NEW PRODUCT DEVELOPMENT PROCESS

Designs by : Preetesh Anil Naresh Swetha Saini

INTRODUCTION
Audi india is the wholly owned subsidiary of german automobile AUDI. The manufacturer from supermini to crossover suvs in various body styles and price ranges that are marketed under the Audi brand positioned as the premium brand within the volkswagen group The company is headquartered in ingolstadt, bavaria, germany, and has been a wholly owned (99.55%) subsidiary of volkswagen AG Audi india was established in march 2007 as a division of volkswagen group sales india.

The audi india strategy encompasses significant investments in branding, marketing, exclusive dealerships and after sales service for the upcoming years.
Audi india uses koda auto india private limited manufacturing facilities in aurangabad, maharashtra to assemble the audi a4 and audi a6 models locally.

New Product Development Process

Marketing Strategy Development Business Analysis Product Development

Concept Development and Testing

Idea Screening

Market Testing

Idea Generation

Commercialization

New Product Development Process Step 1: Idea Generation

Customers

Competitors

Distributors

Suppliers

Customer : i. Purchasing power ii. Luxurious class Competetiors : Success of MERCEDES , BMW AND VOLVO Distributors : Segmentation of luxury and drive i.e Hatchback, Sedan , SUVs and MUVs. Suppliers : i. Sophisticated technology , ii. Machining processes and methodology iii. Raw materials iv. Design and automation.

New Product Development Process Step 2. Idea Screening

AUDI Process to spot good ideas and drop poor ones as soon as possible. AUDI has systems for rating and screening ideas which estimate: 1. Market size - INDIA having huge potential market with growing economy. 2. Product price - Targeting middle higher class of society to luxury class society. 3. Development time -Quick expansion and market capture policy. 4. Unit costs 5. Rate of return : BEP analysis The idea is evaluated against a set of general company criteria.

New Product Development Process Step 3. Concept Development

1. Develop New Product Ideas into Alternative Detailed Product Concepts

2. Concept Testing - Test the New Product Concepts with Groups of Target Customers

3. Choose the One That Has the Strongest Appeal to Target Customers

New Product Development Process Step 4. Marketing Strategy

AUDIS 5 RULES OF INDIVIDUALIZED MARKETING

I.Tone and Manner

2. No repetition

3. Not obvious

4.Smart

5.Not talking dumb or down but intelligently

Audi Technology Microsite

II. Experiences Count

Audi Driving Experience

On a real track with real cars

III. No False Promises

Audi is a do brand

Our racing leads to real consumer innovation

Our design is rooted in function

IV. Audi empowers the ownership experience

AUDI lets people into the details of the brand and product

Audi Vodcasts
Tells the entire brand story

120 units 1.2 million downloads

V. Validation
JD Power IQS ranking

R8 Car of the Year

Owner Validation: Online/CRM

Step 5. Business Analysis &

Step 6. Product Development
Review of Product Sales, Costs, and Profits Projections to See if They Meet Company Objectives

Business Analysis

If No, Eliminate Product Concept

If Yes, Move to Product Development

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Product Development Process

Step 7. Test Marketing
Budget Levels Atmosphere Branding : Technology Pricing : 35-40L Product : A4,A6,Q5..

Positioning : High class Advertising Location : Metros

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New Product Development Process Step 8. Commercialization When is the Right Time to Introduce Product? Where to Launch a New Product?

AUDI INDIA Launched its operations in the post LPG era i.e 2004-05. Capitalising the growing economy. Targeted Metro cities and then TIER 2and 3cities.

OPPORTUNITIES AND CHALLENGES

The Audi customer is an individual

Intelligent : Make smart, informed choices Independent : Listen to others, trust own judgment Innovative : Progressive, like fresh thinking Impassioned : Love to drive

Challenges
Managing Complexity

1. Communications 2. Products 3. Operations

AUDI INDIA Product line :

Manufactured/assembled locally Audi A4 Audi A6 Audi Q5 Imported Audi A7 Audi A8 Audi TT (3.2 FSI V6 only) Audi RS5 Audi R8 V8 and Audi R8 V10 Audi Q7