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    more addictive a new nicotine rich, harder to kick tobacco and finally

    developed a genetically altered variety with the code name Y-1.

    The history of development of nicotine rich tobacco varieties of

    today in the world thus can be attributed to British American Tobacco

    (BAT) industries. BAT also did research on harmful effects of Tobacco.

    WORLD PRODUCTION OF TOBACCO

    The world production of tobacco increased from 5.61 million tones

    in 1994 to 7.72 million tones in 1997 registering a compound annual

    growth rate of 11.24% during the period.

    Nearly 62% of the Tobacco produced in the world is Virginia

    Tobacco. The world average yield of Tobacco for all varieties is around

    1.5 Tones per hectare. The productivity for Virginia tobacco is higher at

    about 1.760 Tones per hectare.

    HISTORY OF TOBACCO IN INDIA

    In 1906, the first cigarette factory of the Peninsular Tobacco

    Company (later known as Imperial Tobacco Company and now known as

    ITC Limited) was established in Monghyr (Bihar). The history of ILTD,

    the research subsidiary of ITC can be said to be the history of cigarette

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    and Statistics, Government of India. Endowed with various agro-climatic

    zones, India grows all types of tobacco (except oriental), which are

    broadly classified as flue cured Virginia (cigarette tobacco) and non-

    Virginia types. Gujarat, Andhra Pradesh and Karnataka between them

    account for 82.4% of the area under tobacco crop.

    The production of tobacco in the country has been stagnant at

    around 6 lakhs tonnes during the last two decades. Kheda District in

    Gujarat tops in terms of area under tobacco as well as production of

    tobacco in the country.

    The presence of nicotine in tobacco products makes them addictive

    Chewing tobacco is injurious for health. This message known to

    everyone, but they are not able to leave it, because this is a habit for them.

    WHY DO PEOPLE USE TOBACCO?

    Knowing why a person uses tobacco helps identify what method

    will help them quit. Some of the reasons are:

    Peer pressure: This seems to be one of the first reasons that kids

    especially start using tobacco. They usually first get it from a friend Who

    urges them to try it and be like the big kids By the time the child goes

    to the store to try to purchase tobacco, many might have already been

    using it for several days or even weeks. Some of these kids say they need

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    to display the ring on their rear in order to be accepted with some of

    their peers. In others, the circle on the back pocket is a coming-of-age or

    emancipation symbol, marking the passage to adulthood and

    independent thinking.

    Social pressure and Association: Being in an environment that

    condones tobacco use (sports, bars, outings or any place they are around

    others who use it) can be a great motivator. Users are often to quit for a

    significant length of time but begin again when theyre around others

    who dip or smoke.

    Behaviour: Some chewers have been dipping so long that they miss

    the ritual of opening the chew can, getting the dip and putting it in their

    mouth. The most common statement heard from these users in I just

    miss something in my mouth (i.e. oral gratification). Here they have a

    choice of either quitting cold turkey or dealing with the loss of the

    behaviour or using an oral alternative while they cut down. Mint Snuff

    products are great for these people because it allows them to yield to the

    cravings of the behaviour yet do so with a harmless product.

    Nicotine Addiction: There is a significant amount of nicotine in

    smokeless tobacco. Although many young users might not be addicted,

    yet others get that very rather quickly. You might ask a user how long

    they have been using smokeless tobacco and how many cans a week they

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    use to get an idea of possible levels of addition (the range is one to three

    cans per week). Many of the questions asked of smokers apply to chewers

    to determine addition levels. Many health professionals use the nicotine

    patch or nicotine pills with non-tobacco chew to help their nicotine-

    dependant patients.

    Salt Carvings: A typical can of smokeless tobacco contains over 1100

    mg of salt. Some people not only suffer from nicotine withdrawal but

    also from salt carvings once they have quit using smokeless tobacco.

    These cravings might be confused with nicotine withdrawal.

