New Product Management PGDBM/IT/HR/IB

Rajat Gera

What Is a New Product?

New-to-the-World Products
Polaroid camera, Sony Walkman, wordprocessing software

New Category Entries

Hewlett-Packard PCs, Hallmark gift items, Tata Passenger cars (Indica)

Additions to Product Lines

line extensions or flankers

Product Improvements
Wagon-R, Windows 98, plain-paper fax

Repositionings Cost Reductions

Product Newness

What Is a Successful New Product?

Percent of Products that Fail
90 90 80 70 60 50 40 30 20 10 0 Sometimes Quoted in Press

40

10

Research Reports

Sometimes Claimed

Although you may hear much higher percentages, careful studies supported by research evidence suggest that about 40% of new products fail -- somewhat higher for consumer products, somewhat lower for business-to-business products.

The Conflicting Masters of New Products Management

Three inputs to the new products process: the right quality product, at the right time, and at the right cost. These conflict with each other but may have synergies too. Issue: how to optimize these relationships in a new product situation. Quality

Value

Time

Cost

New Product Development Imperatives-1

Breakthrough Platform Maintenance

A Bubble Diagram at a Hewlett-Packard Division

The Basic New Product Process

Phase 1: Opportunity Identification/Selection Phase 2: Concept Generation

Phase 3: Concept/Project Evaluation

Phase 4: Development Phase 5: Launch

The Impact of Simultaneous Operations on the Product Development Process

Phase 1: Opportunity Identification/Selection

Active and passive generation of new product opportunities as spinouts of the ongoing business operation. New product suggestions, changes in marketing plan, resource changes, and new needs/wants in the marketplace. Research, evaluate, validate, and rank them (as opportunities, not specific product concepts). Give major ones a preliminary strategic statement to guide further work on it.

Activities that Feed Strategic Planning for New Products

Ongoing marketing planning (e.g., need to meet new aggressive competitor) Ongoing corporate planning (e.g., senior management shifts technical resources from basic research to applied product development) Special opportunity analysis (e.g., a firm has been overlooking a skill in manufacturing process engineering)

Sources of Identified Opportunities

An underutilized resource (a manufacturing process, an operation, a strong franchise) A new resource (discovery of a new material with many potential uses) An external mandate (stagnant market combined with competitive threat) An internal mandate (new products used to close long-term sales gap, senior management desires)

Phase 2: Concept Generation

Select a high potential/urgency opportunity, and begin customer involvement. Collect available new product concepts that fit the opportunity and generate new ones as well.

Phase 3: Concept/Project Evaluation

Evaluate new product concepts (as they begin to come in) on technical, marketing, and financial criteria. Rank them and select the best two or three. Request project proposal authorization when have product definition, team, budget, skeleton of development plan, and final PIC.

Stages of Concept/Project Evaluation

Screening (pretechnical evaluation) Concept testing Full screen Project evaluation (begin preparing product protocol)
The first stages of the new products process are sometimes called the fuzzy front end because the product concept is still fuzzy. By the end of the project, most of the fuzz should be removed.

Phase 4: Development
(Technical Tasks) Specify the full development process, and its deliverables. Undertake to design prototypes, test and validate prototypes against protocol, design and validate production process for the best prototype, slowly scale up production as necessary for product and market testing. (Marketing Tasks) Prepare strategy, tactics, and launch details for marketing plan, prepare proposed business plan and get approval for it, stipulate product augmentation (service, packaging, branding, etc.) and prepare for it.

Phase 5: Launch
Commercialize the plans and prototypes from development phase, begin distribution and sale of the new product (maybe on a limited basis) and manage the launch program to achieve the goals and objectives set in the PIC (as modified in the final business plan).

The Life Cycle of a Concept

Rate of Use of NPD Steps among PDMA Members

Concept searching Concept screening Concept testing Business analysis Product development (technical) Use testing/market testing 90% 76% 80% 89% 99% 87%

Opportunity Identification and Selection

Strategic Planning for New Products

Opportunity Identification and Selection

Opportunity Identification: Finding Greenfield Markets

Find another location or venue. Once McDonalds had taken up the best locations for traditional fast-food restaurants, it continued its U.S. expansion by placing stores inside Wal-Marts, in sports arenas, and elsewhere. Starbucks Coffee complemented coffee-shop sales by selling its coffee beans and ice creams in supermarkets. Leverage your firms strengths in a new activity center. Nike has recently moved into golf and hockey, and Honeywell is looking into casino opportunities. Identify a fast-growing need, and adapt your products to that need. Hewlett-Packard followed the need for total information solutions that led it to develop computing and communications products for the World Cup and other sporting events. Find a new to you industry: P&G in pharmaceuticals, GE in broadcasting (NBC), Disney in cruises, Rubbermaid in gardening products either through alliance, acquisition, or internal development.

