Product Development Project

Prepared by : CHAN SETHEY

I. IntroductionToo many new product introductions fall far short of the developer’s expectations, visions and hopes. To minimize disappointments, the new product development process should be a disciplined exercise in which the market environment is truly and fully comprehended. Opportunities in consumer desires and needs should be identified and clearly defined. Marketing research should be employed as a tool to qualitatively and quantitatively specify the product’s role among consumers. However important is information derived from marketing research, enough data to render perfect decisions are never available. Thus, the developer should never be paralyzed by either a dearth of information or a plethora of data.

I. Introduction

• NEW products play several roles for the organization. They help maintain growth and thereby protect the interests of investors, employees, suppliers of the organization. New products help keep the firm competitive in a changing Market. The consequences of product development have a direct impact on competitiveness. Finally, The academic and the business periodical literature are replete with detailed listings and explanations of both why new products fail and what factors are related to success. There is no shortage of guidance available to those interested in achieving the revenue growth, profit growth, and reputation for innovation and leadership associated with successful new product launches.

I. IntroductionCooper (1996) reported the results of various studies which concluded that the most important discriminators between new product winners and losers were, in rank order:

(1) Understanding of user’s needs (2) Attention to marketing and launch publicity (3) Efficiency of development (4) Effective use of outside technology and

external scientific communication

II. Product Development ProjectThe conditions might efforts to accelerate a product development project also lead to increased product quality and/or decreased product manufacturing costs as following:1. New Product Strategy DevelopmentOnly a few ideas are good enough to reach commercialization. Ideas can be generated by chance, or by systematic approach. Need a purposeful, focused effort to identify new ways to serve a market. New opportunities appear from the changes in the environment.

II. Product Development Project2. Idea Generation

Marketing oriented sources--identify opportunities based on consumer needs

Laboratory oriented sources--identify opportunities based on pure research or applied research.

Analyzing existing products, reading trade publications.

II. Product Development Project3. Product Screening and Evaluation• New product check list, list new product attributes considered most important and compare each with these attributes. Check list is standardized and allows ideas to be compared.• General characteristics, Marketing Characteristics and Production Characteristics.• Ideas with the greatest potential are selected for further research.• Do they match the organizations goals (DuPont and ICI have many patents that they have not exploited for this very reason.)• Look at companies ability to produce and market the product.• Need to look at the nature and wants of the buyers and possible environmental changes.

II. Product Development Project Concept Testing• Sample of potential buyers is presented with the product idea through a written or oral description to determine the attitudes and initial buying intentions.• This is done before investing considerable sums of money and resources in Research and Development.• Can better understand product attributes and the benefits customers feel are most important.• Would they buy the product?• Would they replace your current brand with the new product?• Would they product meet real needs?

II. Product Development Project4. Business Analysis• Analyze potential contribution to sales, costs and profits.• Does the product fit into the current product mix?• What kind of environmental and competitive changes can be anticipated?• How will these changes effect sales etc.?• Are the internal resources adequate?• Cost and time line of new facilities etc.?• Is financing available?• If you can produce the new product at a low enough cost so as to be able to make a profit.

II. Product Development Project5. Product Development

• Develop a working and product model, lab test etc.

• Attributes that consumers have identified that they want must be communicated through the design of the product.

II. Product Development Project6. Test Marketing

Can observe actual consumer behavior.

Limited introduction in geographical areas chosen to represent intended market.

Aim is to determine the reaction of probable buyers.

It is the sample launch of the Marketing Mix.

Determine to go ahead, modify product, modify marketing plan or drop the product.

Marketing activities and strategies

II. Product Development Project7. Commercialization

Corresponds to introduction stage of the Product Life Cycle.

Plans for full-scale marketing and manufacturing must be refined and settled.

Need to analyze the results of the test market to determine any changes in the marketing mix.

Need to make decisions regarding warranties etc (reduces consumers risk). Warranties can offer a competitive advantage.

III. Buyers' Product Adoption Process Awareness : Buyers become aware of the product Interest : Buyers seek information and is receptive to learning about product Evaluation : Buyers consider product benefits and determines whether to try it Trial : Buyers examine, test or try the product to determine usefulness relative to needs Adoption : Buyers purchase the product and can be expected to use it when the need for the general type of product arises.

IV. Diffusion Process• Innovators : Techno-savvies first customers to buy a product, 2.5% of Consumers• Early Adopters : Tend to be opinion leaders. Adopt new products but use discretion, 13.5%• Early Majority : 34% of consumers, first part of the mass market to buy the product• Late Majority : Less cosmopolitan and responsive to change, 34%• Laggards : Price conscious, suspicious of change, 16%, do not adopt until the product has reached maturity.

V. ConclusionIn a competitive industry, businesses need to use all the resources they have, including skills and knowledge. Continuous improvement at Corus provides a process in which everybody can play a part in moving the business forward. Working in teams enables employees to share their ideas and expertise.Using the expertise of staff helps the business to develop. It also empowers individuals to take on responsibility and provides them with increased job satisfaction.New product development may involve risk, such as investing time, resources and money in new technologies. However, it also creates business opportunities. Continuous improvement has helped Corus to meet the Royal Navy's increasingly sophisticated requirements for high specification steel products.

V. ConclusionHowever, in meeting these needs, it has also opened up other business opportunities. By winning this contract, Corus is now able to make this higher grade steel available as part of its product portfolio. As a long-term strategy, it will help the business to outperform its competitors and increase its market share.

Reference

www.udel.edu

Thank You For Your Attention!

Good Luck!!!