See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/274733760

PRODUCT DEVELOPMENT: CONCEPT AND REALITY

Article · March 2010

CITATION READS
1 8,749

1 author:

Chanchal Kumar Kundu

Henan University
28 PUBLICATIONS   70 CITATIONS   

SEE PROFILE

All content following this page was uploaded by Chanchal Kumar Kundu on 11 April 2015.

The user has requested enhancement of the downloaded file.

 PRODUCT DEVELOPMENT: CONCEPT AND REALITY

Chanchal Kumar Kundu

Student, M.Sc. in Applied Textile Management
University of Borås, Sweden
Faculty Member
Department of Textile Engineering
Primeasia University
Dhaka, Bangladesh
E-mail: chanchaltex@yahoo.com

ABSTRACT

In business, product development is the term used to describe the complete process of bringing a
new product or service in the market and it’s an ongoing practice in which the entire organization
is looking for opportunities as new products provide growth promise to organizations that allow
them to strengthen their market position There are two parallel paths involved in the new product
development process: one involves the idea generation, product design, and detail engineering;
the other involves market research and marketing analysis. Intense global competition, short
product and technology lifecycles, unpredictable consumer buying patterns and possible market
stagnation makes new product development a critical activity in most businesses. This paper
explores the new product development process and at the same time sketch outs the product
development procedure in reality where consideration of real life situation and consumer insight
are the main concern. The paper findings also highlighted the importance of top managements
support during new product development phases as well as creating an innovative culture within
an organization, so new product ideas can be generated from various levels in the organization.

1
 Introduction

The need to create customer-relevant business processes is an intermittent theme in marketing –

particularly those dealing with the nature of marketing, competitiveness and strategies. Today’s
successful firms learn and re-learn how to deal with the dynamics of consumers, competitors and
technologies, all of which require companies to review and reconstitute the products and services
they offer to the market. This, in turn, requires the development of new products and services to
replace current ones. The product development process passes through different phases research
and development, pre operations, fully operations, maturity, decline and terminal decline. The
product can satisfy the market needs and is sufficiently differentiated from competitors at price
that will provide contribution to overheads. We can no longer ignore safety and environmental
impact of our product. The business plan should provide guidance on likely areas for product
development and in circumstances will constraints development or at least provide a strategic
method of comparing opportunities. The minimum risks are based on five methods of
constraining risk through the life of development that is re- check market needs, criteria for the
product, development and operation are affordable, project management that is employed to
deliver the product to expected criteria and all one via a programme management process.

The process of developing new product

From idea to launch a new product in the market really a challenging job for any organization as
the idea has to be given a physical reality which performs the function of the idea, which
potential customers find an attractive alternative for which they are prepared to pay the asking
price. This task requires new product development to be managed actively, working though a set
of activities which ensure that the eventual product is makeable, affordable, reliable and attractive
to customers. Below are BAH model and a brief description of the tasks necessary to complete
the development and launch of a new product.

New Idea Idea Concept Business Product Test Launch

product genera screening develop analysis develop marke
strategy tion ment ment and ting
and testing
testing

Figure: The Booz Allen Hamilton model of new product development

New product strategy

Purpose:
– Scan the environment to identify opportunities and threats
– Examine relevant company strengths and weaknesses
– Serves as valuable input to later stages

2
Idea generation: Purpose – to identify as many new product ideas as possible sources:
1. Customers 2. Company Research and Development 3. Sales representatives / employees 4.
Competitors 5. Suppliers

Idea Screening: It is the process to spot good ideas and drop poor ones. Criteria:
– Market Size
– Product Price
– Development Time & Costs
– Manufacturing Costs
– Rate of Return

Concept development and testing:

• Product concept- detailed version of the idea defined in terms that have a meaning
for the client or consumer and the product image is the way in which the client perceives the
product.
• Concept testing- test the product concepts with groups of target customers
• Choose the best one

Business analysis
Marketing strategy development: An organization cannot do everything superbly. It must focus
on only one or two strategic objectives and be competent in the other areas
Overall strategy:
• Target market
• Planned product positioning
• Sales and profit goal
• Market share

Short term strategy:

• Product’s planned price
• Distribution
• Marketing budget

Long term strategy:

• Sales and profit goals
• Marketing mix strategy

Product development
A material version of the product concept which is called prototype and the prototype should be
attractive, easy to produce and in agreement with costs and then it will go for laboratory and field
testing. To analyze the overall strategy especially the following criteria are important to take a
positive approach regarding product development:
• Review of products sale
• Costs
• Profits projections
If the values of above standards meet the company objectives then the decision will be like that
we can move forward, otherwise if it doesn’t satisfy, we need to eliminate the product concept.
3
Test marketing:
Purpose – see how targeted consumers respond to product and other marketing mix elements.
1. Standard test market :
- Full marketing campaign in a small number of representative cities.
2. Controlled test market :
- A few stores that have agreed to carry new products for a fee.
3. Simulated test market :
- Test in a simulated shopping environment to a sample of consumers.

