A Presentation on

NEW PRODUCT DEVELOPMENT BY- Vivek Shukla Guide ²Col. V.J.Gomes

Objective
‡ ‡ ‡ ‡ To know about The Categories of new product New product development process Product life cycle Why Product fails

Categories of New Products New-to-the-World New Product Lines Product Line Additions Improvements in Existing Product Repositioned Products Price Reduction .

New product development process ‡ ‡ ‡ ‡ ‡ ‡ ‡ Idea Generation Idea Screening Concept development and testing Market strategy development Business Analysis Market testing Commercialization .

Idea Generation Customers Employees Distributors Competitors Sources of New-Product Ideas Internal & External Vendors R&D Consultants .

Idea Screening -Minimize the risk -Avoid two type of Ideas Drop-error.M benefit from the product -Is we have enough resources to develop product Drop Poor ideas . Go-error -Dose Product meet a need -Will customer in T.

Concept Test Conducting Survey & Focus Group Who will use the product? What primary benefit of product? When people consume? Concept Test .

Market Strategy & Development Describe the Plan for Short term Mid term Long term ‡ ‡ ‡ ‡ ‡ ‡ ‡ Market Size Final Positioning Sales Plan Media Plan Promotion Plan Product Plan Financial plan .

Business Analysis Demand Considerations in Business Analysis Stage Cost Sales Profitability .

Product Development Product idea Translate in technology & commercially feasible Product  Creation of prototype  Packaging. branding. labeling  Final government approvals if needed .

Test Marketing Test Marketing Alfa (market ) Beta(product) The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. .

Commercialization Production Inventory Buildup When Where Distribution Sales Training Trade Announcements Customer Advertising Whom How .

Product life cycle .

‡ Promoted with tag line bas 2 minute. ‡ promoted with tag line good to eat fast to cook. ‡ prices were kept normal. ‡ Maggi become the no. 1 brand in instant noodle market.Product Life Cycle of Maggi Introduction ‡ Low pricing strategy to make product Affordable. Growth stages ‡ Enjoyed 50% market share valued at 250 Crore. .

Maturity ‡ Extending product line. ‡ Prices starting Rs.5. ‡ Entrance of new players. ‡ Failure of other products like soups. ‡ Tough competition from top ramen. ‡ Introduces the variety of products like atta noodles. Decline stage ‡ New products launched but failed.chicken etc. .PLC of Maggi cont. cooking aids etc. ‡ Dal atta noodles sambar flavor. they reduced the Quantity instead of increasing price.

‡ Company come up with various Interesting ads . ‡ Company increase the distribution of the product. Reintroduction of product ‡ Change the Formation of product. Along with children and working Women company also focused on other segments also.PLC of Maggi cont.

Why New Product Fails? Overestimating market size Poor marketing research Design problems Excessive development costs Incorrectly positioned. priced. or advertised ‡ Competitive reaction ‡ ‡ ‡ ‡ ‡ .

-when the Pond s name and imagery were attached to the toothpaste.Brand failure: Pond·s toothpaste -People were not able to differentiate. this mismatch between taste and fragrance created a dissonance in the minds of consumers.The main attribute of a toothpaste is taste. . . no-one was interested.

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microphones.New to the world iPod ‡ portable media player ‡ A iPod Camera Connector ‡ A iPod USB ‡ A iPod In-Ear Headphones ‡ A Third-party accessories such as speakers. ‡ etc Digital Camera ‡ displaying images on a screen ‡ storing thousands of images on a single small memory device ‡ Image editing ‡ crop pictures ‡ etc . headsets.

New product line In new product line Pass Pass mouth freshener has available in Mint. sachets and dining table packs. . packed in trendy flip tops. Pan and Meetha Magic lines. Katha.

Product line addition ‡ Surf. Vanilla Coke . Surf Excel. Splendour Plus ‡ Coca-Cola. Surf Excel Blue ‡ Splendour. Diet Coke.

Repositioning of brand MILO CONTAINS ‡ Nonfat milk ‡ Sugar ‡ Corn syrup ‡ Calcium phosphate ‡ Magnesium ‡ Iron ‡ Vitamin B6 and vitamin B12 ADD CONTAINS ‡ fruits flavor ‡ Dry fruit powder ‡ Calorie free sugar .

jeans. etc) ‡ Apparels (like discount in jacket. Refrigerator.Price Reduction Maximum cost reduction occurred in ‡ Electronics goods(TV. etc) . mobile.

new SKUs launch. etc Position without adding any features Aluminum Package Plastic Package .Improvements in Existing Product Change in packaging .

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