New product development
- 2. PROCESS 1. Idea Generation 2. Idea Screening 3. Concept Development & Testing 4. Marketing Strategy Development 5. Business Analysis 6. Product Development 7. Market Testing 8. Commercialisation
- 3. IDEA GENERATION Idea generation is continuous, systematic search for new product opportunities Ideas form using creativity generating techniques and generated through firm’s Internal Sources & External Sources
- 4. IDEA SCREENING Filtering the ideas to pick out good ones & dropping the poor ones Preliminary elimination process - Large number of product ideas are screened in terms of the organization’s objectives, policies, technical feasibility, and financial viability
- 5. CONCEPT DEVELOPMENT & TESTING Product Idea is converted into product concept A product concept is a detailed version of the idea stated in meaningful consumer terms When developing product concept following criteria should be consider. -Who will use the product? -What primary benefit should this product provide? -When will this product be consumed?
- 7. BUSINESS ANALYSIS This stage will decide whether from financial as well as marketing point of view, the project is beneficial or not Analyze: - Estimate likely selling price based upon competition and customer feedback - Estimate sales volume based upon size of market - Estimate profitability and break-even point
- 8. PRODUCT DEVELOPMENT The company will now determine whether the product idea can translate into a technically and commercially feasible product
- 9. MARKET TESTING Marketing Testing involves placing a product for sale in one or more selected areas and observing its actual performance under the proposed marketing plan
- 10. COMMERCIALISATION During this stage, production of new product on a commercial basis is rapidly built up and implementing a total marketing plan For formally launching a New Product, the following decisions to be taken: - When to launch (Timing) - Where to launch (Geographic Strategy) - To Whom (Target-Market Prospects) - How to launch (Introductory Market Strategy)