new product development modified

8/8/2019 New Product Development Modified

http://slidepdf.com/reader/full/new-product-development-modified 1/15

Presented By

Group 2 Section D

Sheenam Amitesh JasdeepPrathamesh Prateek

Arkayan Dhairyasheel

AN ASSIGNMENT ON NEWPRODUCT DEVELOPMENT

M a r k e t i n g I



Recognition of NeedRecognition of Need

Marketing department of SMW hasstudied

the domestic market of

automobiles in India and put forward the need of launching a new product in the

company’s portfolio, to enhance the

profitability to

the company.

SMW



ChallengesChallenges

Customer SatisfactionHigh Innovation ImperativeHigh Investment Costs

High market uncertainty Time to MarketMinimum Cost

High Durability and ReliabilitySelection of suitable technology

partnerBrand Image at Stake

S M W



IDEA GENERATIONIDEA GENERATION S M W



Idea ScreeningIdea Screening

Does the product meet the need? People concerned by the rising fuel price

Would it be unique and superiorproduct?

Dual fuel car, sufficient power, goodmileage, small, economical

Can it be distinctively advertised? ‘Environment friendly Car’

Will the customer accept this product? Petrol and diesel prices going up

S M W



Idea Screening

Does the company have the necessary know-how

and capital?Availability of new technologyExperience in traditional car manufacturingTechnical Tie- ups with vendors

Will the new product deliver the expected salesvolume, sales growth and profit?Rapidly growing middle class of India (large

potential market)Unique and economical product (Less

competition)Prices of petrol and diesel are increasing rapidly

S M W



Concept DevelopmentConcept Development S M W



Concept TestingConcept Testing

Communicability and believability Environment friendly and economical small car.

Need Level

Fuel efficient small family car.

Product 1 and Product III fulfil the need.Perceived value:

Environmental friendly car.

Reasonable Price

User Targets, purchase occasions, purchasing

frequency: Middle class families

Mostly festivals and shubh muhurats

Low purchasing frequency

CONCEPT 1 IS THE MOST FEAS IBLE OPT ION

S M W



Market StrategyMarket Strategy

Target Market size Target market – Middle Class Target Markets – Metro Cities, NCR Target Customers = 25 Lac (First year) Expected Sales Vol. (as per Market Research) =

100,000 (First year) Distribution

Through Authorised Dealers To provide DEMO Cars for trials Marketing Budget

10% of the expected sales revenue Advertisement through Print and Electronic Media Brand Ambassador – Aamir Khan

S M W



BUSINESS ANALYSISBUSINESS ANALYSISPARAMETERS YEARS

2010 2011 2012 2013

( .xpected Demand no of)ars

100000 110000 126500 151800

(rowth potential YoY%)

10 15 20 25

( + )ost Fixed Variable 120000 160000 200000 220000

evelopment Cost 85000 45000 10000 500

xpected Sales Revenue( .)s 250000 265000 280000 295000 romotional Expenditure

( .)s10000 9000 8000 5000

(% )rofit age .16 3 .23 8 .28 4 .30 8

S M W



Product DevelopmentProduct Development

Converting the marketing requirements into Productdeliverables

DESIGN

260BHP Engine Fuel Switch Mode (Water/Petrol)

Power Steering and Power windows Anti Skid BrakingHydraulic SuspensionBest in Class Ride ComfortLow Interior NoiseCustomized body colors and accessories

DEVELOPMENT

3D Modellling using Computer Aided Tools Virtual Simulation

S M W



S M W

aqua

* This image is for illustration.



Market TestingMarket Testing S M W



CommercializationCommercialization S M W



Thank You !Thank You !

new product development modified

Documents