PREPARED BY:

GAGAN DEEP KAUR(52)

GURLEEN HORA (59)
 NEW PRODUCT DEVELOPMENT
INTRODUCTION
“COMPANIES FACE PROBLEM, THEY MUST
DEVELOP NEW PRODUCTS BUT THE ODD WEIGH
HEAVILY AGAINST SUCCESS”
IN ALL, TO CREATE SUCCESSFUL NEW PRODUCTS,
A COMPANY MUST UNDERSTAND ITS
CUSTOMERS, MARKETS & COMPETITORS &
DEVELOP PRODUCTS THAT DELIVER SUPERIOR
VALUE TO CUSTOMERS.
 8-STEPS
• BUSINESS ANALYSIS • PRODUCT
DEVELOPMENT

IDEA IDEA
GENERATION SCREENING

CONCEPT MRKTING
DEVELOPMENT STRATEGY
& TESTING DEVELOPMENT

• TEST MARKETING •
COMMERCIALIZATIO
N
 IDEA
STEP1 GENERA
-TION

 NPD STARTS WITH IDEA GENERATION-A SYSTEMATIC SEARCH

FOR NEW PRODUCT IDEAS.
 A COMPANY TYPICALLY GENERATES 100’S OF IDEAS,EVEN
1000’S,IN ORDER TO FIND A FEW GOOD ONES.

FOR INSTANCE,


IDEA
STEP2 SCREENIN
G

THE PURPOSE OF SUCCEEDING STAGES IS TO REDUCE THAT NUMBER.

IT HELPS SPOT GOOD IDEAS & DROP POOR ONES AS SOON AS POSSIBLE.

ONE MARKETING EXPERT PROPOSED AN R-W-W (“REAL,WIN,WORTH IT”)

NEW PRODUCT SCREENING FRAMEWORK THAT ASKS 3 QUESTIONS.
1ST IS IT REAL?
2ND CAN WE WIN?
3RD IS IT WORTH DOING?
THE COMPANY SHOULD BE ABLE TO ANSWER TO ALL 3 R-W-W QUESTIONS BEFORE DEVELOPING THE NEW PRODUCT IDEA FURTHER
 CONCEPT
STEP3 DVT &
TESTING

 AN ATTRACTIVE IDEA MUST BE DEVELOPED INTO A

PRODUCT CONCEPT.
 IT IS IMPORTANT TO DISTINGUISH BETWEEN A PRODUCT
IDEA, A PRODUCT CONCEPT & A PRODUCT IMAGE.
 MRKTING
STEP4 STRATEGY
DVT

 DESIGNING AN INITIAL MARKETING STRATEGY FOR

INTRODUCING CAR TO THE MARKET.
 THE MARKETING STRATEGY STATEMENT CONSIST OF 3
PARTS :

i. DESCRIBES THE TARGET MARKET.

ii. THE PLANNED VALUE PROPOSITION.
iii. THE SALES,MARKET SHARE & PROFIT GOALS
FOR THE 1ST FEW
YEARS.
 BUSINES
STEP5 ANALYSI
-S

 ONCE MANAGEMENT HAS DECIDED ON ITS PRODUCT

CONCEPT & MARKETING STRATEGY, IT CAN EVALUATE
THE BUSINESS ATTRACTIVENESS OF THE PROPOSAL.
 BUSINESS ANALYSIS INVOLVES A REVIEW OF THE
SALES,COSTS,& PROFIT PROJECTIONS FOR A NEW
PRODUCT TO FIND OUT WHETHER THEY SATISFY THE
COMPANY’S OBJECTIVES..,IF THEY DO,THE PRODUCT CAN
MOVE TO THE PRODUCT DEVELOPMENT STAGE.
 PRODUT
STEP6 DVT

 IF THE PRODUCT CONCEPT PASSES THE BUSINESS TEST, IT

MOVES INTO PRODUCT DEVELOPMENT.
 HERE, RESEARCH & DEVELOPMENT DEVELOPS THE
PRODUCT CONCEPT INTO A PHYSICAL PRODUCT.
 THE PRODUCT DEVELOPMENT STEP, HOWEVER, NOW
CALLS FOR A LARGE JUMP IN INVESTMENT. IT WILL
SHOW WHETHER THE PRODUCT IDEA CAN BE TURNED
INTO A WORKABLE PRODUCT.
 TEST
STEP7 MARKT
-ING

 IT GIVES THE MARKETEER EXPERIENCE WITH

MARKETING THE PRODUCT BEFORE GOING TO THE
GREAT EXPENSE OF FULL INTRODUCTION.
 COMMER
STEP8 CIALIZAT
-ION

 TEST MARKETING GIVES MANAGEMENT THE

INFORMATION NEEDED TO MAKE A FINAL DECISION
ABOUT WHETHER TO LAUNCH THE NEW PRODUCT.
 IF THE COMPANY GOES AHEAD WITH
COMMERCIALIZATION-INTRODUCING THE NEW PRODUCT
INTO THE MARKET-IT WILL FACE HIGH COSTS.