Report On

New Product Development

Of

PHILIPS COLOUR LIGHT

Dipock Mondal

1
Introduction of new product :

In business and engineering, new product development (NPD) is the term used to describe the
complete process of bringing a new product or service to market. There are two parallel paths
involved in the NPD process: one involves the idea generation, product design and detail
engineering; the other involves market research and marketing analysis. Companies typically see
new product development as the first stage in generating and commercializing new products within
the overall strategic process of product life cycle management used to maintain or grow their market
share.
Offered product & services:
PHILIPS COLOUR LIGHT

Target Market:
Community center
Chinch Restaurant
Party center
Fast food shop
Theater Room
Home use

2.1.Market demographics:

The profile for the Philips color light customer consist of the following geographic, demographic,
behavior factor.

2
Geographic’s:

• Philips color light has geographical target area . By delivering stationary shop and leveraging
the expensive reach of the internet and multiple delivery service Philips color light can serve
both domestic and international customer.
• The total target population is ________ million user .

Demographics:
• There is almost equal ratio in functional organization.
• Use in fast food center , community center

Behavior factor:
• Using color light consumer can satisfied about there refreshment
• User can change there life style.
• User can use low price in this product rather than other product.

2.2. Market needs:

Philips color light serve a wide rage of accessories for all variation of light .This product can fulfill
the following the benefits that are the important to its customers.

2.3. Market trends:

Phillips will distinguish itself by marketing products not previously available to the light uses. The
emphasis in the past has been to sell lights with no replacement parts. The number of light users is
not restricted to any single country, continent, or different level of people, so there is a wide market
to enter the new product in the market. Phillips has products virtually every group of people. By
using this light we can reduce the electricity problem. It is a new kind of product which is run by
remote control. In the remote control there are several types of buttons are available. Like- Red,
Blue, Green, White, Purple, Orange, Yellow, Navy Blue etc. By pressing the remote button one can
easily get different types of colorful light. These will reduce the electricity problem because it saves
the energy power.

2.4.Market growth:

With the price of lights going down due to competition by so many light companies, the market has
had steady growth throughout the world, with 22.5 million units sold in 2002 to over 31 million in
3
2008. The growth statistics for 2009 were estimated to be over 36 million units. More and more
people are discovering and in many cases rediscovering the benefits of using the light which saves
the electricity.

3. SWOT Analysis:

3.1. Strengths:

 In-depth Industry experience and insight

 Creative, yet practical product designers
 The use of a highly efficient, flexible business model utilizing direct customer sales and
distribution.

3.2. Weakness:

 The reliance on outside capital necessary to grow the business

 A lack of retailers who can work face-to-face with the customer to generate brand and
product awareness.
 The difficulty of developing brand awareness as a start-up company

3.3. Opportunities:

 Participation within a growing industry.

 Decreased product costs through economy of scale
 The ability to leverage other industry participant’s marketing efforts to help grow the general
market.
3.4. Threats:

 Future/potential competition from an already established market participant.

 A slump in the economy that could have a negative effect on people’s spending of
discretionary income on recreational products.
 The release of a study that calls into question the safety of color lights or the inability to
prevent major causes of using the color lights.

4.1. Competition:

Phillips company is forming its own market. Although there are a few companies that do make a
light but there are not just a single company who makes colorful lights. The few competitors are on
4
the market, who makes colorful lights but with zero power. They have no quality and guarantee. The
light that is used by zero power is called the Dim Light. It only fires in the night. In our country I
have no competitor who makes the colorful lights. That’s why if I gives proper materials and proper
costing then I am sure I will lead the market in single.

4.2. Product offering:

4.3. Keys to success:

The keys to success are designing and producing products that meet market demand. In addition,
Phillips must ensure total customer satisfaction. If these keys to success are achieved, it will become
a profitable, sustainable company.

4.4. Critical Issues:

As a start-up business, Phillips is still in the early stages. The critical issues are for Phillips to:

 Establish itself as the premier colorful light accessory company.

 Pursue controlled growth that dictates that payroll expenses will never exceed the revenue
base. This will help protect against recessions.
 Constantly, monitor customer satisfaction, ensuring that the growth strategy will never
compromise service and satisfaction levels.

5.1. Marketing strategy:

The key to the marketing strategy is focusing on reducing the electricity problem with the help of
energy saving colorful light. Phillips can cover about 80% of the lighting market because it produces
products geared, toward each segment. Phillips is able to address all of the different segments within
the market and equipment; its products are useful to all of the different segments.

5.2. Mission:

Phillips companies’ mission is to provide the customer with the finest lighting accessories available.
“We exist to attract and maintain customers. With a strict adherence to this maxim, success will be
ensured. Our services and products will exceed the expectations of the customers.”

5.3. Marketing objective:

 Maintain positive, strong growth each quarter

 Achieve a steady increase in market penetration.
5
  Decrease customer acquisition costs by 1.5 percent per quarter.

5.4. Financial objective:

5.5. Target Market:

5.6. Positioning:
5.7. Strategies:
5.8. Marketing mix:
• Pricing:
• Distribution
• Advertising and promotion
• Customer service

5.9. Marketing research:

6.1. Financials:
6.2. Break even analysis:
6.3. Sales forecast:
6.4. Expense Forecast:
7.1. Controls:
7.2. Implementation:
7.3. Marketing Organization:
7.4. Contingency planning: