Product planning & development

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  • 1. Soma GiriDisclaimer: - Some of the images and content have been taken from different online sources and this presentationis intended only for knowledge sharing but not for any profitable reasons

2. What is Product? A product is anything that can be offered to a market thatmight satisfy a want or need It is more than physical products; includes services, places,persons, and ideas To create successful new products, the company must: understand its customers, markets and competitors develop products that deliver superior value to customers. Products go through life cycles Product planning-involves making decisions about theproduction and sale of a businesss products. 3. Why do Products fail? Doesnt match current company objectives Make room for other products Overestimating market size Poor marketing research Obsolete Lost its appeal No longer profitable Conflicts with other products in the same product line Design problems Excessive development costs Incorrectly positioned, priced, or advertised Competitive reaction 4. Product qualityPhysicalSellers characteristicsservices of goodsSellersPricereputation Colour BrandProduct Packagingwarranty Design 5. Why crawl when you can Improving and updating product lines is crucial for the run?success for any organisation.Staying still resembles a Failure for an organisation to change could result in arockdecline in sales and with competitors racing ahead. The process of NPD is crucial within an organisation. Products go through the stages of their lifecycle andwill eventually have to be replaced 6. NPD Strategy Original products Acquisition Product improvements Product modifications New brands through the firms own R&D efforts.New ProductDevelopment Quality BrandGrowthProductivity Improvement Maintenance New Products Reduce Cost Quality of Design Conformance New Packages Formulas Special Situations Packages Regulatory Manufacturing Environmental Specifications 7. New Product Development Process Idea Generation and ScreeningConcept Development and TestingMarketing Strategy Business Analysis Product DevelopmentTest MarketingCommercialization 8. Idea Generation (Opportunity Identification) Idea ScreeningInternal sourcesThis process involves shifting through theCompany employees at all levels ideas generated above and selecting oneswhich are feasible and workable toExternal sourcesdevelop.CustomersCompetitors Pursing non feasible ideas can clearly beDistributorscostly for the company.SuppliersOutsourcingConcept Development and TestingMarket Research Options (Strategy) Done by Marketing and/or Advertising Qualitative Depth Interviews Agency Conducting Focus GroupsFocus Groups ObjectivesExpert Judgment Judge whether the concept fits the Quantitative opportunity area, and constraints Pre-PrototypePost-PrototypeRefine and / or describe the product conceptWhat it is :SurveysProduct Use TestWhat benefit(s) will it deliver to the user Conceptual Tests Lab Test MarketKey information size, varieties, package, Perceptual MapsTest MarketpriceConjoint Analysis 9. Business AnalysisEvaluate the marketing plan will specialemphasis on sales , cost, profit estimates.Must pass the business test criteria forfurther developmentProduct Development Initial stages with broad design parameters Produce early prototypes Show and obtain feedback from end users Refine design Fine tune & finalise design Vary formulations on key ingredients Conduct product testing amongst end users Experimental designs offer most powerfullearning Optimise final design and packaging 10. Test Marketing Simulated Test Market Live Test MarketSimulated Test Market (STM) Similar to Concept Test but with product Provide samples to consumers who are Interested in the concept Measure both trial potential and reaction to product Reaction to product is used to forecast repeat rate Volume is forecasted on basis of both the trial forecast and the repeat forecastLive Test Market (LTM) To measure actual sales volume Controlled Behaviour Scan Conventional normal channels Track sales rate, trial, repeat Compare to goals and identify gaps Investigate and close gaps 11. Commercialisation National expansion of product Develop market rollout plan Can involve significant capital investment Brick & Mortar : Equipment Can involve distribution costs Slotting fees : Sales incentives Build product into a Platform Maintain growth and sustain competitive advantage 12. MAJOR PRODUCTS