NEW PRODUCT DEVELOPMENT

Abhishek Kr Singh(15003)

CONTENT

• NEW PRODUCT(IMPORTANCE,CATAGORIES)• SUCCESS & FAILURE OF NEW PRODUCT• PRODUCT DEVELOPMENT PROCESS• PACKAGING & LABELLING• DIFFUSION• MANAGEMENT PUZZLE WITH

PRIZE(HANDOUTS FOR AUDIENCE)

To study how products are created and managed, with an emphasis on the product life cycle

To detail the importance of new products and describe why new products fail

To present the stages in the new-product planning process

To analyze the growth and maturity of products, including the adoption process, the diffusion process, and extension strategies

To examine product deletion decisions and strategies

OBJECTIVES

New Product

A product new to the

world, the market, the

producer, the seller, or

some combination of

these.

New ProductNew Product

Importance of New Product Development

To assure a firm’s survival, new products may:

Offer differential advantages

Lead to sales growth or stability

Increase profits and control

Reduce risk through diversity

Improve distribution

Exploit technology

Utilize waste materials

Respond to consumer needs

Be a result of a government mandate

Categories of New Products

New-to-the-World

New Product Lines

Product Line Additions

Improvements or Revisions

Repositioned Products

Lower-Priced Products

Factors in SuccessfulNew Products

Match between product and market needs

Benefit to large number of people

Success Factors

Listening to customers

Producing the best product

Vision of future market

Strong leadership

Commitment to new-product development

Project-based team approach

Getting every aspect right

Tips for New Product Development

Disperse R & D around the globe

Keep teams small and empower employees

Flatten hierarchy

Encourage generation of crazy new ideas

Welcome mistakes

Why New Products Fail

No discernible benefits Poor match between features

and customer desires Overestimation of market size Incorrect positioning Price too high or too low Inadequate distribution Poor promotion Inferior product

Why Products Succeed and Others Fail

Global Issues in New-Product Development

Single product worldwideSingle product worldwide

Modification of productsModification of products

Multiple products in multiple countriesMultiple products in multiple countries

STAGE OF PROCESS

PURPOSE OF STAGE

MARKETING INFORMATION & METHOD USED

IDEA GENERATION

DEVELOP CONCEPTS FOR POSSIBLE

PRODUCTS

IDEAS FROM EMPLOYEES,CONSUMER

S,R&D & COMPETITORS;METHODS OF BRAIN STORMING

& FOCUS GROUP

SCREENING & EVALUATION

SEPARATE GOOD PRODUCT IDEAS FROM

BAD ONES INEXPENSIVELY

SCREENING CRITERIA,CONCEPT TESTS,& WEIGHTED POINT SYSTEMS

BUSINESS & ANALYSIS

IDENTIFY THE PRODUCT

FEATURES & ITS MARKETING STRATEGY;&

MAKE FINANCIAL PROJECTIONS

PRODUCT KEY FEATURES,ANTICIPATED MARKETING MIX STRATEGY,ECONOMI

C,LEGAL& PROFITABILITY

ANALYSIS

DEVELOPMENT

CREAT A PROTOTYPE PRODUCT & TEST IT ON LABRORATORY &

ON CONSUMERS

LABORATORY AND CONSUMER TESTS ON PROTYPE PRODUCTS

MARKET TESTING

TEST PRODUCT & MARKETING STRATEGY IN THE

MARKETPLACE ON A LIMITED SCALE

TEST MARKETS,SIMULATED TEST MARKET(STMs),VIRTUAL

REALITY MARKET TESTING

COMMERCIALIZATION

POSITION & OFFER PRODUCT IN THE MARKETPLACE

PERPETUAL MAPS,PRODUCT

POSITIONING,REGIONAL ROLLOUTS

CONCEPT DEVELOPMENT & TESTING

FINDING A GOOD CONCEPT

CUSTOMER POINT OF VIEW

MARKETING STRATEGY DEVELOPMENT

LONG TERM SALES & PROFIT GOALS

DISTRIBUTION STRATEGY &

MARKETING BUDGET

PACKAGING

The General Group of Activities in Product Planning which

involves Designing & Producing the Container or Wrapper of

Product

1. Promoting and Selling the Product

Attractive, colorful, and visually appealing packages have promotional value

A well designed package is a powerful selling device because it helps the product stand out from its competitors

FUNCTIONS OF PACKAGING

2-Defining Product Identity

Packaging is sometimes used to promote an image such as prestige, convenience, or status

Can be a crucial part of the marketing strategy, particularly in advertising

3. Providing Information

– Gives customer useful information on:• directions for using the

product• its contents• product guarantees• nutritional value• potential hazards

4. Expressing Customer Needs

When designing packages, companies analyze customer lifestyles and create packaging that meets their needs for size and convenience

Packages often come in various sizes • Family size • Single serving

5. Ensure Safe Use

Proper packaging helps to eliminate potential injuries or misuse of a product• Formerly glass containers are now

plastic• Childproof caps• Tamper resistant packages

– Blisterpacks – packages with preformed plastic molds surrounding individual items arranged on a backing

6. Protecting the Product

– Must protect during shipping, storage, and display– Prevent or discourage from tampering– Prevent shoplifting– Protect against breakage and spoilage

FUNCTIONS OF LABELS

LEGAL STIPULATION(MRP,EXPIRY DATE)

PROMOTES

DESCRIBES

GRADES

IDENTIFIES

LabelingLabel – an identification tag, wrapper,

seal, or imprinted message that is attached to a product or its package

• Main function is to inform customers about a product’s contents and give directions for use

• Protects businesses from legal liability if someone if injured while using the product

Three Kinds of Labels

1. Brand Label – gives brand name and trademark or logo

2. Descriptive Label – give information about product use, construction, care, performance, and other features

3. Grade Label – states the quality of a product

BCG MATRIX

Diffusion

The process by which the

adoption of an innovation

spreads.

DiffusionDiffusion

Categories of Adopters

Laggards

Late Majority

Early Majority

Early Adopters

Innovators

Marketing Implications of the Adoption Process

Direct fromMarketer

Direct fromMarketer

Word of MouthWord of Mouth

CommunicationAids the

Diffusion Process

CommunicationAids the

Diffusion Process

Diffusion Process for New Products

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KEY TO PUZZLE