Launch/commercialization
 Product is placed on the market.
 Involves setting up:
 Manufacturing facilities
 Channels of distribution
 Promotion for the product
 Will often use a regional roll out.

Importance of product development for real life situation

Products come in reality from our ideas or concepts which normally born in our design studio or
office room and obviously on that moment we consider the condition or environment in which
the product will be used. But the fact is that there is a huge space between the imagination and
the reality. So to overcome this gap and to ensure optimum ease of wearer during real time
situation a test of the performance of new product under the conditions in which it will be used
should be carried out. It is actually done to get valuable feedback on the product and in this case
the participants can include customers, partners, or anyone who is not familiar with the producing
company. At this juncture the product fully resembles its planned launch model in all aspects;
therefore the participant’s interaction rate will be higher because they know all the features and
benefits. During this segment there are three primary objectives to be achieved. The first
objective is to see how much the participant is interested. It is also worthwhile to note which
individual attribute they prefer and, obviously, if they would buy the product. Next, figure out
how the customer uses the product and look at its durability. Take a look at what environment the
customers will be using the item in. Recording and analyzing the feedback received will be the
final step in the field testing stage. The feedback can be used as a tool to help adjust any minor
design improvements that need to be made. The Sales and Marketing team will also be a
beneficiary of this feedback. They can use the information to help with their sales presentation
and make it easier when they are trying to market the product.

4
 Focus on consumer insight

Insight into consumer behavior—how consumers think, feel and act when they use products—is
the basis for all product development. Consumer insight is also about understanding how
consumers perceive products. Organizations should conduct interviews and visits to households,
fairs, exhibition or some other places on a large scale to have an actual scenario. Consumers talk
about their own experiences and needs, and then they are observed as they use the products in
their everyday’s life. The answers and observations are analyzed, and the results are then used as
triggers in the development of new products or re-launch of existing ones, as well as in marketing
activities and campaigns.

Conclusion

We develop product in physical form implementing our theoretical knowledge and no doubt it’s a
great experience for us and if we want to decrease the uncertainty of new product introductions
into the marketplace and to maximize the return on investment of successful launches, it is wise
to use market research methods developed to help marketing and product managers to predict the
likelihood of a new product's acceptance in the marketplace and obviously we should go through
field test to ensure its authenticity to meet challenges in real situation in which it will be
ultimately subjected .And a positive corporate mind-set is also imperative to be successful in new
product development. Encouragement and rewards for innovative concepts and ideas should be
used as an incentive for all staff involved in the process, not just the marketing and product
managers. The overall corporate philosophy on new product development should view the
process as part of the investment strategy and the main focus will be on fitting and feeling of the
product as we believe the whole success or failure depend on it.

5
 REFERENCES
Soldatos, Jerry and Hardy, Jurate 2007, The new product development process in Australian
grocery organisations, VADYBA Management, vol. 14, no. 1, pp. 61-67.

Hart, Susan, New product development, ch. 12, pp. 315

Consumer Insight, Retrieved February 21,2010, from

http://newsroom.electrolux.com/files/2009/07/fact-sheet-consumer-insight-final.pdf

http://www.patagonia.com

Philip Tavell, professional mountain biker and product developer at Craft sportswear, Borås,
Sweden

About the Author:

I have done my Bachelor of Science in Textile Technology from College of Textile Technology
under the University of Dhaka in 2004 and after that, I worked as a production Executive in
Metro Knitting and Dyeing Mills Ltd, Narayangong, Bangladesh and later I shifted to Colour
Consult co, Dhaka, where I worked as a Technical Executive for their Textile Dyes and
Chemicals Department. And the latest, I joined in Primeasia University, Dhaka, Bangladesh as a
Lecturer for their Textile Engineering Department in 2006 and currently I am continuing my
M.Sc. in Applied Textile Management in University of Borås, Sweden.

Mobile: +46760832104 E-mail: chanchaltex@yahoo.com

View publication stats