Presented By

Abhishek Jadeja 23
Rahool Chougaonkar 08
Darpan Gawade 24
Pravin Dhoble 31
Prashant Joshi 17
Makarand Dharkar 13
NEW PRODUCT DEVELOPMENT
New product development (Definition)

Product
 WHAT IS A NEW PRODUCT?
A product that open ups an entirely new
market
A product that adapts or replaces an existing
product
A product that significantly broadens the
market for an existing market
An old product introduced in a new market
An old product packaged in a different way
An old product marketed in a different way
WHY DEVELOP NEW PRODUCTS?

To add to product portfolio

To create stars and cash cows for the future
To replace declining products
To take advantage of new technology
To maintain/increase market share
To defeat rivals
To keep up with rivals
To maintain competitive advantage
To fill a gap in the market
 NEW PRODUCT STRATEGY

A new product strategy is a statement

identifying the role a new product is expected
to play in achieving corporate and marketing
goals.
A firm assesses
Its current product portfolio
Opportunities and threats
Stages in new product
development
Idea generation:
Idea generation
cont….
New product ideas have to come from
somewhere. But where do organizations get
their ideas for NPD? Some sources include:
• Within the company i.e. employees
• Competitors.
• Customers
• Distributors, Supplies and others
Idea generation
cont….
Concept Development and
Testing
 Marketing Strategy and Development
How will the product/service idea be
launched within the market? A proposed
marketing strategy will be written laying out
the marketing mix strategy of the product, the
segmentation, targeting and positioning
strategy sales and profits that are expected.
product development:
 Test Marketing
 Releasing a product in small but representative
market where consumer behavior can b
assessed and the marketing mix check and
adjust.
 Aims
 To forecast likely results
 To check the operational effectiveness
 To identify possible problem
 To access customer reaction.
THE IMPORTANCE OF INNOVATION AND
NEW PRODUCT DEVELOPMENT:
• A business exists to satisfy customers while
making a profit
• A company fulfills this dual purpose through
its production.
• New product planning & development are vital
to an organization’s success.
IMPORTANCE CONT…
Requirement for growth:
Sooner or later many products become
outdated. Their sales volume and market
share drop because of changing customer
desires and superior competing products,
also technology change is so faster that
existing technology does not remain effective
SIGNIFICANT INNOVATIONS
 1840s, Telegraph.
 1870s, Telephone.
 1894 First spark transmitter (radio) by Guglielmo Marconi.
 1886, Coca Cola was invented by John Pemberton
 1886, First Yellow Pages.
 1891, Vaccination against diphtheria and tetanus.
 1899, First paperclip by Johan Vaaler.
 1908, First mass production of cars
 1901, First espresso machine by Luigi Bezzera.
 1906, Vaccination against tuberculosis.
 1930, First commercial television.
 1950, First Bic Cristal Ballpoint Pen
CONCLUSION