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New Product Development Process

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New Product Development Process

Uploaded by

trleon113
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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NEW PRODUCT

DEVELOPMENT
PROCESS.

1
CONTENT
 New Product.

 New Product Development & Process.

 Conclusion.

2
New product.
 A product is anything that can be offered to a market to satisfy
needs and wants.
 A New product is any product which is perceived by the customer as
being new.

New product Categories…….


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. 3
New Product development Process
 New Product Development is the development of original products,
product improvements, product modifications, and new brands through
the firm’s own R & D efforts. This process consist of following steps.

1. Idea Generation.
2. Idea Screening.
3. Concept Development & Testing.
4. Marketing Strategy Development.
5. Business Analysis.
6. Product Development.
7. Market Testing. 4

8. Commercialization.
1.Idea Generation .
 Idea generation is continuous, systematic search for new product
opportunities.
 Ideas form using creativity generating techniques and generated
through firm’s Internal Sources & external Sources.

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2.Idea Screening.
 Filtering the ideas to pick out good ones & dropping the poor ones.

 It involves a preliminary elimination process in which a large number


of product ideas are screened in terms of the organization’s
objectives, policies, technical feasibility, and financial viability.
 Total ideas are categories into three group. They are, promising ideas,
marginal ideas and rejected ideas.

 In screening ideas, the companies normally face 2 serious errors &


they must try to avoid these mistakes.
1. DROP ERROR 2. GO ERROR 6
3. Concept Development &
Testing.
 Here, the Product Idea is converted into product concept.

 Product Ideas means Possible product that company may offer to the market.
 A product concept is a detailed version of the idea stated in meaningful
consumer terms

 When developing product concept following criteria should be consider.


Who will use the product.
What primary benefit should this product provide.
When will this product be consumed.

 Concept Testing means presenting the product concept to target7

consumers, physically or symbolically, and getting their reactions.


4.Marketing Strategy
Development.
After concept testing, for concepts that qualify a preliminary marketing
strategy is created to introduce new product into market.

8
5.Business Analysis.
 This stage will decide whether from financial as well as marketing
point of view, the project is beneficial or not.
In Business Analysis ,
 Estimate likely selling price based upon competition and customer
feedback.
 Estimate sales volume based upon size of market.
 Estimate profitability and break-even point.

 If above are match with the company's objectives, then the new
product concept moves to product development stage.

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6.Product Development.

 Up to now, the product has existed only as a word description, a


drawing.

 The company will now determine whether the product idea can
translate into a technically and commercially feasible product.

Produce a
Test the Conduct focus Make
physical prototype
product group customer adjustment

10
7. Market Testing.

 Now the product is ready to be branded with a name, logo, and


packaging and go into a preliminary market testing.

 Marketing Testing involves placing a product for sale in one or more


selected areas and observing its actual performance under the
proposed marketing plan.

 Methods for market testing:


1. Sales wave research.
2. Simulated test marketing.
3. Controlled testing marketing. 11

4. Test markets.
8.Commercialization.

 After successful market testing, new product comes to


commercialisation stage.
 During this stage, production of new product on a commercial basis is
rapidly built up and implementing a total marketing plan.

 For formally launching a New Product, the following decisions to be


taken:
A) When to launch (Timing)
B) Where to launch (Geographic Strategy)
C) To Whom (Target-Market Prospects)
D) How to launch (Introductory Market Strategy)
12
CONCLUSION.
 Every year millions of rupees are being spent on R&D for new products
development. Such huge investment is necessary as new products are the
only means of survival of a firm.
 Product development process include ; Idea Generation, Idea Screening,
Concept Development & Testing, Marketing Strategy Development, Business
Analysis, Product Development, Market Testing, Commercialization.
 New product development provides a number of advantages to the
enterprise.
 To produce goods & services with best quality.
 It helps in providing maximum customer satisfaction.
 To replace declining product and take advantage of new technology.
 To maintain/increase market share with competitive advantages.
 To fill gap in the market. 13
References

www.innovationexcellence.com
www.awinwinsolutions.com
www.wordpress.com

www.wikipedia.org

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