02-24-50-Imdr-why New Product Development is Required

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NEW PRODUCT DEVELOPMENT

Presented By:Aashi Gupta(02)Ishant Kataria(24)

Shreyans Shah(50)



New Product Development

NPD is a process which is designed todevelop, test and consider the viability ofproducts which are new to the market to in

order to ensure the growth or survival ofthe organization





What Is The New Product

• A product that opens up entirely a new market

• A product that adapts or replace the 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





Why Develop New Product

• To add a product portfolio

• To create star and cash cows for future

• To replace existing product

• To take advantage of new technology

• To defeat rivals

• To keep up with rivals

• To fill the gap in the market

• To bring in new customer

• To add a product portfolio

• To create star and cash cows for future

• To replace existing product

• To take advantage of new technology

• To defeat rivals

• To keep up with rivals

• To fill the gap in the market

• To bring in new customer



Types of New Product

• New to the world products-innovative products

• New product lines-to allow the firm to enter an existingproduct line

•

Improvements and revision of existing products• Repositioned product-existing products targeted at new

markets

• Cost reduction-new products that provide similar

performance at lower cost



Stages in NPD

• Idea generation

• Idea screening

•

Concept development and testing• Business analysis

• Test marketing

• Commercialization• Marketing strategy development



SAME

PRODUCT

EXTENEDE

DPRODUCT

RANGE

INCREMEN

TALCHANGE

TOTALLY

NEWPRODUCT

SAME

MARKET LOW LOW MEDIUM MEDIUMBETTERMARKET

COVERAGELOW LOW MEDIUM MEDIUM

RELATEDMARKETS MEDIUM MEDIUM MEDIUM HIGH

TOTALLYNEW

MARKETSMEDIUM MEDIUM HIGH HIGH

NPD AND RISK



New Production Introduction

Three ways to introduce new products under theauspices of existing products –

• Line Extension- using an existing brand name

on products within the same category• Brand Extension- using an existing brand name

on product in a new category but within thesame broadly defined market

• Brand stretching- using an existing name on aproduct in a different market



Ideas Generation

• R and D department

• Production department

•

Sales team• Employees

• Customers

• Competitors• Market Research



Screening Ideas

• Screening of products to spot good ideasand drop poor ones as soon as possible

• Ideas are checked for technical feasibility,

financial viability and marketability• The business analyses the product to

evaluate its demand, marketability and

profit potential• Giving ideas ratings according to

marketing production and strategic factors



Product Concept

• Product concept: a detailed version of thenew product idea stated in meaningfulconsumer item

• Turning idea into tangible product thatconsumer perceive as being valuable

• Concept testing: testing new product

concept with a group of consumers to findout if the concept have strong consumerappeal



Business Analysis

• A review of the sales, costs and profitsprojections for a new product to find outwhether these factors satisfy the firm`s

objective• Estimate potential sales, income,

breakeven point, profit and return oninvestment from new ideas

• Projecting probable costs and sales; willprofits reach the firm targets



Commercialization

• Introduction a new product into the market

• Timing is critical for success

•

Choice of skim or penetration pricing• The product has to well targeted and

position



THANK YOU

Documents

02-24-50-Imdr-why New Product Development is Required