Source: Allan J. Magrath, Envisioning Greenfield Markets, Across the Board, May 1998, pp. 26-30.

Why Does a Firm Need a New Products Strategy?

To chart the groups/teams direction
What technologies?/what markets?

To set the groups goals and objectives

Why does it exist?

To tell the group how it will play the game

What are the rules?/constraints? Any other key information to consider?

Corporate Strengths
New products in this firm will: Use our fine furniture designers (Herman Miller) Gain value by being bottled in our bottling system (CocaCola) Utilize innovative design (Braun) Be for babies and only babies (Gerber) Be for all sports, not just shoes (Nike) Be for all people in computers (IBM) Proliferate our product lines (Rubbermaid) Be almost impossible to create (Polaroid) Use only internal R&D (Bausch & Lomb) Not threaten P&G (Colgate)

Product Platform Planning

Many firms find that it is not efficient to develop a single product. Platform: product families that share similarities in design, development, or production process.
Car industry: $3 billion price tag on a new car platform is spread out over several models. Sony: four platforms for Walkman launched 160 product variations. Boeing: passenger, cargo, short- and long-haul planes made from same platform. Black & Decker: uses a single electric motor for dozens of consumer power tools. Other Platforms-Brand, Category, SBU, Trade Channel

What is the Product Innovation Charter (PIC)?

It is the new product teams strategy. It is for Products (not processes). It is for Innovation (think of the definition of new product). It is a Charter (a document specifying the conditions under which a firm will operate).

The Contents of a Product Innovation Charter

Background Key ideas from the situation analysis; special forces such as managerial dicta; reasons for preparing a new PIC at this time.

Focus At least one clear technology dimension and one clear market dimension. They match and have good potential.

Goals-Objectives What the project will accomplish, either short-term as objectives or longerterm as goals. Evaluation measurements.

Guidelines Any "rules of the road," requirements imposed by the situation or by upper management. Innovativeness, order of market entry, time/quality/cost, miscellaneous.

A Sample PIC for a Chemical Product

Focus: The XYZ Company is committed to a program of innovation in specialty chemicals, as used in the automobile and other metal finishing businesses, to the extent that we will become the market share leader in that market and will achieve at least 35 percent ROI from that program on a three-year payout basis. We seek recognition as the most technically competent company in metal finishing. Goals-Objectives: These goals will be achieved by building on our current R&D skills and by embellishing them as necessary so as to produce new items that are demonstrably superior technically, in-house, and have only emergency reliance on outside sources. The company is willing to invest funds, as necessary, to achieve these technical breakthroughs. Guidelines: Care will be taken to establish patent-protected positions in these new developments and to increase the safety of customer and company personnel.

PIC Special Guidelines

Degree of Innovativeness First-to-market Adaptive product Imitation (emulation) Timing First Quick second Slow Late Miscellaneous Avoidance of competition with certain firms Recognition of weaknesses Patentability Product Integrity

Dimensions for Assessing Strategic Fit

Strategic goals (defending current base of products versus extending the base). Project types (fundamental research, process improvements, or maintenance projects). Short-term versus long-term projects. High-risk versus low-risk projects. Market familiarity (existing markets, extensions of current ones, or totally new ones). Technology familiarity (existing platforms, extensions of current ones, or totally new ones). Ease of development. Geographical markets (North America, Europe, Asia).

Strategic Buckets Model for One SBU in Exxon Chemical

Low Market Newness Low Product Newness Improvements to Existing Products (35%) Cost Reductions (20%) Repositioning (6%) High Market Newness Additions to Existing Product Lines (20%) New Product Lines (15%) New-to-the-World Products (4%) Medium Product Newness

High Product Newness

Source: Adapted from Robert G. Cooper, Scott J. Edgett, and Elko J. Kleinschmidt. Portfolio Management for New Products, McMaster University, Hamilton, Ontario, Canada, 1997, p. 63.

