STAGES OF NEW

PRODUCT
DEVELOPEMENT
By
Sweettha HG
- 18VFP034
LIST OF NEW PRODUCT
DEVELOPMENT

Banana wine
Vegan tender coconut jelly
Vegan hibiscus jelly
Groundnut chutney
powder
Cauliflower powder
 STAGES
Idea generation

Idea screening

Concept development and testing

Market strategy development

Business analysis

Product development

Market testing

Commercialization
1. Idea generation
• Initial product development is referred as the “ concept or idea
generation stage”
• This stage identifies idea, concept , problem or specific challenge that
the product development team work.
• This should meet company objectives and economic feasibility.
• The idea should be derived from both internal and external sources
Thus ,the product which I have generate are:
1. Banana wine
2. Vegan tender coconut jelly
3. Vegan kulfi
4. Vegan hibiscus jelly
5. Vegan macroon
2. Idea screening
The purpose of idea generation is to create a large pool of ideas,
this stage involves evaluating the pool and drop as many ideas as
possible from consideration.
This is done by determining and evaluating the ideas’ –
• Compatibility
• Relevance
• Assumption
• Constraints
• Feasibility
• Value
• Risks From the idea of my product.
 BANANA WINE
From my idea there is no such product has launched
in the market. Incorporating banana is what new and
healthy . People also wants to live in a healthy
lifestyle, so they will prefer and obtain benefits from
my new product. The company will also get a name
for producing a healthy beverage.
3. Concept development and testing
The concept is a presentable version of the product idea which
takes into consideration –
 Potential target audience
 Product usage
 Potential value propositions Possible product
concepts
 Concept testing
Once the concept is developed, it is tested using several methods and
processes like
• Concept-test surveys: The planned target audience is asked to
answer some product-related questions. These answers are further
analysed to test the viability of the concept.
• Prototype: A prototype is developed to understand the viability of
the product better.
Testing different concepts gives a clear picture to the management on
which concept to take forward and which to drop. I have not released
my product yet in market. So the testing of my product cannot be done.
 4. Marketing strategy development

The next step involves developing a marketing strategy for the new
product. The marketing strategy is divided into three parts:
• The detailed description of the target market’s size structure and
behavior, the planned value proposition, the product positioning
strategy, and sales size, market share and profit goals for the first few
years.
• An outline of the pricing strategy, distribution strategy, and the
required marketing budget for the first year.
• The marketing mix strategy and the planned long-term sales and
profit goals.
 5. Business analysis
Once the product and its marketing strategy is finalized, the next
step involves the evaluation of business attractiveness of this
proposed product. This step of the new product development
process involves a review and analysis of the sales, costs, and
profit projections for the new product.
- In simple terms, this step evaluates the product as a business
by reviewing
 • Costs involved in producing, marketing, and selling.
• Projected sales
• Projected profits
The analysis is done either by conducting market surveys,
consulting experts, or by analyzing the history of similar
products. Once done, this analysis is then compared with the
company’s objectives, and the product goes into the production
stage only if these factors satisfy the objectives.
 6. Product development
Up to this point, the product only existed as a word description, a
drawing, or a prototype. But once the business analysis clears the
product, the work is handed over to the research and development
department for actual product development.
It may take days, weeks, or months to develop the final product as the
product goes through a series of testing phases to validate all the
assumptions and incorporate everything that was promised during the
previous stages.
• Alpha-testing:
It is testing the product within the firm to make sure it fits the
standards set.
• Beta-testing
It involves launching an MVP or a test version in the market to
validate the product-market fit. However, it doesn’t involve testing
the final product or marketing strategy.
 7. Market testing
Once the product development is completed, the product is then
dressed up with a brand identity and released in a selected market
segment as a pilot for testing.
This step involves the company to test both the final product and its
entire marketing and branding strategy, including

• Positioning strategy
• Pricing strategy
• Communication strategy
• Promotion strategy, and
• Distribution strategy.
There are three types of test markets –
1. Standard test markets:
 These are small representative markets (for example, a single city
instead of the full state) where the firm conducts a full marketing
campaign and uses store audits, customer surveys, distributor
surveys, and other methods to analyse performance.
 The results are used to predict full-scale campaign’s performance,
discover unsolved problems, tap untapped opportunities, and fine-
tune the marketing program.
 The biggest disadvantage of standard test markets is that the
competitors get to know about the new product and its marketing
strategies before the actual launch.
2. Control test markets:
 These are artificial testing venues like panels of stores
that have agreed to carry new products for a fee.
 These artificial testing venues are less expensive than
the standard test market and provide a faster analysis (of
both the product and its competitors). Still, there’s a risk
of competition gaining access to the new product.
3. Simulated test markets:
 These are events where the firm creates a shopping
environment and analyse customer behavior with respect
to the new product and its competitors. This test market
also lets the researchers interview customers.
 8. Commercialization

Once the final decision is made and the product is decided to be

launched in the market, the new product goes into the final stage
-commercialization or introduction, and is finally produced in the
needed quantity.
This stage involves the highest costs as
- Manufacturing units are leased or purchased
- Advertising and communication campaigns are executed
- Sales promotion and other marketing efforts are executed to
develop an initial demand
• Several important decisions are taken during the
commercialization stage like –
- Introduction timing: The best time to launch the product.
- Introduction place: The decision about the place. Should it
be launched in a single market or should it be launched
simultaneously in multiple markets?
- Future strategies: What should be the strategies once the
product is launched in the market.
Thank you !!