NEW

PRODUCT
DEVELOPMENT
 Contents:

New Products
New Product Categories
New Product Development Process
Product Development Strategies
WHAT CAN BE A NEW PRODUCT?
 A new product that opens entirely new
market
 A product that adopts/replaces existing
product
 Significantly broadens market for existing
product
 Old product introduced in new markets
 Old product packaged in different way
 Old product marketed in different way
CATEGORIES OF NEW PRODUCT
 Innovative Products
 New Product Lines
 Addition to Product Lines (line extension)
 Improvement/Revision of existing product
 Reposition product
 Cost reduction
NEW PRODUCT DEVELOPMENT PROCESS
• REVIEW OF MARKET PERFORMANCE
• COMMERCIALIZATION
• TEST MARKETING
• PRODUCT DEVELOPMENT
• BUSINESS ANALYSIS
• CONCEPT DEVELOPMENT & TESTING
• IDEA SCREENING
• IDEA GENERATION
 PRODUCT
DEVELOPMENT
STRATEGIES
 POSITIONING STRATEGIES

• Impulse Purchase Items

• Daily Use Items

• Speciality Items

• Consumer Durables

• Industrial Products
 POSITIONING TECHNIQUES
• By Product Attributes
• By Distinct benefit to users
• By specific usage
• For a user category or application
• By product class associated
• By price/quality
• By lifestyle of users
• By reference groups
 PRODUCT DIFFERENTIATION STRATEGIES

• By product features
• By performance quality
• Exclusivity and style
• Design
• Product range and variety
• Service Quality
• Packaging