Concept Generation

Required Inputs to the Creation Process

Form (the physical thing created, or, for a service, the set of steps by which the service will be created) Technology (the source by which the form is to be attained) Benefit/Need (benefit to the customer for which the customer sees a need or desire) Technology permits us to develop a form that provides the benefit.

Some Patterns in Concept Generation

Customer need firm develops technology produces form Firm develops technology finds match to need in a customer segment produces form (Newton message Pad) Firm envisions form develops technology to product form tests with customer to see what benefits are delivered Note: the innovation process can start with any of the three inputs.

What is a Product Concept?

A product concept is a verbal or prototype statement of what is going to be changed and how the customer stands to gain or lose. Rule: You need at least two of the three inputs to have a feasible new product concept, and all three to have a new product.

New Product Concepts and the New Product

Need

Form C

C= Concepts

Technology

New Product

The Soft Bubble Gum Example

Benefit: Consumers want a bubble gum that doesnt take five minutes to soften up. Form: We should make a softer, more flexible bubble gum. Technology: Theres a new chemical mixing process that prevents drying out of food and keeps it moist. Why would each of these taken individually not be a product concept?

What a Concept Is and Is Not

Learning needs of computer users can be met by using online systems to let them see training videos on the leading software packages. (good concept; need and technology clear) A new way to solve the in-home training/educational needs of PC users. (need only; actually more like a wish) Lets develop a new line of instructional videos. (technology only, lacking market need and form)

Methods for Generating Product Concepts

Two Broad Categories of Methods: Gathering Ready-Made Product Concepts Using a Managed Process Run by the New Products Team

Best Sources of Ready-Made New Product Concepts

New Products Employees Technical: R&D, engineering, design Marketing and manufacturing End Users Lead Users Resellers, Suppliers, Vendors Competitors The Invention Industry (investors, etc.) Miscellaneous (continued)

Problem-Based Concept Generation

Problem Analysis: General Procedure

1. Determine product or activity category for
study. 2. Identify heavy users. 3. Gather set of problems associated with product category. Avoid omniscient proximity -- rate importance of benefits and levels of satisfaction. 4. Sort and rank the problems according to severity or importance.

The Bothersomeness Technique

List of pet owners' problems: Need constant feeding Get fleas Shed hairs Make noise Have unwanted babies A Problem Occurs Frequently 98% 78 70 66 44 B Problem is Bothersome 21% 53 46 25 48 AxB .21 .41 .32 .17 .21

Problem Analysis: Sources and Methodologies

Experts Published Sources Contacts with Your Business Customers or Consumers
Interviewing Focus groups Observation of product in use Role playing/Product Function analysis

Scenario Analysis
Extending vs. leaping Using seed trends for an extend scenario Techniques:
Follow trend people/trend areas Hot products Prediction of technological changeover Cross-impact analysis

Relevance Tree Form of Dynamic Leap Scenario

Wild Card Events and Their Consequences

No-Carbon Policy: Global warming may cause governments to put high taxes on fossil fuels, shifting demand to alternative sources of energy. This changes the allocation of R&D investment toward alternative energy, possibly causes new energy-rich nations to emerge, and ultimately may lead to a cleaner environment for everyone. Altruism Outbreak: This is the random acts of kindness movement solve social problems rather than leaving it up to the government. Schools and other institutions will revive due to community actions, and perhaps inner cities would be revitalized. Cold Fusion: If a developing country perfects free energy, it becomes prosperous overnight. It gains further advantages by becoming an energy exporter.

Solving the Problem

Group Creativity Methods/Brainstorming Principles of Brainstorming: Deferral of Judgment Quantity Breeds Quality Rules for a Brainstorming Session: No criticism allowed. Freewheeling -- the wilder the better. Nothing should slow the session down. Combination and improvement of ideas.

Analytical Attribute Analysis

What are Analytical Attribute Techniques?

Basic idea: products are made up of attributes -- a future product change must involve one or more of these attributes. Three types of attributes: features, functions, benefits. Theoretical sequence: feature permits a function which provides a benefit.

