New Product Development Strategy

To consider great product ideas and converting them into even greater final physical
products, a better product development strategy (NPD strategy) is of the essence. A well
thought-out product development plan can help you help you organise your product planning
and research, understand your customers' views and matching their expectations.

Suppose we are running a global Auto manufacturer company (RIMOVO). Rimovo exists to
create breath-taking performance road cars. And deliver the most thrilling driving
experiences imaginable. Forming sports category super cars ranging 4000cc-6000cc.
Pioneering new technology, now Rimovo decides to develop a new car unit (product) in the
economy sector as well.

IDEA GENERATION

INTERNAL & EXTERNAL SOURCES

  Is a ceaseless, meticulous looking for new, viable product development opportunities
Companies employ basic internal and external SWOT ,analyses and studies market trends to
generate multiple of potential product ideas.
Internal ideas can be sourced through R&D and employee brainstorming or by giving them
incentives, while external ideas tend to come from studying and communicating with
distributors, suppliers, customers and competitors.

OBJECTIVE OF IDEA GENERATION

The objective of the idea generation stage is to concoct an idea that separates your business
from the competition through enhanced affordability and ROI and diminished dissemination
costs.

RIMOVO’s OBJECTIVE OF IDEA GENERATION

As Rimovo developing a new HATCHBACK 1000cc car unit (product), to compete in
economy sector and to allot the affordability. The objective and idea is to manufacture an
economy friendly car limiting to 1000cc M series engine, along fuel average up to 35 kms
with advanced fuel injectors, which will be a huge revolution in the automobile market for a
1000cc based car.
 This idea may change the market trend and a though job to competitors.

IDEA SCREEING

RIMOVO product management team ended with multiple new product development ideas,
but few will likely be great, or even practical. This second step of new product development
involves screening all newly-generated and discarding the unsuitable or less attractive ideas,
taking into account several factors:

 RIMOVO’s strengths and weaknesses

 Customer needs,
 market trends existing,
 Expected/desired ROI,
 Affordability
 Competitors.

Screening with R-W-W

The R-W-W screen is an effective method that consists of a set of questions about the
invention idea or product, its potential demand, and the company's strengths and competitors.
RWW refers as is the product be practically possible to manufacture?
It it worth it? Will it be successful?

The R-W-W screen can be used to identify and help solve problems that are sabotaging a
project, to manage risk, and to reveal problems that can't be solved and should be terminated. 
R-W-W guides a development team to dig deeply for the answers to six fundamental
questions:
 
Is the market real?
Is the product real?
Can the product be competitive?
Can our company be competitive?
Will the product be profitable at an acceptable risk? Does launching the
product make strategic sense?

CONCEPT DEVELOPMENT AND TESTING

All ideas passing the screening stage are formed into concepts, which will subsequently be
tested for real-world viability. A product concept is a detailed version or blueprint of your
product development idea, formulated into meaningful, relatable consumer terms so that it is
optimally presentable like a detailed prototype product.

Concept testing

Once concept for a new hatchback car been developed, it is tested with sample target
consumer groups.
Rimovo developed a detailed Prototype of the 1000cc hatchback car and named it ‘VIAN”,
it shows the detailed mechanism and its working. The car been tested on simulator for check
the fuel average and road performance. Also observed the elegant design and dimensions
providing more performance due to better aerodynamics. The car been allotted to sample
target consumer to gain the feedback.

MARKETING STRATEGY DEVELOPMENT

• Geographic
Considering the Geographic segmentation, Rimovo decides to sell “VIAN” to the countries which
have low economy growth. As they have less financial rate, the buying power and affordability of
people been affected. And they cannot afford high fuel consuming cars, so “VIAN” would be
extremely beneficial in countries like: PAKSITAN, INDIA, BANGLDESH, SRILANKA etc.

• Demographic
Demographic segmentation is the process of choosing your market and people based on
things like size of family, occupation, location, age, Gender etc. VIAN;s demographic target
is to sell to middle class and to the people who are conscious about the petrol average.

• Psychographic
VIAN been specifically designed and manufactured to cover the economy sector, and
targeting the audience that has low buying power and non-affordability of maintenance and
petrol. So it’s basically for middle class.

MARKETING MIX
PRODUCT:

Any Product is a company’s article or substance that is manufactured or refined for sale, the first P
stands for product. If the item is physical, make a list of the various choices, packaging, features, and sizes.

“VIAN “is a product of the auto manufacturing company “Rimovo”. Been Manufacturing in Germany.
Rimovo has recently launched its new product in an economy sector league.

PLACEMENT

The second P is placement, which refers to the manner in which the product or service will be
provided. Describe the distribution networks and physical facilities required to transport the
product from manufacturing to storage to the customer at this stage.

RIMOVO decided of placement of assembling plants in Pakistan and India, so the parts from
Germany will be delivered to the assembly plants and the VIAN be manufactured and delivered
there.

PROMOTION

Many of the tactical and enjoyable concepts for selling the goods come into play with the third P,
promotion. Outline the promotional platforms you'll use to spread the word about the product at
this point. Can you use the Internet, posters, magazines, or newspaper advertisements, direct mail,
broadcasting, or social media, for example? Make a list of all of the public relations tactics and
concepts. After that, revise.

Rimovo using Social media to display their ads and specifications of its new product “VIAN”.
As the modern traffic shifts to social media rapidly.

PRICE

The fourth P is price, and this is where you figure out how much the public is willing to pay for
your product or service. Pricing strategy refers to how you price your product or service for
various target markets. Establish the list price, discounts, wholesale allowances, markdowns,
payment schedules, and credit terms.

VIAN for the middle class sector been launched at the pricing of 1.5 Million Rupees.