    *****

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    COMPANY PROFILE AND NEED FOR STUDY AT

    M/S CHAITANYA SAHU & CO.

    The company started to operate in 1955 under the name ARJUNA

    SAHU & SONS, named after the founder Mr. Arjuna Sahu. That

    company first produced pan Masala named Haridakhandi Ketaki

    Khara Masala. The company created a monopoly market for its brand

    from thereafter until 1983. IN 1985, it split into two companies named

    ARJUN SAHU & SONS and ARJUN SAHU & CO. Arjuna Sahu &

    Sons was headed by elder son of Mr. Arjuna Sahu and Arjuna Sahu &

    Co. was headed by second and third son of Mr. Arjuna Sahu.

    Arjuna Sahu & Co. was running under partnership until August

    2003. The company was then divided into two more companies, M/s

    Chaitanya Sahu & Co. and Arjuna Sahu & Products.

    During this period, in 1998, a super cyclone hit entire Orissa and as

    a result, they produced the same product but with some other brand name.

    They came into the market with pouch, which was entirely a new

    concept. However, these two companies could not supply an unexpected

    market demand that was increasing rapidly. The supply chain at that time

    was not at all ready to face this sudden growth. New machineries were

    required immediately without allowing any timeframe, which pushed the

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    company for a huge financial requirement. Though the company was able

    to arrange everything, yet it could not suppress the growing rival

    company of Gopalji. The parent company failed to trace the growing new

    rival and did not concentrate on the new competitor. Gradually, the new

    company grabbed a market share ahead of HARIDAKHANDI.

    Since, M/s Chaitanya Sahu & Co. is still occupying a good market

    share in the masala market, it requires information with regard to

    consumer behaviour in purchasing or consuming tobacco. Therefore, this

    study has been done for M/s Chaitanya sahu & Co.

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    PROJECT DESIGN

    What is project design?

    A body of knowledge assembled by a small team dedicated full-

    time to the creation of the product in question, research design is used as

    the foundation for Creating models (such as personnel and representative

    workflows) that are used during the design phase.

    Obtaining an objective, understanding of technical

    development, constraints and opportunities.

    Articulating business goals that may affect future product

    deployment strategies.

    A project design phase consists of three main activities;

    stakeholder interviews, domain research, and user interviews. Some

    combination of all three makes for a successful phase. The length of each

    activity depends on the complexity of the product. More is always better,

    but effective design research can be gathered in a relatively short amount.

    An intimate understanding of user research is fundamental for

    designers. In order to gain such an understanding of the project,

    designers must lead-or at least participate in user interviews. Simply

    handling them a report generated by someone else is not nearly as

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    effective. If the design team is truly immersed in the project and models

    that come out of that research, it will be much easier for them to design a

    product that meets the needs of the users rather than themselves.

    IMPORTANCE OF STUDY

    Just production of goods cannot meet the objective of the

    organization. The main thing is to place the product at right time, at right

    place and to the right target group. Therefore, an organization should

    have target oriented distribution channel, which only can lead the

    organization to the path of success. In India, people use tobacco as a

    means of relaxation from their routine works and due to habits. However,

    it is the responsibility of the tobacco manufacturers to distribute and sale

    their product at right place and at right time. The first function of every

    tobacco company is to make available its products to the farmers and the

    other labour classes for creating efficient supply chain when and where

    needed.

    Therefore, an attempt has been taken to study the marketing

    network of M/s Chaitanya Sahu & co. The research has been done

    through market survey with a view to study the distribution system

    required for chewing tobacco.

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    OBJECTIVE OF THE STUDY

    The following points can be summarized as the main objectives of the

    study.

    1. Investigation of dealers and retailers, to know the problem in

    procuring, transporting and selling the product.

    2. To determine the effectiveness of the existing distribution

    system of M/s Chaitanya Sahu & co for contributing towards

    increase in sales turnover and to face the present marketing

    competition.

    3. To identify the problems and its effects on the distribution

    channel of the company and to suggest further improvement in

    sales.

