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Product Development Project
Prepared by : CHAN SETHEY

I. Introduction
Too many new product introductions fall far short of the developer’s
expectations, visions and hopes. To minimize disappointments, the
new product development process should be a disciplined exercise in
which the market environment is truly and fully comprehended.
Opportunities in consumer desires and needs should be identified and
clearly defined. Marketing research should be employed as a tool to
qualitatively and quantitatively specify the product’s role among
consumers. However important is information derived from marketing
research, enough data to render perfect decisions are never available.
Thus, the developer should never be paralyzed by either a dearth of
information or a plethora of data.

I. Introduction
• NEW products play several roles for the organization.
They help maintain growth and thereby protect the
interests of investors, employees, suppliers of the
organization. New products help keep the firm
competitive in a changing Market. The consequences
of product development have a direct impact on
competitiveness. Finally, The academic and the
business periodical literature are replete with detailed
listings and explanations of both why new products fail
and what factors are related to success. There is no
shortage of guidance available to those interested in
achieving the revenue growth, profit growth, and
reputation for innovation and leadership associated
with successful new product launches.

I. Introduction
Cooper (1996) reported the results of various studies
which concluded that the most important
discriminators between new product winners and
losers were, in rank order:
(1) Understanding of user’s needs
(2) Attention to marketing and launch publicity
(3) Efficiency of development
(4) Effective use of outside technology and
external scientific communication

II. Product Development Project
The conditions might efforts to accelerate a product
development project also lead to increased product
quality and/or decreased product manufacturing costs as
following:
1. New Product Strategy Development
Only a few ideas are good enough to reach
commercialization. Ideas can be generated by chance, or
by systematic approach. Need a purposeful, focused
effort to identify new ways to serve a market. New
opportunities appear from the changes in the
environment.

2. Idea Generation
 Marketing oriented sources--identify
opportunities based on consumer needs
 Laboratory oriented sources--identify
opportunities based on pure research or
applied research.
 Analyzing existing products, reading trade
publications.

3. Product Screening and Evaluation
• New product check list, list new product attributes considered
most important and compare each with these attributes. Check list is
standardized and allows ideas to be compared.
• General characteristics, Marketing Characteristics and
Production Characteristics.
• Ideas with the greatest potential are selected for further
research.
• Do they match the organizations goals (DuPont and ICI have
many patents that they have not exploited for this very reason.)
• Look at companies ability to produce and market the product.
• Need to look at the nature and wants of the buyers and
possible environmental changes.

 Concept Testing
• Sample of potential buyers is presented with the product
idea through a written or oral description to determine the
attitudes and initial buying intentions.
• This is done before investing considerable sums of money
and resources in Research and Development.
• Can better understand product attributes and the benefits
customers feel are most important.
• Would they buy the product?
• Would they replace your current brand with the new
product?
• Would they product meet real needs?

4. 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?
• If you can produce the new product at a low enough cost
so as to be able to make a profit.

5. Product Development
• Develop a working and product model,
lab test etc.
• Attributes that consumers have
identified that they want must be
communicated through the design of the
product.

6. Test Marketing
 Can observe actual consumer behavior.
 Limited introduction in geographical areas
chosen to represent intended market.
 Aim is to determine the reaction of probable
buyers.
 It is the sample launch of the Marketing Mix.
 Determine to go ahead, modify product,
modify marketing plan or drop the product.
 Marketing activities and strategies

7. Commercialization
 Corresponds to introduction stage of the
Product Life Cycle.
 Plans for full-scale marketing and
manufacturing must be refined and settled.
 Need to analyze the results of the test market
to determine any changes in the marketing mix.
 Need to make decisions regarding warranties
etc (reduces consumers risk). Warranties can offer a
competitive advantage.

III. Buyers' Product Adoption
Process
 Awareness : Buyers become aware of the product
 Interest : Buyers seek information and is receptive
to learning about product
 Evaluation : Buyers consider product benefits and
determines whether to try it
 Trial : Buyers examine, test or try the product to
determine usefulness relative to needs
 Adoption : Buyers purchase the product and can
be expected to use it when the need for the general type
of product arises.

IV. Diffusion Process
• Innovators : Techno-savvies first customers to buy a
product, 2.5% of Consumers
• Early Adopters : Tend to be opinion leaders. Adopt
new products but use discretion, 13.5%
• Early Majority : 34% of consumers, first part of the
mass market to buy the product
• Late Majority : Less cosmopolitan and responsive to
change, 34%
• Laggards : Price conscious, suspicious of change,
16%, do not adopt until the product has reached maturity.

V. Conclusion
In a competitive industry, businesses need to use all the resources
they have, including skills and knowledge. Continuous
improvement at Corus provides a process in which everybody can
play a part in moving the business forward. Working in teams
enables employees to share their ideas and expertise.
Using the expertise of staff helps the business to develop. It also
empowers individuals to take on responsibility and provides them
with increased job satisfaction.
New product development may involve risk, such as investing
time, resources and money in new technologies. However, it also
creates business opportunities. Continuous improvement has
helped Corus to meet the Royal Navy's increasingly sophisticated
requirements for high specification steel products.

V. Conclusion
However, in meeting these needs, it has also
opened up other business opportunities. By
winning this contract, Corus is now able to
make this higher grade steel available as
part of its product portfolio. As a long-term
strategy, it will help the business to
outperform its competitors and increase its
market share.

Thank You For Your Attention!
Good Luck!!!

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