Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
13Activity
0 of .
Results for:
No results containing your search query
P. 1
Ch-6(New Product Development)

Ch-6(New Product Development)

Ratings: (0)|Views: 141 |Likes:
Published by api-19958143

More info:

Published by: api-19958143 on Dec 03, 2009
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOC, PDF, TXT or read online from Scribd
See more
See less

03/18/2014

pdf

text

original

Chapter - 6.
New Product Development
Chapter \u2013 6
NEW PRODUCT DEVELOPMENT.
- Once a company has
\ue000
Segmented market carefully.
\ue000
Chosen its target customer group.
\ue000
Identified their needs.
\ue000
Determined desired market positioning.
Then,
\ue000
It is ready to develop / launch suitable new product.
- Marketing actively interacts with other departments (such as R & D) for product
development.
- New product development due to:
\ue000
Need to maintain sales through replacement products.
\ue000
Need to build sales.
\ue000
Customer requirement for new products (which competitor may encash on
if not attended to suitably).
- New product\u2019s can be added through:
\ue000
Acquisition:
\u2022
Company Acquisition.
\u2022
Patent Acquisition.
\u2022
License / Franchisee Acquisition.
\ue000
New Product Development:
\u2022
In House.
\u2022
Outsourced.
- New products categorized based on:
\ue000
Newness to Company.
\ue000
Newness to Market/Market place.
- New product could be:
\ue000
New-to-the-World Product :
\u2022
New product that creates essentially new market.
\u2022
Example: Sony walkman, Apple \u2013 i-pod.
\ue000
New Product Lines:
\u2022
New product that allows a company to enter an established market
for first time.
\u2022
Example: HLL entering Toothpaste segment with Close-Up.
\ue000
Addition to Existing Product Lines:
\u2022
New product that supplement a company\u2019s established product
lines (Pack sizes, Flavors).
\u2022
Example: HLL adding Pepsodent to its toothpaste segment.
\ue000
Improvements/Revisions of Existing Product Lines :
\u2022
New product gives increased performance/increased CDV &
replaces existing products.
\u2022
Example: Hero Honda, from Splendor to Splendor+.
\ue000
Repositioning :
1
Chapter - 6.
New Product Development
\u2022
Existing products targeted to new market/market segment.
\u2022
Example: Bajaj Caliber \u2013 Caliber Chrome \u2013 Hoodibaba.
\ue000
Cost Reduction:
\u2022
New product that provide similar performance at lower cost.
\u2022
Example: Cadbury\u2019s Five Star \u2013 from 5Rs pack to 2Rs pack by
using flavors instead of pure cocoa.
Stages in New Product development Process:
- To minimize risk of new product failure, new product development follows a structured
process.
- Stages in new product development are:
\ue000
Idea Generation.
\ue000
Idea Screening.
\ue000
Concept Development & Testing.
\ue000
Marketing Strategy Development.
\ue000
Business Analysis.
\ue000
Product Development.
\ue000
Market Testing.
\ue000
Commercialization.
Idea Generation:
- New product development process starts with search for ideas.
- Sources of new product ideas could be
\ue000
Customers :
\u2022

Market research could be done with recent customer/lead users (customer who make advance use of product & recognize improvement needs).

\u2022
Market research determines product improvement required.
\ue000
R & D / Employees:
\u2022
Employees could be encouraged to give new product ideas &
rewarded suitably.
\ue000
Competition :
\u2022
Through study/analysis of competitive products.
\ue000
Marketing Channel & Their Staff :
\u2022
Dealers, distributors, employees of distributors & dealers.
\ue000
Senior/Top Management :
\u2022
Product innovators could be senior management.
Idea Generation Techniques:
- Ideas may be generated using creative techniques such as
\ue000
Attribute Listing
:
\u2022
List out major attribute of a product.
\u2022
Modify each attribute in search of an improved product.
\ue000
Forced Relationship :
\u2022
Several objectives are considered in relations to one another to
create a new product.
\u2022
Example:
Fax + Telephone + Table Display.
2
Chapter - 6.
New Product Development
\ue000
Morphological Analysis:
\u2022
Identify structural dimension of a problem & examine
relationships among them.
\u2022
Example:
Moped: Motorised/Stronger/Cycle.
\u2022
Hence, convenient/economical/effortless.
\ue000
Customer Need / Problem Identification:
\u2022
Do market research on customer to determine their needs.
\u2022
Wherever customer is dissatisfied, the reason for dissatisfaction
could lead to a new product.
\u2022
Example:
Dettol used to burn, hence came Savlon.
\ue000
Brainstorming ( Technique developed by Alex Osborn):
\u2022
6-10 people discuss a specific problem.
\u2022
Asked to come up with ideas for some time.
\u2022
Guidelines could be
\ue000
No criticism/evaluation of ideas.
\ue000
Free flow of thought is encouraged.
\ue000
Quantity is encouraged.
\ue000

Combining/better/improved ideas is encouraged.
75-80 new ideas are required for a company to develop a new product.
HLL came with 84 new products.
Ranbaxy came up with 46 new product in the last year.

Idea Screening:
-
Ideas generated need to be screened for action.
- To start with, ideas are sorted into
\ue000
Promising ideas.
\ue000
Marginal ideas.
\ue000

Rejects.
- Promising ideas are evaluated by a committee.
- Surviving promising ideas are screened through a process.

- While screening, company needs to avoid:
\ue000
Drop Error:
\u2022
Company rejects a good idea.
\ue000
Go Error:
\u2022
Company allows a poor idea to move into a product development
and commercialization.
- Product failures are of three types:
\ue000
Absolute Product Failure :
\u2022
Loses money, sales do not cover variable costs.
\ue000
Partial Product Failure:
\u2022
Loses money, variable cost is covered.
\ue000
Relative Product Failure:
\u2022
Makes profit that is less than company\u2019s target rate of return.
- Objective of screening is to drop poor ideas at the earliest.
- Ideas are screened using product idea rating process.
3

Activity (13)

You've already reviewed this. Edit your review.
1 hundred reads
xone1215 liked this
Sultan Mahamod liked this
Sultan Mahamod liked this
Akash Mittal liked this
Akash Mittal liked this
Naveen Kumar liked this
prabhat2199 liked this
manica1912 liked this
masrurhaque liked this

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->