    FEATURES

    It is a plan that specifies the sources and types of information

    relevant to the research problem.

    It is a strategy specifying which approach will be used for

    gathering and analyzing the data.

    It also includes the time and cost budgets since most studies are

    done under these two constraints.

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    Project design must contain:

    A clear statement of the research problem.

    Procedures and techniques to be used for gathering information.

    The population to be studies.

    Methods to be used in processing and analyzing data.

    SAMPLING METHODS

    It is incumbent on the research to clearly define the target

    population. There are no strict rules to follow, and the researcher must

    rely on logic and judgment. The sample reflects the characteristics of the

    population from which it is drawn.

    Sampling methods are classified as either probability or no

    probability. In probability sample, each member of the population has a

    known non-zero probability of being selected. Probability methods

    include random sampling, systematic sampling, and stratified sampling.

    In no probability sampling, members are selected from the population in

    some nonrandom manner. These include convenience sampling,

    judgment sampling, quota sampling, and snowball sampling error is the

    degree to which a sample might differ from the population. When

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    inferring to the population, results are reported plus or minus the

    sampling error. In no probability sampling, the degree to which the

    sample differs from the population remains unknown.

    Random sampling is the purest form of probability sampling.

    Each member of the population has an equal and known choice of being

    selected. When there are very large populations, it is often difficult o

    identify every member of the population, so the pool of available subjects

    become biased.

    Systematic sampling is often used instead of Random sampling. It

    is also called an Nth name selection technique. After the required sample

    size has been calculated, every Nth record is selected from a list of

    population members. As long as the list does not contain any hidden

    order, this sampling method is as good as the random sampling method.

    Its only advantage over the random sampling technique is simplicity.

    Systematic sampling is frequently used to select a specified number of

    records from a computer file.

    Stratified sampling is commonly used probability method that is

    superior to random sampling because it reduces sampling error. A

    stratum is a subset of the population that shares at least one common

    characteristic. Examples of stratums might be males and females, or

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    managers and non-managers. The researcher first identifies the relevant

    stratums and their actual representation in the population. Random

    sampling is then used to select a sufficient number of subjects from each

    stratum. Sufficient refers to a sample size large enough for us to be

    reasonably confident that the stratum represents the population. Stratified

    sampling is often used when one or more of the stratums in the

    population have a low incidence relative to the other stratums.

    Convenience sampling is used in exploratory research where the

    researcher is interested in getting an inexpensive approximation of the

    truth. As the name implies, the sample is selected because they are

    convenient. This no probability method is often used during preliminary

    research efforts to get a gross estimate of the results, without incurring

    the cost or time required to select a random sample.

    Judgment sampling is a common no probability method. The

    researcher selects the sample based on judgment. This is usually and

    extension of convenience sampling. For example, a researcher may

    decide to draw the entire sample from one representative city, even

    though the population includes all cities, When using this method, the

    researcher must be confident that the chosen sample is truly

    representative of the entire population.

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    Quota sampling is the no probability equivalent of stratified

    sampling. Like stratified sampling, the researcher first identifies the

    stratums and their proportions as they are represented in the population:

    Then convenience or judgment sampling is used to select the required

    number of subjects from each stratum. This differs from stratified

    sampling, where random sampling fills the stratums.

    Snowball sampling is a special no probability method used when

    the desired sample characteristic is rare. It may be extremely difficult or

    cost prohibitive to locate respondents in these situations. Snowball

    sampling relies on referrals from initial subjects to generate additional

    subjects. While this technique can dramatically lower search costs, it

    comes at the expense of introducing bias because the technique itself

    reduces the likelihood that the sample will represent a good cross section

    from the population.

    OBJECTIVES

    Sampling theory is designed to attain the following objectives-

    Statistical estimation

    Testing of hypothesis

    Statistical inference

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    MEHTODS OF DATA COLLECTION

    The task of data collection begins after research problem has been

    defined and research design or plan chalked out. While deciding about the

    method of data collection to the used for the study, the researcher should

    keeping mind two types of data.

