Clear Plastic Organizer Handbag Insert by Sue Musheno

New Product Development Process for the “Clear Plastic Handbag Insert"

New-Product Strategy: Women buy an array of handbags in different colors and styles to coordinate with their outfits. The problem is that busy moms or career women strapped for time can find switching bags a time-consuming chore. Some days, as I get ready to walk out the door to work, I realize all my “stuff” is in the wrong colored purse. My only option so far has been to dump the contents from one purse into another. This disorganized way of changing from purse to purse has left me rifling though messy contents of what seems like a deep, dark abyss to find a pen, keys, lip gloss, or any other number of important items that I must carry with me each day. A woman has got to have a matching handbag, but how can we simplify our lives to make changing from one purse to another an easy, simple task before running out the door. One solution is a clear handbag insert that can be easily lifted out of one purse and placed in another while keeping the contents organized in pockets.

Idea Generation: The wants and needs of customers should generate the concept for a new product. To this end, I will conduct surveys and convene focus groups. By surveying busy, career women and moms about their need for quick handbag changes each day, I will attempt to find out if a clear plastic handbag insert will meet consumer needs. Insert sizes will be discussed, as well as attractive, colored ribbon trims. Questions will be asked as to what items women typically carry in their bags to determine how many and what sized pockets would be most useful for items such as cell phones, tissue packets, checkbook, pen, etc. In addition, competition will be investigated. An online search showed that there are a few options already on the market for purse organizer/inserts. Most are large, bulky solid-colored inserts and can be quite expensive. An attempt will be made to distinguish our inserts from those already on the market. Vendors will be sought, in particular, specialty stores who feature Vera Bradley handbags, since our clear insert will complement the interior bags of that line’s brightly colored and popular designs.

Idea Screening: In this first filter of the product development I will conduct a concept test to evaluate our clear inserts for handbags. Descriptions and visual illustrations produced as a result of the idea generation stage will be presented for consumer reactions.

Business Analysis: In this second stage of the screening process I will determine preliminary figures for demand, cost, sales, and profitability. A purse insert is a fairly simple product to assemble; however, advice will be sought from consultants regarding the use of vinyl, plastic, or the newer polyethylene vinyl acetate (PEVA). Keeping costs in mind, the most environment friendly substance will be sought. Sales prices for our product will be weighed against the costs of materials needed in manufacturing and the current economic trends to determine possible range of profits. The following points will be considered in this stage:

• Demand for a vinyl handbag insert should be high since the modern on-the-go woman appreciates items that will organize and simplify her life.
• This new product is expected to do well in total sales, profits, market share and return on investment. Manufacturing costs should be low and with vendor partnerships, a high market share is expected.
• The introduction of a clear handbag insert will complement purchases of all handbags currently on the market and will not cannibalize any existing products.
• Current purse customers will benefit from an insert purchase since it will protect the interior of their new handbags, making them look newer and last longer.
• The plastic insert will create a new workforce for its production.
  New facilities will be needed where inserts could be cut from raw materials and assembled.
• Competitors might respond by lowering their prices to be competitive with our product.
• Risk of failure is possible; however, I expect our product to be a small scale success.

Development: Several prototypes will be developed in small, medium, and large sizes. Packaging, branding, and labeling will be considered to catch the eye of consumers and make the clear purse insert an attractive purchase for women of all ages.

Test Marketing: A limited production will determine initial reactions of potential customers. Cooperative retailers in large cities and suburban areas will be used as test sites to target career women and busy mothers with young children. In particular, specialty stores carrying the Vera Bradley line will be sought where our insert will complement purse design and color. These sites will be in alignment with planned distribution outlets.

Commercialization: In this final stage of new-product development, test marketing will be the deciding factor on whether or not to market the clear inserts for handbags. If the decision is made to go ahead, we will order equipment and materials, build an inventory, and ship our purse inserts to distribution points while planning our advertising campaign.