New product planning
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Transcript of New product planning
New Product Strategy
A new product strategy involves the decision making regarding –
• What product to produce
• How product should be modified
• When to discontinue
Product strategy consists of –
• Deciding how to position of a business unit for the product offeringto serve its target market.
• Selecting strategic objectives for the product offering.
• Selecting a branding strategy.
• Developing and implementing a management strategy for new andexisting product.
New Product Planning Process
• Customers need analysis
• Idea generation
• Screening and evaluation
• Business analysis
• Product development
• Marketing strategy development
• Test marketing
• Launching the product
Sources of New Product Ideas
Internal Sources
• Research & Development
• Marketing
• Employee suggestion
• Others
External Sources
• Consumers
• Competition
• Inventors & Patents
• Acquisition
• Others
Evaluation
Commercialization
Development
Testing
Strategic Option
• Establish product performance objectives
• Product review system
• Identification of problems of products
• Strategy for eliminating the problems
Strategy for Improving Product Performance
A) Product line strategy
• Add new products
• Eliminate specific products
• Cost reduction
• Product improvement
• After marketing strategy
B) Product mix strategy
• Add new product lines
• Delete product lines
• Change product lines strategy
C) Distribution strategy
• Deciding how to reach end user target market
• If use intermediaries, selecting their role that they are in thechannel network
Factors affecting distribution strategy
Distribution to the end user -
• End user consideration
• Product characteristics
• Financial & control consideration
Channel of distribution strategy
• Type of channel arrangement
• Distribution intensity (+ is exclusive distribution, ++++ is selectivedistribution & ++++++ is intensive distribution)
• Channel configuration
Distribution network
• Manufacturer
• Distributor / Whole seller
• Retailers / Dealers
• End user
Formulation price strategy
• High Active Price Strategy
• Low Active Price Strategy
• High Passive Price Strategy
• Low Passive Price Strategy
D) Price strategy
• Target market and objective
• Products strategy
• Distribution strategy
• Promotion strategy
Steps in developing sales force strategy
• Describe & analyses the people & organization to be contacted bythe sales force.
• Decide the role of sales force.
• Set their objective.
• Determine the size & deployment of sales force.
• Recruit, train & manage the sales force.
E) Promotion strategy
• Market target and marketing program positioning strategy
• Communication strategy
• Establish mix of communication components
• Advertising strategy
• Sales promotion strategy
• Sales force strategy
Product market analysis
• Market size (cost-volume relationship)
• What target market strategy is to be used?
• Price elasticity
• Importance of non-price factors
• Sales forecasts
Pricing objectives
• Pricing for results (performance)
• Market penetration
• Promotional
• Avoid government intervention