NEW PRODUCT DEVELOPMENT

(final project)
Group number:8
Group members:
Hassaan Namdar (BA-306-018)
Mahwish Azhar(BA-306-013)
Omer Raffique (BA-306-003 )
Zain Iqbal (BA-306-0 )
Mian Ali Noor Shah ( BA-306-0 )

INDUSTRY ANALYSIS:
Industry

selected: Home appliances

industry
Industry background:
o
o
o
o

1950s
1960s
1970s
2002-2008

New

product development trends

PESTEL ANALYSIS:
Political

uncertainty
Economic instability
Changes in buying pattern (social
factor)
Rapid changes in technology
Hot weather (environmental
factor)
Legal environment

PORTERs 5 FORCES
MODEL:
Entry

and exit barriers: high

Bargaining power of customers:
moderate
Bargaining power of suppliers:
moderate
Threat of substitutes: low
Rivalry powers: local and foreign
manufacturers

COMPANY ANALYSIS:
Haier

Group of China
Haier Pakistan
ISO certification of Haier Pakistan: 2004
SWOT analysis:
Strengths: strong brand name and
innovation
o Weakness: Low man power
o Opportunities: Expansion and NPD
o Threats: Political and economic
instability
o

ANALYSIS

NEW PRODUCT DEVELOPMENT:

Opportunity

identification and

selection
Idea generation
Idea/project evaluation and
testing
Development
Launch

OPPORTUNITY
IDENTIFICATION AND
SELECTION:
Market

surveys: once in a month

Use of electronic media
New products launched by
competitors
Developing alternatives against:
Capacity
o Design
o Extra features highlighted
o

IDEA GENERATION:
Internal
o
o
o
o

techniques:
Brain storming
Reverse engineering
Conjoint analysis
Gap analysis

External

technique:
o Customer feedback

BRAIN STORMING:
A group technique to generate ideas by
finding solutions of problems
Steps:
Defining the problem
o Creating a background memo
o Selection of candidates
o Creating a list of lead questions
o Conducting session and evaluating
results
o

BRAIN STORMING AT
HAIER:
Research

and development team

Meeting rooms
Criticism allowed at end of
session
Evaluation of ideas gathered

REVERSE ENGINEERING
An approach for analyzing
existing product design by
physically examining and
measuring existing parts
Technique applied to new
products launched by
competitors
Electronic components taken
apart one by one

CONJOINT ANALYSIS:
Meeting

dealers for knowing

customer preferences
Developing cards on basis of
customer preferences
Cards ranked by branch
managers

GAP ANALYSIS:
Selection

of attributes: Important
for buying decision
Developing map: plotting
attributes
Identification of gaps: placing
competitors products on map
Gap analysis at Haier: Done from
perspective of manager and
customer (through feedback)

CUSTOMER FEEDBACK:
Customer

Services Department:
forwards complaints/feedback to
R&D department
A software records all calls
Customer feedback generates:
improvements in existing
products

PROJECT EVALUATION:
Evaluation

done by: Haier Group

of China
Efficiency of evaluation increased
by:
o Product life cycle management
o OEC management control
system

PRODUCT LIFE CYCLE

MANAGEMENT:
Haier

uses software of Siemens:

Teamcenter software
Centralization of data: Storing
technical drawings and
documents in digital form
Standardization of documents
Results: 15% reduction in timeto-market

OEC MANAGEMENT CONTROL

SYSTEM:
O:

Overall
E: Everyone
C: Control and clear
Every employee has to accomplish
target work everyday
The OEC management-control
system aims at overall control of
everything that every employee
finishes on his or her job every day
with a 1% increase over what was
done the previous day"

PROTOTYPE TESTING
Prototype

made of: wood

Prototype developed by: Haier
Pakistan
Prototype tested by: Haier Group
of China

DEVELOPMENT:
NPD

team: Engineers, technical

experts and employees from R&D
team
Team structure: Functional
Developing testing lot
Distribution of testing lot among
consumers through dealers
R&D team takes feedback from
consumers and checks design,
voltage/usability and capacity of

LAUNCH:
Launch

stage: Sales and

Marketing division of Haier
Desk research and pricing new
product
Conducting seminar of retailers

STORIES:
Launch

of summer chilled air

conditioners
Launch of Haier wide body HRF
300 refrigerator

RECOMMENDATION
S

IDEA GENERATION:
Lead
1)
2)
3)
4)

user process:
Laying the foundation
Determining trends
Identifying lead users
Developing break through innovations

)Lead

user process at Haier: Developing

home appliances that work in absence
of electricity (lead users: hotels)

Conducting

trade off analysis by

Haier Pakistan
Conducting conjoint analysis
with: Customers
Enhancing

brain storming
techniques:
o Group passing techniques
o Electronic brain storming
o Questorming

IDEA EVALUATION:
Conducted

by: Haier Pakistan and

Haier Group of China

ATAR

model:

Profit= potential
market*Awareness*Trail*Repeat
purchase*profit margin

Full

screening method

PROTOTYPE
DEVELOPMENT:
Using

softwares: Computer Aided

Design (CAD) and Computer
Aided Manufacturing (CAM)
Using coordinate measuring
measure

DEVELOPMENT:
Separate

department for New

Product Development
Ventured teams for NPD

LAUNCH:
Conducting

pre-launch research
Advertisements should be given
on television and internet