Gap Analysis
Determinant gap map (produced from managerial input/judgment on products) AR perceptual gap map (based on attribute ratings by customers) OS perceptual map (based on overall similarities ratings by customers)

A Determinant Gap Map

Obtaining Customer Perceptions

Rate each brand you are familiar with on each of the following:
Disagree Agree

1. Attractive design 2. Stylish 3. Comfortable to wear 4. Fashionable 5. I feel good when I wear it 6. Is ideal for swimming 7. Looks like a designer label 8. Easy to swim in 9. In style 10. Great appearance 11. Comfortable to swim in 12. This is a desirable label 13. Gives me the look I like 14. I like the colors it comes in 15. Is functional for swimming

1..2..3..4..5 1..2..3..4..5 1..2..3..4..5 1..2..3..4..5 1..2..3..4..5 1..2..3..4..5 1..2..3..4..5 1..2..3..4..5 1..2..3..4..5 1..2..3..4..5 1..2..3..4..5 1..2..3..4..5 1..2..3..4..5 1..2..3..4..5 1..2..3..4..5

Snake Plot of Perceptions (Three Brands)

Ratings
5 4.5 4
Aqualine

3.5 3 2.5 2 1.5 1

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Attributes

Islands

Sunflare

The AR Perceptual Map

2
Aqualine Gap 1
Comfort

Islands

Molokai

-2
Splash

Fashion

Sunflare

Gap 2

-2

Failures of Gap Analysis

Input comes from questions on how brands differ (nuances ignored) Brands considered as sets of attributes; totalities, interrelationships overlooked; also creations requiring a conceptual leap Analysis and mapping may be history by the time data are gathered and analyzed Acceptance of findings by persons turned off by mathematical calculations?

Trade-Off (Conjoint) Analysis

Put the determinant attributes together in combinations or sets. Respondents rank these sets in order of preference. Conjoint analysis finds the optimal levels of each attribute.

Conjoint Analysis Input: Salsa Example

Thickness Spiciness Color Actual Ranking* 4 3 10 6 15 16 2 1 8 5 13 11 7 9 14 12 17 18 Ranking as Estimated by Model 4 3 10 8 16 15 2 1 6 5 13 11 7 9 14 12 18 17

Regular Regular Regular Regular Regular Regular Thick Thick Thick Thick Thick Thick Extra-Thick Extra-Thick Extra-Thick Extra-Thick Extra-Thick Extra-Thick

Mild Mild Medium-Hot Medium-Hot Extra-Hot Extra-Hot Mild Mild Medium-Hot Medium-Hot Extra-Hot Extra-Hot Mild Mild Medium-Hot Medium-Hot Extra-Hot Extra-Hot

Red Green Red Green Red Green Red Green Red Green Red Green Red Green Red Green Red Green

* 1 = most preferred, 18 = least preferred.

Conjoint Analysis: Graphical Output

Thickness
2 1 0 -1 -2
Regular Thick Ex-Thick Mild

Spiciness

Color

Medium-Hot

Ex-Hot Red

Green

0.161

0.913

-1.074 1.667

0.105

-1.774 -0.161

0.161

Conjoint Analysis: Relative Importance of Attributes

0 20 40 60 80 100 %

Spiciness

59.8% 34.6% 5.6%

Thickness
Color

Some Qualitative Attribute Analysis Techniques

Dimensional Analysis Checklists Relationships Analysis
There are many others.

A Dimensional Attribute List

Weight Rust resistance Length Color Water resistance Materials Style Durability Shock resistance Heat tolerance Explosiveness Flammability Aroma Translucence Buoyancy Hangability Rechargeability Flexibility Malleability Compressibility

An Idea Stimulator Checklist for Industrial Products

Can we change the physical/chemical properties of the material? Are each of the functions really necessary? Can we construct a new model of this? Can we change the form of power to make it work better? Can standard components be substituted? What if the order of the process were changed? How might it be made more compact? What if it were heat-treated/hardened/cured/plated? Who else could use this operation or its output? Has every step been computerized as much as

Relationships Analysis
Force combinations of dimensions (features, functions, and benefits) together. Techniques: Two-dimensional matrix Multidimensional (morphological) matrix Two-dimensional example: person/animal insured and event insured against. Household cleaning products example used six dimensions: Instrument used, ingredients used, objects cleaned, type of container, substances removed, texture or form of cleaner

Other Methods: Lateral Search Techniques

Free association Creative stimuli words Studying big winners Use of the ridiculous Forced relationships Analogy

Concept/Project Evaluation

The Evaluation System

Cumulative Expenditures Curve

% of expenditures

Many high-tech products

Many consumer products

Time Launch

Decision

Risk/Payoff Matrix at Each Evaluation

A Stop the Project Now AA BA AB BB

B Continue to Next Evaluation

A. Product would fail if marketed B. Product would succeed if marketed

Cells AA and BB are correct decisions. Cells BA and AB are errors, but they have different cost and probability dimensions.

