UNDERSTANDING OF THE REPORT

In business and engineering, new product development (NPD) is the term used to
describe the complete process of bringing a new product or service to market.
There are two parallel paths involved in the NPD process: one involves the idea
generation, product design, and detail engineering; the other involves market
research and marketing analysis. Companies typically see new product
development as the first stage in generating and commercializing new products
within the overall strategic process of product life cycle management used to
maintain or grow their market share.

Firms operating in must continue not only to provide improved and updated
versions but also to innovate new products in order to create a competitive
advantage. Companies also face the risk of failure in case of new product
development, if they are not careful enough while developing new products. And
this can lead to huge irrecoverable losses for the firm in the form of both monetary
losses as well as loss of image.

Thus new product development involves three choices:

 Customize a product for every market

 Offer standardized product everywhere
 Settle in the middle

Before the introduction of a product into the market it goes through several stages
of development. These stages include:-

 Idea generation
 Idea screening
 Concept testing and testing and business analysis
 Product development
 Test marketing
 Commercialization

Ideas for new products can be obtained from basic research using a SWOT analysis
(Strengths, Weaknesses, Opportunities & Threats), Market and consumer trends,
company's R&D department, competitors, focus groups, employees, salespeople,
corporate spies, trade shows, or Ethnographic discovery methods (searching for
user patterns and habits) may also be used to get an insight into new product lines
or product features.

Idea Generation or Brainstorming of new product, service, or store concepts - idea

generation techniques can begin when you have done your OPPORTUNITY
ANALYSIS to support your ideas in the Idea Screening Phase.

Idea screening reduces the number of ideas to manageable few that deserve further
attention.

Concept testing is one of the crucial step as it helps the firm gather important
information, customers initial reaction towards the product, before it invests further
in product development.

After completing concept testing the next stage involves the actual product
development. A working model or a prototype is developed which reveals all the
tangible and intangible attributes of the product.

Test marketing is the stage where the product is introduced in a few select cities.
The test marketing provides insights into consumer responses and traders
acceptance level. The level of consumer’s awareness, product trial, repeat purchase
etc . indicates how well the product can be accepted in the market. On the other
hand traders acceptance level gives information on how to market and distribute
the product.

Commercialization is the process that converts ideas, research, or prototypes into

viable products that retain the desired functionality, while designed them to be
readily manufacturable at low cost and launched quickly with high quality
designed in. The ideal way to commercialize products would be to design them the
first time for the optimal manufacturability, cost, quality, time, and functionality.

ABOUT THE PRODUCT

My product is “TEMPORARY HAIR COLOUR”. It is first of its kind and
therefore will enjoy first movers advantage and monopoly in the market. This
product offers temporary colour to the hair. This can be applied and removed
according to one’s choice. It basically appeals to young generation which is very
fast and technical. They want things to happen in fraction of seconds. This hair
colour(shampoo) is fortified with natural olive oil. It also contains hydrogen
peroxide , colorant contains diaminobenzene, resorcinol and ammonia. Aqua/water
cetearyl, alcohol, sodium stannate, pentasodium pentetate, phosphoric acid,
teteasodium pysophyosphate and glycerine. Testing was done in six metros viz
Delhi, Mumbai, Bengaluru, Chennai, Kolkata, Hyderabad. People, both male and
female, often desire to change the color of their hair . Unlike permanent hair
colours, application of temporary hair colour is very less time consuming and
inexpensive.

People also often desire to be able to change the color of their hair in certain
defined regions of their head, in particular where there are regions of grey hair in
an otherwise black or dark brown head of hair.

I covered commercialization of the product. Commercialization also involves

formulating the manufacturing and supply chain strategies, devising
implementation plans, and implementing such plans.   Commercialization may be a
necessary step for commercial success for innovations coming from startup
ventures or company research efforts. The product enters the market during the
commercialization stage. In this product actually rolls out gradually and if it is
accepted it is launched nationwide. Gradual introduction of the product lowered
the risk of introduction of new product in the market. This was done so that if our
product fails in some cities we would have got chance to make desirable changes.
In this stage firm incurs huge cost for promotions and advertisements.

Advertisements in newspapers and magazines were given. To make product more

exciting and to increase the anticipation countdown was given in newspapers and
on banners. We have put up bill boards and hoardings at several public places.

This product basically caters to the upper class and upper middle class of the
society. It was also made available in sachets so that people of lower middle class
can also use it. As it is first of its kind it enjoys first movers advantage and creates
anxiety amongst the people.

Genelia D’souza is the celebrity face of the product. Several tie-ups were done
with television channels like MTV and Channel V. Canopies near the airports and
PVR’s were made so that people can try our product.
It was a very good experience working on this report whereby I got to know the
challenges involved in New product development , stages of new product
development and how to organize the product development process.

ANUJA NIJHAWAN

09BS0000360