npd presentation by purnendra singh

8/8/2019 Npd Presentation by Purnendra Singh

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New product development (NDP)

NDP is a process which designed to develop,

test and consider the viability of products

which are new to the market in order to

ensure the Growth or survival of the

organisation.


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What isanew product ?

A product that opens an entirely new market

A product that adpts or replaces an existingproduct

A product that significantly broadens themarket for an existing product

An old product introduced in a new market

An old product packaged in a different way An old product marketed in a different way


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Whydevelop NDP

To add to product portfolio To create stars and cash cows for the future To replace declining product To take advantage of new technology To defeat rivals To maintain/increase market share

To keep up with rivals To maintain competitive advantage To full gap in the market


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New product can be used

Increase/defend market share by offeringmore choice or updating older products

Appeal to new segments Diversify into new markets Improve relationship with distributors Maintain the firms reputation a leading edge

company Even out peaks and troughs in demand Make better use of the organization's

resources


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Types of new product

New product the world products innovative products

New product lines to allow the firm to enter anexisting market

Addition to product line to supplement the firmsexisting product line

Improvements and revisions of existing product

Repositioned products existing products targets at

new market Cost reduction new product that provide similar

performance at lower cost


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Examples of new products

New to the world high definition TV, ipod,flat screen TV

New products lines Mars ice creams

Addition to the products line weetabixlaunched fruitibix

Product improvement & replacement new car

model


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New product planning

This is the strategic stage

The firm assesses

It current product portfolio Opportunities and threats

The firm then determines the type of

product which would best fit in with thecorporate strategy


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Charting NDP


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Stages in NDP

Idea Generation

Idea Screening

Concept development and testing Market strategy development

Business development

Test marketing Commercialization


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IdeaGeneration

Idea generation is continuous,systematic search for new product

opportunities.It involves delineatingsources of new ideas and methods for

generating them.


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Ideas for new products can be obtained from

basic research using a SWOT analysis

(Strengths, Weaknesses, Opportunities &Threats), Market and consumer trends,

company's R&D department, competitors,

focus groups, employees, salespeople,corporate spies, trade shows, or Ethnographic

discovery methods (searching for user

patterns and habits) may also be used to get

an insight into new product lines or productfeatures.


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ProductScreening

In product screening poor, unsuitableor otherwise unattractive ideas are

weeded out form further actions. The object is to eliminate unsound concepts

prior to devoting resources to them.


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Concept testing

Concept testing present the consumerwith a proposed product and measure

attitudes and intention at this earlystage of development.


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Business & financial Analysis

Business and financial analysis for theremainning product concepts is much

more detailed than product screening.


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Product Development

Product development converts a productidea into a physical form and identifies

a basic marketing strategy


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Test Marketing Test marketing involves placing a product for

sale in one or more selected areas andobserving its actual performance under theproposed marketing plan.

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


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Commercialization

Commercialization involves implementinga total marketing plan and fullproduction. Launch the product

Produce and place advertisements and other

promotions

Fill the distribution pipeline with product

Critical path analysis is most useful at this stage


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Keysuccess factors in New

Product Development Operating Philosophy

Organization Structure The Experience Effect

Management Style

npd presentation by purnendra singh

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