access to exporting companies and potential clients•Bigger opportunities with other clients (no relating us with a chamber of commerce•Direct control on the working team.

Lower costs

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CMNY Services

• Consulting• Communication strategies• Advertising• Interactive marketing• Events and promotions • Branding• Public relations• Direct marketing

• General business information– Spanish and Latin American

companies list– Importers, distributors list– Legal, economic and

financial information• Commerce Services

– Market studies– Statistic information– Borders information

• Business agendas for Spanish companies

• Consulting in promotional marketing

• Corporative events

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Funnel Process1. First contact with different associationsList of Spanish and Latin companies in NY

3. Search their situation. Do they invest in communicationAnd marketing in other countries?

2. Classify the companies in different categoriesConsumer goods, technology, tourism, agro industry and services

4. Do the companies have budget to invest in marketing or are they looking for general market information?

5. Level of dependence from their country. Do they need the origin country’s approval?

7. Presentation of the company and services

6. Do they have presence in different US states?

8. Get the briefing

9. Present the strategy

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Stage -Gate process

• Starting point: Idea generation• Gates: Go/ Kill point. Obstacles to get

through the next stage– Reduces the number of ideas from the

beginning

• Stages: Processes for the new product and service development

– Stage 1: Scoping Go kill point to– Stage 2: Development Go kill point to– Stage 3: Business case Go kill point to– Stage 4: Testing Go kill point to– Stage 5: Launch Go kill point to

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Stage -Gate process

DISCOVERY:

Idea Generatio

n

STAGE 3Developme

nt

STAGE 2Business

Case

STAGE 1:Scoping

LAUNCHREVIEWSTAGE 4

Testing

GATE 4

GATE 3

GATE 2

GATE 1

LAUNCH GATE 5

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Idea Generation

Partners

MarketResearch

Associations

Government needs

Spanish companies feedback

idea Generation

Capture the ideas from the Idea bank

•Team players from different departments•Potential Clients feedback•Spanish companies opinion•Competitors•Partners •Trends and market research•Brainstorming•Chamber of commerce experience

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Gate 1: Idea Screen

• Go/kill point of ideas Realistic and achievable? Key customers Strategic alignment Product advantage: Does the project offer

new or different benefits? Market attractiveness: Is the market size,

and opportunities attractive? Technical feasibility Competence: Are they building something

similar?

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Gate 1

Realistic and achievable? Can I compete in NY market? Can I achieve my target? Do Spanish companies invest in communication? Can I work with out sources? Market attractiveness: Is the market size, and opportunities

attractive? Do I have a big competitor in the market? Does my product offer something different? Do I have legal difficulties to open a brunch?

• International company• Different taxes

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Stage 1: Scoping

1. Preliminary market assessment: Focus groups, libraries and internet search

– Market size and potential: List of Spanish companies and Latin American

companies in NY and local small companies

– Market segmentation– Customer behavior.

Investment of Spanish companies coming to US

– Analyzing competence Communication agencies for Latin products

introducing to US

– What makes us different Cultural issues: As a Spanish company we have

same culture, language

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Stage 1: Scope

2. Preliminary technical and financial assessment– Technical feasibility– Cost and time estimation

3. Product description: characteristics.4. Internal analysis

– Organization: Working team and shareholders

5. Demographic, economic and social trends

• Economic situation of Spain and Latin America• International commerce• Political situation and relationship with US

government

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Gate 2

Go/kill point: Reevaluation of Stage 1 Do we have other chambers support? Are we still winners in the marketplace? Does the project meet the objectives? Can we achieve the project in time? Do we have the necessary sources and

budget? Can we get enough knowledge about the

market? Can we support a exporting company

outside NY? Aligned with the positioning?

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Stage 2: Business case

1. Detailed product analysis:

– Product concept• Marketing strategy for Spanish companies entering the US

– Positioning strategy: • Different governments representation to achieve our

customers

– SWOT analysis2. Detailed market research: deeper analysis of potential customer needs and preferences

Do they need general information and support? Do they need a communication plan? Money to spend in

ad, promotion

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Stage 2: Business case

3. Detailed competitive analysis:• Small/ Medium Advertising agencies• Marketing consulting agencies• Other local agencies

4. Detailed Technical analysis

• Out sources and suppliers• Types of Alliances• Cost of production

5. Detailed business and financial assessments

• Budget approach6. Define timeline7. Team and responsibilities

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Gate 3

Go/Kill before a substantial spending & development stage

Does the budget fit? Is the cost of production achievable? Is the technical support adequate? Does the strategy fits with the

positioning?

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Stage 3: Development Plan Implementation

• Production plan• Web side• New business materials, and sales procedures• Pre-launch event

• Definition of the working model• Introduce Marketing and operations• Preliminary test plans

– In house test– Pre testing

• Select a sample of potential clients to taste• Clients feedback

• Updated financial analysis

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Gate 4: Go to testing

Kill/ Go point for the development plan.

Are the clients feedback positive? Is the project consistent with original

definition? Review of the marketing plan Are we in time and budget? Approval for the testing plan Is the working model adequate?

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Stage 4:testing

• Continue with in- house and trial testing– Quality of the product and internal opinion

• Select customers and other internal departments• Test market

– Customer acceptance

• Send the material to potential to our list of companies

• Economics of product– Estimate revenues and market share

• Margins and benefits of each campaign and service

• Value the launching plan

• Advertisement in specialized magazines, associations, events, and others

• Review business & financial analysis

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Gate 5

Go/kill before the market launch and final commercialization

Results of the testing: Do they like our product?

Quality of validation? Budget review Are marketing and operations ready? Is the launching plan ok?

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Stage 5: Launch

• Marketing Plan Implementation• Advertising• Direct marketing• Interactive, • Web page• Pre launch event

• Operation plan implementation• Structure for Extenda representation

• Launch plan Implementation

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Post launch Review

• Product performance analysis after the launch

– Adjusts?

• Results evaluations:– Objectives– Cost– Profits– Timing– Quality

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Post launch analysis ®

Product Performance

Strengths

Weaknesses

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