New Product Development

Strategy &
Product Development Process
ZULFICAR NIAZ TUSHAR
41426076

WHICH ONE IS THE MOST INNOVATIVE

COMPANY IN THE WORLD?

GOOGLE
Source:
www.fastcompany.com/section/mostinnovative-companies-2014

WHICH ONE IS THE MOST VALUABLE

COMPANY IN THE WORLD?

APPLE
Source:
http://en.wikipedia.org/wiki/List_of_public_corpo
rations_by_market_capitalization

WHY?

Innovative product
Fresh, unique & user friendly design
Customer oriented
Compatible with trends

KEY DISCUSSION POINT -

New-Product Development

New-Product Development Strategy

New-Product Development Process

PRODUCT DEVELOPMENT PHILOSOPHY:

Consumers are the lifeblood of the business

People wants to be unique and trendy in life-style
than others
Choice and Demand of the consumers changes
with Time
A Product become obsolete within short period of
Time
Company needs to introduce new product to keep the
competition in the market

PRODUCT DEVELOPMENT
OR
NEW PRODUCT DEVELOPMENT
FARHANA RAHMAN
41426058

Defining New Product Development

The process of designing, creating and marketing
new product or services to benefit customers.
Development of original products, product
improvements, product modifications and new
brands through the firms own R&D efforts.
Involves either improving an existing product or its
presentation, or developing a new product to
target a particular market segments.

Continued
Development type is set as the preliminary
step in product or service development.
Must be completed before introducing the
product to the market

NEW-PRODUCT DEVELOPMENT
STRATEGIES

HOW OBTAIN NEW PRODUCT?

Acquisition
New product develop effort

NECESSITY OF NEW PRODUCT

Consumer "Needs and Wants" Change

Product Maturity Stage
Technological Changes
Competitors
Company Sales
All Products Experiencing Problems
Failure of Previous Products

CAUSES OF NEW PRODUCT

FAILURE

Lack of Relative Advantage

Overestimation of Market Size
Inadequate Planning
Poor Execution of Introduction
Technical Problems During
Introduction
Product Design Problem
Poor Timing of Introduction

DEMU TRAIN

Motorola

Tata nano car

Macintosh Surface

Meet a
Genuine
Consumer
Need

Make
Product
Performanc
e Measures
up

Being on
the Right
Timing

Effective
Distribution
Channels

Ensure
Strong
Price-value
Relationshi
p

Strong
Product
Economics

Proper
Positioning
And
Differentiati
on

Carefully
Targeted
Advertising

NEW-PRODUCT DEVELOPMENT PROCESS

B.M SAWKAT AKBAR

41426086

Major Stages in New-Product

Development

Sta
ge 1

Idea
Generatio
n

Sta
ge 2

Sta
ge 3

Sta
ge 4

Sta
ge 5

Sta
ge 6

Sta
ge 7

Sta
ge 8

Idea
Screening

Concept
developme
nt

Marketing
Strategy
Developm
ent

Business
Analysis

Product
Developm
ent

Test
Marketing

Commercializat
ion

Stage 1: Idea
Generation
- Idea generation is continuous, systematic search for new
product opportunities.
- Information maybe obtained from
Internal Sources
Executives
Scientists
Manufacturing

External Sources

Customers
Competitors
Distributors
Suppliers

Stage 2: Idea Screening

Idea screening is screening new- product ideas to spot good ideas and
drop poor ones.
Why drop poor ideas?
But beware of Go Errors
Drop Errors

The ideas are evaluated by Market

size

Product
price

Developm
ent cost

Manufactu
ring cost

Rate of
return

SAMINA AKTER
41427030

Stage 3: Concept Development &

Testing

Concept testing is the process of using

quantitative methods and qualitative methods to
evaluate consumer response to a product idea
prior to the introduction of a product to the
market

Company tries to find out:

Whether the consumers understand the

product idea or not?
Whether the consumers need the new product
or not?
Whether the consumers will accept the
product or not?

Stage 4: Marketing Strategy

Development
Marketing strategy development means
designing an initial marketing strategy for a new
product based on the product concept.

It consists of three parts:

For the first year
Product price, distribution and marketing budget

For the first few years

The target market, positioning, sales, share and profit goals

For long-run
Sales, profit goals and marketing mix

Stage 5: Business Analysis

Review sales, costs and profit projections.
Compare projected results to objectives.
Estimate maximum and minimum sales, company history
and market opinion.
Assess risk.
Analyze attractiveness using sales and costs.

Stage 6: Product
Development
Developing the product concept into physical product.
The R&D department will develop and test one or more
physical versions of the product concept.
Design a prototype that will satisfy and excite consumers.

B.M SAWKAT AKBAR

41426086

Stage 7: Test Marketing

The product and its proposed marketing program are tested
in realistic market setting.
The marketer experience with marketing a product before
going to the great expense of full introduction.
The entire marketing program- targeting and positioning
strategy, advertising, distribution, pricing, branding and
packing, and budget levels are tested.

There are Three types of test

market

Standard
Controlled
Simulated

Stage 8: Commercialization

Introduction of new product into the market.

Major investment in manufacturing facilities.
Launch the product.
Produce and place advertisement and promotions.
Fill the distribution pipeline by product.

CONCLUSION
New Products are important to both customers and marketers.
New Products are key source of growth.
Need Continuous development even though it fails in the
market.

THANK YOU