    1. Primary data 2. Secondary data

    The methods of collecting primary and secondary data differ since

    primary data are to be originally collected, while in case of secondary

    data the nature of data collection work is merely that of compilation.

    Primary Data

    The primary data are those, which are collected afresh and for the

    first time, and for the first time, and thus happen to be original in

    character. There are several methods of collecting primary data.

    They are

    Observation method

    Interview method

    Questionnaires

    Warranty cards

    Distributors audits

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    Secondary Data

    The Secondary data are those which have already been collected by

    someone else and which have already been passed through the statistical

    process. The different methods of collecting secondary data are

    Various publications of the central, state and local Govt.

    Various publications of the foreign Govt. or of international

    bodies and their subsidiary organizations.

    Technical and trade journals.

    Books, magazines and newspapers.

    Reports prepared by research scholars, universities, economists.

    Public records and statistics, historical documents and other

    sources if published information.

    RESEARCH METHODOLOGY

    Investigation methodology is a way to analyse different aspects

    systematically to reach a definite solution. Effective methodology and

    methods of data collection are quite necessary for the fulfillment of the

    objectives of the study. In methodology, various steps are adopted for

    problem identification and to find out appropriate remedial measures.

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    As the core objective of the study is to know the problems of

    distribution channel of M/s Chaitanya Sahu & co in the Orissa market.

    The study should be oriented towards different wholesalers, dealers and

    farmers. Methodology followed in this study is based on both primary

    and secondary data.

    PRIMARY DATA

    Primary data are collected directly from 400 chewing tobacco

    consumers in the city of Berhampur, Bhubaneswar, Chatrapur, Cuttack,

    Titlagarh, Kesinga, and Rayagada by observation method.

    SECONDARY DATA

    Secondary data are collected from the Internet.

    Research instruments

    A structured questionnaire is prepared and it contains both open-

    end and close-end questions and administered to the respondents.

    Sampling Plan

    Sampling plan calls for four decisions.

    Sampling unit: the sampling unit is defined with customer.

    Sampling size: 400 respondents.

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    Sampling procedure: Non-probabilistic convenience sampling

    technique issued.

    Statistical Tools: the Statistical Tools used are percentages and

    averages.

    SCOPE AND LIMITATION

    In the field of marketing, distribution channel plays a vital role for

    companies in having a competitive advantage over other competitors. It

    wont be wrong to say that distribution system is the heart of the

    marketing activities. Without well-organized distribution channel an

    organisation cannot be successful in this competitive market. It wont be

    able to compete with other companies without a proper distribution

    channel.

    As we know, India is a traditional country; the old rituals and

    customs define tobacco as a part of every household. Its demand

    increases with the increase in population. So to control the increased

    market, organization urgently required increasing its marketing network

    by changing or expanding its marketing network to make the consumers

    more convenient to get the products.

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    Therefore, a well-organized and efficient distribution channel will

    not only improve the sales turnover but also enhance the profit. Hence, in

    the world of cutthroat competition, to survive in the market, the selection

    of suitable distribution channel is essential.

    In this universe, nothing is escaped from limitation. Every act has

    some limitation and so this investigative study has some limitations.

    They are: -

    1. The sample size of the study is very small. Hence, it is very

    difficult to get exact picture.

    2. It is very difficult to project exhaustive picture within such a

    short time.

    3. Company is reluctant to provide some confidential data that is

    important for researcher.

    PRODUCT LINE

    Haridakhandi Ketaki Khara masala.

    Haridakhandi Mawa masala (Red)

    Haridakhandi Mawa masala (Blue)

    Haridakhandi Zarda Mix

    Haridakhandi Fresh N Kool Mouthfreshner

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    KEY PEOPLE

    Mr. Chaitanya Sahu Chairman cum Managing Director,

    & Head Purchase

    Mr. Sunil Kumar Sahu Head Sales & Distribution

    Mr. Sibram Panda Head Marketing & Customer Care

    Mr. A.S.N. Achary Head Finance

    Mr. L.N. Sahu Head Factory Operations & warehouses.

