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Product

Lines

Product Planning

Paramjit Sharma
New
Product
Product
Lines

•NEW TO THE WORLD-


•NEW PRODUCT LINES
•ADDITIONS TO PRESENT LINES
•IMPROVEMENTS & REVISIONS OF
EXISTING PRODUCTS
•REPOSITIONING-
•Cost reduction
Paramjit Sharma
Product
NEW PRODUCT STRATEGY
Lines

INTRODUCE AN
TO DEFEND
ADDITION TO Pizza Hut To
MARKET EXISTING PRODUCT Yorker
SHARE LINE

To Strengthen a Introduce really Digital Camera


Reputation A new By Sony
As an innovator Product Canon

Paramjit Sharma
Product
Lines

Requirement for growth

High Rate of obsolescence


Fall in Demand
•35 mm camera
•VHS videotapes
•Electric typewriters

Paramjit Sharma
Product
Lines HIGH FAILURE RATES

Why Products Fail ?

•Do not deliver the promise


•Offer Poor Value relation to Value
•Poor Positioning
•Lack of Marketing Support

Paramjit Sharma
Product
Lines

New-Product
Development Process

Paramjit Sharma
Product
Lines
New-Product
Development Process
Idea Screening Idea Development Commercial
Generation Evaluation -ization
Ideas from: Strengths Concept R&D Finalize
Customers and testing Develop product and
and users weaknesses Customer model or marketing
Marketing Fit with reactions service plan
research objectives Rough prototype Start
Competitors Market estimates Test production
Other trends of cost, marketing and
markets Rough ROI sales, mix marketing
Company estimate profits Revise plans “Roll out” in
people as needed select
Intermediaries ROI estimate markets
Final ROI
estimate

10-4 Paramjit Sharma


Product
Lines Producer’s Criteria For New Product

ADQUATE MARKET DEMAND

SATISFY KEY FINANCIAL CRITERIA

COMPATIBLE WITH ENVIRONMENT STANDARDS

FIT INTO COMPANY’S MARKET STRUCTURE

Paramjit Sharma
Product
Lines Middleman’s Criteria For New Product

•Good Working Relationship with the Producers

•Compatible Distribution policies and Practices

•Satisfy Key Financial Criteria

Paramjit Sharma
Product
Lines New Product- Adoption and Diffusion

Adoption

Is the set of successive decisions an individual person


Or organization makes before accepting an innovation

Diffusion

Is the process by which an innovation spreads throughout


a social system over time

Paramjit Sharma
Product
Lines Stages In Adoption Process

•Awareness

•Interest

•Evaluation

•Trial

•Adoption

•Confirmation
Paramjit Sharma
Product
Lines ADOPTERS CATEGORIES

•INNOVATORS

•EARLY ADOPTORS

•EARLY MAJORITY

•LATE MAJORITY

•LAGGARDS

Paramjit Sharma
Product
Lines
Characteristics Affecting Adoption Rate

•Relative Advantage

•Compatibility

•Complexity

•Trialability

•Observeability

Paramjit Sharma