Planning the Evaluation System: Four Concepts

Rolling Evaluation (tentative nature of new products process)-Risk management via acceptance or mitigation) Potholes People Surrogates

Rolling Evaluation (or, "Everything is Tentative")

Project is assessed continuously (rather than a single Go/No Go decision) Financial analysis also needs to be built up continuously Not enough data early on for complex financial analyses Run risk of killing off too many good ideas early Marketing begins early in the process Key: new product participants avoid "good/bad" mindsets, avoid premature closure

Potholes
Know what the really damaging problems are for your firm and focus on them when evaluating concepts. Example: Campbell Soup focuses on: 1. Manufacturing Cost 2. Taste

People
Proposal may be hard to stop once there is buy-in on the concept. Need tough demanding hurdles, especially late in new products process. Personal risk associated with new product development. Need system that protects developers and offers reassurance (if warranted).

Surrogates
Surrogate questions give clues to the real answer.
Real Question Will they prefer it? after Will cost be competitive? Will competition leap in? Will it sell? Surrogate Question Did they keep the prototype product we gave them the concept test? Does it match our manufacturing skills? What did they do last time? Did it do well in field testing?

An A-T-A-R Model of Innovation Diffusion

Profits = Units Sold x Profit Per Unit Units Sold = Number of buying units x % aware of product x % who would try product if they can get it x % to whom product is available x % of triers who become repeat purchasers x Number of units repeaters buy in a year Profit Per Unit = Revenue per unit - cost per unit

The A-T-A-R Model: Definitions

Buying Unit: Purchase point (person or department/buying center). Aware: Has heard about the new product with some characteristic that differentiates it. Available: If the buyer wants to try the product, the effort to find it will be successful (expressed as a percentage). Trial: Usually means a purchase or consumption of the product. Repeat: The product is bought at least once more, or (for durables) recommended to others.

A-T-A-R Model Application

10 million Number of owners of Walkman-like CD players x 40% Percent awareness after one year x 20% Percent of "aware" owners who will try product x 70% Percent availability at electronics retailers x 20% Percent of triers who will buy a second unit x $50 Price per unit minus trade margins and discounts ($100) minus unit cost at the intended volume($50)= $5,600,000 Profits

Getting the Estimates for A-T-A-R Model

Item Market Units Awareness Trial Availability Repeat Consumption Price/Unit Cost/Unit Market Research XX Concept Test X X XX Product Use Test X X X XX X X Component Testing X Market Test X X X XX X XX XX XX X X X X X

X X

xx: Best source for that item. x: Some knowledge gained.

Concept Testing

Many Ideas Are Eliminated Before Concept Testing

PIC eliminates most new product ideas even before they are developed into concepts. Ideas of the following types are excluded: Ideas requiring technologies the firm does not have. Ideas to be sold to customers about whom the firm has no close knowledge. Ideas that offer too much (or too little) innovativeness. Ideas wrong on other dimensions: not low cost, too close to certain competitors, etc.

Suggested Questions for the Initial Reaction

Market Worth: what is the attractiveness of the new product to the targeted customer population? Firm Worth: Is the new product project viewed positively by management? Does this new product project enhance the firms competencies? Competitive Insulation: Can the products advantage be maintained against competitive retaliation?

What Is a Product Concept Statement?

A statement about anticipated product features (form or technology) that will yield selected benefits relative to other products or problem solutions already available. Example: A new electric razor whose screen is so thin it can cut closer than any other electric razor on the market.

Purposes of Concept Testing

To identify very poor concepts so that they can be eliminated. To estimate (at least crudely) the sales or trial rate the product would enjoy (buying intentions, early projection of market share). To help develop the idea (e.g. make tradeoffs among attributes).

