Introducing New Products

Definition of NPI Process: Competitive pressures, cost challenges, and increased customer expectations are driving companies to improve the way they develop and introduce products to the market. Whether youre cultivating internally born ideas, or trying to respond to customer requirements and market demands, the new product introduction process can help. It enables all constituents to speak a common language. It automates tasks, exposes performance bottlenecks, drives consistent execution and continuous improvement. And, it provides management visibility into the product development pipeline. Since NPI is so intertwined with other product development processes, its adoption and execution significantly influences your potential for success. Why do so many new products fail? Usually for many reasons. Companies often are so enamored of their new product ideas that they fail to do their research, or they ignore what the research tells them. Sometimes the pricing or the distribution channels are wrong. Sometimes the advertising doesn't communicate. Successful product launches result from an integrated process that relies heavily on research and solving up-front issues. Let's review several of the critical issues that affect product introductions. Market research Market research is the key. Without the necessary information, you're simply flying blind in a storm, headed for a crash landing. Market research does more than confirm your "gut feeling," it provides critical information and direction. It identifies market needs and wants, product features, pricing, decision makers, distribution channels, motivation to buy. They're all critical to the decision process. Take the example of a company several years ago that introduced a new product to the electronics manufacturing market. The research identified the pricing, the distribution channels, product features, everything but the product decision maker. Despite the fact that the new product complemented an existing one, performed a complementary function in manufacturing, and was used in close physical proximity to the existing

product, the decision makers were different. The sales force couldn't efficiently call on the new decision makers, and the product failed. Timing Are all elements of the process coordinated? Is production on the same time schedule as the promotion? Will the product be ready when you announce it? Set a time frame for the rollout, and stick to it. Many products need to be timed to critical points in the business cycle. Miss it, and invite failure. There are marketing tales galore about companies making new product announcements and then having to reannounce when the product lags behind in manufacturing. The result is loss of credibility, loss of sales, and another failure. Capacity If the new product or service is successful, do you have the personnel and manufacturing capacity to cope with the success? Extended lead times for new products can be just as deadly as bad timing. Testing Test-market the new product. Be sure it has the features the customer wants. Be sure the customer will pay the price being asked. Be sure the distributor and sales organization are comfortable selling it. You may need to test your advertising and promotion as well. Distribution Who's going to sell the product? Can you use the same distribution channels you currently use? Can you use the same independent representatives or sales force? Is there sufficient sales potential in the new product to convince a distributor, retailer, or agent to take on the new line? There are significant up-front selling costs involved in introducing new products. Everyone in the channel wants some assurance that the investment of time and money will be recovered. Training

Your sales organization, inside employees, and distribution channels will need to be trained about the new product. If the product is sufficiently complex, you may need to provide face-to-face training. Or perhaps some type of multimedia program will do the job. If the product is not that complex, literature may work. Again, timing is critical. Train before the product hits the shelves, not after. Promotion Finally, you need the promotional program to support the introduction: advertising, trade shows, promotional literature, technical literature, samples, incentives, Web site, seminars, public relations. Time it all with production, inventory, shipments, and training. The new product will simply sit in the warehouse without the right support materials. These are some of the myriad issues you face in launching a new product or service. Research, timing, and planning can all help increase the probability of success.

Best New Products and Services Awards from all over the world
This could be a new sandwich, a new perfume, a new tech-product, a new gadget, a new service... etc. Nominate products and services that are new (introduced in the market or upgraded in the past 2 years) or will be introduced by July 2013 (i.e. products that are not introduced yet). New products and services that will be introduced in 2013 can also be nominated now. We will keep such product submissions confidential till you have officially launched the product or service to public. Write - will be introduced in month and year 2012 in the online form under "Year in which the above product was first introduced to the market". The "Best New Products" Awards categories have been greatly expanded to include more industries from this year onwards in the overall Golden Bridge Business Awards program. You can also nominate any Classic, Traditional or Existing Products or Services (more than 5 years old) but still available to consumers. These nominations can be submitted under the category " Classic, Traditional or Existing Products or Services". Examples: Original Coke is a classic product, etc. Many existing wines, beers can also be nominated in this category.

Factors that can affect stock prices

Many factors can cause the price of a stock to rise or fall from specific news about a companys earnings to a change in how investors feel about the stock market in general.

Company news and performance

Here are some company-specific factors that can affect the share price:

news releases on earnings and profits, and future estimated earnings announcement of dividends introduction of a new product or a product recall securing a new large contract employee layoffs anticipated takeover or merger a change of management accounting errors or scandals

Industry performance
Often, the stock price of the companies in the same industry will move in tandem with each other. This is because market conditions generally affect the companies in the same industry the same way. But sometimes, the stock price of a company will benefit from a piece of bad news for its competitor if the companies are competing for the same market.

