Virtual University, Pakistan

ASSIGNMENT NO _1_

Course Code: MGT-211 Course Title: Into.to Business

Teacher’s Name: Dr. Nadeem Bhatti Total Marks: 10 Marks
Date: Aug 03, 2021 (DOS) Semester: 2nd
Student’s Name: Hammad Khalid Roll. No.: bc200418008
Department: ADP (Operation Management)

Question:
New Product Development Process.

There may be many forms of new product developing but here we will discuss 7
stages of product developing which we hope will play an important role in the success
of our product.
The seven stages are,
1. Idea Generation
2. Idea Screening
3. Concept Development & Testing
4. Market Strategy & Analysis
5. Product Development
6. Market Testing
7. Commercialization
These steps are discussed in details below respected to our small light weighted
water dispenser.

1. Idea Generation:
As we know there are already a large
number of companies producing water
dispensers but the problem is that those
dispensers are heavy weighted, costly, and
consume high electricity.

The major part of this stage should be to

give significance to brainstorming sessions
where solving customer problems is given
precedence.
This phase is not about generating foolproof ideas that are ready for implementation.
Instead, raw and unproven ideas that can be shortlisted later.

The idea we are going to generate is of a light weighted water dispenser which should
be economical and an ease to carry and light on the pocket of the owner.
 2. Idea Screening:
In this phase we need to come up with the actual image of the product. Copying the
image of mind into actual paper and forming its shape. There are many ideas for
solving the problem. At this stage we configure that one solution for our product.
Our light weight water dispenser is screened as a 3D model using light material which
may not be able to control high voltages but will be convenient for small areas where
it is needed.

This New Product Development stage revolves around choosing that one idea that has
the highest potential of success. Put all the ideas available on the table for internal
review, i.e., turn to people with industry knowledge and experience in the field.

3. Concept Developing and Testing:

Before you start with the New Product Development process, building a detailed
version of the idea and the user stories should be given priority. This value proposition
evaluation is the first step towards concept development and testing.

As soon as the Product is developed we often test it with various aspects. There are
many errors which I think is a blessing as we get more chances to improve and make
our product near to perfection.

This may be the most important stage as testing is involved. As much as testing there
will be more chances of errors and as far as errors are concerned, the chances of
improvements increases.

4. Market Strategy & Analysis:

Market strategy is the key factor to the success of a product. Looking and focusing on
the 4Ps (Product, Price, Promotion and Placement). These four aspects are which
leads to the success of a product.

As far as our product is concerned, the light weight dispenser is

i) economical to price
ii) light weighted product
iii) Ready for promotion
iv) Will be placed to its targeted audience

5. Product Development:
The Product developing stage involves in which
the product is practically define, design, test and
the process is repeated unless and until the
product is finalized and ready for the next
phase. At this stage the final product is ready
and if the results are not positive it repeated till
the product is ready to launch.

In case of water dispenser, as it was a merely

high challenge to compact everything of a
normal dispenser i.e. its weight, style size. After
moving around the circle many times it was
finalized that the product is now ready to go in the market. But the big challenges are
still coming.

6. Market Testing:
This stage is the big challenge for the product. Now this is the actual test of sales of
the product whether it is a success or a failure.

There is also a form of market testing that applies to product validation. This market
testing approach is called the In-Home Usage Test (IHUT). Here, the product
developed is provided to intended customers, who will ultimately use the product.

7. Commercialization:
Commercialization is an umbrella term
that entails varied strategies to ensure the
success of your new product. Here is what
commercialization includes:
If all the mentioned strategies fall right in
place, nothing can stop your product from
getting attention and being a product-market
fit.