Product Development
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This document provides an overview of new product development. It discusses what constitutes a product, the different levels of a product according to Kotler, and product life cycles. It also outlines Porter's five forces model for assessing industry attractiveness. The stages of new product development are described, including idea generation, screening, evaluation, development, and commercialization. Reasons for new product failure include lack of market research, unstable specs, weak cross-functional teams, and lack of focus. Critical success drivers include having a unique product that solves customer needs, front-loading the development process with research, and executing a well-planned launch.
Product Development
- 1. New Product Development Curated by: Sandy Ardiansyah
- 2. Introduction
- 3. What is Product ? Product is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas. 100% physical good Blend of physical good and service 100% services
- 5. Components of the market offering Value-based prices Attractiveness of The market offering Products features and quality Services mix and quality
- 6. Five product levels (Kotler) Potential Product - This is about augmentations and transformations that the product may undergo in the future. Augmented Product - This refers to all additional factors which sets the product apart from that of the competition. And this particularly involves brand identity and image. Expected Product - This is about all aspects the consumer expects to get when they purchase a product. Generic Product - This represents all the qualities of the product. Core Product - This is the basic product and the focus is on the purpose for which the product is intended. POTENTIAL PRODUCT AUGMENTED PRODUCT EXPECTED PRODUCT GENERIC PRODUCT CORE PRODUCT
- 9. Product Life Cycles Market Intro Market Growth Market Maturity Sales Decline Life Cycle Extension
- 12. Porter’s Five Forces A tool for assessing industry attractiveness • • • • • • • • • • • Time and cost of entry Specialist knowledge Economies of scale Cost advantages Technology protection Barriers to entry Number of suppliers Size of suppliers Uniqueness of service Your ability to substitute Cost of changing Threat of New Entry • • • • • • Number of customer Size of each order Differences Price sensitivity Ability to substitute Cost of changing Supplier Power • Substitute performance • Cost of change Competitive Rivalry Buyer Power Threat of Subs. • • • • • • Number of competitors Quality differences Other differences Switching costs Customer loyalty Cost of leaving
- 14. Types of New Product New to the world New Product Line Addition to Existing Improvement
- 15. The Stage-Gate® Process THE CUSTOMER OR USER
- 16. New-Product Development Process Idea • Ideas from customers and users • Marketing research • Competitors • Other markets • Company people, intermediaries, etc. Screening • Strengths and weaknesses • Fit with objectives • Market trends • Rough ROI estimate Evaluation • Concept testing • Reactions from customers • Rough estimates of costs, sales, and profits Development • R&D • Develop model or service • Test marketing mix • Revise plans as needed • ROI estimate Commercial • Finalize product and marketing plan • Start production and marketing • “Roll out” in select markets • Final ROI estimate
- 17. Marketing Plan 1 Executive Summary 2 Current Situation and Trends 3 Performance Review 4 Key Issues 5 Objectives 6 Marketing Strategy 7 Action Plans 8 Projected profit-and-loss statement 9 Controls 10 Contingency Plans Segmenting Targeting Positioning Product Price Place Promotion People Process Physical evidence
- 18. Product Management’s Interaction Marcom Logistic Sales Purchasing Legal Product Management New Product Development: A Total Company Effort O&M Finance R&D Market Research
- 20. Why New Products Fail
- 21. Why It’s Fail ? Me-Too, Ho-Hum, or Tired New Products Unstable Product Specs and Project Scope Creep Weak Front-End Homework Far Too Many Projects in the Pipeline-No Focus A Lack of Competencies, Skills, and Knowledge Dysfunctional Project Teams, Too Many Functional Silos A lack of Customer or User Input and Insights
- 22. How to Prevent Design thinking Overlapping product development process Fail often in order to succeed sooner Systematic product development process Systematic innovation
- 23. 7 Critical Success Drivers 1. A unique superior product 2. Building in the voice of the customer 3. Doing the homework & front-end loading the project 4. Getting sharp and early product & project definition 5. Spiral development 6. A well-conceived, properly executed launch 7. Speed counts!
- 24. Thank You