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    DEVELOPMENT OF NEW PRODUCT

    TOPIC INTRODUCTION

    The term marketing has been derived from the word market. The

    term market originates from the Latin noun Marcatus, which means, a

    place where business is conducted. Market is generally understood as the

    place of geographical area, where buyers and sellers meet and enter into

    transaction involving transfer of ownership of goods, services, securities

    etc.

    Marketing as a total system of business activities is designed to

    plan, price, promote and distribute want satisfying goods and services to

    potential customers.

    MARKETING

    PromotionPrice

    Place

    Product

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    PRODUCT

    The key element of the market program is the product. Before

    making decisions about pricing, promotion, and distribution a firm has to

    determine what product, it will present in the market. In the absence of a

    product, no marketing strategies could be shaped. Any firm that markets

    produced services has to aim to achieve: -

    Consumer Satisfaction

    Profit Maximization

    A product consists of a bundle of utilities involving various

    products, features and accompanying services. The utilities created by set

    tangible, physical and chemical attributers assembled, in an easier

    identifiable form. People want products because they want the

    experience bringing services which they hope the products will render.

    A product is anything that can be offered to a market for attention,

    acquisition, use or consumption. It includes physical object, services,

    personalities, place, organization and ideas.

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    NEW PRODUCT DEVELOMENT

    PRODUCT

    A product is central to the marketing operation. The term product

    concept was used by Theodore Levitt. According to him, it refers to the

    augmented product of the aggregate of satisfaction that user obtains.

    Thus, he explains the concept:

    When an industrial marketing sells a major item of machinery it

    may augment the production several ways. A diesel engine manufacturer

    might:

    Provide long term financing

    Assure constant supply of maintenance and replacement.

    Guarantee performance of engine for a specific period.

    Market techniques available to advise the customer

    Train the customers how will operate the engine.

    ADOPTION PROCESS

    The Diffusion process reflects the process called the adoption

    process when a new product is launched. It can be highly successful if the

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    management identifies the nature and extent of adoption process of that

    product.

    NEW PRODUCT PLANNING AND DEVELOPMENTS

    STRATEGY

    PRODUCT PLANNING

    The competitive pressure lead to the displacement of existing

    products and forces management to look around for alternative sources of

    income through the development of new products to replace existing

    products or through diversification and extension of the product line

    itself. Product planning is the starting point for entire marketing program

    in a firm. It embraces all activities, which enable producers and

    middlemen to determine what should constitute a companys line of

    products.

    STEPS IN NEW PRODUCT DEVELOPMENT PROCESS

    Identifying and developing new product ideas and effective

    strategies to go with them is often key to a companys success and

    survival. To follow a systematic process or organized way of achieving a

    new product development exercise, which should be logically done on the

    following steps:

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    I. Idea generation

    II. Screening

    III. Concept or idea development

    IV. Business analysis

    V. Development of product

    VI. Formulation of market mix and market testing

    VII. National lunching and commercialization

    We shall now discuss the above stages or steps in new product

    development in more detail.

    IDEA GENERATION

    For any development activity, the idea must be generated and

    explored in the search for new ideas irrespective of their soundness and

    perfection should be done. The sources for new ideas should be correctly

    done and generally following sources has proved good:

    I) Customers 2) Stockiest or distributors or dealer 3) Competitors 4) Own

    sales forces 5) Ad agencies 6) Suppliers or vendors 7) Fabricators 8) Top

    Management 9) Consultants or scientists or management advisers.

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    SCREENING

    Only some ideas generated during the idea screening will justify

    the expense of development work. So some mechanics is required. There

    are two essential features in the screening process. The establishment of

    set evaluation criterion i.e. a list of important factors that should be

    considered when making a chance.

