NPD is a process which is design to develop, test and consider the viability of products which are new to the

market in order to ensure the growth or survival of the organization. 


To replace declining products. To take advantages of new products. To maintain/increase market share. To defeat rivals. To keep up with rivals. To maintain competitive advantage. To fill a gap in the market. To bring a new customers. 


Major innovations. New product lines. Product line extension. Product improvements. Repositioning. Cost reductions.

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R & D department Production department Sales team Employees Customers Competitors External sources Market research

Screening of products to spot good ideas and drop poor ones as soon as possible  Ideas are check for technical feasibility, financial viability and marketability  The business analysis the product to evaluate its demand, marketability and profit potential  Given ideas rating according to marketing, production and strategic factors 

1. Develop Product Ideas into Alternative Product Concepts

2. Concept Testing - Test the Product Concepts with Groups of Target Customers

3. Choose the Best One

Part One - Overall:

Target Market Planned Product Positioning Sales & Profit Goals Market Share
Part Two - Short-Term:

Product¶s Planned Price Distribution Marketing Budget
Part Three - Long-Term:

Sales & Profit Goals Marketing Mix Strategy

Business Analysis
Review of Product Sales, Costs, and Profits Projections to See if They Meet Company Objectives

If No, Eliminate Product Concept If Yes, Move to Product Development

Standard Test Market
Full marketing campaign in a small number of representative cities.

Controlled Test Market
A few stores that have agreed to carry new products for a fee.

Simulated Test Market
Test in a simulated shopping environment to a sample of consumers.

Introducing a new product into the market. Timing is critical for success. There will be heavy promotional expenditure at the launch.  Choice of skim or penetration rising.  The product has to be well targeted and positioned. 

Develop innovative products. Bring new ideas to market ahead. Integrate regulatory compliance into product lifecycle processes to reduce business risk and sell products in global markets.  Effectively manage the global manufacturing supply chain to ensure on-time, on-cost and quality product delivery. 


Neglect of market research Inaccurate market research Poor marketing after launch Poor distribution Product performance below expectation Market not ready for the products Inadequate support for the market 

Daewoo was a major South Korean conglomerate. It was founded in March 22, 1967 as Daewoo Industrial and was dismantled by the Korean government in 1999. 

The Daewoo Matiz is a city car produced by the South Korean automaker G M Daewoo marketed worldwide since 1998.  It has won the Best City car in the 1998 World's Most Beautiful Automobile competition.

The main problem was the Matiz' positioning. It was not much powerful for highways. When the car was launched it was overpriced. Suddenly brought down in prices created very bad impression on public.  It was most difficult to repair. 

Nestlé India is a subsidiary of Nestle S. A. of Switzerland, Beginning with its first investment in Moga in 1961.  The Company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships.  

Julius Maggi founded the company Maggi.  Maggi is a Nestlé brand of instant soups, stocks, bouillons, ketchups, sauces, seasonings and instant noodles.

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Maggi Noodles. Maggi Vegetable Noodles. Dal Atta Noodles. Maggi Rice Noodles Mania. Maggi Sauces. Maggi Healthy Soups. MAGGI MAGIC Cubes. Maggi Pichkoo. Maggi Cuppa Mania.  


Initially Nestle tried to position the Noodles in the platform of convenience targeting the working women. Research. 'Fast to Cook Good to Eat Distribution of free samples. Gifts on return of empty packets

NPD is a process which is design to develop, test and consider the viability of products which are new to the market in order to ensure the growth or survival of the organization.

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