Investor sentiment
Investor sentiment or confidence can cause the market to go up or down, which can cause stock prices to rise or fall. The general direction that the stock market takes can affect the value of a stock:

bull market a strong stock market where stock prices are rising and investor confidence is growing. It's often tied to economic recovery or an economic boom, as well as investor optimism. bear market a weak market where stock prices are falling and investor confidence is fading. It often happens when an economy is in recession and unemployment is high, with rising prices.

Economic factors
1. Interest rates
The Bank of Canada can raise or lower interest rates to stabilize or stimulate the Canadian economy. This is known as monetary policy. If a company borrows money to expand and improve its business, higher interest rates will affect the cost of its debt. This can reduce company profits and the dividends it pays shareholders. As a result, its share price may drop. And, in times of higher interest rates, investments that pay interest tend to be more attractive to investors than stocks.

2. Economic outlook
If it looks like the economy is going to expand, stock prices may rise. Investors may buy more stocks thinking they will see future profits and higher stock prices. If the economic outlook is uncertain, investors may reduce their buying or start selling.

3. Inflation
Inflation means higher consumer prices. This often slows sales and reduces profits. Higher prices will also often lead to higher interest rates. For example, the Bank of Canada may raise interest rates to slow down inflation. These changes will tend to bring down stock prices. Commodities however, may do better with inflation, so their prices may rise. Watch this video to learn more about inflation.

4. Deflation
Falling prices tend to mean lower profits for companies and decreased economic activity. Stock prices may go down, and investors may start selling their shares and move to fixed-income investments like bonds. Interest rates may be lowered to encourage people to borrow more. The goal is increased spending and economic activity. The Great Depression (1929-1939) was one of the worst periods of deflation ever.

5. Economic and political shocks

Changes around the world can affect both the economy and stock prices. For example, a rise in energy costs can lead to lower sales, lower profits and lower stock prices. An act of terrorism can also lead to a downturn in economic activity and a fall in stock prices.

6. Changes in economic policy

If a new government comes into power, it may decide to make new policies. Sometimes these changes can be seen as good for business, and sometimes not. They may lead to changes in inflation and interest rates, which in turn may affect stock prices.

7. The value of the Canadian dollar

Many Canadian companies sell products to buyers in other countries. If the Canadian dollar rises, their customers will have to spend more to buy Canadian goods. This can drive down sales, which in turn can lead to lower stock prices. When the price of the Canadian dollar falls, it makes it cheaper for others to buy our products. This can make stock prices rise.

How Does the Stock Market Effect The Economy?

Economic Effects of Stock Market 1. Wealth Effect The first impact is that people with shares will see a fall in their wealth. If the fall is significant it will affect their financial outlook. If they are losing money on shares they will be more hesitant to spend money; this can contribute to a fall in consumer spending. However, the effect should not be given too much importance. Often people who buy shares are prepared to lose money; their

spending patterns are usually independent of share prices, especially for short term losses. 2. Effect on Pensions Anybody with a private pension or investment trust will be affected by the stock market, at least indirectly. Pension funds invest a significant part of their funds on the stock market. Therefore, if there is a serious fall in share prices, it reduces the value of pension funds. This means that future pension payouts will be lower. If share prices fall too much, pension funds can struggle to meet their promises. The important thing is the long term movements in the share prices. If share prices fall for a long time then it will definitely affect pension funds and future payouts. 3. Confidence Often share price movements are reflections of what is happening in the economy. E.g. recent falls are based on fears of a US recession and global slowdown. However, the stock market itself can affect consumer confidence. Bad headlines of falling share prices are another factor which discourage people from spending. On its own it may not have much effect, but combined with falling house prices, share prices can be a discouraging factor. 4. Investment Falling share prices can hamper firms ability to raise finance on the stock market. Firms who are expanding and wish to borrow often do so by issuing more shares it provides a low cost way of borrowing more money. However, with falling share prices it becomes much more difficult. As I said earlier there is an oft repeated quote saying the stock market has predicted 10 out of the last 3 recessions. The point is that falling stock markets do not necessarily predict the economic future. Share prices can fall without causing a downturn in the economy. For example, one thinks of the stock market crashes of October 1987; there wasnt an obvious economic factor causing this share price fall. The major economies remained relatively unaffected by this stock market crash. In fact, the UK had record growth in the late 1980s. This time

the stock market fall is due to economic weaknesses so is a better guide to future economic performance. 5. Bond Market A fall in the stock market makes other investments more attractive. People may move out of shares and into government bonds or gold. These investments offer a better return in times of uncertainty. Though sometimes the stock market could be falling over concerns in government bond markets (e.g. Euro fiscal crisis)