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WHAT IS A NEW PRODUCT

A product that opens entirely new market A product that adopts or replaces an existing products An old product introduced in a new market An old product packaged in different way An old product marketed in different way

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EXAMPLES OF NEW PRODUCTS

New to the world high definition TV, ipod, flat screen TV Product improvement & replacement : SPEED by BPCL Cost reduction new products :Moser Baer

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WHY DEVELOP A NEW PRODUCT

To create stars and cash cows for the future To replace declining product To take advantage of new technology To defeat rivals To maintain/increase market share To keep with rivals To maintain competitive advantage To fill gap in the market
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NEW PRODUCT PLANNING

This is the strategic stage The firm assesses It current product portfolio Opportunities and threats The firm then determines the type of product which would best fit in with corporate startegy
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NEW PRODUCT PLANNING

New product development is a process which is designed to develop , test and consider the viability of products which are new to the market in order to ensure growth or survival of organisation

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STAGES IN NEW PRODUCT PLANNING

Idea generation Idea screening Concept development and testing Market strategy development Business analysis Test marketing Commercialization
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IDEA GENERATION
Idea generation is continuous, systematic search for new product opportunities. It involves delineating sources of new ideas and methods for generating them. Ideas for new products can be obtained from basic research using a SWOT analysis (Opportunity Analysis), Market and consumer trends, competitors, employees, sales person, corporate spies
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IDEA SCREENING
 The object is to eliminate the unsound concepts prior to devoting resources to them  The screeners must ask these questions: Will the customer in the target market will benefit from the product? What is the size and growth forecast of market target/segment market? What are the industry sales and market trends the product idea based on? Is it technically feasible to manufacture the product? Etc
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CONCEPT TESTING
Concept testing present the consumer with proposed product and measure attitude and intention at this early stage of development Concept testing of prototypes can help avoid costly mistakes

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MARKET STRATEGY DEVELOPMENT

It includes development three part strategy plan 1. Describe the market size, structure and behaviour, the planned product positioning, and the sales , market share, and profit goals for first few years. 2. Outlines the planned price, distribution strategy, and marketing budget for first few year. 3. Describes the long run sales and profit goal and marketing mix strategy over time.
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BUSINESS & FINANCIAL ANALYSIS

Estimate likely selling price based upon competition and customer feedback Estimates sales volume based upon size of market Estimate profitability and break even point
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TEST MARKETING
Test marketing involves placing a product for sale in one or more selected areas and observing its actual performance under the proposed marketing plan

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COMMERCIALIZATION
Commercialization involves total marketing plan and full production Launch the product Produce and place advertisements and other promotions Fill the distribution pipeline with the product Critical path analysis is more useful at this stage
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