DEPARTMENT OF BBA

CLASS : S Y B B A | SEMESTER : 4th

SUBJECT : PRODUCTION & OPERATION MANAGEMENT
COURSE CODE : 402 GC
CHAPTER :PRODUCTION DESIGN,PLANNING,CONTROL
TOPIC : PRODUCT DEVELOPMENT

Devashri Kale
MBA-HR, DIP
 PRODUCT DEVELOPMENT
❑ Product development typically refers to all stages involved in bringing a product from
concept or idea through market release and beyond. In other words, product development
incorporates a product’s entire journey.
❑ Product development is a specialized activity which may result in creation of new products
or modification in the production process to produce the same product.
❑ Product development is a continuous and dynamic process. In reality it is an unending
process of the manufacturing system.
❑ Development is necessary to fulfill old and new wants and to adjust with the changes in
the consumer’s demand or with an object to achieve greater production efficiency and more
profits.
 PRODUCT DEVELOPMENT
DEFINITION OF PRODUCT DEVELOPMENT
The term ‘product development’ has been defined as under:
According to William J.Stanton
“Product development encompasses the technical activities of product research,
engineering and design.”
According to Limpson and Darling
“Product development involves the adding, dropping, and modification of item specifications
in the product line for a given period of time, usually one year.”
❑ In short, devising a product to meet the changing requirements of the markets is known as
product development.
 OBJECTIVES OF PRODUCT DEVELOPMENT
There are two main objects of every product development programme
❑ IMMEDIATE OBJECTIVE of a product development programme is the work for the
immediate satisfaction of consumers wants, utilization of available resources , sales
generation and to explore for further improvement in the product design and its utility.
ULTIMATE OBJECTIVES are of permanent nature and implies generation of
consumers confidence in the product on a long term basis so as to capture the market. This
can ultimately pave way for economies of large scale production resulting in price
reduction to benefit the consumers.
 ADVANTAGES OF PRODUCT DEVELOPMENT
❑ Product development helps in producing the goods and services of best quality.
❑ It provides maximum possible satisfaction to the consumers.
❑ It helps in expanding the market for the products.
❑ It helps in achieving stability in the demand of the products
❑ It minimizes the possibilities of obsolescence(outdated) of products.
❑ It helps in facing competition successfully and effectively. It increases the goodwill of
the organization.
❑ It increases profit earning possibilities of the organization
 TECHNIQUES / TOOLS OF PRODUCT DEVELOPMENT
PRODUCT DIFFERENTIATION
❑ The technique is used by firms who render the product/ brand different from the competing

brands is termed as product differentiation.

❑ There are two broad strategy routes open to any firm to meet competition in the market
place the price route and the differentiation route.
❑ It is pinpointing a unique selling proposition(USP) of the product to make it stand out from
the crowd.
❑ Product differentiation is a process of distinguishing a product or service from others to
make it more appealing for a specific target market.
❑ Differentiation factors are price, features, customisation, performance quality ,durability,
reliability ,reparability and style of the product.
 TECHNIQUES / TOOLS OF PRODUCT DEVELOPMENT
PRODUCT POSITIONING
❑ Product positioning is the process of deciding and communicating how you want your

market to think and feel about your product.

❑ Positioning refers to the place that a brand occupies in the minds of the customers and how
it is distinguished from the products of the competitors .
❑ In order to position products or brands, companies may emphasize the distinguishing
features of their brand (what it is, what it does and how, etc.) or they may try to create a
suitable image (inexpensive or premium,luxurious,entry-level or high-end, etc.) through
the marketing mix.
 TECHNIQUES / TOOLS OF PRODUCT DEVELOPMENT
PRODUCT SIMPLIFICATION
❑ Simplification means elimination of superfluous varieties, sizes dimensions etc. Product
simplification means reducing the number of varieties.
❑ Other names for simplification are unification or variety reduction.

❑ Simplification will be advantageous to manufacturers ,suppliers & buyers.

❑ Reduce inventory ,better plant utilisation ,greater use of storage space, reduction of buying
and selling efforts are the advantages of simplification to manufacturers .
❑ Suppliers can concentrate on the sale of fewer items and thereby increase their turnover.

❑ Buyers can have better after sales services due to the use of less number of parts .

❑ Simplification is the first step towards standardization.

 TECHNIQUES / TOOLS OF PRODUCT DEVELOPMENT
PRODUCT ELIMINATION
❑ Removal of products from the product portfolio once they have reached decline stage of the

life cycle is called product elimination.

❑ Product elimination is the decision to drop a product from the portfolio based on its poor
market performance.
❑ Elimination of the product means withdrawal of product or cancellation of a product .
❑ Though management introduces a new products and reviews the existing products from
time to time and at times cancel the production, continuation of sick products will lead
company to the lack of profitability.
FACTORS FOR PRODUCT ELIMINATION
STAGES PRODUCT DEVELOPMENT
 THANK YOU
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