NEW PRODUCT PLANNING PROCESS

Situation
Analysis

MIS Identificati
on of
opportunit
Monitor
y
&
Mktg control
Co. . New
Obj. Obj product
obje

New
product
NPP
stgy.&
Design
Imp.
 NEW OPPORTUNITY IDENTIFICATION

 Changes in the mkt.size.

 New users of a product.
 New uses of a product.
 Product differentiation.
 Product – line gaps that might be filled.
 Usage gaps.
 Competitive gaps.
 NEW
NEW PRODUCT
PRODUCT OBJECTIVES
OBJECTIVES

 The market has repetitive functional need.

 The idea has a unique & distinctive benefit.
 The idea offers rapid start up to high velocity
sales & payback.
 There are environmental problems.
 Development costs are not excessive.
 The product can be derived, a part from existing
production facilities.
 The product can be standardized.
 The product can be sold by existing sales force/
channel partners.
 HOW DO YOU FIND SOLUTION TO THE PROBLEM?

 What problems do you have with task X?

(ex) Cleansing vessels
 How do you currently solve these problem of tas
(ex) Using Vim Cake
 Why do you choose Brand A/ Product to solve thi
problem ?
(ex) Vim cake - better cleansing ability
 What problems do you have with currently availa
task X products/ brands?
(ex) Vim unable to remove total burnt effects.
 CONCEPT SCREENING
Two major questions:-

 Is there a market for the proposed product?

 How large is the potential market?
A few more questions :-

 What are the important concept features, attribut

& benefits?
 Is the market segmented?
 If so, How is the market segmented?
 What are the characteristics of the target mkt.
segments?
 CONCEPT TEST
 Use full description, drawings, 3-D renderings, mock up
spec.sheet etc.
What will you Test?

 What does the customer like?

 Why?
 What does the customer dislike?
 Why?
 To what degree the customers like a feature, attribute &
benefit, or the product as a whole?
 To what degree do the customers dislike a feature, attrib
& benefit or the product as a whole?
 In the customer’s view, how does the new product
stack up against competing products?
 How much would the customer be willing to pay for
the product?
 PRODUCT DESIGN & DEVELOPMENT

 Which design features are important & should be included

the product?
 Which features are not important?
 Which features are undesirable & should be deliberately
excluded?
 How should the product be packaged & presented?
 How will the product be used?
 What kind of durability & reliability expectations do custom
have for the product?
 How much will consumers be willing to pay?
 How likely are consumers to buy the product?
 PRODUCT EVALUATION

 Does the final design meet target customer expectations

 Are they willing to pay to generate an adequate return?
 How many can be sold?
 How long will it take to roll out many?
 What will trial & repeat – purchase rates be?
 Is the product packaging right?
 NEW PRODUCT STRATEGIES

Stage: 1

1. Who is being served? (mkt.)

2. What is being served? ( need)
3. How is the product served? (product)

Stage: 2

1. Undifferentiated.
2. Focused/ Concentrated.
3. Differentiated.

Stage: 3
4 P’s
 CONTROL PROCESS FOR NEW PRODUCTS

New product
launch

Identify key
mktg.
variables

Establish Establish new

performance performance
stds. stds.

Determine areas Mktg.

for modification progm.if
necessary
EVALUATING REALLY NEW PRODUCTS

1. Is there a relative advantage?

2. Is it compatible?
- Consumers can use it in a way consistent
with past behaviour.
3. Perceived Risk…?
4. Complexity….?

5. Observability / Communicability…
- Ability to explain & see the benefits in simpl
clear terms.
6. Triability / Divisibility….
- Ability to sample the product without
commitment