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NT Pilot Summary
What Do I Get For My $6K Investment?
- packaging graphic design
- CD-ROM label graphic
- documentation cover graphic
- diskette label
- product warranty card
benefits:
- know your customer by collecting names
- merchandise complimentary NT products
- after market sales potential
- captive audience for product upgrades/sales
- back ad sheet
benefits:
- product specific
- increase product exposure
- z-fold
benefits:
- cross sell complimentary products
- increase product exposure to potential
customer
- include in hardware and software packaging
(ex; Alpha, NT OS)
Old Process New Process
TOTAL COST: $40K TOTAL COST: $6K (<85%)
- long lead time, 14 weeks - short lead time, 6
weeks (<57%)
- point product "look & feel" - consistent line "look &
feel"
- fragmented - streamlined processes
- channel ready
- cross sell products
package design/engineering: $29K package design: $1.5K
lead time: 12-14 wks lead time: 4 wks
CD-ROM graphic: $4K CD-ROM label graphic: $1K
lead time: 6 wks lead time: 4 wks
documentation cover graphic: $5K document. cover graphic: $.5K
lead time: 6 wks lead time: 4 wks
warranty card: $1K warranty card: $0K
lead time: 6 wks lead time: 0
diskette label: $1K diskette label: $0K
lead time: 2 wks lead time: 0 wks
back ad sheet: $2K
lead time: 6 wks
z-fold: $1K
Lead time: 6 wks
Additionally, when NT was first announced, there were 40 software products.
Based on those 40 products, here are some financial's:
DESIGN ENGINEERING FINANCIALS:
For 40 products utilizing strategy:
Old Model - Functional style 40 x $40,000 = $1.6M
New Model - Collaborative strategy 40 x $6,000 = $240,000
NT Pilot Cost Reduction Opportunity $1.3M
SOFTWARE MANUFACTURING FINANCIALS:
PROJECTED COST SAVINGS
- Eliminate WW material and labor costs $700K
- Reduce obsolete inventory write=offs $100K
- Three year SW product cost savings $2.4M
- Improves SW competive cost and margins
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Thank you everyone!
I appreciate all points of view, comment, concerns and support.
I am leaving this note for now. When/if I get results from it,
I'll update status.
For now, I want the note to work for me, to find me a CONTACT.
Please don't be offended if I dont' reply.. I have other projects
to attend to and this one needs to take the back burner until
I can find support.
Thanx
Lisa
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| Well, looks like I can't stop replying after all.... ;')
I discussed these comments with my Product Manager, who agrees they are
all valid points.
A few notes to make, though...
The $40k quoted for the NT packaging process is estimated for the Win NT
software products. NOT all products cost that in packaging design.
For the Win NT packaging, the $40K would of covered, if each product
went with a Product specific design:
Package engineering - spec'ing out a box for the product, part
number, engineering drawing, etc.
Graphic Designing - for the box, back ad sheet, CD graphics
and Z-fold ... also Photography, if/when needed
Documentation covers and text
diskette label is generic
This was also based on a 4 color process, for:
Films for the printer(s)
Fuji's/cromolin for the printers (an addition to utilizing these is
also a cost avoidance having
someone at a press run)
part numbers
Design time
Comprehensives for approvals (includes color mock ups)
Our responsibility is to package a product as efficiently
as possible. Meaning: the way to package EACH product as sensible
and cost efficient as possible for the product, channels, PRODUCT
bottom line cost and Digital; ensuring cost avoidances. We also
ensure brand identity, which is currently very important to Digital..
We also offer alternatives, depending on what channels a product will
take. Using software, for example... if it will be shipping with hardware,
could it be shipped in a bag with graphic design on the just the cd and
documentation, and the documentation cover will be placed on top so the
graphics are visable.. therefore avoiding a box? Will it be bought
through retail or VAR's or Catalogues? We are not doing the work just
for the sake of work..
We work with the Product Managers to meet their needs and costs, as well
as keep brand identity amongst our products. We do NOT have a
set price for any job, they are all priced per their needs and product
bottoms line cost.
The purpose for the Win NT packaging strategy, (my base note), was so that Win
NT products would not all be spending a lot of money. They could piggy back
off one design, saving time and money, show consistency but yet have the ability
to have their own "personality" via the back ad sheet. The Win NT
Product Manager was involved with the idea and pilot.
Please do NOT think that $40K is the average/minimum/maximum
price range for a product pkg design. That was the
estimate for the Win NT product. This new
process is now only $6K and Win NT software product managers LIKE it and
are using it. The Product managers who do not apply to using it, we are
working a different theme for them, with a TOUCH of the Win NT design tied in
to show a relationship.
In conclusion, before this pilot ran, there was an open house. We invited ALL
those PM's who would be interested, and it was a VERY POSITIVE feedback,
therefore encouraging us to go forth with this, which we did and everyone
seems to agree to the simplicity and low cost. The only problem which arises,
is the MARKETING issues which was the purpose of this base note.
Have a good day,
Lisa
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