NPD is a process which is design to

develop, test and consider the

viability of products which are new to
the market in order to ensure the
growth or survival of the
organization.
 To replace declining products.
To take advantages of new products.
To maintain/increase market share.
To defeat rivals.
To keep up with rivals.
To maintain competitive advantage.
To fill a gap in the market.
To bring a new customers.
 Major innovations.
New product lines.
Product line extension.
Product improvements.
Repositioning.
Cost reductions.
 R & D department
Production department
Sales team
Employees
Customers
Competitors
External sources
Market research
 Screening of products to spot good
ideas and drop poor ones as soon as
possible
Ideas are check for technical feasibility,
financial viability and marketability
The business analysis the product to
evaluate its demand, marketability and
profit potential
Given ideas rating according to
marketing, production and strategic
factors
1.
1. Develop
Develop Product
Product Ideas
Ideas into
into
Alternative
Alternative
Product
Product Concepts
Concepts

2. Concept Testing - Test the

Product Concepts with Groups
of Target Customers

3.
3. Choose
Choose the
the Best
Best One
One
 Part Two - Short-Term:
Products Planned Price
Distribution
Marketing Budget

Part Three - Long-Term:

Sales & Profit Goals
Marketing Mix Strategy
 Business Analysis
Review of Product Sales, Costs,
and Profits Projections to See if
They Meet Company Objectives

If No, Eliminate
Product Concept

If Yes, Move to
Product Development
 Standard
Standard Controlled
Controlled
Test
Test Market
Market Test
Test Market
Market
Full
Fullmarketing
marketingcampaign AAfew
campaign fewstores
storesthat
thathave
have
in
in a small numberof
a small number agreed
of agreedto
tocarry
carrynew
new
representative
representativecities. products
cities. productsfor
foraafee.
fee.
Simulated
Simulated
Test
Test Market
Market
Test
Testin
inaasimulated
simulated
shopping
shoppingenvironment
environment
to
toaasample
sampleofof
consumers.
consumers.
 Introducing a new product into the
market.
Timing is critical for success.
There will be heavy promotional
expenditure at the launch.
Choice of skim or penetration rising.
The product has to be well targeted
and positioned.
 Develop innovative products.
Bring new ideas to market ahead.
Integrate regulatory compliance into
product lifecycle processes to reduce
business risk and sell products in global
markets.
Effectively manage the global
manufacturing supply chain to ensure
on-time, on-cost and quality product
delivery.
 Neglect of market research
Inaccurate market research
Poor marketing after launch
Poor distribution
Product performance below expectation
Market not ready for the products
Inadequate support for the market
 Daewoo was a major South
Korean conglomerate. It was
founded in March 22, 1967 as
Daewoo Industrial and was
dismantled by the Korean
government in 1999.
 The Daewoo Matiz is a city car
produced by the South Korean
automaker G M Daewoo marketed
worldwide since 1998.
It has won the Best City car in the
1998 World's Most Beautiful
Automobile competition.
 The main problem was the Matiz'
positioning.
It was not much powerful for
highways.
When the car was launched it was
overpriced.
Suddenly brought down in prices
created very bad impression on public.
It was most difficult to repair.
 Nestl India is a subsidiary of Nestle
S. A. of Switzerland, Beginning with
its first investment in Moga in 1961.
The Company insists on honesty,
integrity and fairness in all aspects
of its business and expects the same
in its relationships.
 Julius Maggi founded the
company Maggi.
Maggi is a Nestl brand of
instant soups, stocks, bouillons,
ketchups, sauces, seasonings
and instant noodles.
 Maggi Noodles.
Maggi Vegetable Noodles.
Dal Atta Noodles.
Maggi Rice Noodles Mania.
Maggi Sauces.
Maggi Healthy Soups.
MAGGI MAGIC Cubes.
Maggi Pichkoo.
Maggi Cuppa Mania.
 Initially Nestle tried to position the
Noodles in the platform of
convenience targeting the working
women.
Research.
'Fast to Cook Good to Eat
Distribution of free samples.
Gifts on return of empty packets
 NPD is a process which is
design to develop, test and
consider the viability of products
which are new to the market in
order to ensure the growth or
survival of the organization.