Marketing New Product Development_23

8/8/2019 Marketing New Product Development_23

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NPD is a process which is design to develop,

test and consider the viability of products

which are new to the market in order toensure the growth or survival of the

organization.


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To replace declining products.

T

o take advantages of new products. To maintain/increase market share.

To defeat rivals.

To keep up with rivals.

To maintain competitive advantage. To fill a gap in the market.

To bring a new customers.


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Major innovations.

New product lines. Product line extension.

Product improvements.

Repositioning.

Cost reductions.


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R & D department Production department Sales team Employees Customers Competitors External sources Market research


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Screening of products to spot good ideas anddrop poor ones as soon as possible

Ideas are check for technical feasibility,financial viability and marketability The business analysis the product to evaluate

its demand, marketability and profit potential

Given ideas rating according to marketing,production and strategic factors


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1. Develop Product Ideas intoAlternative

Product Concepts

2. Concept Testing - Test theProduct Concepts with Groups

of Target Customers

3. Choose the Best One


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Part Two - Short-Term:

Products Planned PriceDistribution

Marketing Budget

Part Three - Long-Term:

Sales & Profit GoalsMarketing Mix Strategy

Part One - Overall:

Target MarketPlanned Product Positioning

Sales & Profit Goals

Market Share


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Business Analysis

Review of Product Sales, Costs,

and Profits Projections to See if

They Meet Company Objectives

If Yes, Move to

Product Development

If No, Eliminate

Product Concept


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StandardTest Market

Full marketing campaignin a small number ofrepresentative cities.

StandardTest Market

Full marketing campaignin a small number ofrepresentative cities.

Simulated

Test MarketTest in a simulated

shopping environmentto a sample of

consumers.

Simulated

Test MarketTest in a simulated

shopping environmentto a sample of

consumers.

ControlledTest Market

A few stores that haveagreed to carry newproducts for a fee.

ControlledTest Market

A few stores that haveagreed to carry newproducts for a fee.


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Introducing a new product into the market.

Timing is critical for success.

There will be heavy promotional expenditureat the launch.

Choice of skim or penetration rising.

The product has to be well targeted and

positioned.


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Develop innovative products.

Bring new ideas to market ahead.

Integrate regulatory compliance into productlifecycle processes to reduce business risk

and sell products in global markets.

Effectively manage the global manufacturing

supply chain to ensure on-time, on-cost andquality product delivery.


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Neglect of market research

Inaccurate market research Poor marketing after launch Poor distribution Product performance below expectation M

arket not ready for the products Inadequate support for the market


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Daewoowas a major South Korean

conglomerate. It was founded inMarch22, 1967 as Daewoo Industrial and was

dismantled by the Korean government

in 1999.


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The Daewoo Matiz is a city car produced by

the South Korean automaker G M Daewoo

marketed worldwide since 1998. It has won the Best City car in the 1998

World's Most Beautiful Automobilecompetition.


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The main problem was theMatiz' positioning.

It was not much powerful for highways.

When the car was launched it was overpriced. Suddenly brought down in prices created

very bad impression on public.

It was most difficult to repair.


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Nestl India is a subsidiary of Nestle S. A. of

Switzerland, Beginning with its firstinvestment inMoga in 1961.

The Company insists on honesty, integrity

and fairness in all aspects of its business and

expects the same in its relationships.


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Julius Maggi founded the company

Maggi. Maggi is a Nestl brand of instant soups,

stocks, bouillons, ketchups, sauces,

seasonings and instant noodles.


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Maggi Noodles.

Maggi Vegetable Noodles.

Dal Atta Noodles. Maggi Rice NoodlesMania.

Maggi Sauces.

Maggi Healthy Soups.

MAGGIMAGIC Cubes.

Maggi Pichkoo.

Maggi CuppaMania.


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Initially Nestle tried to position the Noodles

in the platform of convenience targeting the

working women. Research.

'Fast to Cook Good to Eat

Distribution of free samples.

Gifts on return of empty packets


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NPD is a process which is design to

develop, test and consider the viability

of products which are new to the marketin order to ensure the growth or survival

of the organization.

Marketing New Product Development_23

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