Procedure for a Concept Test

Prepare concept statement Clarify specific purposes Decide format(s) Select commercialization Determine price(s) Select respondent type(s) Select response situation Define the interview Conduct trial interviews Interview, tabulate, analyze

Mail Concept Test -- Verbal Description

Here is a tasty, sparkling beverage that quenches thirst, refreshes, and makes the mouth tingle with a delightful flavor blend of orange, mint, and lime. It helps adults (and kids too) control weight by reducing the craving for sweets and between-meal snacks. And, best of all, it contains absolutely no calories. Comes in 12-ounce cans or bottles and costs 60 cents each. 1. How different, if at all, do you think this diet soft drink would be from other available products now on the market that might be compared with it? Very different ( ) ( ) ( ) ( ) Not at all different 2. Assuming you tried the product described above and liked it, about how often do you think you would buy it? More than once a week ( ) ( ) ( ) ( ) ( ) ( ) Would never buy it

Purposes of the Full Screen

To decide whether technical resources should be devoted to the project.
Feasibility of technical accomplishment -- can we do it? Feasibility of commercial accomplishment -- do we want to do it?

To help manage the process.

Recycle and rework concepts Rank order good concepts Track appraisals of failed concepts

To encourage cross-functional communication.

Screening Alternatives
Judgment/Managerial Opinion Concept Test followed by Sales Forecast
(if only issue is whether consumers will like it)

Scoring Models

A Simple Scoring Model

Factors: Degree of Fun Number of People Affordability Capability Student's Scores: Fun People Affordability Capability Totals 4 Points Much Over 5 Easily Very Skiing 4 4 2 1 11 3 Points Some 4 to 5 Probably Good Boating 3 4 4 4 15 Values 2 Points Little 2 to 3 Maybe Some Hiking 4 2 4 3 13 1 Point None Under 2 No Little

Answer: Go boating.

Source of Scoring Factor Models

A Scoring Model for Full Screen

Note: this model only shows a few sample screening factors. Factor Score (1-5) Score Technical Accomplishment: Technical task difficulty Research skills required Rate of technological change Design superiority assurance Manufacturing equipment... Commercial Accomplishment: Market volatility Probable market share Sales force requirements Competition to be faced Degree of unmet need... Weight Weighted

The Scorers
Scoring Team:
Major Functions (marketing, technical, operations, finance) New Products Managers Staff Specialists (IT, distribution, procurement, PR, HR)

Problems with Scorers:

May be always optimistic/pessimistic May be "moody" (alternately optimistic and pessimistic) May always score neutral May be less reliable or accurate May be easily swayed by the group May be erratic

Alternatives to the Full Screen

Profile Sheet Empirical Model Expert Systems Analytic Hierarchy Process

A Profile Sheet

Empirical Screening Model

(This example is based on Project NewProd database.)

Eight Significant Factors

Product superiority Overall firm/resource compatibility Market need, growth, and size Economic advantage of product to end user Technological resource compatibility Product scope (mass vs. narrow specialty) Market competitiveness (-) Newness to the firm (-)

Why Financial Analysis for New Products is Difficult

Target users dont know. If they know they might not tell us. Poor execution of market research. Market dynamics. Uncertainties about marketing support. Biased internal attitudes. Poor accounting. Rushing products to market. Basing forecasts on history. Technology revolutions.

 Improve your existing new products process. Use the life cycle concept of financial analysis. Reduce dependence on poor forecasts.

Handling Problems in Financial Analysis

Forecast what you know. Approve situations, not numbers (recall Campbell Soup example) Commit to low-cost development and marketing. Be prepared to handle the risks. Dont use one standard format for financial analysis.

The Life Cycle of Assessment

Calculating New Products Required Rate of Return

% Return
Reqd. Rate of Return

Cost of Capital

Risk
Avg. Risk of Firm Risk on Proposed Product

Hurdle Rates on Returns and Other Measures

Product A B C Strategic Role or Purpose Combat competitive entry Establish foothold in new market Capitalize on existing markets Sales $3,000,000 $2,000,000 $1,000,000 Hurdle Rate Return on Investment 10% 17% 12% Market Share Increase 0 Points 15 Points 1 Point

Explanation: the hurdles should reflect a products purpose, or assignment. Example: we might accept a very low share increase for an item that simply capitalized on our existing market position.