New product development

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The detail process of any new product development

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New Product Development Process:

New Product Development Process Presented By Gurukrushna Patnaik

What is a Product?:

What is a Product? A product is the item offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form. Every product is made at a cost and each is sold at a price. The price that can be charged depends on the market, the quality, the marketing and the segment that is targeted.

NPD- New Product Development Process:

NPD- New Product Development Process Every entrepreneur knows that productivity is one of the key ingredients for successful product development. One of the two key processes in Robert’s Rules of Innovation is the NEW PRODUCT DEVELOPMENT PROCESS. A formalized, NPD process – also referred to and best practice: the Stage Gate Process – is a must, from simple to sophisticated.

NPD- New Product Development Process:

NPD- New Product Development Process The New Product Development process is often referred to as The Stage-Gate innovation process, developed by Dr. Robert G. Cooper as a result of comprehensive research on reasons why products succeed and why they fail.

Why Develop New Product for Business:

Why Develop New Product for Business Every business needs to innovate to stay ahead of the competition. No business can continue to offer the same unchanged product; otherwise sales would decrease and profits reduced . Consumer "Needs and Wants" Change Product Reaches The End Of Its Product Life Cycle Product Is At The Maturity Stage Of Its Product Life Cycle Environmental Changes Competitors All Products Experiencing Problems

NPD- New Product Development Process:

NPD- New Product Development Process

1. New Product Development Strategy:

1. New Product Development Strategy Developing new products or modifying existing products so they appear new, and offering those products to current or new markets is the definition of product development strategy. There is nothing simple about the process. It requires keen attention to competitors and customer needs now and in the future, the ability to finance prototypes and manufacturing processes, and a creative marketing and communications plan. There are several subsets of product development strategy. Product Development Diversification Strategy Product Modification Strategy

2. Idea Generation:

2. Idea Generation The process of creating, developing, and communicating ideas which are abstract, concrete, or visual. The process includes the process of constructing through the idea, innovating the concept , developing the process, and bringing the concept to reality.

3. Screening & Evaluation:

3. Screening & Evaluation The aim in idea screening is to retain the successful ideas and eliminate the ideas which could be failures. Idea screening can be based on tacit knowledge of the individual and of the company, with little new explicit information sought in or outside the company.

3.1 Factors for Screening:

3.1 Factors for Screening

4. Business Analysis:

4 . Business Analysis Business analysis is the set of tasks and techniques used to work as a liaison among stakeholders in order to understand the structure, policies, and operations of an organization, and to recommend solutions that enable the organization to achieve its goals.

4.1 Business Analysis:

4.1 Business Analysis Analyze potential contribution to sales, costs and profits. Does the product fit into the current product mix? What kind of environmental and competitive changes can be anticipated? How will these changes effect sales etc.? Are the internal resources adequate? Cost and time line of new facilities etc.? Is financing available? Synergies with distribution channel etc. MIS to determine the market potential sales etc.

5. Product Development:

5. Product Development The creation of products with new or different characteristics that offer new or additional benefits to the customer. Product development may involve modification of an existing product or its presentation, or formulation of an entirely new product that satisfies a newly defined customer want or market niche.

6. Test Marketing:

6 . Test Marketing Test marketing is a tool used by companies when they are launching a new product or marketing campaign to provide the company insight into the probable market success of the new product or effectiveness of the marketing campaign . Test marketing can be used by a business to evaluate factors such as the performance of the product, customer satisfaction or acceptance of the product, the required level of material support for the full launch and distribution requirements for a full launch. Beta-testing . Regional launch.

7. Commercialization :

7 . Commercialization At this stage, your new product developments have gone mainstream, consumers are purchasing your good or service, and technical support is consistently monitoring progress.  Keeping your distribution pipelines loaded with products is an integral part of this process too, as one prefers not to give physical (or perpetual) shelf space to competition. Refreshing advertisements during this stage will keep your product’s name firmly supplanted into the minds of those in the contemplation stages of purchase.

8. Post Launch Review and Perfect Pricing:

8. Post Launch Review and Perfect Pricing Review the NPD process efficiency and look for continues improvements. Most new products are introduced with introductory pricing, in which final prices are nailed down after consumers have ‘gotten in’. In this final stage, you’ll gauge overall value relevant to COGS (cost of goods sold), making sure internal costs aren’t overshadowing new product profits. You continuously differentiate consumer needs as your products age, forecast profits and improve delivery process whether physical, or digital, products are being perpetuated .

Summary:

Summary New product development is an essential activity for all businesses. It helps you stay ahead of the competition. If you do not develop new products someone else will and steal all of your customers. The number of businesses that have gone into administration during the current world recession demonstrate the importance of change management.

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