new product development

Tuesday, May 2, 2023 1

NEW PRODUCT DEVELOPMENT

By:-Ch. Amaresh Prusty (53)Mradul Patel (48)Ravi teja (03)Shivangi Bhadouria (33)Varsha Shah (42)Shobha Rani (47)


New product is the complete process of bringing a new product to the market till its consumption and feedback from the end user of the business chain through the systematic procedure and parameter.

it can be tangible (that is, something physical you can touch) or intangible (like a service, experience, or belief).

WHAT IS A NEW PRODUCT????


New to the world. New to the product lines. Additions to the existing product line. Improvements & revisions of existing products. Repositioning. Cost reductions.

NEW PRODUCT AND CATEGORIES


DIFFERENT MEANING OF NEW PRODUCTS IN DIFFERENT PERSPECTIVE

Firms perspective: it is a product to be new if the firm is manufacturing it for the first time. Firms often consider copies of a competitor’s product as new.

Market Perspective: From the view point of a market, if the product has been introduced to the market for the first time, it is a new product.

Customer perspective: it suggests that newness of a product should be based on customers perception. If a customer group feels that a product is new, it should be treated as new.

Product perspective: From the product perspective a new product is viewed on its disruptive effects on the current consumption pattern.


NEW PRODUCT DEVELOPMENT PROCESS

IDEA GENERATION

IDEA SCREENING

CONCEPT DEVELOPMENT &

TESTING

BUSINESS ANALYSISMARKET TESTING

COMMERCIALIZATION

PRODUCT PRICING


Idea generation is continuous, systematic search for new product opportunities.

Ideas form using creativity generating techniques and generated through firm’s Internal Sources & external Sources.

IDEA GENERATIONIN

TER

NA

L S

OU

RC

ES

R & D

EMPLOYEE

EX

TER

NA

L S

OU

RC

ES

CUSTOMERS

COMPETITORS

SUPPLIERS

DISTRIBUTORS


IDEA SCREENING Filtering the ideas to pick out good ones &

dropping the poor ones.

It involves a preliminary elimination process in which a large number of product ideas are screened in terms of the organization’s objectives, policies, technical feasibility, and financial viability.


Total ideas are categories into three group. They are, promising ideas, marginal ideas and rejected ideas.

In screening ideas, the companies normally face 2 serious errors & they must try to avoid these mistakes.


CONCEPT DEVELOPMENT AND TESTING

Here, the Product Idea is converted into Product concept. Product Ideas means Possible product that

company may offer to the market.

A product concept is a detailed version of the idea stated in meaningful consumer terms.


When developing product concept following criteria should be consider.Who will use the product.What primary benefit should this product provide.When will this product be consumed.

Concept Testing means presenting the product concept to target consumers, physically or symbolically, and getting their reactions.


BUSINESS ANALYSIS

Estimate likely selling price based upon competition and customer feedback.

Estimate sales volume based upon size of market.

Estimate profitability and break-even point.


MARKET TESTING

Produce a physical prototype or mock-up. Test the product (and its packaging) in typical

usage situations. Conduct focus group customer interviews or

introduce at trade show. Make adjustments where necessary. Produce an initial run of the product and sell it in a

test market area to determine customer acceptance


MARKET TESTING


COMMERCIALIZATION

Launch the product. Advertisements and other promotions. For formally launching a New Product, the

following decisions to be taken:

When to launch (Timing).Where to launch (Geographic Strategy).To Whom (Target-Market Prospects).How to launch (Introductory Market Strategy).


PRODUCT PRICING

Impact of new product on the entire product portfolio.

Value Analysis (internal & external). Competition and alternative competitive

technologies. Differing value segments (price, value and need). Product Costs (fixed & variable). Forecast of unit volumes, revenue, and profit.


Every year millions of rupees are being spent on R&D for new products development. Such huge investment is necessary as new products are the only means of survival of a firm.

New product development provides a number of advantages to the enterprise.

To produce goods & services with best quality. It helps in providing maximum customer

satisfaction. To replace declining product and take advantage

of new technology. To maintain/increase market share with

competitive advantages. To fill gap in the market.

CONCLUSION


THANK YOU

new product development

Marketing