NEW PRODUCT DEVELOPMENT PROCESS

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NEW PRODUCT DEVELOPMENT PROCESS BY : ADESH KUMAR M.TECH-1 ST YEAR (MACHINE DESIGN) JAMIA MILLIA ISLAMIA NEW DELHI

INTRODUCTION:

INTRODUCTION Product development means making a new product or changes in the size, design, color, shape, characteristics, packing etc of the existing product.

Causes of Product Failures:

Causes of Product Failures Overestimation of Market Size Product Design Problems Product Incorrectly Positioned, Priced or Advertised Costs of Product Development Competitive Actions

To create successful new products, the company must: :

To create successful new products, the company must: understand it’s customers, markets and competitors develop products that deliver superior value to customers.

New Product Development Process:

New Product Development Process Idea Generation and Screening Concept Development and Testing Marketing Strategy Business Analysis Product Development Test Marketing Commercialization

New Product Development Process Step 1. Idea Generation :

New Product Development Process Step 1. Idea Generation Systematic Search for New Product Ideas Internal sources Customers Competitors Distributors Suppliers

New Product Development Process Step 2. Idea Screening :

New Product Development Process Step 2. Idea Screening Process to spot good ideas and drop poor ones Criteria Market Size Product Price Development Time & Costs Manufacturing Costs Rate of Return

New Product Development Process Step 3. Concept Development & Testing :

New Product Development Process Step 3. Concept Development & Testing

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New Product Development Process Step 4. Marketing Strategy Development Part One - Overall: Target Market Planned Product Positioning Sales & Profit Goals Market Share Part Two - Short-Term: Product’s Planned Price Distribution Marketing Budget Part Three - Long-Term: Sales & Profit Goals Marketing Mix Strategy

New Product Development Process Step 5. Business Analysis Step 6. Product Development :

New Product Development Process Step 5. Business Analysis Step 6. Product Development

New Product Development Process Step 7. Test Marketing :

New Product Development Process Step 7. Test Marketing

STEP 8: COMMERCIALISATION:

STEP 8: COMMERCIALISATION At this stage the company takes decision to go in for large scale production & marketing of the new product. Various marketing strategies are employed by the company at this stage, when it starts commercialization of a new product idea. The important factors to which strategists should focus here are: Market entry timing period. Whether to lunch the product in a single locality, a region, several regions, nationally or internationally, i.e. geographic strategy. To whom the new product should target for i.e. targeting & segmenting.

CONCLUSION:

CONCLUSION Every year millions of rupees are being spent on R&D for new products development. Such a huge investment is necessary as new products are the only means of survival of a firm. New product development provides a number of advantages to the enterprise. It helps in producing goods & services of best quality. It helps in providing maximum customer satisfaction, because it is developed in the view of customer specification. It helps in expanding the market of the products of the enterprise. It helps in achieving stability in product demand.

Thank You:

Thank You