NEW PRODUCT DEVELOPMENT

Presented By: Aashi Gupta(02) Ishant Kataria(24) Shreyans Shah(50)

New Product Development

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

What Is The New Product

A product that opens up entirely a new market A product that adapts or replace the existing product An old product introduced in a new market An old product packaged in a different way An old product marketed in a different way

Why Develop New Product

To add a product portfolio To add a product portfolio To create star and cash cows for future To create star and cash cows for future To replace existing product To replace existing product To take advantage of new technology To take advantage of new technology To defeat rivals To defeat rivals To keep up with rivals To keep up with rivals To fill the gap in the market To fill the gap in the market To bring in new customer To bring in new customer

Types of New Product

New to the world products-innovative products New product lines-to allow the firm to enter an existing product line Improvements and revision of existing products Repositioned product-existing products targeted at new markets Cost reduction-new products that provide similar performance at lower cost

Stages in NPD
Idea generation Idea screening Concept development and testing Business analysis Test marketing Commercialization Marketing strategy development

NPD AND RISK

SAME PRODUCT EXTENEDE D PRODUCT RANGE LOW LOW INCREMEN TAL CHANGE TOTALLY NEW PRODUCT

SAME MARKET BETTER MARKET COVERAGE RELATED MARKETS TOTALLY NEW MARKETS

LOW LOW

MEDIUM MEDIUM

MEDIUM MEDIUM HIGH

MEDIUM MEDIUM

MEDIUM MEDIUM

MEDIUM HIGH HIGH

New Production Introduction

Three ways to introduce new products under the auspices of existing products Line Extension- using an existing brand name on products within the same category Brand Extension- using an existing brand name on product in a new category but within the same broadly defined market Brand stretching- using an existing name on a product in a different market

Ideas Generation
R and D department Production department Sales team Employees Customers Competitors Market Research

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

Product Concept
Product concept: a detailed version of the new product idea stated in meaningful consumer item Turning idea into tangible product that consumer perceive as being valuable Concept testing: testing new product concept with a group of consumers to find out if the concept have strong consumer appeal

Business Analysis
A review of the sales, costs and profits projections for a new product to find out whether these factors satisfy the firm`s objective Estimate potential sales, income, breakeven point, profit and return on investment from new ideas Projecting probable costs and sales; will profits reach the firm targets

Commercialization
Introduction a new product into the market Timing is critical for success Choice of skim or penetration pricing The product has to well targeted and position

THANK YOU