PRODUCT PLANNING AND DEVELOPMENT OF INDUSTRIAL PRODUCTS

Product Planning & Development in Industrial Marketing

Classification of New Products

Products which are innovative and new to the world.

Products that are new to the company but not new to the market.

Eg.Technology Infrastructure (support services,BPO) are the services helpful in boosting the sales revenue.

Revision to the existing product in the existing markets.

Eg.Polaris Software Lab launched its new banking software product called ‘Intellect Court’ to target large banking organizations worldwide. It was a fine tuned version of earlier product ‘ OrbiOne’.

Addition to the existing product lines with additional markets.

Eg.ICICI launched a new product ‘Orion Advantage’ in thr ERP for SMEs. This was for identification of market segments.

Reasons for success of NPD

Product superiority and uniqueness .Perfect market knowledge.Technical and production capability.

The NPD process

Idea Generation.Idea Screening.Concept development and Testing.Business analysis.Product development.Market testing.Commercialization.

Idea generation

Eg. A company wanted to increase the production of transformer

coil to meet the increasing demand asked one of its suppliers to develop coil winding machines to solve its problem.

CustomersCustomers

EmployeesEmployees

DistributorsDistributors

CompetitorsCompetitors

R & DR & D

ConsultantsConsultants

Creative ThinkingCreative Thinking

Sources ofSources ofNew-ProductNew-Product

IdeasIdeas

Sources ofSources ofNew-ProductNew-Product

IdeasIdeas

Idea Screening

Selection of those ideas which are likely to succeed after brainstorming.

Few questions are asked by the new product committee as in:

Is the new product in line with the company?Do we have adequate resources?Is it useful for the customer? etc

Concept development and testing

A product concept is a detailed version of the product idea that is stated in the meaningful customer terms.

Concept testing

The concept can be presented by developing 3 dimensional models (stereo lithography) or simulation.

This technique creates computer generated 3D plastic prototypes which take short time to get ready.

After experiencing these models are organizations are interviewed and asked questions.

Business Analysis

The basic objective of this is to develop an estimated projection of sales, cost and profitability.

Focuses on: (a)Detailed Investment. (b)market potential(c)sales forecast (d)cost of product development.

Product Development

It’s a process in which engineers & technicians create the desired product. the R&D develops one or more prototypes of the product concept.

The process is as follows:Design Process engineering Tooling

Manufacturing Testing Final Product

Market Testing

In Industrial marketing various methods are used for this purpose:

(a) Alpha & Beta Testing.(b) Introducing them to the trade shows.(c ) testing in distributors showroom.(d) test marketing.

Commercialization

It is commercialized when introduced to the target market.

The activities like recruiting, training of sales force, product catalogues, introductory advertisements. Etc.

The NP marketing plan should clearly define:

(a) timing of market launch.(b) marketing objectives and goals.(c) market segments.

PLM

It is about managing the product throughout its life cycle.

Modern product development system should have following:

1. the ability to create digital products.2.cross functional collaborations throughout the

value chain of the product.3.controlling and managing product information and

development throughout the life cycle.4.developing, collecting and updating digital data to

all the people involved in the product development process.

Benefits of PLM

Reduction in product development time.Minimization of process errors.Reduction in product development travel

expenses.Minimization of time to market.

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