New Product development presentation

PRODUCT DEVELOPMENT

In Business ,

 new product development (NPD) 

is the complete process of bringing a new product to 

market

PRODUCT DEVELOPMENT

Product development means making changes in

the size, design, color, shape, characteristics,

packing etc. of the product.

It may include addition of a new product line, addition of a new product item in a particular

product line,

elimination of existing product or product line &

changes in the size, color, design, packing, characteristics,

and prices of the product & discontinuation of the unprofitable item or product line.

PRODUCT DEVELOPMENT

NPD Process Structure

The development process is basically comprised of three main phases:Fuzzy front-end (FFE) is the set of activities employed before the formal and well defined NPD or stage-gate process.Product design starts with the development of the new product and it ends at pre-commercialization analysis stage.Fuzzy back-end or commercialization phase represent the action steps where the production and market launch occur.

REASONS FOR NEW PRODUCTS

There are at least 3 reasons for which new products should be developed.

1st, new products become necessary for meeting the changes in consumer needs.

2nd, new products become necessary for making new profits.

3rd, new products become necessary for combating environmental threats.

CATEGORIES OF NEW PRODUCTS

BOOZ, ALLEN & HARMILTON have identified 6 categories of new products, such as:

1: New to the world.2: New to the product lines.3: Additions to the existing product line.4: Improvements & revisions of existing products.5: Repositioning.6: Cost reductions.

FACTORS OF NEW PRODUCT DEVELOPMENT:

Adequate market demand.The product should fit into company’s present

market structure.The idea should fit into the company’s present

production structure.The product should fit as per the financial

resources available.Adequate distribution in depth & breadth.

NEW PRODUCT DEVELOPMENT PROCESS

NEW PRODUCT DEVELOPMENT PROCESS

Idea GenerationIdea ScreeningConcept Development and TestingBusiness AnalysisPrototyping & Market testingTechnological ImplementationCommercialization

Kentucky Fried Chicken

Kentucky Fried ChickenKentucky Fried Chicken

Mission Statement.

“To sell food in a fast, friendly environment that appeals to pride conscious, health minded consumers”

“No body’s cooking like KFC today and we are the chicken experts”

“There is no competitor for spicy chicken which is made by KFC”

KFC specialized in chicken and they say :-

Introducing New ProductKFC BROWNIES

PRICING POLICY FOR PRODUCT OF BROWNIES

Manufacturing Cost = Rs. 755% Marketing Cost =Rs. 4Total Cost = Rs. 7916% G.S.T +15% RETAIL MARGIN = Rs. 20Total retail Price = Rs. 99

INTRODUCING chocolate BROWNIES

Right now there is no dessert in KFC’s menu. Therefore we plan to introduce Chocolate Brownies for chocolate lovers. We expect to catch the interest of a regular loyal customer base with its vast selection of brownies, including not-so-traditional flavors.

We will focus on… · Providing the highest quality product. · Competitive pricing. · New ideas and flavors. · Local markets, with a special focus on coffee shop and bakery

customers. We will sell chocolate brownies coupled with exceptional customer

service in a warm atmosphere. Customers can dine-in and enjoy a warm or cold beverage to complement their brownie. Toppings will also be available when customers dine in for children, as well as the young at heart. We will also offer carry-out so customers can enjoy the treats at their own convenience.

Target Market Segment Strategy

We have specifically targeted segments of people with an appreciation for delicious desserts and a need for comfort and relaxation. KFC is a haven for the busy & successful who want to treat themselves to something soothing and a little sinful! It doesn't take a lot of time, yet is so rewarding.

These people will value the high quality product presented. Our customers will also appreciate the fun and fast service - whether celebrating a birthday or stopping in for a break between shopping.

Competition and Buying Patterns

Although we are opening up a new product, there is no doubt that we are competing with a variety of similar businesses. We need to compete against the ideas that dessert is something that only follows a special dinner and needn't be any better than a frozen cake. We want every day to be a reason to celebrate. And being able to have a vast array of options for your favorite chocolaty treat is an idea that appeals to everyone.

The comfort factor plays an important role in consumer decisions about sweets. Both the atmosphere and staff of KFC excels at warm & friendly. At the same time, the menu will reflect familiar favorites such as chocolate chunk or turtles, while there will be flavors for the more adventurous as well, such as pistachio brownies. We will use the highest quality product; sometimes paring the ordinary with the exotic, but we will always present our brownies in a stylish and ethically pleasing, but still unintimidating manner.

Marketing Strategy

Our marketing strategy will be education of the consumer and subsequent word of mouth. Customers will be reached through neighborhood advertising, special promotions, and most importantly, word of mouth.

Location also plays a crucial role in marketing and promotion. KFC is located in high-traffic retail area. This area offers many incentives to business operating there because of the high-end reputation and affluent residents nearby. Also, the area is popular amongst tourists who come to see Multan’s cantonment area, cantonment garden and lake which is not so far, which will be most beneficial.

We will target progressive and generally well-educated and affluent consumers who are interested in high quality brownies experience and are dissatisfied with the limited selection and lack of personal service found in grocery store bakeries and neighborhood cafes and coffee shops.

PromotionPromotion is the method used to inform and educate the chosen

target audience about the organization and its products. Using all the resources of promotion:

AdvertisingSales PromotionPublic RelationsEvents and ExperiencesCoupons, Discounts and Bundled packagesAn organization finds most of its meanings and survival

through promotion.At KFC, Promotion is the main tool to bring all chicken lovers

attention towards its delicious one-of-a-kind product, the Fried Chicken.