NEW PRODUCT DEVELOPMENT (final project)

NEW PRODUCT DEVELOPMENT(final project)Group number:8

Group members:Hassaan Namdar (BA-306-018)Mahwish Azhar(BA-306-013)Omer Raffique (BA-306-003 )Zain Iqbal (BA-306-0 )Mian Ali Noor Shah ( BA-306-0 )

INDUSTRY ANALYSIS:Industry selected: Home appliances industryIndustry background:

1950s 1960s 1970s 2002-2008

New product development trendsPESTEL ANALYSIS:Political uncertaintyEconomic instabilityChanges in buying pattern (social factor)Rapid changes in technologyHot weather (environmental factor)Legal environment

PORTERs 5 FORCES MODEL:Entry and exit barriers: highBargaining power of customers: moderateBargaining power of suppliers: moderateThreat of substitutes: lowRivalry powers: local and foreign manufacturers

COMPANY ANALYSIS:Haier Group of ChinaHaier PakistanISO certification of Haier Pakistan: 2004SWOT analysis:

Strengths: strong brand name and innovation Weakness: Low man power Opportunities: Expansion and NPD Threats: Political and economic instabilityANALYSISNEW PRODUCT DEVELOPMENT:Opportunity identification and selectionIdea generationIdea/project evaluation and testingDevelopmentLaunchOPPORTUNITY IDENTIFICATION AND SELECTION:Market surveys: once in a monthUse of electronic mediaNew products launched by competitorsDeveloping alternatives against:

Capacity Design Extra features highlightedIDEA GENERATION:Internal techniques: Brain storming Reverse engineering Conjoint analysis Gap analysis

External technique: Customer feedback

BRAIN STORMING:A group technique to generate ideas by finding solutions of problemsSteps:

Defining the problem Creating a background memo Selection of candidates Creating a list of lead questions Conducting session and evaluating resultsBrain storming at Haier:Research and development teamMeeting roomsCriticism allowed at end of sessionEvaluation of ideas gatheredREVERSE ENGINEERINGAn approach for analyzing existing product design by physically examining and measuring existing parts

Technique applied to new products launched by competitorsElectronic components taken apart one by oneResult: Product line extension

CONJOINT ANALYSIS:Meeting dealers for knowing customer preferencesDeveloping cards on basis of customer preferencesCards ranked by branch managersGAP ANALYSIS:Selection of attributes: Important for buying decisionDeveloping map: plotting attributesIdentification of gaps: placing competitors products on mapGap analysis at Haier: Done from perspective of manager and customer (through feedback)CUSTOMER FEEDBACK:Customer Services Department: forwards complaints/feedback to R&D departmentA software records all callsCustomer feedback generates: improvements in existing productsPROJECT EVALUATION:Evaluation done by: Haier Group of ChinaEfficiency of evaluation increased by: Product life cycle management OEC management control system

PRODUCT LIFE CYCLE MANAGEMENT:Haier uses software of Siemens: Teamcenter softwareCentralization of data: Storing technical drawings and documents in digital formStandardization of documentsResults: 15% reduction in time-to-marketOEC MANAGEMENT CONTROL SYSTEM:O: OverallE: EveryoneC: Control and clearEvery employee has to accomplish target work everydayThe OEC management-control system aims at overall control of everything that every employee finishes on his or her job every day with a 1% increase over what was done the previous day"PROTOTYPE TESTINGPrototype made of: woodPrototype developed by: Haier PakistanPrototype tested by: Haier Group of ChinaDEVELOPMENT:NPD team: Engineers, technical experts and employees from R&D teamTeam structure: FunctionalDeveloping testing lotDistribution of testing lot among consumers through dealersR&D team takes feedback from consumers and checks design, voltage/usability and capacity of testing lot

LAUNCH:Launch stage: Sales and Marketing division of HaierDesk research and pricing new productConducting seminar of retailers

STORIES:Launch of summer chilled air conditionersLaunch of Haier wide body HRF 300 refrigeratorRECOMMENDATIONSIDEA GENERATION:Lead user process:Laying the foundationDetermining trendsIdentifying lead usersDeveloping break through innovations

Lead user process at Haier: Developing home appliances that work in absence of electricity (lead users: hotels)

Conducting trade off analysis by Haier PakistanConducting conjoint analysis with: Customers

Enhancing brain storming techniques: Group passing techniques Electronic brain storming Questorming

IDEA EVALUATION:Conducted by: Haier Pakistan and Haier Group of China

ATAR model:

Full screening method

Profit= potential market*Awareness*Trail*Repeat purchase*profit margin

PROTOTYPE DEVELOPMENT:Using softwares: Computer Aided Design (CAD) and Computer Aided Manufacturing (CAM)Using coordinate measuring measureDEVELOPMENT:Separate department for New Product DevelopmentVentured teams for NPDLAUNCH:Conducting pre-launch researchAdvertisements should be given on television and internet