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Target Attribute Levels
When deciding on the target attributes for a product development project you will want to consider the ideal attribute levels as required by the target market segment. You can use the market segment data table or see the Perceptual Map (from the Reports menu) for the most up-to-date information as the segment needs change.
Investment Required to Achieve Attributes
How difficult it is for the product development team to achieve a design with your target attribute levels is obviously dependent on how different the new product is to be from existing ones. To estimate the investment you will have to make to achieve these new attributes, first take your closest existing product and calculate the required change in Style/Design and Technical Specs. Then use the cost per unit change data below. For example, if our only existing product has attributes (Style 50, Tech 60) and we want to develop a Leisure bike (Style 55, Tech 10), then the investment required to achieve these attributes would be (5x$1,000)+(50x$20,000)=$1,005,000.
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Cost per unit of change in Style/Design |
$1,000 |
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Cost per unit of change in Technical Specs |
$20,000 |
Unit Prime Cost
Remember that the attribute levels you choose will have cost implications - not only in terms of how much effort must be expended to create the product design and associated production processes, but also in on-going unit prime costs.