Product Development

• Product planning.
• New product development.
• Product positioning.
• Product simplification.
• Product obsolescence.
• Product elimination.
• Product diversification.
• Product portfolio management.
 VARIOUS CATEGORIES OF
PRODUCT DEVELOPMENT
• There are several categories of product
development.
• Unique product – product for which there is no
substitute.
• Improved Product – existing product significantly
modified and improved (keeping in mind the
changes in customer preferences).
• Product which is new for the company but the
same itself is not new. It is however, not in the
current product mix of the company.
 BENEFITS OF NEW
PRODUCT DEVELOPMENT
• It helps facing competition effectively and
retaining, even improving, the market share.
• It helps extending the market geographically.
• If it is in consistent with the existing
facilities of the company, it leads to fuller
utilization of those facilities. As a result,
cost comes down.
• Increased sales and lower cost lead to
improved profitability.
STEPS TO PREVENT FAILURES
OF NEW PRODUCT
• New product failure may arise in
any of the steps mentioned earlier.
Generally, they arise from:
• lack of organizational leadership
and
• lack of co-ordination.
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