The Strategy for Product Improvement

CHOI, JUNG 500 (Dept. of Business Administration, Graduate School of Business, Administration, Yonsei University)

The purpose of this research is to design an optimal product using conjoint alalysis which is one of new Product development techinques. To identify the optimal product, first, we interview the product manager and consumers to find four important attributes and to develop the important levels related to each attribute. Second, we design 12 profiles using an orthogonal experimental, design and estimate the indivisual utility for each level in an attribute. Finally, we derived the optimal product using linear programing. We note that this result can be used to fore- cast the sales increase by comparing the utility of the optimal Product with that of the existing product.

Further we identified the followings:
1) when consumers have no information about product quality, the label design and the using conveniences of container are the important factor.
2) The improvement of the existing product Label design is desirable. Existing product lable is similar with Yunhan Rox which have the highest market share in the current market, however consumers have the preferences for the new label.
3) The container shape of the existing product which have no seperate handle is acceptable because the container is concave and can be used as handle.
4) The well impressed brand name which can be appealed to consumer and expressed the products image is desirable as the new brand name.