NEW PRODUCT DEVELOPMENT

STRATEGY AND PROCESS

 OVERVIEW:-

 What is New Product Development

 New Product Development Strategy
 New product development process
 Conclusion
 What is New Product Development??
 New Product Development(NPD) is the term
used to describe the complete process of
bringing a new product to the marketplace.
 New product can be products that the business
has never made or sold before but have been
taken to market by others
New Product Development Strategy
 How do companies develop and market new
products?
 Come up with own new ideas
 Acquisition
 New product Development
Strategies
New Product Development Process
IDEA GENERATIOM
New product Ideas comes from the
number of sources:

Research and development

Employees

Customer

Supplier and Distributor

Competitors
 Idea Screening
• Keep the good ideas and drop the poor ones

• Criteria:-
 Market Size
 Product Price
 Development Time & Cost
 Manufacturing Cost
 Rate of Return
Concept Development And Testing

1. Develop a working description and

visualization of the product idea and concept

2. Concept Testing- Test the Product Concepts

with Groups of Target Customers

3. Choose the Best one

Marketing Strategy Development
 Understand the customers
 Analyze the market
 Analyze the competitors
 Marketing Mix
 Financial analysis
 Review
 Business Analysis

• Analyze whether the product is profitable or

not.
• Whether we are on the right track?
• We will achieve the desired objective or not?
 Product Development
 How are you going to manufacture the actual
product
 Develop concept into physical product
prototype
 Large jump in Investment ‘no point of return’
 Ready with the product
 Test Marketing
 Marketers do not directly launch the product
on large scale ,because competitors may take
advantage of it
 First they distribute only in the target market
or in particular segments.
 Then analyze whether customers are
purchasing or not?
 Are we getting Response?
 Commercialization
• If
response is positive, then produce your product in bulk quantity
and launch the product on large scale

• And decide,
Define your offer
 Align the product with your business core

 Identify your target audience

 Promote your product

 Use a sales plan

 Forecast the results your product commercialization can bring

 Conclusions

 Implementation of a NPD process with stages

has helped business focus for their New
product investment on the most potential
rewarding projects.
THANK YOU