NEW PRODUCT DEVELOPMENT

PREPARED BY:GAGAN DEEP KAUR(52)

GURLEEN HORA (59)

NEW PRODUCT DEVELOPMENT

INTRODUCTION“COMPANIES FACE PROBLEM, THEY MUST DEVELOP NEW PRODUCTS BUT THE ODD WEIGH HEAVILY AGAINST SUCCESS”IN ALL, TO CREATE SUCCESSFUL NEW PRODUCTS, A COMPANY MUST UNDERSTAND ITS CUSTOMERS, MARKETS & COMPETITORS & DEVELOP PRODUCTS THAT DELIVER SUPERIOR VALUE TO CUSTOMERS.

8-STEPS

• COMMERCIALIZATION

• TEST MARKETING

• PRODUCT DEVELOPMENT

• BUSINESS ANALYSIS

IDEA GENERATION

IDEA SCREENING

MRKTING STRATEGY

DEVELOPMENT

CONCEPT DEVELOPMENT

& TESTING

NPD STARTS WITH IDEA GENERATION-A SYSTEMATIC SEARCH FOR NEW PRODUCT IDEAS.

A COMPANY TYPICALLY GENERATES 100’S OF IDEAS,EVEN 1000’S,IN ORDER TO FIND A FEW GOOD ONES.

STEP1IDEA

GENERA-TION

FOR INSTANCE,

STEP2IDEA

SCREENING

THE PURPOSE OF SUCCEEDING STAGES IS TO REDUCE THAT NUMBER.IT HELPS SPOT GOOD IDEAS & DROP POOR ONES AS SOON AS POSSIBLE.

ONE MARKETING EXPERT PROPOSED AN R-W-W (“REAL,WIN,WORTH IT”)NEW PRODUCT SCREENING FRAMEWORK THAT ASKS 3 QUESTIONS.1ST IS IT REAL?2ND CAN WE WIN?3RD IS IT WORTH DOING?THE COMPANY SHOULD BE ABLE TO ANSWER TO ALL 3 R-W-W QUESTIONS BEFORE DEVELOPING THE NEW PRODUCT IDEA FURTHER

STEP3CONCEPT

DVT & TESTING

AN ATTRACTIVE IDEA MUST BE DEVELOPED INTO A PRODUCT CONCEPT.

IT IS IMPORTANT TO DISTINGUISH BETWEEN A PRODUCT IDEA, A PRODUCT CONCEPT & A PRODUCT IMAGE.

STEP4MRKTINGSTRATEGY

DVT

DESIGNING AN INITIAL MARKETING STRATEGY FOR INTRODUCING CAR TO THE MARKET.

THE MARKETING STRATEGY STATEMENT CONSIST OF 3 PARTS :

i. DESCRIBES THE TARGET MARKET.ii. THE PLANNED VALUE PROPOSITION.iii. THE SALES,MARKET SHARE & PROFIT GOALS

FOR THE 1ST FEW YEARS.

STEP5BUSINES ANALYSI

-S

ONCE MANAGEMENT HAS DECIDED ON ITS PRODUCT CONCEPT & MARKETING STRATEGY, IT CAN EVALUATE THE BUSINESS ATTRACTIVENESS OF THE PROPOSAL.

BUSINESS ANALYSIS INVOLVES A REVIEW OF THE SALES,COSTS,& PROFIT PROJECTIONS FOR A NEW PRODUCT TO FIND OUT WHETHER THEY SATISFY THE COMPANY’S OBJECTIVES..,IF THEY DO,THE PRODUCT CAN MOVE TO THE PRODUCT DEVELOPMENT STAGE.

STEP6 PRODUTDVT

IF THE PRODUCT CONCEPT PASSES THE BUSINESS TEST, IT MOVES INTO PRODUCT DEVELOPMENT.

HERE, RESEARCH & DEVELOPMENT DEVELOPS THE PRODUCT CONCEPT INTO A PHYSICAL PRODUCT.

THE PRODUCT DEVELOPMENT STEP, HOWEVER, NOW CALLS FOR A LARGE JUMP IN INVESTMENT. IT WILL SHOW WHETHER THE PRODUCT IDEA CAN BE TURNED INTO A WORKABLE PRODUCT.

STEP7TEST

MARKT-ING

IT GIVES THE MARKETEER EXPERIENCE WITH MARKETING THE PRODUCT BEFORE GOING TO THE GREAT EXPENSE OF FULL INTRODUCTION.

STEP8COMMERCIALIZAT

-ION

TEST MARKETING GIVES MANAGEMENT THE INFORMATION NEEDED TO MAKE A FINAL DECISION ABOUT WHETHER TO LAUNCH THE NEW PRODUCT.

IF THE COMPANY GOES AHEAD WITH COMMERCIALIZATION-INTRODUCING THE NEW PRODUCT INTO THE MARKET-IT WILL FACE HIGH COSTS.