    CONCEPT OR IDEA DEVELOPMENT

    Those ideas, which survive in the second stage of product

    development that is the screening stage, must be evaluated further with

    emphasis on more careful facts. In this stage, no tangible products have

    yet been developed and this can face handicaps in getting feed back from

    customers. For health idea evaluation, firms use concept testing that is

    getting reaction from customers on how will new idea fit with their needs.

    Concept testing uses market research ranging from formal focus groups to

    formal service of potential customers. It is important to distinguish

    between a product, a product concept and a new product range. A product

    idea is a possible product described in its functional terms that the

    company would offer to the market.

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    BUSINESS ANALYSIS

    At this stage, new product ideas are carefully evaluated for their

    economic worth. Estimates of sales, costs and profits are important

    components of business analysis and forecasts of market penetration and

    market potential are essential. More precise estimates of environmental

    and competitive changes that may influences the products life cycle, its

    replacement or repeat sales are also needed to develop and lunch a

    product.

    DEVELOPMENT OF PRODUCT

    Once the product concept has been developed, this should be

    briefed to the product development and research and develop department

    who will under take to design and develop few physical prototypes of the

    defined product concept. The design and the quality of the design are at

    the heart of achieving an effective and competitive mix. They are

    important to all product and services and as important to specially

    chemicals, restaurant and engineering products as to haute counter, each

    uses technology through design to create better looking, durable and

    value for money.

    FORMULATION OF MARKET MIX AND MARKET TESTING:

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    Throughout all the development phases, the main aim is to obtain

    fuller knowledge and more accurate understanding of each of these new

    data will be assimilated on all three and revised projection made at

    frequent intervals. Revenue projections will weigh heavily and that

    explains the pre-occupations will attempt to provide better and earlier

    sales.

    FACTORS TO BE CONSIDERED BY MANUFACTURERS

    WHILE DEVELOPING NEW PRODUCTS

    Manufacturers of industrial products should pay more attention to

    the development and marketing of new products and to the failure rates of

    these products. Generally, they seek wage to minimize the risk of new

    product marketing by improving their programmes for new product

    planning, research and development. Mathematical models are used,

    PERT and CPM are two important tools usually used to add in planning

    and controlling programmes.

    TIME OF NEW PRODUCT

    Proper timing is of great importance in every stage connected with

    the introduction of new product. In planning to introduce a new product,

    management must forecast, plan and compete its product development

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    activities so that the product will be ready for marketing at that future

    time.

    DIFFUSION OF NEW PRODUCTS

    The development of markets of new products a some what

    predictable patterns, which it understand by the marketing man can

    provide some important clues for the development of effective marketing

    strategies, The diffusion process is the same as the product cycle concept.

    Profitless Price Competition

    Normally, the competitive comes in the modern system do not

    permit the continuance, for a long time, of a firm if it does not produce

    new products or make improvements in markets for mature and dying

    products are highly competitive.

    Diversification of Risk

    With the passage of time, the existing product may not be likely at

    all the buyer, which means that they become obsolete. This has been

    result with the horse driven Tonga or the fountain pen.

    Other Factors

    Several other reasons for product innovations are:

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    1. A company may develop new products to utilize the basic

    materials it is already making or to utilize waste or scrape from

    present production

    2. A company may add new products to even out sales fluctuations

    resulting from seasoned or cyclical factors.

    3. It may seek new products to counteract the highly erratic buying

    behaviour.

    ORGANISATION OF NEW PRODUCTION DEVELOPMENT

    Production innovation is a top management responsibility.

    Therefore, well-designed organization framework, within which the

    production planning and product development functions may be carried

    on, should be developed.. Friction at lower level is avoided but he is so

    preoccupied with other important matters that he cannot devote sufficient

    attention to product innovation. Some companies overcome this problem

    through appointing a staff assistance that helps him. Following are the

    structure of organization new product development.

