In the past, each firm has successfully completed two R&D projects on which the brands marketed in Period 0 are based. The project name starts with the letters PO followed by the corresponding brand name. For instance, the R&D project corresponding to the existing brand MOST was called POMOST.
The Marketing department may ask the Research & Development department to develop new projects to either upgrade/downgrade existing brands or to launch new ones. Indeed, existing products may need to be improved during their lifetime to adapt to the changing needs of consumers and new products may have to be created in order to target untapped segments in existing or new markets.
Chapter VI includes detailed information on R&D strategies and processes. The overview given below will show you how you can control the marketing strategy of your company and will give you the level of details necessary to understand the other chapters of this handbook.
When requesting a new R&D project, the Marketing department must specify the name of the project, the desired characteristics for the new or improved product, and the target base cost. The Marketing department must also allocate a budget to the project. Up to ten R&D projects may be ordered each period for the two markets, five Sonite projects and five Vodite projects.