Paramjit Sharma

ProductLines

Product Planning

Paramjit Sharma

ProductLines

NewProduct

•NEW TO THE WORLD-•NEW PRODUCT LINES•ADDITIONS TO PRESENT LINES•IMPROVEMENTS & REVISIONS OF EXISTING PRODUCTS•REPOSITIONING-•Cost reduction

Paramjit Sharma

ProductLines NEW PRODUCT STRATEGY

TO DEFEND MARKETSHARE

INTRODUCE AN ADDITION TO

EXISTING PRODUCTLINE

Pizza Hut ToYorker

To Strengthen a Reputation

As an innovator

Introduce reallyA new

Product

Digital CameraBy SonyCanon

Paramjit Sharma

ProductLines

Requirement for growth

High Rate of obsolescenceFall in Demand

•35 mm camera•VHS videotapes•Electric typewriters

Paramjit Sharma

ProductLines 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

ProductLines

New-Product Development Process

Paramjit Sharma

ProductLines

10-4

New-Product Development Process

IdeaGeneration

Ideas from:Customers and usersMarketing

researchCompetitorsOther

marketsCompany

peopleIntermediaries

Screening

Strengthsand

weaknessesFit with

objectivesMarket

trendsRough ROI

estimate

IdeaEvaluation

Concepttesting

Customerreactions

Roughestimatesof cost, sales,

profits

Development

R & DDevelop

model orserviceprototype

Testmarketingmix

Revise plansas needed

ROI estimate

Commercial-ization

Finalizeproduct andmarketingplan

Startproduction

and marketing

“Roll out” in selectmarkets

Final ROIestimate

Paramjit Sharma

ProductLines 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

ProductLines Middleman’s Criteria For New Product

•Good Working Relationship with the Producers

•Compatible Distribution policies and Practices

•Satisfy Key Financial Criteria

Paramjit Sharma

ProductLines New Product- Adoption and Diffusion

Adoption

Is the set of successive decisions an individual personOr organization makes before accepting an innovation

Diffusion

Is the process by which an innovation spreads throughout a social system over time

Paramjit Sharma

ProductLines Stages In Adoption Process

•Awareness

•Interest

•Evaluation

•Trial

•Adoption

•Confirmation

Paramjit Sharma

ProductLines ADOPTERS CATEGORIES

•INNOVATORS

•EARLY ADOPTORS

•EARLY MAJORITY

•LATE MAJORITY

•LAGGARDS

Paramjit Sharma

ProductLines Characteristics Affecting Adoption Rate

•Relative Advantage

•Compatibility

•Complexity

•Trialability

•Observeability