New Product Develompment

8/14/2019 New Product Develompment

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NEW PRODUCTNEW PRODUCT

DEVELOMPMENTDEVELOMPMENT

MADE BY:-GAURI SHANKARMADE BY:-GAURI SHANKAR


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AGENDAAGENDA

CONCEPTSCONCEPTS

CAUSESCAUSES

SOURCESSOURCESPROCESSPROCESS


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CONCEPT OF NEW PRODUCTCONCEPT OF NEW PRODUCT

NEW TO THE WORLDNEW TO THE WORLD

NEW PRODUCT LINESNEW PRODUCT LINES

ADDITIONS TO THE EXISTINGADDITIONS TO THE EXISTINGPRODUCT LINESPRODUCT LINES

IMPROVEMENTS OF REVISION TOIMPROVEMENTS OF REVISION TO

EXISTING PRODUCTSEXISTING PRODUCTSREPOSINTINGREPOSINTING

COST REDUCTIONSCOST REDUCTIONS


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CAUSES OF NEW PRODCUTCAUSES OF NEW PRODCUT

FAILURESFAILURES INADEQUATE MARKET ANAYSISINADEQUATE MARKET ANAYSIS PRODUCT DEFICIENIESPRODUCT DEFICIENIES HIGHER COSTS THAN ANTICIPATEDHIGHER COSTS THAN ANTICIPATED

POOR TIMING OF INTRODUCTION OF A NEWPOOR TIMING OF INTRODUCTION OF A NEWPRODUCTPRODUCT

COMPETITIONCOMPETITION INSUFFICIENT MAKETING EFFORTSINSUFFICIENT MAKETING EFFORTS INADEQUATE SALES FORCESINADEQUATE SALES FORCESWEAKNESS IN DISTRIBUTIONWEAKNESS IN DISTRIBUTION


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SOURCES OF NEW PRODUCTSSOURCES OF NEW PRODUCTS

INNOVATIONINNOVATION

MODIFICATION OF EXISTINGMODIFICATION OF EXISTING

PROCUSTSPROCUSTS

ACQUISTION OF PRODUCTS FROMACQUISTION OF PRODUCTS FROM

OTHER FIMS.OTHER FIMS.


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NEW PRODUCT PLANNING ANDNEW PRODUCT PLANNING AND

DEVELOPMENT PROCESSDEVELOPMENT PROCESS

IdeaGeneration

Idea

Screening

ConceptDevelopmentand Testing

MarketingStrategy

BusinessAnalysis

ProductDevelopme

Test

Marketin

Commercialization


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STAGE-I Idea GenerationSTAGE-I Idea Generation

Idea generation is a continuous,Idea generation is a continuous,

systematic search for new productsystematic search for new product

opportunities. It involves delineatingopportunities. It involves delineating

sources for new ideas and methods ofsources for new ideas and methods of

generating them. The act of searching forgenerating them. The act of searching for

new ideas is called idea generation.new ideas is called idea generation.


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Stage-II Idea ScreeningStage-II Idea Screening

Whether the product idea matches theWhether the product idea matches theexisting product of the company.existing product of the company.

The degree to which the new product canThe degree to which the new product can

cannibalize the sales of the existingcannibalize the sales of the existingproduct.product.

company's ability to produce and marketcompany's ability to produce and market

the product thus developed.the product thus developed.Buyer behavior and the probable changesBuyer behavior and the probable changes

in the environment.in the environment.


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Stage- III Concept of developmentStage- III Concept of development

and testingand testing

1. Develop Product Ideas intoAlternative

Product Concepts

2. Concept Testing - Test theProduct Concepts with Groups

of Target Customers

3. Choose the Best One


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Stage IV Marketing strategyStage IV Marketing strategy

developmentdevelopment

Part Two Describes Short-Term:

Products Planned Price

DistributionMarketing Budget

Part Three Describes Long-Term:

Sales & Profit GoalsMarketing Mix Strategy

Part One Describes Overall:

Target Market

Planned Product PositioningSales & Profit GoalsMarket Share


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Stage V Business AnalysisStage V Business Analysis

After testing the product concept, theAfter testing the product concept, the

firm makes a plan for developing,firm makes a plan for developing,

producing, and marketing the newproducing, and marketing the new

product. The requires research on theproduct. The requires research on the

market size, competitive structure andmarket size, competitive structure and

preliminary technical analysis for providingpreliminary technical analysis for providing

the basis for the design and productionthe basis for the design and productionapproach, and also the appropriate legalapproach, and also the appropriate legal

and patent search.and patent search.


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Stage VI Product DevelopmentStage VI Product Development

Identifying the target customersIdentifying the target customers

Positioning strategy of the product as against thePositioning strategy of the product as against the

existing products of the company and theexisting products of the company and the

competitors.competitors. Developing the attributes of the new product.Developing the attributes of the new product.

competitor's current activities and strategies.competitor's current activities and strategies.

Points for differentiating the product and itsPoints for differentiating the product and itsexpected competitive advantage.expected competitive advantage.


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Product's development schedule.Product's development schedule.Marketing issues related to the newMarketing issues related to the new

product.product.Financial issues related to the newFinancial issues related to the new

product.product.

Legal and regulatory issues regarding theLegal and regulatory issues regarding thenew product.new product.

Product requirements for developing theProduct requirements for developing thenew product.new product.

Core competencies that need to beCore competencies that need to beemphasized and corporate strategies withemphasized and corporate strategies withregard to the product.regard to the product.


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Stage VII Test MarketingStage VII Test Marketing

Test marketing

Decisions

How to

Apply

Results

What

information

How long

Where

when


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Stage VIII CommercializationStage VIII Commercialization

Acceptance by customers andAcceptance by customers andintermediaries.intermediaries.

The intensity of distribution.The intensity of distribution.Product capabilitiesProduct capabilitiesPromotional mixPromotional mixCompetitionCompetitionPricePriceBreak even pointBreak even point


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Time period until profitability occurs.Time period until profitability occurs.

Cost of commercialization.Cost of commercialization.


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New Product Develompment

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