Research on New

Product Development
Prepared By :
Priyega Prem
O New product development (NPD) is the term used
to describe the complete process of bringing a new
product or service to market.
O 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.
O 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.
O 3 categories of new products

Products thatProducts
are that are significantly Products that
new to the different from the existing ones are new to the
company butbutnotare good replacements world-truly
new to the innovative
market and unique
 MARKET RESEARCH:
O To determine:
O Target Market
O Market needs
O Positioning and strategy
O New product strengths and weaknesses
O Company strengths and weaknesses
O Packaging/ pricing
 Overview of New Product Development process

Steps: Meaning: Tools & techniques:

 Idea Stimulate steady flow Brainstorming,Forced
Generation of new product ideas relationships,Fantasy,
Heuristic ideation
 Idea Critically appraise the
Screening ideas generated in terms
of market opportunity Checklist
and the costs of
accepting poor or
rejecting good ideas
 Concept Development Develop product Product
And Testing ideas into product concept test
concepts
 Business analysis Evaluate the Demand
proposed product’s analysis,
business Cost
attractiveness analysis
 Product Perform technical Product
Development and marketing prototype
development,
production,
functional tests
 Market Testing Produce in Conventional test
limited marketing, mini
quantities market test,
laboratory market test
 Commercialization Introduce the Roll-Out total
product market coverage,
preliminary
extension strategy
formulation
 Idea Generation
O Major Sources of Ideas:
Internal Sources External Sources
1. Sales personnel Customers
2. R & D Competitive products
3. Top management Executive Foreign
Products
4. Production Department Consultants
5. Customer Service Advertising
Agencies
 Idea screening
O Preliminary Screening- 2methods
O Product Profile Ratings : Ranked Data
O Product Profile : Summated Data
Development of New Product
ideas
O Concept testing is the process of
using quantitative methods and qualitative
methods to evaluate consumer response to a
product idea prior to the introduction of a
product to the market. It can also be used to
generate communication designed to alter
consumer attitudes toward existing products.
 Evaluation of Portfolio of
products
O Market Potential
O Market Demand
O Estimating Sales
O Estimating Costs, Sales and Profits
 Test Marketing
O Test Markets
O Duration
O Information
 Product Launch
O The Launch Cycle : Pre-launch Stage,
Announcement Stage, Beach-head Stage and
Early Growth Stage
O The Launch Mix : Product, Price, Distribution
and Promotion
O The Launch Timings
O The Launch Events
O The Launch Techniques
 Reason for Failure in newly
launched products
O Faulty understanding of customer needs.
O To avoid costly product failures, companies
can integrate customers into the innovation
process and ask for their commitment to
purchase early on.
Example : Cellular Connection
 Telephone vs
Cellular Phone
 India’s Cellular Market
O The GSM subscriber base grew by 2.11 million
users.
O CDMA platform added 0.8 million.
O Highest growth recorded in Asia-Pacific in 2004
 Cellphone Service Providers in
India
O Tata
O BSNL
O Airtel
O Spice
O Idea
O Reliance
O Vodafone
O MTNL
O Aircel
O Types of Available Mobile Networks :
O GSM CDMA
O Airtel Tata
O Vodafone Shyam
O Idea HFCL
O Dishnet
O Reliance
Typical Marketing Plan for a New Product
Define Marketing Objective

Undertake Situation Analysis

Set Target Market

Set Product Strategy

Set Supporting strategy

Do Financial Analysis

Implement
Take Feedback and Control
THANK YOU…