    1. Product planning committee

    2. Separate staff department

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    THE BASIC REQUIREMENTS OF NEW PRODUCTS ARE

    1. Consumer or customers acceptance

    2. Satisfactory performance.

    3. Economical production.

    4. Adequate distribution in dept and breadth

    5. Effective packaging and branding

    6. Adequate after sales services and

    7. Ultimate replacement.

    PRODUCT INNOVATION

    A product or service, which is profitable today, cannot be so

    tomorrow or at some future time. Either another one replaces it or it

    degenerates into profitless price competition. The underlying reason is

    that it is highly dynamic.

    Innovation in product planning is newness; it is the process of

    doing something that has never been done before. For a firm, an

    innovative product is completely a differentiated product. Innovation has

    been deemed necessary due to following factors:

    a) Market Changes:

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    The market is dynamic and therefore existing products and

    product lines prove inadequate for meeting buyers demand.

    Sophisticate buyers buy products tailored to their generalized needs

    Market changes have been rendered possible with the development

    and growth of new media of communication, the case of reaching

    this media and the changes in fashion, therefore, to avoid their

    product going out of market the manufactures emphasize on

    production innovation.

    b) Change In Technology:

    Changes in technology have not only widened the existing

    markets for the old products but have also brought entirely new

    market in existence through the creation of entirely new product

    functions that distinguishes it from other products or services, the

    related product features and the related product services such as

    delivery, installation, maintenance and repair warranty etc. since in

    marketing operations the product plays an important part.

    c) Consumer Dimension:

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    Consumers buy a product in hope that it will satisfy his

    needs and expectations; a product conveys a message indicating a

    bundle of expectations to a buyer, as in the case of toothpaste. If

    the expectations are fulfilled, its repeat demand is the result.

    d) Social Dimension

    It presumes that the society too is offered desirable or

    salutary product which brings not only an immediate satisfaction

    but also yield long run consumer welfare, such as tasty, nutrious,

    eatable, ready made products, conversation and best use of scanty

    resources, safety to users, quality of life, concern for a cleaner and

    better environment etc.

    PRODUCT MIX STRATEGY

    Most companies whether large or small whether in manufacturing

    or retailing, generally handle a multitude of product and product varieties.

    In course of time, the companies may expand new lines of contract the

    old lines, after the existing product or develop a new use for the existing

    products. These activities involve managerial strategies and policy

    making with respect to the companys line of products or services. The

    proliferation of products within the company means the product, policy

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    discussion are made at three different of product aggregation i.e., product

    item, product line and product mix.

    THE PRODUCT LIFE CYCLE (PLC)

    Products like people have a certain length at life, during which they

    pass through different stages. For sore the life style may be as short as a

    month, while for others it may last for quite a sufficiently long period.

    The example may be of a fashionable dress or an electrical appliance.

    From the time the products idea is born, during its development, and up

    to the time it is launched in the market, a product goes through the

    various phases of its development.

    MANAGEMENT OF PRODUCT LIFE CYCLE

    The shape of a product sales and profit curve is inevitable in a

    company to a surprising extent. The shape can be controlled and managed

    by timely and effective implementation of specific marketing actions. The

    important key to life cycle management is to forecast the profile of the

    proposed products cycle even before it is introduced than at each stage.

    The management should anticipate the marketing requirements of the

    following stage.

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    NEW PRODUCTS

    Products whether they are delivered from an existing product

    concept of form latest demand, are the results of countless hours spent by

    management in market analysis and in decision-making. This may relate

    either to the production of the existing product or to entirely new product.

    A new product is one, which have several recognizable categories

    forecasts. Ideas about the must appropriate marketing plans will also be

    evolving during development with refined assumptions about the effect of

    alternative plans. Testing the market can take many forms ranging from

    informal discussions with potential buyers through more formal

    experiments with or without sales being made up to regional and national

    lunch with full-scale marketing activity.