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Product development strategies and implementation

Contents
Introduction Product development strategies & Implementation process Practical study Swot analysis Conclusion & recommendation

Introduction
Product development strategies:
The creation of products with new or different characteristics that offer new or additional benefits to the customer. Product development may involve modification of an existing product or its presentation, or formulation of an entirely new product that satisfies a newly defined customer need or want.

Product development strategy & implementation process


Idea Generation Idea Screening Concept Development and Testing Business Analysis Market Testing Technical Implementation Commercialization Product Pricing

Practical study NESTLE Pakistan

NESTLE Pakistan
Nestle is the largest food company in the world. It is present in all five continents, has an annual turnover of 74.7 billion Swiss Frances. There are 509 factories are running in 83 countries, having 231,000 employees

MISSION &VISSION
MISSION
Dedicated to providing the best food to the people, throughout their day, throughout their lives, throughout the world

VISSION
The Nestl global vision is to be the leading Health, wellness and Nutrition Company in the World.

NESTLE CORE VALUES


The Nestl global vision is to be the leading health, wellness, and Nutrition Company in the world. Nestl Pakistan subscribes fully to this vision.

Product development strategy & implementation process in nestle


Research and development (R&D)
The new product was developed with the assistance of Nestl's research and development teams. Developed to be nutritionally better, with less salt, healthier oils and no artificial coloring or flavoring, its labeling contains clear nutrition information that chefs can pass on to customers. Two widely used products are multi-use tomato sauce and bouillons (stock). The sauce can be used instead of chopping tomatoes, being more convenient and needing less cooking time. Caterers use it mainly for pizza topping or as a pasta sauce. The bouillons have authentic taste, are quicker than preparing stock from scratch, and easier to use with less waste. Nutritional values for both products are high.

Product development strategy & implementation process at nestle


Product development
Each Nestl R&D centre internationally specializes in developing a particular product type. The bouillons, for example, were developed in Austria. The process involves: A research and development brief - the proposition that needs to be fulfilled. Creation of samples and tasting. Feedback, observations and improvements. Sign off, when everyone is happy.

Product launch
Chefs are busy people, so it is difficult to reach them. Nestl used selected trade media such as Catering Update over 6-8 weeks before the launch. Chefs also received direct mail drops and sampling opportunities at special events. Nestl also used competitions, particularly for young chefs. It sponsors the 'School Chef of the Year Award'. This is important since schools provide an estimated 30% of children's daily nutrition.

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Swot analysis
Strengths: Weakness:

Innovative and constantly growing product line. Sales force is the major resource strength in terms of physical resources of the Periodic research carried out to judge market trends. Growing Sales and profits. Major shareholder in the food industry of Pakistan.

Selective investment due to uncertain economic and political conditions. Feasibility of new products needs to be analyzed, e.g. Nestea was launched some years back but it failed because no customer demand for it existed.

Swot analysis
Opportunities The company has the option to expand its product folio by introducing more brands which its parents are famed for like breakfast cereals, Smarties Chocolates, Carnation, etc Threats Price fluctuations due to rupee devaluation as raw material are imported. The uncertainty of economic conditions poses a great threat

Conclusion & Recommendation


Conclusion
Nestl created Nestl Nutrition as an autonomous global business unit within the organization. Nestle is using its brand name to promote its products & its very popular as compared to its competitors.

Recommendation
They should increase preservation ability in their products specially in Nectar juices. They should lower their product prices for low income class. Can offer more products which Nestle is offering in other countries. Feasibility should be analyzed.