new product dovelepment slides
Download as PPTX, PDF0 likes270 views
The document discusses various internal growth strategies that a firm can use to increase sales and profitability without relying on outside intervention. It describes internal growth strategies as organic growth and lists some examples as market penetration, market development, application development, and new product development. New product development is discussed in more detail, outlining the typical process from market research to product launch. Some reasons for new product failures are also provided such as poor marketing research, technical problems, and bad timing. Other internal strategies covered include improving existing products, increasing market penetration of current products, extending product lines, and geographic expansion into new markets.
new product dovelepment slides
- 2. Presented By: MANSOOR SALEEM SHAHID IQBAL TAHIRULLAH KHAN INTERNAL GROWTH STRATEGIES
- 3. Presenter: Mansoor Saleem(0006) TOPICS TO COVER Firm Growth Overview Internal Growth Strategy New Product Development Keys to Effective New Product Development Reasons for Product Failure
- 4. The term strategy means a well-planned, deliberate and overall course of action to achieve specific objectives FIRM GROWTH Internal growth strategy External Growth Strategy Firm Growth Strategies The growth strategies are divided into two types as shown i.e. a. Internal Growth Strategy b. External growth strategy This is what the main focus of presentation is.. “INTERNAL GROWTH STRATEGY”
- 5. 5 Growth Strategies • Involve investment in resources to achieve growth in sales (assuming the industry is attractive) • Investments over time may involve a redefinition/expansion of organizational scope • Three concerns: • what activities and resources to invest in • the implications for scope and complexity • the timing relative to competitors
- 7. INTERNAL GROWTH STRATEGY • Internal Growth Strategy = Organic Growth because it does not rely on outside intervention (interruption). • It involves all the efforts taken within the firm with the purpose of increasing sales revenue & profitability. • The attributes for internal growth strategy consists off: • Market penetration • Market development • Application development • Product development
- 8. INTERNAL GROWTH STRATEGIES Other Product Related Strategies International Expansion New Product Development
- 9. 14-9 Advantages and Disadvantages of Internal Growth Strategies Advantages Disadvantages • Provides maximum control. • Preserves organizational culture. • Encourages internal entrepreneurship. • Allows firms to promote from within. •Slow form of growth. • Need to develop new resources. •Investment in a failed internal growth strategy can be difficult to recoup. • Adds to industry capacity.
- 10. NEW PRODUCT DEVELOPEMENT Presented by: Shahid Iqbal
- 11. NEW PRODUCT DEVELOPEMENT • New product development (NPD) is the complete process of bringing a new product or service to market. • New product development may be done to develop an item to compete with a particular product or may be done to improve an already established product.
- 12. New Product Development • Examples • This type of development is considered the preliminary step in product or service development and involves a number of steps that must be completed before the product can be introduced to the market. • Fair & lovely. • Samsung Mobile
- 13. New product development process • Market Research/Opportunity Scan • Concept Testing • Prototype Development • Market Testing • Product Launch
- 14. Why New Products? • New product development is essential to any business that must keep up with market trends and changes. • Approximately one-third of the revenue a business generates is coming from products they did not sell five years ago • Changing environment creates new demands and needs
- 15. New Products necessity • A way of getting new and keeping old customers • Effective way of obtaining a competitive advantage • Source of growth and excitement
- 16. Reasons For New Product Failures • Poor marketing research • Technical problems • Insufficient marketing effort • Bad timing • The wrong group was targeted. • Unrealistic forecast. • Insufficient level of awareness.
- 17. OTHER PRODUCT RELATED STRATEGIES Presented by: Tahir Khan Wazeer
- 18. Other Product Related Strategies Improving Existing Product Increasing Market Penetration of an Existing Product Extending Product Lines Geographic Expansion
- 19. Improving an Existing Product • A business can increase it’s revenue by improving an existing product. Improving it’s durability Making it more up to date Attractive value adding features Making it more convenient to use Reasonable pricing Enhancing it’s Quality
- 20. Improving an Existing Product (Cont’d) Improving an item means increasing its value and price potential through customer’s perspective. • Examples: Software firms routinely increase revenue by placing updated versions of existing products.
- 21. Market Penetration of Existing Products It involves actions taken to increase the sales through greater marketing efforts or increased production capacity & efficiency. Such as: Increased social media efforts Increased the sales force size Increased Advertising Expenditures Offering Sales Promotions Lowering Price Offering Seasonal Discounts
- 23. 23 Market development • Objective: Cultivate new market segments (demographic, geographic, psychographic) for existing products • Invest: Marketing programs, new distribution channels, new sales staff, capacity... • Scope: Increases the number and type of markets served
- 24. Extending Product Lines • It involves making additional versions of a product so that be different to clients. Example: A computer manufacturer Different versions of the same computer typically represents good, better and best alternatives based on processor speed, memory capacity, monitor size graphic capabilities and others.
- 25. Geographic Expansions • Many entrepreneurial businesses grow by simply expanding from their original location to geographical sites. • Examples: McDonald has 32000 worldwide locations.
- 26. Any Question? 26
Editor's Notes
- #24: Market development, in which the organization seeks new market segments, or, applications development, which involves creating new applications of its products, both require a broadened definition of the markets or functions served.