New Prodect Development Anuj Shukla 18 Nov 2010

8/8/2019 New Prodect Development Anuj Shukla 18 Nov 2010

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BUNDELKHAND UNIVERSITYINSTITUTE OF ECONOMICS & FINANCE, JHANSI

PRESENTATION

ONNEW PRODUCT DEVELOPMENT

SUBIMITTED TO SUBIMITTED BYMr. Sandeep Agrawal ANUJ SHUKLA

(LECTURER) MFC 3RD SEM

ROLL NO. 02


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Reason for the development of the

new product

Idea

Customer taste

Competitors

Technologies

Price factor

Quality factor


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There are some reason are given below by this the

product may fail which are as follows

The idea may not be implemented in the better way.

The idea is good but the market size over estimated.

The product is not well designed. The positioning of the product is incorrect.

The advertising of the product is not effectively

The product fail due to the high development cost.

The product may fail due to the market have manycompetitors with the same feature of the product.


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Process of the new product

development

Drop No No Drop

Yes

No DropYes

Yes

No Drop

Yes

Idea generation

Idea screening( company objective strategic resources it means

drop error or go error)

Development( consider by the customer means rapid proto

typing)


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No Drop

Yes

No Drop

Yes

Marketing strategic development(cost effective affordable marketing strategic )

Business analysis(we achieved our profit goal)


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Yes

No Drop

Yes

No

Yes

Product development

(it represented the product is technical andcommercial sound )

Marketing testing( have the product to meet out our expectations)

Commercialization( here the price be determined)

Should

IdeaSend

Back

To

development


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EXPLANATION OF THENEW

PRODU

CTDEVEL

OPMENT

Idea Generation

Idea Screening

Concept Development

Concept Testing

Conjoint Analysis

Market Strategic For The New Product Development

Business Analysis

Product Development Market Testing

Commercialization


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Idea Generation

The new product development process

started with the generation of the idea

there are basically two technique of the

idea generation which are as follows

Interacting with the other

Creativity of the technique

A) Attribute listing

B) Mind making


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Idea Screening

Here the idea screening means to shortlisted thevarious idea from the generation and choose thebest idea among them. the selection of the idea

be done by the idea manager, when the ideamanager screening the idea keeping two pointwhich are as follows

Drop error:- it represented that you have to drop

the good idea. Go error:- it represented that you have choose

the wrong idea.


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Concept Development

It represented that who with your product? thus

any idea should be converted in the several

concept which are as follows.

Who will use the product?

What is primary benefits should be provided

by this product?

When will people use the product?


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Concept Testing

When the one time the concept be developed befinished then the new step for the new productdevelopment is the concept testing. It represent

that the product concept to the appropriated thetarget customer and getting there reactions. Theconcept is totally based on the physically. For thisthe firm using the prototyping technique to

designed the product to our computer on yourplastic model. On the above view we facing thecustomers potential.


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Conjoint Analysis

It represented the combination of the

Durability

Brand name

Price wise ranking

Packaging of the product


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Graph of the conjoint analysis

Brand Name

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

A B C

Price Vice Ranking

0

0.2

0.4

0.6

0.8

1

1.2

A B C


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Conjoint Analysis

Packaging of the product

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

A B C

Durability

0

0.10.2

0.3

0.4

0.5

0.6

0.7

0.8

A B C


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Final result of the conjoint analysis

Product

name

Utility for the various form Total utility

Durability Brand name Price vice

ranking

Packaging of

product

A 0.7 0.1 1.0 0.2 2.0

B 0.4 0.6 0.6 0.6 2.2

C 0.5 0.4 0.8 0.4 2.1

Total 1.6 1.1 2.4 1.2

It represented that the utility of the consumer for durability, brand name, price vice

and packaging of the product. The product B have more utility in respect of the

product A & B. thus the conjoint analysis also known as the statistical technique for

the development of the product.


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Marketing strategies for the

development of the product

Part A

Market size

Structure andbehavior

Positioning of theproduct

Market share

Profit goal

Part B

Price

Distribution

Market share


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Part C

Long run scale

Marketing mix strategies over a

long time period


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Business Analysis

There are three steps involved in the analyzingof business which are as follows.

1. One time purchased product

2. Infrequently purchased product.

Replacement sale

3. Frequently purchased product.

Repeat sale

4. Estimating cost and profit


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1) One time purchased product

sale Peak

volume

Time


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2) Infrequently Purchased

It included the purchased of the automobile andindustrial equipment etc.here the

replacement cycle associated with thechanging style, feature, performance of theproduct and sale forecasting .the next diagramrepresented the replacement cycle. Or we cansay that infrequently purchased represent thereplacement sale of the product.


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3) Frequently Purchased Product

It represent the repeat sale. it means that

purchased of the product become soon. these

product included like that FMCG( fast moving

consumer goods) .these goods purchased by

the consumer very early. the consumer

purchased these product again and again

represent the repeat sale. The above diagramrepresented the repeat sale of the product.


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Replacement sale

Sale Peak

Volume

Time

Repeat sale

Repeat sale

Time


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Estimation of the cost and the profit

The cost which are involved in the manufacturing of thenew product development determined by the researchand development department, manufacturingdepartment, and the finance department. risk analysisis the process to determined the profit earned by thecompany for the new product development. there arethree method for estimating the profit which are asfollows

1. Optimistic approach2. Pessimistic approach

3. Most likely approach


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Product Development

Quality Feasible Deployment

Functional Testing Customer Testing

Testing Testing

Rank order method Pair comparison method monadic method


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Marketing Testing

There are only two method for the marketing

testing which are as follows.

A. Sale wave research method

B. Test marketing


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A. Sale wave method

For clarifying the sale wave method for the

market testing we take the example for

explanation.

Price of the product in Rs. Various price for the same

type of the product

No. of the customer who

purchased the product

10 Bajaj discover(two vehicle ) 100

6 Bajaj discover(two vehicle) 50





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B. Test Marketing

In this method the companies selected the bigcities for the representation of the product in themarket. The management take the process forthe test marketing which are as follows.

1) How many cities to be tested?

2) Which city to be tested?

3) Length of the testing ( period of the testing)?

4) What type of the information to be generated?5) What action to be taken by the management of

the company?


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Commercilisation

If the product produce in the test market successfullya decision to be produce it on a commercial basis is tobe taken this may include the following .

Branding and the trade marketing.

Building up the manufacturing facilities.

Building up appropriate marketing mix.

Deduction the sale of the production.

Advertising and the sale promotion. Finally introducing the new product in the market

Estimating/ determining the price of the product.

Documents

New Prodect Development Anuj Shukla 18 Nov 2010